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Apple Strategic Case Study

Apple Strategic Case Study. Pearl Market OGL355: Leading Organizational Innovation and Change Dr. Brent Scholar September 20, 2018 Arizona State University. Nashem , 2018. Introduction Organizational Structure Leadership Competitive Advantage SWOT Environmental Analysis Going Global

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Apple Strategic Case Study

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  1. AppleStrategic Case Study Pearl Market OGL355: Leading Organizational Innovation and Change Dr. Brent Scholar September 20, 2018 Arizona State University Nashem, 2018

  2. Introduction • Organizational Structure • Leadership • Competitive Advantage • SWOT • Environmental Analysis • Going Global • Recommendations • Conclusion • References Agenda Hodynky, 2018

  3. Introduction • Apple Computers, Inc. (Apple) • Founded in 1976, by Steve Jobs and Steve Wozniak (Badenhausen, 2017). • They had the idea of making computers small enough for people to have in their homes or offices (Terrell, 2008). • The mission was to be the most innovative company on the planet, to have a Global Vision, and adhere to the values of Apple (Farfan, 2017). Palo Alto, 1975

  4. Organizational Structure • Apple’s structure maintains a standard hierarchy type with some key elements from other types of organizational structures (Meyer, 2018). • Apple has made changes to its structure in order to align with its current global market and industry demands (Meyer, 2018). Alton, 2017

  5. Leadership Democratic Leadership Inspirational Leadership Apple’s leadership style is inspirational in helping each employee become a better person (Dudovskiy, 2018). • Apple has a democratic leadership style in that it is based on mutual respect and the participation of all the people with a shared goal (Gamelearn, 2016).

  6. Competitive AdvantageResource Based View • Maintain target market, fanatical consumer base • Research anddevelopnewproducts • Improvecurrentproducts • Acquirenewtechnology • Enter into a newindustry • DeveloptheDaisyroboticarm (Resinger, 2018) Eser, 2017

  7. SWOT Pestle, 2013

  8. SWOT continued Strengths Weaknesses Customer expectations Incompatibility with other technical devices and services Small product line, little variety (Badenhausen, 2017) • Apple has strong branding and marketing • Apple’s software operating systems are the same on multiple devices • Apple owns and controls manufacturers • Apple has reasonable prices and discounts to their wholesalers to keep their prices stable

  9. SWOT Continued Opportunities Threats Economy Suppliers Product vision Other tech producers (Badenhausen, 2017) • Services that include: AppleCare, Apple Pay, and licensing are major revenue generators. • Apple iWatch, audio products and services • India and South Asian growth markets (Aulakh, 2018). • Acquisition of a complimentary division to enhance Apple TV (Cringely, 2016). • Dedicated brand loyalty (Badenhausen, 2017).

  10. Environmental Analysis Porter’s Five Forces

  11. Threat of New Entrants • Apple Inc. has a very low threat of entrants to the marketplace because of the high cost of establishing a company, and the even higher cost of establishing brand recognition (Grundy, 2006). • Environmental Analysis Oman, 2012

  12. Bargaining Power of Buyers • The bargaining power of the individual buyers is weak (Grundy, 2006). • The bargaining power of the collective customer base is strong, because of the possibility of mass customer defections to a competitor (Maverick, 2018). • Environmental Analysis

  13. Bargaining Power of Suppliers • Apple’s individual suppliers do not have a unique service they provide for Apple, so they can be switched at Apple’s preference (Grundy, 2006). • Environmental Analysis

  14. Threat of Substitute Products • The threat of substitute products is low for Apple (Grundy, 2006). • Environmental Analysis Bell, 2018

  15. Industry Rivalry • Apple is able to adapt to change quickly and consistently stay above its rivals. Customer Support makes a strong contribution to staying above the rest (Grundy, 2006). • Environmental Analysis

  16. Target Audience • Apple’s target audience starts at an early age and encompasses users of all ages (Grundy, 2006). • Environmental Analysis Thaman, 2017

  17. Going Global Cuba Guvasa, 2015

  18. Going Global • Enter the Cuban marketplace • Export directly • Work via Etesca Telecommunication Company • Work with the Government of Cuba Tim, 2016

  19. Going Global

  20. Recommendations Resource Based View Maintain Consumer Base Continue to strongly market to a target market audience of young adults ages 18-24 and Millennials (Resinger, 2018). Pearl Market will Instruct Apple to persist in the technology innovation of the iPhone XS, iPhone XS Max, iPhone XR, and Apple Watch 4 (Grunin, 2018). • Advise Apple to follow the resource-based aspect of strategy to support their competitive edge (Coulter, 2013).  • The Apple brand is estimated to be worth $170 billion dollars, Pearl Market recommends Apple maintains this position (Badenhausen, 2017). • Pearl Market will counsel Apple to take advantage of 463 retail locations, with knowledgeable and talented employees (Smith, 2015). Kennidy, 2016

  21. Recommendations Continued Innovate and Diversify Keep Customers Happy Peal Market will establish the approval of the splitting of Apple stock allowing new investors to be a part of the future success of Apple (Travlos, 2012). Pearl Market would recommend Apple continue to not to sell user date like other tech giants Google and Facebook (Chin, 2018). • Pearl Market encourages Apple to continue to develop the Daisy robotic system ("Rethinking Materials", 2018). • Pearl Market suggests Apple enter the new market of Cuba, partner with Cuban government and the telecommunications company, Etesca ("Telecommunications Company of Cuba Sa", 2016). Burns, 2018

  22. Conclusion • Pearl Market has made professional recommendations to extend the business and market as well as define the organizational structure and leadership. As a team we provided the competitive advantages, our understanding of the strengths, weaknesses, opportunities and threats to Apple as an organization. Pearl market has included an environmental analysis along with our recommendations. We hope to offer this advice respectfully. We desire success for the company, for the stockholders, consumers, leadership, and employees.

  23. Conclusion

  24. References • 5# důvodů, pročjsouchytréhodinkynaprd. (n.d.). Retrieved from http://www.pcporadenstvi.cz/5-duvodu-proc-jsou-chytre-hodinky-na-prd • Alton, L. (2017, July 09). 4 Common Types of Organizational Structures. Retrieved from https://www.allbusiness.com/4-common-types-organizational-structures-103745-1.html • Apple Official Site (2018). Retrieved from https://www.apple.com/?afid=p238%7CseIEs444jdc_mtid_1870765e38482_pcrid_26774 6662980_&cid=aos-us-kwgo-brand--slid--product- • Apple (Personal Computer). (n.d.). Retrieved from https://www.firstversions.com/2016/06/apple- personal-computer.html • Apple Vs Global Responsibility. (n.d.). Retrieved from http://www.mydigitalfootprint.com/2016/02/apple-vs-global-responsibility.html • Aulakh, G. (2018). Apple posts record India revenue in fiscal 1st half Retrieved from             https://economictimes.indiatimes.com/tech/hardware/apple-posts-record-india-revenue- in-fiscal-1st-half-to-bring-all-initiatives-to-grow-share/articleshow/63994851.cms • Badenhausen, K. (2017). Apple Heads The World's Most Valuable Brands Of 2017 At $170 Billion. Retrieved from https://www.forbes.com/sites/kurtbadenhausen/ 2017/05/23/apple-heads-the-worlds- most valuable-brands-of-2017-at-170- billion/#56c5c78b384b

  25. References Continued • Cedillo Torres, C.A. et al., (2012). Four Case Studies on Corporate Social Responsibility: Do Conflicts Affect a Company’s Corporate Social Responsibility Policy?. Utrecht Law Review. 8(3), pp.51– 73. DOI: http://doi.org/10.18352/ulr.205 • Chin, K. (2018). Apple’s privacy stance is a huge ‘competitive advantage’ over Facebook and Google. Retrieved from https://markets.businessinsider. com/news/stocks/apple-stock-price-competitive-advantage-over-facebook-google-2018- 3-1019009278 • Coulter, M. (2013). Strategic management in action (6th ed.). New York, NY: Pearson. • Dudovskiy, J. (2018). Apple Leadership – an Effective Leadership by Tim Cook that is Difficult to Sustain Retrieved from https://research-methodology.net/apple-leadership-and-apple- organizational-structure/ • Farfan, B. (2017). Learn About Apple's Mission Statement?. Retrieved from https://www.thebalancesmb.com/apple-mission-statement-406854 • Gamelearn. (2016). The Democratic Leadership Style Through Apple, Twitter and The White House. Retrieved from https://www.game-learn.com/democratic-leadership-style- through-apple-twitter-and-the-white-house/ • Grundy, T. (2006). Rethinking and reinventing Michael Porter’s five forces model. Strategic Change, 15(5), 213-229.

  26. References Continued • Grunin, L. (2018). iPhone XS, iPhone XS Max, iPhone XR, Apple Watch 4: Everything Apple just announced. Retrieved from https://www.cnet.com/news/iphone-xs-iphone-xs-max- iphone-xr-apple-watch-4-everything-apple-just-announced/ • Jurevicius, O. (2018, May 12). Apple SWOT analysis (5 Key Strengths in 2018) - SM     Insight. Retrieved from https://www.strategicmanagementinsight.com/swot- analyses/apple-swot- analysis.html • Kennedy, A., K., & Munroe, K. (2018, June 18). 6 Legitimate Ways to Test Apple Products in UK, USA & Around the Globe! Retrieved from https://wahadventures.com/apple- product-testing-uk-usa/ • Maverick, J. (2018, January 31). Analyzing Porter's Five Forces on Apple (AAPL). Retrieved from https://www.investopedia.com/articles/investing/111015/analyzing-porters-five- forces-apple.asp • Meyer, P. (2018). Apple Inc.’s Organizational Structure & Its Characteristics (An Analysis). Retrieved from http://panmore.com/apple-inc-organizational-structure-features-pros- cons • Nasheman. (2018, May 11). Apple Watch Series 3 with built-in cellular now at Jio, Airtel. Retrieved from http://nasheman.in/apple-watch-series-3-with-built-in-cellular-now-at-jio- airtel/ • Porter's five forces analysis. (2018, September 17). Retrieved from https://en.wikipedia.org/wiki/Porter's_five_forces_analysis • Resinger, D. (2018). These Are the Brands Millennials Are Emotionally Attached To. Retrieved from    http://fortune.com/2018/03/09/millennials-apple-brand-intimacy/

  27. References Continued • Rethinking materials (2018). Retrieved from https://www.apple.com/environment/resources/ • Roommates stab each other during iPhone vs. Android debate. (2015, April 17). Retrieved from https://www.cultofandroid.com/72960/roommates-stab-each-other-during-iphone-vs- android-debate/ • Smith, J. (2015). Here's what it's Really like to work in an Apple store. Retrieved from http://www.businessinsider.com/what-its-really-like-to-work-at-an-apple-store-2015-7 • Telecommunications Company of Cuba SA(2016). Retrieved from http://www.etecsa.cu/ • Terrell, E. (2008). Apple Computer, Inc.. Retrieved from http://www.loc.govrr/business/businesshistory/April/apple.html • This is the (new) Apple robot that recycles your iPhone. (2018, April 19). Retrieved from https://www.slashgear.com/apple-new-daisy-robot-19527950/ • Travlos, D. (2012). Five Reasons Apple Should Split Its Stock And Four Reasons It Shouldn't. Retrieved from https://www.forbes.com/sites/darcytravlos/2012/09/30/five-reasons- apple-should-split-its-stock-and-four-reasons-not-to/#2493ce247e82 • What is SWOT Analysis – A Simplified Definition. (2016, June 20). Retrieved from http://pestleanalysis.com/what-is-swot-analysis/ • What is a competitive advantage? | Benefits, Tips, Tricks & Definition. (2017, May 10). Retrieved from https://tinobusiness.com/what-is-a-competitive-advantage-benefits-tips- tricks-definition/

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