1.

Introduction

2. Internal environment:

Value chain analysis:

Primary Activities of Apple inc.

Inbound Logistics:

This refers to the process of acquiring and storing raw materials for use in
manufacture. Apple has a very advanced supply-chain management system and
collaborates with hundreds of suppliers worldwide.
Apple has a significant competitive advantage over its rivals due to its practice of
using several suppliers for the same component where they are able to reduce
delays and disturbances in the supply chain, boost production in response to
shifting consumer demand and as several suppliers compete for its business,
encouraging lower supply prices. (Gartner, 2015) While some Mac computers
are also constructed in the United States and Ireland, outsourcing partners who
are primarily situated in Asia make the majority of the hardware products that
the company produces.

Operations
Around 164,000 full-time equivalent workers were employed by the Corporation
as of September 24, 2022. (Washington, 2022) Based on location and closeness
to markets, Apple segments its activities into the following categories to manage
its global operations: •America- includes North America and South America
•Japan •Europe- includes Europe, Middle East, India and African markets.
•Greater China- China, Taiwan and Hon-Kong •Rest of Asia Pacific- includes the
remainder of the Asian nations and Australlia (Fámúwàgún, 2021).

Outbound Logistics
This includes warehousing and distribution of their products. Its main warehouse
is located in California, and it ships and mails its products to its consumers
through UPS and FedEx warehouses (its delivery partners). Apple has been able
to successfully beat its peers and competitors by more than 2.0 to 5.5 times by
using a complicated but simple supply chain approach. The First In First Out
(FIFO) principle of inventory control is used to manage a company's product
introduction and sales into the market by ensuring that all of its prior inventory
of its current products is sold before announcing a new one. This eliminates
unnecessarily reducing product prices and maintaining old model stocks

Marketing and Sales

Consumer, small- and medium-sized business, education, enterprise, and
government sectors make up the majority of the firm's clients. The company's
advertising products comprise a variety of license agreements with third parties
as well as its own advertising platforms. (Washington, 2022) The company
primarily uses four sales channels for distribution: its online stores, its physical
storefronts (iStore), Direct Sales Force, distributors, merchants, and phone
network providers globally. (Fámúwàgún, 2021) Direct and indirect distribution
channels contributed 38% and 62%, respectively, of the Corporation's 2022 total
net sales.

Service:

Apple offers its clients high-quality services before, during, and after the
purchasing process. That is one of the primary factors that encourage buyers to
buy Apple products. Customers appreciate Apple's replacement warranty
because it gives them comfort. It shows the level of quality of the goods being
supplied to clients.
Support activities of Apple Inc.

Infrastructure
This is a major part of the company which includes management, accounting,
legislative and administrative functions of a company. An organization like Apple
Inc. would benefit from greater profit margins if these infrastructure resources
were managed effectively since they would create value while also helping to
maintain optimal costs.

Human Resources
The proper human resources must be deployed to the right jobs in order to
assist and ensure that the firm achieves its targets and goals. This will help to
ensure that the primary activities of the whole value chain are achieved.

Technology development
Through means of research and development (R&D), intellectual property
licensing, and the purchase of external enterprises and technologies, the
Company continues to adopt to new technology to enhance its current goods
and services and expand the range of those it provides, consequently providing a
significant competitive advantage over its rivals, increasing value.
Procurement
Finding the greatest resources for company needs at the right price adds a lot of
value to the entire value chain, and this will be crucial for Apple Inc.'s success. In
order for the firm to truly acquire a competitive edge, each of the core activities
is linked to a supporting activity, and each element under these two segments
helps to determine the optimal level

SWOT Analysis:

 Strengths:

Expanding closed ecosystem:

The Apple ecosystem is a term used to describe the digital ecosystem of products, including
the iPhone, iPad, Apple Watch, etc. It helps users to integrate and optimize between various
networks of devices, software and services and focuses on privacy.

Leading innovator amongst the electronics brands:

 Apple has persistently been ranked at the top position because of its
uniqueness in electronic devices, such as: Iphone, Ipad in Q4 2014.
 Apple is regarded as a leader for innovating products in the market: iTunes
(publishing photos, movies, organizing editing and music).
 Moreover, Apple has now become one of the biggest online retailers for
streaming music, videos and software solutions. Apple has extended its
coverage by reaching out to more customers.

Remarkable sales growth every year. (Annual Financial Report of Apple Inc)

Strong and effective marketing team:

Through multimillion-dollar marketing campaigns such as the successful “think

different” ads and catchy slogans (“The ultimate all-in-one design”, “it just works”),
Apple promoted itself as a hip alternative to other computer brands.

Premium quality of customer experience

Apple retail store opened to not only want consumers to look at the eye-catching,
but also want people to directly use and experience Apple’s software.
Financial strength and profitability

 Weaknesses
High price
If Apple has one limitation then that has to be its high price. The Apple products are
at the high- end of the market. However, this has left a negative impact on its sales,
as consumers have many options available other than Apple. These brands like
Samsung, Microsoft, are much cheaper and offer most of the apple phone features
and various. As per strategy analytics, Apple has faced loss in its customer base, as
compared to 2012 from 93% iPhone user purchase has come down to 88% in
2013.Hence, every year its competitors are offering the customer by reducing prices
or adding features similar to Apple.

Wrong prediction
One was the Mac Mini. The other was Apple TV

Compatibility issues with other application

Due to their lack of support for other operating systems or applications, other
gadgets cannot be utilized with Apple goods. To continue using Apple goods,
customers must only purchase Apple software or accessories. Because of this issue,
some customers may choose various brands to begin with

Limited customization options

 Opportunities
Increase in demand for mobile accessories

With mobile products like the iPhone and iPad, with aggressive marketing, the
business could increase overall sales and revenue

Increasing cloud-based services

It is predicted that forthcoming iCloud innovation will redefine the earnings of the
company in future. In apple case study, it is suggested that Apple has a prospect of
expanding its services or chance of adopting new strategies to engage new
customers in these services to meet the high rising demands of services of iCloud.

 Threats
Fierce competition
 Companies like Google, Samsung, and Dell represent a severe challenge to Apple
with their swift development and cutting-edge technology. Also, many foreign local
businesses compete on price by copying the appearance and functions of Apple
goods. Strong fundamentals are essential top reserve competitive advantages in
software, hardware, and online services because the company's ability to function is
being restricted by the fierce competition.

Contravention of the intellectual property (IP) rights

In 2010, Apple initiated litigations against several Android manufacturers.

The growth of Android OS

Data on sales of the year 2015 of Smartphones to consumers as per Operating System (Thousands
of Units).

Market share in
Operating System Units in 2015 2015 in 2016 Units
percentage
Android 271,010 68.5 243,484
iOS 48,086 20.2 35,345
Windows 8,198 9.9 8,9095
Others 1,229.0 1.4 1,416.8

As shown in data, it is evident that the company has a serious threat of losing its
customers to the Android operating system.

3. External environment:
PESTEL Analysis:
PESTEL FACTOR IMPLICATION IMPACT OPPORTUNITY/
THREAT
Political Taxation-Tax Apple being one of the top High Threat
rates, and American companies that bring in
incentives large amount of revenue, as a result
of the fact that income inequality
has become a crucial political issue
in the United States
Free trade It is possible for apple products to High Opportunity
policy be distributed more widely around
improvement the world thanks to improved free
trade policies overtime, which is a
significant external strategic factor
and provides a chance for the
company to expand
Trade The company's potential growth High Opportunity
disputes and the global sales revenues of its
 products are threatened by the trade
disputes between the United States
and China. Apple being highly
dependent on China for
manufacturing of their products
due to lower manufacturing costs,
demands for limiting Chinese
imports into the US could lead to
increase of Apple products due to
finding alternatives to Chinese
manufacturing could be very costly
Economical Growth in In aiding the expansion of the Medium Opportunity
developing technology industry, developing
countries countries' rapid economic growth is
a more important external
economic element. Given the rapid
economic expansion of Asian
countries, Apple, for instance, has
the opportunity to increase its
revenue through sales in these
overseas markets
Foreign The rise of exchange rates because High Threat
exchange rate of the strengthening of the dollar,
makes it more expensive for Apple
to conduct business in important
areas has an impact on the sales of
the product.
Inflation The current inflation all around the High Threat
world is unfavorable for producers
like Apple as rising labor,
skyrocketing commodity prices,
and high logistical costs have a
negative financial impact on them.
Moreover, declining consumer
spending power lowers demand
and slows sales
Social Rising use of In the current era, iPhone, Mac Low Opportunity
mobile books are used to elevate their
phones status in society which is an
additional societal trend that
increases demand, which allows
Apple to sell more of its products.
Technological Being a Apple is a trend-setter and an High Opportunity
trendsetter ambitious innovator in the
consumer electronics industry. It is
able to maintain a significant
portion of its consumers and
convert the majority of them to iOS
each year by providing distinctive
and cutting-edge technology.
 Increased This is identified as a growth Low Opportunity
demand in opportunity for Apple inc. By
cloud utilizing this potential and the
computing corporate structure of the
corporation, expanding the cloud
infrastructure could assist Apple
Inc. in improving its profitability in
offering cloud computing services.
Technological Since the industry is competitive High Threat
development and has a short product life cycle,
by the Apple needs to invest more and
competitors more in R&D due to competitors
Google and Samsung because they
create cutting- edge consumer
electronics like gadgets and
smartphones. Therefore, for the
creation of truly distinctive
services, more innovation is
needed.
Ecological Fully One of the main goals of Apple is Low Opportunity
transitioning to eliminate the use of plastic in
to renewable their packaging and use renewable
and reusable and reusable materials which will
materials have less impact on the
environment due to reduction in
energy to manufacture new
products thus less emissions.
Abide to a set Apple's codes guide their suppliers Low Opportunity
of to act accordingly for the goodwill
environmental of the environment.
codes.
Legal Data Government pressure to protect High Threat/
protection privacy has led to a rise in privacy opportunity
regulations for companies like
Apple Inc. This could be a threat
due to imposing more restrictions
on the company and high cost in
regulatory compliance
requirements. But this could give
Apple inc. an opportunity to
increase its privacy measures
which would lead to boost business
according to PESTEL analysis.
Intellectual Most of Apple's income depends High Threat
property law on products related to intellectual
property law like music and
software, making it more
vulnerable to litigation and piracy
Industry analysis with Porter's 5 forces
Threat of new entrants The difficulty of launching a successful
(low) enterprise in an industry where competitors
already dominate, well-respected, and trusted
enterprises is quite costly. However, building
a brand reputation that would outperform
already- existing companies comes at a hefty
expense. Any new participant in the
computer or smartphone sector would have
to spend a large sum of money on research,
development, and production to create and
produce items before even entering the
market. Furthermore, Apple has developed a
supply chain that works in their advantage
and offers good defense against low end
disruption from new competitors. (Aljafari,
2016)
The threat of new substitutes (medium) Apple maintains its lead over the competition
in this market by creating products that are
direct competitors to their own before
anyone else can. The Apple-owned app store,
iTunes, and iCloud could be a major positive.
Yet, customers may also obtain comparable
goods from other tech businesses at lower
prices and higher quality, like watches, PCs,
tablets, and cell phones. Hence, Apple Inc.
offers less distinctiveness than its
competitors Sony, Dell, HP, Samsung, and
Google
Bargaining power of customers (high) When taking buyer power that is both
individual and group into account, which are
two distinct types of buyer bargaining power.
Due to the minor financial loss incurred by
losing even one customer, an individual
customer's power in negotiations is limited.
However, losing numerous consumers to
rivals could be detrimental to the company
and have a significant impact on sales due to
the considerable negotiating power of the
collective buyer. By consistently spending in
R&D to create new products like the Apple
Watch and Apple Pay, Apple has been able
to counteract this force. Apple also tries to
make moving to their products more
expensive by maintaining essential product
features
Bargaining power of suppliers (low) Due to the wide pool of possible suppliers
from whom Apple must pick, vendors'
bargaining power is limited. Apple is a big
customer for all suppliers due to its high
 volume of product requirements, hence
suppliers will battle to keep Apple as a client
in an effort to preserve their business and
financial stability. Apple keeps gaining
control over suppliers and reducing costs,
forcing their rivals to find alternative
manufacturers and suppliers
Industry rivalry (high) The rival companies of Apple have a
significant impact on one another. Several
manufacturers of hardware and software
compete directly with Apple like Google,
Microsoft, and Samsung. The low switching
costs in companies is a major aspect that
maintains the sector very competitive. Due to
the fact that Apple products are never put up
for sale, They have been successful in
building a name among customers as
premium goods with superb quality,
exceptional customer service, and unique
products. Given the fierce competition, it
should invest more in software, computers,
and mobile devices.