Development such as internet connectivity rising

development such as internet connectivity, rising middle-class population, growing
economies among other factors (Dudovskiy, 2018).
Economic Logic
The success of the Apple strategy is also attributable to economic logic that the
company focused on. Firstly, the company holds a low level of inventory, a strategy that
significantly reduces the overall operational cost of the company ("Business - Partners",
2019). Lean operations are an important aspect of enhancing a firm’s profitability. High
levels of inventory holding results to high costs and thus, Apple leverages on holding a low
level of stock through third parties. Besides, obsolescence is a common phenomenon in the
tech industry attributable to rapid technological development.
Summary of Five Elements
The five elements of a strategy are present in Apple strategy. The analysis of the
company’s strategy shows where the company is active, how the company has gotten where it
is today, how has the company won, the sequence and speed of change initiatives made by
Apple, and economic logic of backing a strategy. The integration of the five elements in a
strategy enhances the degree of achieving the objectives of Apple’s strategies in lean
operations, differentiation, premium pricing, and being the market leader in aligning the
products an services according to the changes in the business macro environment (Khan,
Alam & Alam, 2015).

STRATEGY ANALYSIS AND EVALUATION - APPLE INC. CASE STUDY 9
Strategy Evaluation
Apple ensures that the strategy adopted is in line with the macro-environment which
includes Political, Economic, Social-cultural, Technological and Legal environment. Apple
Inc. experiences several political issues as most of its suppliers are distributed around the
world. Political pressures resulting from the suicide of workers is also an issue. For instance,
in 2010, Apple experienced an explosion in its supplier facility which led to the death of two
workers. Apple ensures it aligns its strategy in a manner that evades political inconveniences.
When it comes to legal matters, Apple also faces some challenges (Aljafari, 2016). For
instance, at one point, the US government had banned some parts used in making the iPhone.
Tough environmental and labor laws by the American government makes it difficult
to be part of the extremely competitive environment. Despite all these, Apple`s strategy
adheres with the set laws of the land to avoid unnecessary inconveniences. Economic analysis
shows that Apple has had its own share of problems. The growth of the global economy was
slow for too long. Fiscal problems in the US, Euro crisis and stringing dollars are a problem
to products offered by Apple in terms of cost of transportation, profit margins and prices of
products. The social analysis shows how Apple makes products that satisfy customer needs
through acquisitions and alliances. This has improved the sale of its products in countries like
India hence the success of Apple`s rationale growth strategy ("Business - Partners", 2019).