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STRATEGIC MANAGEMENT PROJECT

Submitted to Sir Afzal Khan
Submitted By Nouman Afzal ( 2335184 )
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Table Of Context:
● Title Page………………………………………..……….……1

● Table of Context……………………………………...……….2

● Topic……………………………………………………..……3

○ Introduction……………………………………………...3

○ Mission Statement……………………………………….3

○ Vision Statement…………………………………...........4

○ EFE Matrix………………………………………………4

○ IFE Matrix……………………………………………….5

○ SWOT………………………………...…………………6

○ BCG Matrix………………………………………...7 to 8

○ IE Matrix…………………………………...……………9

○ Space Matrix…………………………………...……....10

○ QSPM Matrix…………………………………….11 to 12

● Conclusion…………………………………...………………13

● Recommendation…………………………………………….13
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Topic: APPLE

Introduction:
Apple Inc. is a globally renowned technology company known for its innovative products and
services. Founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1, 1976, Apple has
become one of the most influential companies in the world. Initially focusing on personal
computers, Apple later expanded its product line to include devices such as the iPod, iPhone,
iPad, Apple Watch, and Mac computers.

Apple's success is built on its commitment to excellence in design, user experience, and
technological innovation. The company's iconic products are characterized by their sleek
aesthetics, intuitive interfaces, and powerful performance. Apple's ecosystem of hardware,
software, and services creates a seamless user experience across its various platforms.

Key milestones in Apple's history include the introduction of the Macintosh computer in 1984,
the launch of the iPod and iTunes in 2001, the unveiling of the iPhone in 2007, and the
introduction of the iPad in 2010. These groundbreaking products revolutionized industries and
transformed the way people communicate, work, and consume media.

In addition to its hardware products, Apple offers a range of software and services, including the
iOS and macOS operating systems, iCloud storage, the App Store, Apple Music, and Apple
TV+. The company's commitment to privacy and security has also been a hallmark of its brand,
earning it the trust of millions of users worldwide.

With its headquarters in Cupertino, California, Apple continues to push the boundaries of
technology with innovations in areas such as artificial intelligence, augmented reality, and
wearable devices. As of my last update, Apple remains a dominant force in the tech industry,
setting trends and shaping the future of consumer electronics.

Mission Statement:
“ bringing the best user experience to its customers through its innovative hardware, software,
and services. ”
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Vision Statement:
“to make the best products on earth and to leave the world better than we found it.”

EFE Matrix:

SNO Opportunities Weight Rating Weighted

Score
1 Competitors are generally reactive 0.1 4 0.4

2 Tablet sales are expected to reach 246 million 0.07 3 0.21

3 Potential economic recovery will enable greater expenditure 0.03 3 0.09

on luxury goods

4 Consumers’ expectations on products 0.04 3 0.12

5 Recent generations are very brand conscious 0.12 4 0.48

6 Creating more compatibility with Microsoft 0.08 2 0.16

7 PCs known to have more viruses 0.08 3 0.24

SNO Threats Weight Rating Weighted

Score
1 Competitors in phone market are innovating quickly 0.04 2 0.08
(Android, etc.)

2 Competitors sell products more cheaply (Dell, HP, etc.) 0.04 1 0.04

3 Economic uncertainty 0.05 2 0.1

4 Increasing competition in music downloads and online 0.06 2 0.12

music

5 Companies not seeing Apple's products being compatible 0.11 2 0.22

with their software

6 Consumers have high expectations and demand a lot in 0.13 3 0.39

their products

7 Partnering companies and intellectual property 0.05 4 0.2

Total 1 38 2.85
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IFE Matrix:

SNO Strength Weight Rating Weighted

Score
1 Revenues increased 52% in 2010; Net Income 0.06 4 0.24
increased 70%

2 Seamless integration between products 0.08 4 0.32

3 Minimal long term debt 0.05 3 0.15

4 Increase in sales of 93% for iPhone 0.08 4 0.32

5 38% total sales generated by iPhone 0.08 3 0.24

6 Sold 4.69 million iPads in first quarter of 2011 0.15 4 0.6

7 iTunes is good source of revenue 0.1 4 0.4

SNO Weakness Weight Rating Weighted

Score
1 Only 16% of sales from portables 0.07 1 0.07

2 Only 10% of sales from desktops 0.04 1 0.04

3 iPod sales are decreasing steadily 0.04 1 0.04

4 Apple has no presidents of divisions and no SBUs 0.03 2 0.06

5 Development on most popular product (iPhone) lagged 0.09 1 0.09
behind competition

6 Current Ratio is only around 0.5 0.05 2 0.1

7 Sales heavily rely on the iPhone which is seeing 0.08 1 0.08

increasingly high competition

Total 1 35 2.75
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SWOT:
The SWOT analysis framework is a strategic management decision-making tool that determines
the most pressing issues facing the company, based on the internal business conditions and the
external environment

Apple’s Strengths

● One of the world’s strongest brands.

● High profit margins based on premium pricing.
● Effective rapid innovation processes based on a long history of technological innovation.

Apple’s Weaknesses

● Limited distribution network for its goods

● High selling prices
● Dependence on sales in high-end market segments
Apple Inc. has a limited distribution network because of its policy of exclusivity. For example,
the company carefully selects the authorized sellers of its products, such as iPhones and Macs.

Apple’s Opportunities

● Expansion of the distribution network for wider consumer electronics market reach
● More widespread and aggressive marketing for higher sales volumes based on high
demand
● Development of new product lines in consumer electronics and online services
● Apple Inc. has the opportunity to expand its distribution network.

Apple’s Threats
● Aggressive competition involving large multinationals like Samsung, Amazon, and
Microsoft
● Imitation involving firms that compete based on low prices
● Rising labor costs in various countries where the company maintains production facilities
● Tough competition in the technology industry is partly because of the aggressiveness of
firms.
● For example, Apple competes with firms like Samsung, which also uses rapid innovation.
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BCG Matrix:

Market growth rate

The market growth rate is the Y-axis of the BCG matrix. It defines the rate at which a market is
growing, which can be determined from industry reports. The formula to calculate the Market
growth rate is

Market Growth Rate = Total sales in current year / Total sales in the previous year

So, if the industry is growing at 20% and your product is growing at 10%, we are lagging by
10%. This is a more relevant measure in slow-growth markets than high-growth segments.
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Relative Market Share

Relative market share is on the X-axis of the BCG matrix. Market share is generally written as a
percentage and to have a high market share. It is defined either in revenue terms or unit volume
terms. The formula goes like this;

Market share = ( Company's Total sales / Total Industry Sales) * 100

So, after this basic understanding, let us go ahead and define the BCG matrix of Apple Inc. and
analyze its products' standing.

Dogs:
Dogs are products having high growth potential, but they are not working because of the slow
market growth. It makes these products a source of loss for the company; therefore, it does not
provide more investment for these products. In the Apple BCG matrix analysis, its iPods are
considered dogs because they have lost their attraction due to high competition and low customer
demand.

Stars:
The star of a company is the products with a high market share like cash cows, but their industry
also has the potential for further expansion.

In the Apple BCG market, the iPhones are the stars of the company as we can see that it breaks
the previous sales record with every new launch. Apple iPhones have a high stature because of
their unique design and advanced technology. Also, the iPhone enjoys a loyal customer base that
makes it beat all the competition in the booming mobile phone market.

Cash Cows:
Two products are the cash cow products in the Apple BCG matrix. These are Apple iTunes and
Apple MacBook, and iMacs. Over the years, these products have retained their market share and
have increased cash flows for the company. Apple has a strong, loyal customer base that prefers
Apple products exclusively.

Question Mark:
Apple is now launching Apple Smart TVs, which has the potential of becoming the question
mark in the BCG matrix of Apple. This product makes a little money but is still far from its true
potential, and it can become a star if Apple can fix a few ecosystem issues.
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The second product that is among the question mark products is the smartphone which is still in
the growth phase.

IE Matrix:
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Space Matrix:
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QSPM Matrix:

New Product Launch In Every Year Partnership & Co Operation

& Joint Event

Key External Factors Weignt AS TAS AS TAS

Opportunity
Constant Growth Of Its Product In PC & 0.07 4 0.28 4 0.28
Mobile Industry.

Expertise in innovative skills, technical 0.11 3 0.33 3 0.33

competence and marketing ability.

Downloadable music and MP3 players are 0.04 1 0.04 0

highly marketable

The ties of Apple and other companies are 0.09 4 0.36

weak, Apple can develop good relationships
for joint ventures.

Expanding use of the internet to sell 0.11 4 0.44

products and services.

Threat

Competitors lowered their product margins 0.15 4 0.6 3 0.45

to gain market share.

High product substitution effect in 0.07 3 0.21 3 0.21

innovative and competitive technology
market.

Incompatibility with windows platform 0.1 2 0.2

Inconsistency of global financial stability 0.08 1 0.08 1 0.08
and global economic condition

Global market are highly competitive and 0.09 1 0.09 3 0.27

subject to rapid technological change

Company’s future performance depends in 0.09 1 0.09 3 0.27

part on support from third-party software
developers.

TOTAL 1
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Strength
Strong innovation and R&D manage 0.11 4 0.44 4 0.44
frequent product introductions and
transitions

Strongest brand image and Apple has 0.07 3 0.21

ascended to a brand of distinction in the
computer industry.

Large segment of loyal customers of “Apple 0.09 3 0.27

culture”

Global market share in the technology 0.09 1 0.09 3 0.27

market.

Consistently solid financial performance 0.03 1 0.03

Web technology can be used to improve 0.08 2 0.16

product awareness and sales.

Expert in developing own software and 0.09 4 0.36 4 0.36

hardware

Weakness
Expensive products as compared with 0.09 2 0.18 4 0.36
competitor

Difficulty to ensure consistency and quality 0.07 1 0.07 1 0.07

within its products

Products with short life cycle 0.08 4 0.32 3 0.24

Apple market share is far behind from major 0.05 2 0.1

competitor Microsoft

Weak presence in business arena 0.11 2 0.22 4 0.44

Low E-trade exist for Apple products 0.04 1 0.04

TOTAL 1 5.4
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Conclusion:
Apple is one of the biggest electronic gadgets Industry in the world. It has posted revenue of
$108 billion.
● Established in 1976, Apple has its network around the world. It is the first company to
launch I pod and Ipad.
● It is a pubic oriented company & has computer hardware and software, electronic
industries as well.
● Headquarters are at U.S. & has highest services all over the globe
● In spite of high strengths, the company's high prices product faulty battery back ups of
laptops and mobile phones prove a drawback for the company as well as its products.

Recommendations:
Apple Inc. should focus on enhancing its sustainability efforts, empowering local communities,
and pioneering ethical AI development. By prioritizing these areas, Apple can further solidify its
reputation as a responsible corporate citizen while driving innovation and positive societal
impact.
Here are some unique recommendations to further enhance its standing are:
1. Embrace Sustainability as a Core Value.
2. Empower Local Communities.
3. Enhance Accessibility Features.
4. Pioneer Ethical AI Development.
5. Cultivate the Developer Ecosystem.
6. Strengthen Health and Wellness Offerings.