A Strategic Analysis for Apple Inc (Essay Sample)

BUSINESS & MANAGEMENT A Strategic Analysis for Apple Inc Name Institutional Affiliations Instructor Date Strategic Analysis for Apple Inc Introduction The business environment is dynamically and radically changing under influence of given factors in terms of social, political, technological, and economic among others. Both the internal and external business environment affects the operations of a business to a great extent. In such a dynamic business world, business managers must therefore work with strategies which define the plan of actions implemented towards achieving the set business objectives (Strategic Management and Business Analysis, 2013). Companies must be informed on how to play with the dynamic environment with a defined mechanism of winning. Through strategic analysis, a business organization is able to conduct research on its operational environment which further informs on the best way of formulating strategies Role of (Strategic Analysis in Strategic Decision-Making, n.d). Strategic analysis puts into consideration how a particular business works towards putting together its own capabilities and opportunities to gain a market stamina which enables the business to make strides towards accomplishing its set objectives (Milani, 2019). Apple Inc is an American multinational company in Cupertino which deals with designs and development and at the same time sells consumer electronics, software as well, as offering other online services internationally. This paper shall thus apply defined analytical tools to undertake a strategic analysis of Apple Inc. The paper will entail first discussing on the theoretical underpinnings, justification and evaluation on the analytical models adopted for Apple Inc. Secondly the paper will apply the defined model for a strategic analysis then provide recommendations based on how Apple remains competitive as well as parts which remain outstanding. Theoretical underpinning for analysis, identification of key issues, justification and evaluation of the choice of analytical tools Strategic analysis is usually performed with rigor since they inform the subsequent decisions of a business organization. Such decisions and choices which come after strategic analysis impact greatly the business trajectory. There are different analytical models available for effective and efficient analysis of business environments. The analytical tools and methods offer a well-defined tested and proven formulae with which managers are able to collect and re-organize company data for analyzing the business environment which later informs the decision making process. Having the best analytical tool for a company does not however mean that the manager is a good strategist, just as having the correct tools does not make anyone a good mechanic rather the tools enhance the effectiveness and thoroughness of a strategy analysis. The reason of choosing the best tools is informed by the fact that the analysis is not only a way of understanding changes but rather cushioning the findings into concrete choices and decisions incorporated into the planning process. In order to get to choose the best analytical models for Apple Inc, we have the understanding of keys issues of concerns that is question formulation. The key areas of concern for this strategic analysis for Apple entails identification of how Apple Inc is able to take any available advantage of potential opportunities in the business, how the company can respond to any new trending concerns, how Apple can stimulate further implementation of technology as well as how the company can deal with changes in the operation lines of its competitors (Heracleous & Papachroni, 2016). In addition the company would need to better understand its business environment before venturing into any new markets or launching any new business opportunities as well as identifying any potential threats in the Apple’s existing environment. Finally the business would be concerned with identification of its industrial landscape or structure in order to be able to determine corporate strategy. Informed by the need identification for Apple Inc as mentioned above, three analytical tools or models will be applied for informed evaluation that is the SWOT, PEST and Porter Five Forces analysis. The SWOT analytical technique is the acronym for Strengths, Weaknesses, Opportunities and Threats structured to evaluate the four elements in Apple Inc. The SWOT analysis will take care of the internal and external business factors in order to inform towards leveraging the company strengths, enhancing the weaknesses, minimize potential threats and also securing the greatest advantage of opportunities (Blokdyk, 2019). Figure: SWOT Analysis Guide Secondly, the PESTLE analysis has been adopted as a useful model that will help understand the market trend, potential as well as better information on the direction which the business should take. PESTLE is the acronym for the Political, Economic, Social, Technological, Legal and Environmental factors which are primary in the establishment of an organizational unit. The PESTLE analysis tool has been adopted for Apple Inc so as to guide on identification of effective setting of priorities, strategies, resource allocation, and the formulation of a good roadmap towards a control mechanism by taking advantage of all potential opportunities (50 MINUTES, 2015). Figure: PESTLE Analysis guide Finally, the Porter five force analysis is a competitive analysis tool that determines the primary competitive market influence. This model has five forces via which we shall think how each affects Apple Inc by dissecting the direction of each force (Miller,et.al,2011). The Five forces model is adopted in this case so as to inform about the strategies that can help Apple to remain profitable and relevant in the competitive market as well as evaluating on the best mechanisms to strengthen on the Apple’s organizational position (Asad, 2012). Figure: Porter Five Forces Analysis Strategic Analysis with Application of chosen models Apple Inc. has made great strides and has gained great success as a company in the global business leads. The SWOT, PESTLE and Five Forces analyses gives great insights on the internal and external business environment of this company. 1 Apple Inc. SWOT analysis The successful mileage that Apple Inc. has gained up to now and also the prospected future success is greatly associated with how much the company is able to utilize its strengths in order to overcome the weaknesses and threats in h while securing industrial opportunities. The SWOT analysis for Apple scans through the organization for all relevance in terms of the elemental variables of the model in relation to different markets and industries (Blokdyk, 2019). The organizational nature of business in cloud computing, software integration, online digital content distribution calls for a competitive edge for business expansion. Strengths: These are Apples internal strategic factors which acts as key enablers for the company top overcome weaknesses and take advantage of every opportunity while at the same time withstanding threats from the external environment. The most outstanding strengths in Apple include: Effective and rapid processes of innovation, great profit margins and a strong brand image. Apple Inc. remains an outstanding global brand and it is thus capable of introducing new products in the market following its strong brand object. The high profit margins are informed by the 4P and market mix which helps in profit maximization even with limited volume of sales. The rapid business innovation enables the company to remain outstanding in terms of latest technology for a better competitive edge. These strengths influence a competitive advantage and offers great support for continued lead in the global network (Apple Inc. SWOT, 2019). Weaknesses: These are the internal obstacles which limit growth of Apple Inc. Among the notable weaknesses at Apple there is sales are more dependent on high-end market segmentation, the company offers products at high prices and also a distribution network which is limited. The company has a policy which considers exclusivity and this impacts a limited network of distribution. For instance there is a limited selection of authorized dealers in Apple products something which limits the market reach in a better global sense. The high-end market segmentation is informed by the fact that high prices only attract those customers from high and sometimes the middle income class and thus obscures the low income earners from accessing Apple products. This means that the distribution channels and the pricing strategies are a likely imposers of limiting ends to the business expansion. Opportunities: These are apples business considerations which offer chances for growth from the external environment. Opportunities influence a direction for the Apple industrial environment. Notable opportunities for Apple Inc. include: Distribution network expansion, rising demand which informs a higher volume of sales and thirdly new lines product development. An expanded network of product distribution will enable Apple to drive a bigger customer traffic to its line. Aggressive marketing offers the opportunity for Apple to raise its volume of sales and more so the company’s products which are mobile. Despite the current highly successful product lines, the external environment offers space for the company to explore further and open more product channels. Despite the aggression in competition, Apple still stands a chance to excel more through the available opportunities. Threats: These are external factors which limit Apple Inc. in terms of financial performance such as competitors. Significant threats in Apple Inc include; Imitation, aggressive competitive front and increased labor costs. The competitors of Apple such as Samsung ...