Professional Documents
Culture Documents
Apple Inc.
Apple Inc.
At the
Islamabad
NAME(s) ROLL NO
BBA
7th B, Morning
SIR IRFAN
Dedication:
“Dedicated to our parents and teacher because without their
pray it was not possible for us to complete it”
Acknowledgment:
“I would like to express my gratitude towards my parents & member of NUML for
their kind co-operation and encouragement which help me in completion of this
project. I would like to express my special gratitude and thanks to Mr. Irfan Afzal
for giving me such attention and time.”
Introduction:
I. Brief introduction of the industry
III. Vision
IV. Mission
V. Core Values
I. Company Profile
VI. Segmentation
b. Official Website
In this current mission statement, the company highlights the scope of its
operations and how it exploits these to satisfy the needs of its client base. While
focusing on the dynamic technological changes over time, Apple stays clear that
impacting positive change through innovation is its central objective. The
following components arise from this mission statement.
“We believe that we are on the face of the earth to make great products
and that’s not changing. “
1. Innovations
2. Integration of partners and excellence
3. Market specialization
The first component shows that Apple is all about technological innovations. It
does this by stimulating its employees with the best innovative resources that are
also client-focused. To achieve this, Apple ahead of the rest. It also promotes this
by specially targeting its resources in areas where it can have maximum quality
impacts.
Core Value:
According to Steve Job’s the core value of Apple Inc.;
And then Tim Cook reiterated the core value of Apple Inc.;
Apple Inc. is the world’s largest technological based company by revenue its total
revenue in 2019 was 265.595 billion USD and world third largest mobile phone
Manufacture Company after Huawei according to a report. Apple is worth $1
trillion for first time in 2019 after detailing new iPhones. The company employee
137,000 employees in 2019. Apple operates 510 stores worldwide out of which
271 are in the United State. The company enjoys a high level of brand loyalty and
has been repeatedly ranked as the one of the world’s most valuable brand.
Organizational structure:
Apple organizational structure can be described as hierarchical. Such a structure
has been developed by its founder and former CEO late Steve Jobs in order to
ensure focused realization of his innovative ideas and clear vision for the
business. Apple organizational structure has been subjected to certain
modifications since the leadership role was assumed by Tim Cook on August 2011.
Specifically, Mr. Cook embraced the decentralization of decision making to a
certain extent in order to encourage innovation and creativity at various levels.
Nevertheless the structure remains to be largely hierarchical.Although Tim Cook
introduced considerable changes to Apple corporate structure since assuming the
top job in 2011, the structure still remains to be highly hierarchical with many
layers of management. Massive size of the company that comprises 137,000 full-
time equivalent employees globally necessitates the adherence to the hierarchical
organizational structure.
Advantages of Apple hierarchical organizational structure include tight control
possessed by senior management over all aspects of the business. Moreover,
promotion opportunities motivate employees to perform well and there are clear
levels of authority and responsibility. On the negative side, Apple’s hierarchical
organizational structure may compromise flexibly of the business to reflect
changes in the global marketplace. Furthermore, in hierarchical organizations
communication across different departments tends to be less effective than in flat
organizations
At the time, the company's website offered 14 Apple products. Now, under Cook's
leadership, the lineup has ballooned to 27 products available in more than 200
different versions. Some of the Apple products are as follow;
Macintosh
iMac
Apple Watch
IPhone
Apple MacBook Pro
Apple iPad
iPod
Apple TV
Apple Mac mini
Air Pods
IPad mini
iBook
PowerBook
Home Pod
Apple 1
iTunes Store
iOS App Store
Mac App Store
Apple Music
Apple TV+
iMessage
iCloud
These are the some product of Apple Inc. and they also have their different
version
Competitive Analysis:
If we talk on general context then there are many competitors of Apple Inc.
because Apple Inc. belongs to technology based industry and there are many
technology based industry in the market. The ten top competitors of Apple Inc.
are Samsung, Tesla Motor, Amazon.com, Dell, Sony, Fit bit, Bose, Google and
Microsoft.
In smart phone industry the main competitors are; Huawei, Samsung, Nokia, HTC
Blackberry, Sony and many more.
In personal computer industry the main competitors are; Dell, HP, Toshiba, IBM,
Acer, Microsoft and more.
In iPad industry the main competitors are; Samsung, Sony, Dell, HP etc.
SWOT ANALYSIS:
Global presence:
Apple derives more than 50% of its revenues from outside U.S., its domestic
market. A balanced presence in mature as well as emerging markets has enabled
the company to record a steady revenue growth.
Brand Image:
Apple is one of the most established and healthy IT brands in the World, and has a
very loyal set of enthusiastic customers that advocate the brand. The company’s
strong brand recognition helps to create barriers to entry within the market, and
also enables it command a premium pricing for the products. It gives a
competitive edge over regional and other global competitors.
With iTunes they created a success story in recent times. Because of the store
where you can get music, videos, short films, TV shows, podcasts, audiobooks and
eBooks’ they established a unique position on the digital market exclusive for
Apple products.
Weaknesses:
Opportunities:
This aspect of the SWOT analysis of Apple Inc. pinpoints the most significant
opportunities that are available to the business. Opportunities are external
factors based on the industry environment. These factors influence the strategic
direction of business organizations. In Apple’s case, the following are the most
significant opportunities:
Apple Inc. has the opportunity to expand its distribution network. Such
opportunity directly relates to the weakness of the company’s limited distribution
network. This SWOT analysis emphasizes the need for the company to change its
distribution strategy. An expanded distribution network can help Apple reach
more customers in the global market. In relation, the company has the
opportunity to increase its sales volumes through aggressive marketing, especially
for mobile products.
Threats:
In this aspect of the SWOT analysis, the focus is on the threats that the company
experiences from various sources, such as competitors. Threats are external
factors that limit or reduce the financial performance of businesses. In Apple’s
case, the following threats are the most significant:
1. Aggressive competition
2. Imitation
3. Rising labor cost in various countries
In the BCG matrix; SBU (Strategic Business Unit) is a unit of the company that has
a separate mission and objectives and that can be planned independently from
other company businesses.
There are two products of Apple that fall under the Cash Cow category of BCG
Matrix of Apple, the first being Apple iTunes and the second being Apple
MacBook and iMac’s.
Over the year’s iTunes, MacBook and iMac’s have attained the position of being a
Cash Cow for the company.
The company has carved a niche for itself and has its own base of loyalists who
prefer Apple products only.
But since the computing industry is slowly becoming portable and mobile, the
need to have laptops and desktops are also decreasing, hence we can add Apple
iMac and MacBook’s in Dogs category as well.
STARS:
The business units that represent the star of an organization also share the
feature of having a high market share, but what makes them different from cash
cows is that their respective industry can still expand further.
For Apple, their iPhones are undoubtedly are the Stars for them. With every new
launch of Apple iPhone, the company manages to set new sales records.
Known for its design and technology prowess, Apple iPhones have its own set of
loyalists thanks to which it easily manages to stride off the competition available
in the market.
Apple iPad and Apple Smartwatch are also regarded as the Stars for the company
and are currently in the transition to become the Cash Cows for the company.
QUESTION MARK:
Apple TV makes a bit of money, but it’s not reaching its true potential.
If Apple can solve a few ecosystem problems, they could really own the TV space.
There are tons of rumors of an Apple TV product that might just maybe dominate
like the iPod/iPhone/i Pad
DOGS:
Dogs are those products that were perceived to have the potential to grow but
however failed to create magic due to the slow market growth.
Failure to deliver the expected results makes the product a source of loss for the
organization, propelling the management to withdraw future investment in the
venture. Since the product is not expected to bring in any significant capital,
future investment is seen as wastage of company resources, which could be
invested in a Question mark or Star category instead.
Apple iPods were considered the next big thing when they were introduced in the
market but eventually failed to create a significant impact due to high
competition and low customer demand.
DEVELOPMENT STRATEGIES:
Growing a business is the process of improving some measure of a company’s
success. A business can grow in terms of employees, customer base, international
coverage, profits, but growth is most often determined in terms of revenues.
There are different ways of growing a business. Igor Ansoff identified four
strategies for growth and summarized them in the so called Ansoff Matrix.
1-
MARKET SEGMENTATION:
Market segmentation is the process brands use to divide their target market into
smaller segments of people that share common characteristics to optimize their
marketing, advertising and sales efforts.
Looking into the geographical bases of Apple they have established their business
all over the world like U.S., South America, Europe, Japan, and Australia.
3-Psychographic segmentation
Unlike geographic segmentation and demographic segmentation, psychographic
segmentation focuses on the intrinsic traits your target customer possesses.
Psychographic traits can range from values, personalities, interests, attitudes,
conscious and subconscious motivators, lifestyles, and opinions. To understand
your target customers on this level, methods such as focus groups, surveys,
interviews, and case studies can all prove successful in compiling this type of
conclusion.
Looking into Apple the psychographic market segment is successful because they
are developing products on the lifestyle of the people such as Mac book for the
younger generation. Apple having a very good brand image has very good value
for its products as they are different and innovative. Looking into the personality
(style) sector Apple is providing their products with different colors for the people
who like fancy colors.
4-Behavioral segmentation
Behavioral segmentation has similar measurements to psychographic
segmentation but focuses on specific reactions and the way customers go through
their decision making and buying processes. Attitudes towards your brand, the
way they use it, and their knowledge base are all examples of behavioral
segmentation. Collecting this type of data is similar to the way you would find
psychographic data. Review websites can also be a helpful tool when searching
for this information.
TARGET MARKET:
TEENAGERS :
2- College and university students are also targeted by Apple Inc. These
students use Apple Inc. products such as iPad's, MacBook's, iPhone's etc to
quickly record notes. These notes are kept organized in their devices. Also
these products are light which makes carrying devices to and from school
much easier.
BUSINESS PEOPLE :
4- Apple products are also useful to young children and kids. The reason for
this is that devices such as iPods and iPads are easy to use due to their
touch screen quality which is good for children. Parents can download
learning game apps on Apple devices to teach young children and kids.
MARKET SHARE:
Although Apple no longer reports iPhone, iPad, and Mac unit sales numbers, it
does report a revenue breakdown by product category. Here’s Apple’s Q3 2019
earnings breakdown by product category:
ATL Marketing:
ATL Marketing stands for “Above The Line Marketing”. This kind of marketing that
has a very broad reach and is largely untargeted. Think about a national TV
campaign, where viewers across the nation see the same advert aired across the
various networks.
BTL Marketing
: BTL Marketing stands for “Below The Line Marketing”. This kind of
marketing is that targets specific groups of people with focus. The same
cereal company could also run a direct marketing campaign in a large
city. This would be a strategy designed to target a specific group of
people and to try and encourage quick purchases, or conversions.
For example, A Google Adwords campaign targeting a certain group or
a direct telemarketing campaign targeting specific businesses.
Social media marketing strategy of Apple
Facebook:
Facebook is the leading social network used by marketers for achieving their
marketing objectives. Its popularity is the highest of all social media platforms and
it also boasts of the largest audience. Apart from that, it offers a great social
media experience which brands can use to engage their customers better. You
can use it for promotions or even for discussions and conversations with your fans
& followers. Several of the large brands have active social media teams to
continuously interact with their fans on Facebook. Apple has several accounts on
each of these platforms. Its main account has 11 million followers whereas there
is also a support page that has less. An unofficial page named Apple has around
11 million followers too. However, Apple has not used Facebook for active
promotions as most brands do. Its Facebook account is just a touch point. That is
a surprising fact since Facebook has become the main marketing tool for several
businesses. There can be several reasons behind it. When all the birds flock to the
same field, it grows a little crowded. Apple uses its own website and blogs more
than these social media channels. It exercises more care than others. Facebook
exposes your business to a very large crowd of followers. However, if you are not
a shrewd marketer, you may also be through some mess. Apple is either shrewd
or likes being lazy.
Twitter:
On Twitter too, Apple has several accounts. Each one is dedicated to something
different like one for ITunes, one for Apple Music, one for support. Apple’s main
official page has not made any tweets and yet it has two million followers. The
support page on the other hand tweets to followers on important technical
issues. It is for education and awareness. Apple likes keeping its users aware of
the latest technical features of Apple products and their use and care. This is a
smart use of social media tools for customer service and engagement. Apple
Music page has the highest number of followers at 9.33 Million. On the other
hand ITunes page has around 1.3 million followers. The Apple Music account on
Twitter is highly popular which is evident from the high number of followers, likes
and retweets. Apple’ social media activity is higher on Twitter than Facebook.
Instagram:
Apple’s Instagram page shows very high level engagement. Instagram is an
attractive social media network for engaging users. Its many features are suitable
for promotions and engagement. Apart from its album like look and feel which
makes it suitable for promotions, its comments and conversations features also
make it a great tool for communication. Apple is already a very popular brand.
Number of likes on each of its posts on Insta is in thousands. Number of
responses is also very high. This is excellent level of engagement and shows that
Apple is great at churning excitement. The brand’s main Instagram account has
around 7.5 Million followers whereas that of Apple Music has higher than 3
million followers. The brand talks very little on these pages and still the level of
engagement is excellent. Instagram is mainly for sharing multimedia content. In
the recent years, Apple has increased its use of such content in its marketing
efforts.
YouTube:
On YouTube too, the brand has used several accounts to reach its customers.
However, the good news is that very few brands might have as large a follower
base as Apple. Apple’s main account has 6.8 million followers whereas Apple
support account has around 93 K. This is the era of video marketing and Apple
uses videos actively for promotions. This is why YouTube is a very important
platform for Apple to engage its followers. It’s also a great platform for running
social media campaigns. Several of Apple’s 245 videos have attracted very large
number of visits. Its IPhone X unleash video has received more than 8 million
visits in just a month.
OFFICIAL WEBSITE:
Apple has its own official website where apple products are selling are there is
separate websites of all business.
Apple total current assets for the quarter ending December 31, 2019
were $163.231B, a 15.91% increase year-over-year.
Apple total current assets for 2019 were $162.819B, a 23.97%
increase from 2018.
Apple total current assets for 2018 were $131.339B, a 2.09% increase from
2017.
Apple total current assets for 2017 were $128.645B, a 20.38% increase from
2016.
1. Keep it simple:
Customers and prospects don’t need complex marketing campaigns that overwhelm them with
information. Apple understood this concept early on and made sure that their marketing was as simple as
possible. They took out product feature lists, price, voice-overs and special effects.
A big part of Apple’s marketing strategy is that they never get involved in price
wars. They stick to their pricing albeit it is often much higher than any of the
competition. They can do this because they focus on touting their unique value
proposition that no other competitor has been able to emulate -- beautiful
products that work straight from the box.
Apple also focuses on providing a great user experience with cool features and
extensive applications that put it in a product class by itself. Whatever device
Apple is offering, they make sure the customer feels like it’s worth paying the
higher price. This method of thought can be used to market any product or
service environment. Just focus on what sets you apart from the rest of the
market.
3. Appeal to emotions:
Apple has created evangelists out of their customers primarily because they have
been able to reach and hold on to them at an emotional level. Apple’s ads show
happy people having a great time with their iPads and iPods rather than focusing
on memory size or battery life.
The more their visual content appeals to emotions like happiness, enjoyment and
inclusion, the more likely that content will be shared with others and generate
the viral movement that Apple has leveraged. This can be emulated by any
business niche or company through strong visuals, emotionally charged
language and a positive tone as the basis for all content.
Innovations:
Apple is widely considered as the #1 innovative company in the world. The
company’s innovation strategy involves terrific new products and innovative
business models.
The company delivers consumers with a succession of presents – great software
in fabulous hardware in beautiful packaging (“really good ideas wrapped up in
other really good ideas,” as Michael Lopp, senior engineering manager at Apple
puts it). Apple also pioneers into a new business spaces and creates new market
niches. The company created game-changing innovations such as the iPod,
iTunes, iPhone, and iPad.
Apple innovation leaders think in terms of platforms and pipelines
and relentlessly push the pace of innovation. Competitors that chase Apple's
latest release find themselves behind when just a few months later Apple
introduces its latest and greatest offering.
Innovative Business Models
Apple’s Innovation System
Apple's Design Process
Innovative Partnerships.