Presentation Outline

1. Company Overview
2. Mission/Vision Statement
3. Internal Assessment
4. External Assessment
5. Strategy Formulation
6. Strategy Implementation
7. Conclusion

Company Overview

• Headquarter: Cupertino, California
• Products: iPhone, iPad, iPod, iTunes, iCloud, Mac, Apple Watch, iOS, Apple Store, and Other Application Software
• Employees: 66,000 in United States
• Stock Exchange: NASDAQ
• 2015 Revenues: $233,715,000,000
• 2015 Net Income: $53,394,000,000

Mission Statement:

The Company designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players and sells a variety of related software, services, peripherals, networking solutions, and third party digital content and applications.

Vision Statement:

The Company is committed to bringing the best user experience to its customers through its innovative hardware, software, and services.

New Mission Statement

The Company designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players and sells a variety of related software, services, peripherals, networking solutions, and third party digital content and applications, and network services to an international consumer base, destroying the limitations to technological connectivity while providing excellent customer services through employees internally motivated by the goals of Apple and seeing the company reach its economic potential.

New Vision Statement

Through excellent customer service, ethical business practices, and environmental preservation Apple strives to be the number one technological service and network provider on a global scale.

Executive Summary:

There are many cellular service providers that distribute Apple products in today's economy. What were to happen if Apple introduced their very own Apple cellular service? Our recommendation for Apple, is to expand into a new market in order to boost their competitive advantage within the technology industry. Through our analysis and research, we have come up with a strategy that Apple Inc. should highly consider introducing their very own cellular service by buying out U.S. Cellular. Since U.S. Cellular is within the top five cell phone services and Samsung has not yet introduced this strategy themselves, we have come to the conclusion that Apple could highly benefit from introducing their very own service provider in the cell phone market.

Internal Assessment

External Assessment

Our Competitors

Google (Android)

• Net Income: $16,348,000,000
• EPS: $23.78
• Android's is edging out iOS in creation of apps and downloads (over 1.5 billion apps downloaded on Google Play per month)

HP (Hewlett-Packard)

• Net Income: $4,554,000
• EPS: $2.51
• HP's lower prices offer more affordable options than Apple

* Complete Competitor Financial Statements are included in the Deck

Strategy Formulation

Recommendations

• Purchase U.S. Cellular services for $2,009,866,293
• Develop Apple Cellular Services to decrease dependence on network distribution as well as create a competitive advantage among competitors
• Role out Home Field Advantage Customer Loyalty Program
• Using R&D to implement cellular service to multiple Apple products

Why U.S. Cellular?

• Top five network providers in the United States
• Profits along with EPS are declining over the last five years
• They don't have the budget or expertise to compete with competitors such Verizon and AT&T
• Monthly cell phone subscriptions are going up
• It could relieve the stress of network dependency
• U.S. Cellular already has tower establishments which reduce costs of fixed assets
• This will be able to unify a stronger customer experience

Strategy Implementation

Conclusion

By implementing core competencies such as R&D, strong brand image, and innovation, we believe that adding another new service such as a cellular network service will increase Apple's competitive advantage substantially.