Introduction
Founded in 1976, Apple designs, manufactures, and markets the
world’s single-most popular smartphone, the iPhone, even though
Apple has only about 15 percent of the global market share in
smartphones. Apple also produces the iPad, iPod, iCloud, Mac
computers, and other accessory devices. Being the world’s largest
corporation based on a market capitalization of about $650 billion,
approximately $200 billion from the second world biggest company.
Headquartered in Cupertino, California, Apple owns iTunes, the
popular app and store where customers can download music.
.
Currently, Apple employs over 110,000 full-time employees worldwide
across multiple countries, with a strong presence. While the exact
number of offices isn't specified, Apple had over 460 retail stores
globally by the end of 2015 with annual revenue of $233.7 billion.
Apple Inc.’s existing vision, mission, objectives, and strategies
Neither at its corporate website nor in its Form 10K does Apple
provide a written vision or mission statement labeled as such. There
are statements such as the following, however, that perhaps serve as
Apple’s vision and/or mission.
Apple Inc.’s Vision Statement
“We strive to provide users of Apple products the best experience
possible though innovative product designs and software.”
Apple Inc.’s Mission Statement
"Apple designs Macs, the best personal computers in the world,
along with OS X, iLife, iWork and professional software. Apple
leads the digital music revolution with its iPods and iTunes online
store. Apple has reinvented the mobile phone with its revolutionary
iPhone and App Store, and is defining the future of mobile media
and computing devices with iPad".
Proposed Vision Statement
“We exist to make lives easier through technology that’s
creatively designed, easy to use and secure, meeting the
needs of today and the future.”
This statement is future-oriented, inspiring, and broad enough to
encompass all of Apple's current and future endeavors. It
captures the essence of "best experience possible through
innovative product designs and software" and "defining the
future of mobile media and computing devices". It also reflects
their pursuit of "best" over "most" and their user-centric
philosophy.
Proposed Mission Statement
Apple designs and manufactures premium hardware, software, and
services (2), including Macs, iPhones, iPads, iPods and various digital
platforms that drive innovation for individuals and businesses worldwide
(3). We fulfill the needs of global customers (1) by delivering high-
quality technology that enhances productivity, and creativity. We are
driven by our huge commitment to simplicity, privacy, inclusion,
exceptional customer service (6). We aim to grow and support our
employees (5)(9), and positively impact the communities we serve (8)
through secure and integrated digital ecosystem (4)(7). [94 words] less
than 250 word as per mission characteristics
The 9 Mission components :
(1) Customers
(2) Products or services
(3) Markets
(4) Technology
(5) Survival, growth and profitability
(6) Philosophy
(7) Distinctive competence
(8) Public Image
(9) Employees
Apple Inc Mission Statement Analysis: Apple focuses primarily
on the following mission statement components: [Link] may not be
important for Apple to elaborate on its staff concerns or to outline its
customers and targeted market thoroughly. Apple is a trendy technology
company that prides itself on making electronics easy to use and software
systems efficient to run. Because of this, focusing on components such as
company philosophy, selfconcepts, and current technologies is most
important for Apple's mission statement. What makes it popular and
successful today is these aspects of Apple. [Link] the Apple II, Apple set
off the personal computer revolution in the 1970s and reinvented the
Macintosh personal computer in the [Link], with its award winning
desktop and notebook computers, OS X operating system, and iLife and
professional applications, Apple continues to lead the industry in
innovation. Apple’s iPod portable music players and iTunes online music
store are also leading the digital music revolution. Apple’s mission
statement includes only product and service descriptions and past and
present technologies. [Source]( Gayle, B. M., & Preiss, R. (2015))
Situational Analysis Industry Structure and economic feature: Apple Inc.
has succeeded in creating substantial value in the highly competitive
personal(PC) computer industry by innovating and forging a path that
differs considerably from those of the industry's largest competitors,
successfully differentiating its products from those of competition by
focusing on quality, elegance in design and superior customer service,
while outsourcing actual. Yet, despite the benefits Apple has created for
itself, the firm faces formidable challenges with the stiff competition
within the industry and other external factors. The computer industry's
versatility makes it possible to highlight a few dominant economic
features. One of those dominant features is the market size mentioned
above. It has grown from $ 890 million to $ 2 billion(Source: Apple
Annual Report).
Apple Inc.’s Objectives
Sustain Premium Market Position: Apple aims to be "the
best" rather than striving for "the most" market share, implying
a focus on quality, innovation, and user experience, which
supports premium pricing.
Achieve Record Sales and Revenue Growth: Demonstrated
by record third-quarter sales of iPhone and Mac, and all-time
record revenue from services in fiscal 2015, and record financial
results for fiscal first quarter 2015 in revenues and profits.
Expand Global Reach: International sales accounted for 64
percent of quarterly revenue in Q3 2015 and 65 percent in Q1
2015, with the iPhone becoming the most popular phone in
China. Retail expansion around the world also supports this.
Drive Innovation and Product Development: Continuous
release of new products (iPhone 6/6+, Apple Watch, Apple Pay,
Apple Music, iOS 9, OS X El Capitan, watchOS 2) and
significant investment in R&D ($6 billion in 2014) highlights
this objective.
Enhance Ecosystem and Services Revenue: Record revenue
from services in Q3 2015 and the successful launch of Apple
Music indicate a focus on this segment. The App Store also
generated a record $1.7 billion in transactions in July 2015.
Manage Financial Structure: Authorized a $90 billion stock
repurchase and raised dividends, indicating a commitment to
shareholder returns. Also, used debt to finance operations for
the first time since 1994, seeking further financing by debt and
bonds.
Apple Inc.’s Strategies
Product Differentiation and Innovation: Focus on "innovative
product designs and software" and releasing new, often
revolutionary, products like iPhone, iPad, and Apple Watch.
This includes offering larger screens on iPhones to compete.
Premium Pricing and User-Friendly Design: Apple's
"overriding strategy always has been to produce elegant, easy-
to-use products, often at a premium price point". Products are
"generally more user friendly" than competitors.
Strong Brand and Customer Loyalty: Apple designs products
for "the best experience possible" and has "strong customer
loyalty" in a hypercompetitive industry. Its well-trained
salespersons and excellent customer service contribute to this.
Ecosystem Lock-in and Control: Apple approves all third-
party digital content through its iTunes, App, and iBooks stores,
exerting more control than competitors like Android. This
creates a cohesive user experience.
Vertical Integration (in part) and Control over Retail:
Operates 450 Apple stores and owns iTunes. This allows for
direct sales, strong customer service, and control over the brand
experience.
Strategic Acquisitions: Acquired firms like NeXT (bringing
Steve Jobs back) and Beats Music/Headphones (gaining
streaming service and a headphone firm).
Supply Chain Management: Almost all hardware products are
manufactured in Asia, often at single locations, to keep costs
low, though this poses risks. Apple mitigates this by stocking up
to 150 days of supply.
Intellectual Property Protection: Sued Samsung for patent
infringements to impair rivals' ability to sell certain products.
Financial Management: Aggressively financing through debt and
bonds, repatriating cash through stock repurchases, and raising
dividends. Keeping much cash in foreign banks to avoid U.S. corporate
taxes
