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Apple Inc. is an international American company that produces cell phones, personalcomputers, computer software and consumer electronic products. The well-known products ofApple include: the Macintosh line of computers, the iPod, the iPhone and the iPad. The soft-ware of Apple consist on the Mac OS X operating system, iWork suite of productivity soft-ware, Final Cut Studio, Logic Studio a music production tool’s suite, iOS; a mobile operatingsystem, the iTunes media browser, the iLife suite of multimedia and creativity software, Aper-ture; a professional photography package, AirPlay, Airprint, etc (Business Insider, 2013).Apple Company was developed on 1stApril, 1976 by the co-founders named SteveJobs and Steve Wozniak in Cupertino, California. The first 30 years of the company wasnamed Apple Computer Inc. but later on January 9, 2007, the word “Computer” has removed(Business Insider, 2013). They introduced Apple I computer in 1976 which was a failure butin 1980, they launched Apple II which was successful. The IPO offered by the company in1980 (Datamonitor, 2006).The purpose of this assignment is to critically analyze the context within which thecompany operates by analyzing the external and internal environment. In order to achieve thisdifferent analytical tools and models will be applied. Then the objectives and strategy of Ap-ple will be identified and evaluated. There will be examples of the implementation of thestrategy at the end.2. External EnvironmentThe external factors can be evaluated using PEST because PEST analysis is valuablestrategic tool for identifying the business positions, size, growth, feasible route for operationsand to classifying the market development and decline (Kotler, n.d.).2.1. Basic Characteristics of the Environment - market definition,size, growth and share Apple is defined as the leading digital asset management company and global smartphone provider. It is the only one who generates and runs both soft-wares and hard-wares. Itallows consumers to buy and share contents (applications, music and movies) via Apple de-vices (iPad, iPhone, Mac and iPod) by an exclusive selling media platform called iTunes(Digital Marketing, 2011).In 2015, Apple’s CEO (Tim Cook) identified the enterprise market as a "majorgrowth vector" for the company, with $25 billion in revenue — up 40% over the same periodlast year. Apple has been aggressively pushing into the enterprise market, partnering up withthe likes of old-school tech giants like Cisco and IBM to make the iPhone, iPad, and Mac alot friendlier to a workplace market (Business insider, 2015).Moreover, the Company posted quarterly revenue of $51.5 billion and quarterly netprofit of $11.1 billion, or $1.96 per diluted share. These results compare to revenue of $42.1billion and net profit of $8.5 billion, or $1.42 per diluted share, in the year-ago quarter. Grossmargin was 39.9 per cent compared to 38 per cent in the year-ago quarter. International salesaccounted for 62 per cent of the quarter’s revenue (Apple, 2015).
MBA500_Industry Analysis Paper 5Figure 1: iPhone Quarterly Sales Over TimeApple continued to find success with its larger screened iPhone 6 Plus. It shipped a