Apple Business Strategy Analysis

| Brief description of PC and Smartphone’s industry Smartphones| Company| Market share| Key success factors| Android| 68,1%| * software * innovation * synchronization with google account| Apple| 16,9%| * design * style * size * capacity * software * download facility * distribution| Blackberry| 4,8%| * reliability * carrier friendly * design| Nokia| 4,4%| * price efficiency * reliability * distribution * client’s service| PC| Company| Market share| Key success factors| HP| 17,2%| * reliability * client’s service * hardware * fingerprint reader| Lenovo| 13,0%| * design * price friendly|
Dell| 12,1%| * design * extended product line * worldwide client’s support * reliability| Acer| 11,2%| * price effiency| Asus| 5,9%| * design * price friendly| Tablets| Apple| 61,4%| * design * processor * weight * storage * capacity * style| Samsung| 7,5%| * innovation * design * capacity | The worldwide sales of tablets are almost doubled in 2012 and PC market slightly decreases as a whole. With the launch of iPad2 more customers switched to buying alternative device or PC looks like tablets. Apple iOS takes 61,4% of worldwide tablet sales.
Samsung is on the second place with 7,5%. Resources of Apple. Potential for scale, experience and scope economies Strong know-how, RFS, RMS, new Product Development Programme, together with skilled human resources represents well integrated resources of the company. Diversified product line and high quality software and hardware allow sharing the resources of the company among existing businesses. This may create economies of scope, which saves costs. The size of the company, level of innovations, design and strong brand name gives to Apple competitive advantage.

Company uses economies of scale, having achieved multi channel marketing and mostly cut the middleman and this is decreases the costs and increases the margin to Apple and consequently lower costs for the customers. Strengths of Apple. Core competencies Due to financial strength and inherited hardware and software company was able to extend product line and created a new market instead of displacing existing one. Apple relies on a new Product Development Program of Kaizen in the product offer keeping in this way high loyalty of the customers and meeting their needs.
Core competence consists of constant innovations and creating added value for customers in terms of innovative design and technology Strategic fit of Apple Key success factors Core pompetence| Style| Size| Software| Download facility| Design| 5| 5| 5| 5| Quality| 5|  | 5|  | Capacity|  |  |  | 5| We observe strong fit between company’s core competencies and key success factors. Apple develops the program of constant improvement of the product as well as use experience which is resulted is extremely high performance and flourishing of the company. SWOT analysis for Apple | Opportunities;Time| | Short-medium term| Medium-long term|
Strengths| Innovative Design | Strong brand Leading market position of digital market| Weaknesses| Simple immitation| Cannibalisation| Vision ; Mission Vision: * Keep leading position at the worldwide market * Focused on the future * Penetrate the markets where company can make big contribution to society Mission: * Design best personal computers * Innovations in digital music with (iPod, iTunes online stores) * Innovation of iPhone and iPad in terms of favorable market conditions * Design and develop own operating system, hardware, application software * Design new customer products with superior easy-of-use R;D Apple’s objectives Objectives: In a line with company’s mission presumably Apple is mostly focused on non-financial objectives such as constant improving of the product offer and quality of the devices, expanding of distribution network to reach more targeted customers * Innovation: shorten the innovation cycle to 12 months * Quality: Keizer mantra Apple Strategy overview | Products-markets| Vertical Integration| Internationalization| Diversification| International Development| Expansion of distribution hannels creat best pc, portable digital music, mobile communication, iPad3| Vertical integration into retail combined with online store and iTunes Store| Growth shift outside US because of global demand for iPhone, iPads mainly to Asia Pacific, Europe, Japan Apple Stores expansion aimed internationally| increasing number of iOS devices – iPhones Macs iPads iPods| Mergers;Acquizition | Security hardware and software for PCs and mobile devicesFlash memory| AuthenTecAnobit (Israel) |  -|  -| Strategic Alliances | Market alliances in the supply chain and designn development|  -|  -|  -|
In terms of Mergers ; Acquisitions company tends to have conservative trends. Company leaves to be more focused on innovative technologies to make their product unique.