Competitive Analysis: Apple Inc. Group 2 - 10 AM Emilye Webb Maddie Campbell Christian Todd

Apple Inc. Industry: Electronic Computer Manufacturing Industry Biggest Competitors: Dell Technologies and Intel Corporation

Strengths Apple Strong brand image High profit margins Effective rapid innovation processes Dell Technologies Large portfolio A strong customer foundation Unique customization options Intel Corporations Brand recognition Constant innovation

Weaknesses Apple Limited distribution network High selling prices Dependence of sales on high-end market segments Dell Technologies Offshore customer support Low spending on research and development Intel Corporations Decreasing profit No diverse products

Opportunities Apple Expansion of distribution network Higher sales volumes based on rising demand Development of new product lines Dell Technologies More diversity in their products Branch out and be involved in more than hardware Intel Corporations Potential to go into smartphones, drones, and automatic cars

Threats Apple Aggressive competition Imitation Rising labor costs Dell Technologies Booming smartphone and tablet industry Intel Corporations Competition

Present Strategy Based on total assets and revenue, Apple Inc. is the largest information technology company in the world. Apple’s business strategy is based on its capability to create and develop unique hardware and operating systems that are constantly being innovated to provide consumers with both products and solutions. premium pricing and product differentiation

Present Strategy Apple created a business acquisition of Beats Music, LLC., and by doing this, the two companies created a music streaming service Vertical integration Apple Inc.’s competitive advantage comes from staying one step ahead of competing companies.

Present Strategy Apple’s service revenues, the app store, icloud, and apple music, have created a new level of revenue for the company. Being a huge factor of their business strategy, service revenues have constantly increased within the past several years.

Present Strategy- Financial 2018: reached its highest annual revenue ever accomplished generating an impressive 265.6 billion dollars. iPhone sales: 82 percent of the company’s annual revenue of 2018, generating about 218 billion dollars. Apple Inc. still leads the smartphone industry in sales

Present Strategy - Marketing “one of the most elegant advertisers” in the IT world (marketing91). To this day, Apple Inc. continues to uses Steve Jobs’ marketing philosophy. Marketing strategy: based on the idea that the customer does not know what he/she wants Goal is to make customers want Apple instead of finding the wants/needs of customers

Present Strategy-HR Upper management of Apple has highlighted the importance of both innovation and creativity. Bases success on strength of employees Hire skilled professionals in hopes of learning from them and their talents/creativity Has become the most innovative firm in the consumer electronics industry due to its human resources approach

Competitive Strength - Brand Strength #1 in the world 8 years in a row Brand strength currently worth $182.8 billion in 2019 8% higher than in 2018 Intel brand strength = $34.1 billion Dell brand strength = $3.5 billion

Competitive Strength - Brand Strength Exceptional customer service Reliable products Sleek designs Features ICloud IMessaging User friendly interface (IOS) Customers don’t buy Apple products such as the Apple Iphone because it has the a Liquid Retina HD display or because it has 4GB of ram, they simply buy it because it is an Apple.

Cost Position High cost position compared to others in the market Offering a small number of products. Focusing on the high end products Give priority to profits over market share Create a halo effect that makes people starve for new Apple products Unique Ahead of the curve

Strategies For Maintaining High Cost Position Minimum Advertised Price (MAP) Prohibits resellers and dealers from advertising their products below a certain minimum price Wholesale discounts for retailers Slight savings Not enough to lower their prices and compete with Apple’s stores

“We never had an objective to sell a low-cost phone “We never had an objective to sell a low-cost phone. Our primary objective is to sell a great phone and provide a great experience, and we figured out a way to do it at a lower cost.” -Tim Cook