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Strategic Plan



StrategicPlan: Apple Inc.

Visionand Mission

Appleis an American global technology corporation headquartered inCupertino, California that designs, produces, and sells computersoftware, online services, and consumer electronics. The company’smission is to create the best personal computers globally, along withcomputer software products(Hooper, 2016).The company leads in different markets in the IT industry. Appleseeks to redefine the computing devices and mobile media with itsdiverse products. Apple’s vision is to develop great products thatrevolutionize the industry. It emphasizes continuous innovation toprovide the best quality. It believes in owning the primarytechnologies integral to the production process. The company focuseson a few projects, hence its ability to deliver the best. Applebelieves in the power of a collaborative work environment and settlesfor nothing less than excellence. Its vision also states itswillingness to accept wrong doing and taking responsibility for itsactions(Zylla-Woellner, 2013).


Thecompany has established a number of values that guide everyone’sbehaviors and decisions. This includes empathy for customers,aggressiveness/achievement, positive social contribution,innovation/vision, individual performance, team spirit,quality/excellence, individual reward, and good management. It isthrough strong leadership that the company has achieved excellence inthe market as they champion good behavior and engage in the rightprojects. Good performers are rewarded through individual rewardprograms aimed at ensuring high employee motivation(Hooper, 2016).The company always emphasizes the best quality and hence, invests alot in research and development to achieve this goal. Individuals areencouraged to remain creative and come up with innovative ideasessential to the company maintaining its edge in the industry. Themanagement in the firm also encourages its people to embrace teamworkto improve their performances and productivity. However, individualperformance is equally important. Finally, Apple shows its customersempathy and engages in social programs in the markets it operates(Lashinsky, 2014).

Objectivesand Strategies

Appleapplies different strategies to achieve its objectives in the market.The company is ever committed to the production of groundbreakingproducts. It achieves this objective through continuous innovation.The company also dictates the movement of future technologies throughmarket researches that enable it to understand the future needs ofits consumers. Apple has also made it its objective to expand furtherboth in the local and global market. It began by targeting largemarkets before focusing on smaller markets across the globe. The firmhas also shown great commitment to the sustenance of its premiumprices with the aim of expanding its market share(Hooper, 2016).Over the years, Apple has managed to achieve this goal throughstrategic pricing and relying on quality and brand to offset anyprice differential. The company also seeks to increase its profitmargins by reducing the price of its materials. Ultimately, thebusiness is committed to sustaining and expanding its strong brandname(England, Schiphorst, &amp Bryan-Kinns, 2016).


PorterFive Forces Analysis


Competitiverivalry is considerably high. Apple always ensures it outsmarts itscompetitors to remain ahead of the game. On the other hand,competitors are working hard to improve their edge to competeeffectively with Apple. All in all, with the level of competition inthe industry, only the fittest and smartest survive(Hooper, 2016).


Consumershave more bargaining power as compared to suppliers such as Appleamong others. The level of competition in the market exposesconsumers to many options. As such, they can easily switch from onesupplier to another when dissatisfied with their current company. Thecost of switching is also low(England, Schiphorst, &amp Bryan-Kinns, 2016).


Supplierpower is weak. Apple owns almost all technologies used in theproduction of its products. This has enabled it to reduce itsreliance on external suppliers. In the same regard, there are manysuppliers in the market willing to do with it business hence, givingit more bargaining power(Hooper, 2016).

Threatof Substitutes

Thethreat of substitutes is moderate. Apple produces high-qualityproducts that are differentiated from the competition. This gives itmore bargaining power over consumers. Additionally, consumers derivegreat satisfaction from its products, a satisfaction that may not getwhen consuming products offered by the competition(Lashinsky, 2014).

Threatof New Entrants

Thethreat of new companies entering the industry is moderate. Asubstantial amount of capital is required to establish a businessthat competes effectively with giants such as Apple. Companiesalready operating in the market capitalize on customer loyalty andeconomies of scale to maintain their position an advantage newentrant does not have(England, Schiphorst, &amp Bryan-Kinns, 2016).



Appleenjoys a number of strengths that have enabled it to maintain astrong position in the market. For one, the company has a strongbrand name. It is ranked amongst the most valuable and strongestcorporations in the world. The company has managed to maintain strongprofit margins through its premium pricing strategies(Hooper, 2016).The fact that it produces differentiated products that are based onconsumer needs and wants also aids it to maintain loyalty. Customerloyalty enables the firms to report high margins even when some ofits competitors are struggling to make ends meet. Apple has also madea reputation for its rapid innovation process. It is through thisthat it is able to produce groundbreaking products and services thatrevolutionize the industry. This also helps the company to attractnew customers while at the same time retaining its current ones(Zylla-Woellner, 2013).


Thetechnology company has some weaknesses that it must address if it isto survive the market or sustain its edge. Apple has a limiteddistribution network. It relies most on the US market for profits andfinancial stability(England, Schiphorst, &amp Bryan-Kinns, 2016).Moreover, the company is yet to establish a strong position in thedeveloping world. Its high selling prices are both a strength andweakness. The use of premium prices limits the firm to middle andhigh-income earners in the social. The lower class finds Apple’sproducts to be expensive. As such, the company fails to attract asection of consumers that makes up the majority of buyers(Lashinsky, 2014).


Oneopportunity the company can pursue to enhance its position in themarket is expanding its distribution network. For example, thecompany can expand further in the developing market where the demandfor its products has been on the rise. The demand for Smartphone andtablet has been increasing in the recent past as the world embracesthe use of the internet for diverse purposes. Apple can also createnew products to expand its product portfolio as well as its customerbase(Hooper, 2016).


Appleis also exposed to threats such as aggressive competition, imitation,and rising labor costs in its countries of operations. The companyfaces stiff competition from other technology companies such asGoogle, Samsung, Microsoft, Sony, LG, Intel Corporation, andBlackberry among others. Imitation of its products especially fromsome Chinese firms is also a major threat as it has impacted itsglobal sales and profits. Rising labor costs affect its profitability(England, Schiphorst, &amp Bryan-Kinns, 2016).

IT- Related Projects

Thecompany can engage in different IT related projects to enhance itsposition in the market. Two projects Apple can work on include onerelated to software development and another relating to hardwaredevelopment. Apple has managed to create different hardware andsoftware. The firm focuses on both hardware and software to reduceits dependence on external suppliers on producing its products(Hooper, 2016).The fact that the company has excelled in both areas means that ithas what it takes to work on the proposed projects.


Thebest project is hardware development. Software development is alsoviable. Nevertheless, the company has created many software ascompared to the diversity of its hardware. There is the need for itto expand its hardware portfolio to attract more consumers. This canalso give it an opportunity to produce cheaper products targeted atthe low-class consumers who are the majority of consumers. It willalso enable it to mitigate the risk of relying on a few products forprofits. In the same way, this will help the firm to capitalize onthe increasing demand for Smartphone and tablets. Fundamentally, thecompany can develop new hardware product in these categories(England, Schiphorst, &amp Bryan-Kinns, 2016).


England,D., Schiphorst, T., &amp Bryan-Kinns, N. (2016). Curatingthe digital : space for art and interaction.Switzerland: Springer.

Hooper,M. J. (2016). TheGlobal Business Handbook: The Eight Dimensions of InternationalManagement.Boca Raton, FL: CRC Press.

Lashinsky,A. (2014). InsideApple: how America`s most admired-and secretive-company really works.New York, NY: Business Plus.

Zylla-Woellner,J. (2013). BusinessAnalysis of Apple Inc.Munchen: GRIN Verlag.