1. Competitive Analysis: Apple Inc.
Group AM
Emilye Webb
Maddie Campbell
Christian Todd

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

3. 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

4. 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

5. 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

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

7. 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

8. 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.

9. 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.

11. Present Strategy- Financial
2018: reached its highest annual revenue ever accomplished generating an impressive 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

13. 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

14. 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

15. 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

16. 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.

18. 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

19. 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

21. “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