Apple Incorporated Andrew Miles, Edward Morris, Bryanna Nance, Jessica Parisen Team K
“Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App store, and is defining the future of mobile media and computing devices with iPad (Panmore Institute).”
"Apple aims to provide high-quality and innovative technology products, operating systems software, application software, and accessories to its loyal customer base both domestically and internationally. Apple prioritizes hiring and retaining qualified individuals with a strong work ethic and moral character to ensure quality product resolutions and enjoyable customer service experiences. Leading the industry in profitability and growth, our philosophy is to create simple and visually-appealing devices. Apple is shaping the future for mobile and computing technology and services."
“We believe that we are on the face of the earth to make great products and that’s not changing. We are constantly focusing on innovating. We believe in the simple not the complex. We believe that we need to own and control the primary technologies behind the products that we make, and participate only in markets where we can make a significant contribution. We believe in saying no to thousands of projects, so that we can really focus on the few that are truly important and meaningful to us. We believe in deep collaboration and cross-pollination of our groups, which allow us to innovate in a way that others cannot. And frankly, we don’t settle for anything less than excellence in every group in the company, and we have the self- honesty to admit when we’re wrong and the courage to change. And I think regardless of who is in what job those values are so embedded in this company that Apple will do extremely well (Panmore Institute).”
Apple Inc is a multinational corporation that specializes in the production of smartphones, consumer and business computers, electronics and software. Apple Inc plans to expand their products and services into more global markets and continue to develop revolutionary software to increase their current revenue and market share by developing the iPhone 8 Enduro.
Apple strives to continue creating groundbreaking, innovative products through great employees and research.
The company wants to place its stores globally with location of such stores determined by population statistics and demand of products. Additionally, Apple wants its products placed in every possible retail channel, such as in electronic device stores, e-commerce sites, and every large mobile carrier.
Apple enters and sustains premium pricing while attempting to gain market share through pricing products at the top of the market and trusting customer loyalty to offset the price differential. Profit margin should increase by lowering manufacturing costs while maintaining the same retail market price.
Apple builds anticipation for upcoming products and expands the strongly branded company name by traditionally announcing new products at events and entering new product markets before competition does so.
strategy formulation
- SWOT Analysis
- SPACE Matrix
- BCG
- IE
- Grand Strategy
- QSPM
- Recommendations
Strategy Recommendations
1.) Expand Apple Pay into more countries.
- Currently in 4 countries - hoping to expand into Hong Kong, Singapore and Spain
- Global demand for smartphone is huge
- iPhone market is becoming saturated in the US - expanding globally will allow Apple Pay to be used more
2.) Develop and market the iPhone 8 Enduro
- Thermal and 3-D imaging markets expected to produce large amounts of revenue in the coming years
- Apple commands over 90% of the smart phone market
- Superior branding and customer loyalty allows for projected sales growth
Recommendations
Apple will create the iPhone 8 Enduro which will include 3D software and thermal imaging built into the hardware of the phone, along with other unique features. Apple will take resources from their retained earnings to expand the research and development (R&D) department to cultivate the new technology needed for the iPhone 8 Enduro. Apple will also take funds from their retained earnings department and expand their marketing techniques to attract consumers from the appropriate markets.
What is the iphone 8 enduro?
The iPhone 8 Enduro is the next big thing in the smartphone industry. In addition to the iPhone's current features, the iPhone 8 Enduro will have built in 3-Dimensional software, along with a thermal imaging camera. Included in this new design will be shatterproof glass screens and waterproof technology. The iPhone 8 Enduro will build on Apple's philosophy of simplicity, while focusing on the durability and dependability features of this new iPhone.
3d software
WHAT IS 3-D SOFTWARE?
3-D software is a type of computer graphics software that enables the design, development and production of 3-D graphics and animations. 3-D software allows users to visualize, design and control an object, environment or any graphical element within a three-dimensional scope.
HOW WILL THIS AFFECT APPLE LONG TERM?
MarketsandMarkets forecasts the 3D imaging market to grow from USD 4.9 Billion in 2015 to USD 16.6 Billion in 2020, at a Compound Annual Growth Rate of 27.5% (marketsandmarkets.com, 2015)
Thermal imaging
what is thermal imaging?
Thermal Imaging is a way of detecting the heat signatures which come off different physical items. Thermal imagery detects radiation, and does not require light. Thermal camera's are not actually camera's but sensors built into the device.
How will this affect apple long term?
MarketsandMarkets forecasts that the global Thermal Imaging market is expected to grow from $7252.0 Million in 2015 $9998.9 Million by 2020, at a Compund Annual Growth Rate of 6.6% (marketsandmarkets.com, 2015)
Target market
- Current iPhone Users
- Those who work in the housing industry
- Those with "adventurous" lifestyles
marketing strategies
- Create new commercial highlighting iPhone 8 Enduro's new features
- Celebrity Endorsements such as Chip and JoAnna Gaines from Fixer Upper
- Continue tradition of CEO announcing and showcasing new products and features during the launch event
Summary
Strategy
- Develop and market the all new iPhone 8 Enduro
Results
- Comprehensive IRR of 281%
- NPV of $121 M