Apple
A presentation by Peder Abrahamsen, Mason Crawford, Tsadok Dalien, Eric Piering,
and Nick Shulls
Overview
Apple as a company
Internal Assessment
External Assessment
Strategy Formulation
Strategy Implementation
Strategy Evaluation
Conclusion
Mission Statement
“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.”
Vision Statement
We are "committed" in producing high quality products and providing high quality services thus setting high industry standards for other competitors.
Apples Backround
A1976 computer company that from the beginning broke the pace of innovation. Dominating the phone, computer, tablet, and music industry since the 2000’s. Apple has built its reputation to be the leader in its industry.
Internal Assessment
Strong Financials
- From 2013 to 2015, the total revenue increased from $170 billion to $233 billion, which is nearly a 37% increase.
- Net income also increased from $37 billion to $53 billion over the same time period.
- Gross profit margin for 2015 was 40%
Weak Financials
- iPad dropped from nearly $32 billion to $23 billion from 2013 to 2015
Market Positioning Map
Perfection is achieved not when there is nothing more to add, but when there is nothing left to take away. — Antoine de Saint-Exupéry, 1939
Marketing Strategy and Objectives
- Continue to create groundbreaking products.
- Innovate and dictate the movement for future technology
- Expand nationwide chain of Apple stores globally
- Make products available in every other possible retail channel
- Build hype and anticipation for new upcoming products
Internal Swot Analysis
Internal Factor Evaluation
Strong Points
- Strong Financials
- Strong Advertising
Weak Points
- iPad sales have declined by 27%
- Low market share
External Assessment
Major Competitors
Competitor Profile Matrix
Industry Trends
- Current ratio has decreased by 10% over the past 3 years.
- Debt to total asset ratio has increased by 6% over the past 3 years
- Gross profit margin has consistently been at 42%
- Net profit margin has decreased by 5% over the past 3 years
External SWOT Analysis
External Factors Evaluation
Major Opportunities
Major League Sports
Younger generation enjoy tablets
New Products and Software
Major Threats
Strong competition
Unethical employment practices
Pace of Innovation
Matrix Analysis
SWOT MATRIX
Recommended STRATEGY 1
Begin $92 million marketing strategy to have the use of only iPads and other Apple products as the focus point of the NBA for five years. This will increase iPad sales by 3% each year, bringing Apple an extra 5% to their total revenue.
Recommended Strategy 2
Increase research and development so that a new Retina iTV can be made, spending $1.5 billion on research and development on the product. Apple will cut the price of current Apple TV devices in one year, from 64 gb from $199 to $149 and the 32gb from $149 to $99. This will sell 85% of the current Apple TVs still on the shelves. Apple will release the idea of the iTV to the public following the decrease in price of the Apple TV. Then six weeks later start selling the iTV’s in all retail stores.
Space Matrix
Internal External Matrix
Grand Strategy
Quantitative Strategic Planning Matrix
Strategy
Begin $92 million marketing strategy to have the use of only iPads and other Apple products as the focus point of the NBA for five years. This will increase iPad sales by 3% each year, bringing Apple an extra 5% to their total revenue.
Projected Financials
Ratio and Statements
Current assets ratio by 2020 will be 2.68
Gross profit margin will be 38% in 2020
Net profit margin will be 42% by 2020
ROA will be 12.52% in 2020
Net Present Value
Balanced Score Card
Conclusion
- Market strategy that increases revenue with limited cost
- Factors and matrices lead to market development being the strongest strategy
- With strong financials Apple is able to advertise its high quality products in the National Basketball Association
Strategy Timeline
