This case study on Apple Inc. delves into the strengths of Apple as a company and as an organization. It discusses the company's competitors and how Apple can overcome its threats within the industry. It also looks into the weaknesses of the company and how it can get past the issues the company is facing.
Frank T. Rothaermel
Harvard Business Review (MH0027-PDF-ENG)
October 06, 2015
Case questions answered:
- Give an Overview of Apple Inc. as a company.
- Examine the problems, symptoms, and variables of Apple Inc.
- Give a proper SWOT analysis of Apple Inc.
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Apple Inc. Case Answers
Abstract – Apple Inc.
Apple, Inc. was founded by Steve Jobs and Steve Wozniak. The company designs, produces, and markets a number of computer software, hardware, and individual computer products. The company is dedicated to bringing a better private computing experience to scholars, educators, and customers across the globe through creative hardware and online offerings. One main advantage that Apple possesses is its system of operation, though it has failed to persuade the globe of its superiority.
Problems, issues, variables, and relationships related to Apple Inc. will be discussed throughout the case study. Symptoms and critical issues will also be examined. Finally, a SWOT analysis which is a strategic development tool to assess the organization’s strengths, flaws, chances, and threats to the company, will be analyzed.
Introduction – Apple Inc.
Apple Inc. is basically an American-centered organization that makes and sells computer software, electronic as well as online services. The corporation was established by Steve Jobs, Ronald Wayne, and Steve Wozniak in 1976.
Apple is the second-largest cell phone maker and the major information technology company across the globe. Apple’s most common products consist of their line of Macintosh private computers, iPod moveable media players, and the iPhone.
Apple Inc. sells its goods to specific clients, small and large-sized companies, educationalists, and customers in the enterprise, government, inventive, data technology, and methodical markets.
The company’s mission aims at making sure that customers are rendered the preeminent experience by donation of easy use of software, inventive hardware, and smooth product design. The corporation is driven by numerous goals and intentions. Among them is ensuring the ultimate user knowledge to all customers through its technologies and inventive products. In addition, Apple Inc. aims at maximizing sales volume by introducing new products, opening many stores, making use of smart market tactics, and reforming production.
Apple Inc. mainly has a ranked managerial edifice, with prominent local features and a feeble functional matrix. There are a number of Apple’s key strategies that are rethinking the desire for advertising, avoiding price wars, and designing a good consumer experience. Apple’s key players are investors, communities, competitors, customers, and staff. All the players are treated in a paramount way possible because they are accountable for the growth and accomplishment of the organization.
Apple’s key competitors include Google Inc., Amazon, Dell, Lenovo, Samsung, Sony, and Microsoft. The conceptual paper discusses problems, issues, variables, symptoms, and isolated critical issues. The paper analyses the SWOT analysis of Apple Inc.’s organization and recommendations.
Problems and Issues in Apple’s Organization
Apple’s stock has dropped in recent months owing to a combination of trade strains, iPhone reports, and more. The company has faced the biggest problem and issues, which include navigating trade uncertainty (Jinjin, 2013). Tariffs are a possible thorn in Apple Company that has been kind to the organization’s stock. Two battles with QUALCOMM. Apple Inc. has been locked in a long and nasty legal spat with QUALCOMM that began over licensing rates and obvious fees.
Variables in Apple Inc.’s organization
There are many variables when estimating Apple’s iPhone’s three-monthly revenue. The biggest is the number sold; however, their average trading price and channel fill have an outcome. Variable cost changes with output. The costs mainly include the cost of goods sold as well as other overhead expenses (Ferreira, 2019). The cost change with production change.
The table below shows the variable cost in Apple Inc.
Symptoms for Apple Inc.
- The organizational culture is mainly for original innovation. Apple’s cultural types focus on enhancing a great level of creativity that comprises innovation and outlook, which tasks convections and morals (Onyusheva, 2018).
- It has top-notch excellence. The organization and employees are the best. It practices quality labor in the market.
- It has a weak functional matrix. This describes collaborative interactions among the different components of the organization. Through this symptom, the organization maintains powerful innovation processes that support the development of the brand and the utilization of premium as pricing strategies (Lee, 2018).
Critical issues in Apple Inc.
Apple is currently facing three major issues:
First, the mobile phone market has become the pc marketplace. Customers stopped getting excited about the new laptops a long time ago, which is also occurring in the smartphone market. This has contributed to issues in the organization (Mas, 2018).
Second, introducing the next thing is difficult. Apple Inc. changed the world, particularly with the iPod and iPhone. Other products have also been successful in an absolute sense. If iPhone sales continue to slump, it will be very hard to come up with a new device.
Finally, services are not a panacea. The main issue for Apple Inc. will be substituting high-margin hardware with adequate services revenue to curb the further decline in profitability.
Apple’s SWOT analysis scans the organization’s relevant strengths, weaknesses, opportunities, and threats.
- Globally Iconic – Apple is a reliable organization, especially with individualized, innovative computers, and cool technology strategies. The company has billions of consumers with stable growth.
- Top Technology – the organization was the first company to present some of the most groundbreaking goods that have transformed the realm (iPhones, iPads). It is still strong-minded to shape and skill better, more skilled expertise strategies.
- Brand of Choice – Apple Inc. is among one of the most needed brands in agencies. Apple has a comprehensive commerce page that offers the best quality technology responses for all other organizations (Jinjin, 2013).
- Proficient Exploration – Apple puts enthusiasm into its product strategies. A careful study is instigated as well as further study is done to aid in understanding consumers and desires.
- Customer consideration – Apple consistently plans its items with an emphasis on purchasers while keeping their brains later on. They generally attempt to envision the things which even the customer has not envisioned at this point. According to Steve, occupations “on the off chance that you ask the customer what he needs when you give him something very similar, he will need something different”. This philosophy is the explanation of progress for Apple.
- Strong Media Content – With iTunes, Apple made a success story in current years. This is due to the store where one can get music, videocassettes, short films, television displays, podcasts, audio records, and ebooks. They developed a unique place in the numerical market limited to Apple products.
- Loyal Client Base – The major Apple quality is its dedicated client base. These clients once in a while change to other portable brands. The primary explanation for Apple’s faithful client base is its one-of-a-kind client experience, effortlessness, and advancement. Apple has an outclass of about 88% brand dependability over the American and European nations.
- Advancement and Simplicity – Straightforwardness is the DNA of Apple. “Apple changed the matter of PCs, music, phones, and Tablets in light of the fact that everything spun around and look for straightforwardness.” Apple items are basic and simple to utilize. Apple is constantly considered as…
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