3553 6309 1 SM

Topics: Apple Inc., Apple Store, Steve Jobs Pages: 10 (6614 words) Published: March 31, 2015
ISSN 1913-0341 [Print]
ISSN 1913-035X [Online]
www.cscanada.net
www.cscanada.org

Management Science and Engineering

Vol. 7, No. 2, 2013, pp. 94-103
DOI:10.3968/j.mse.1913035X20130702.Z001

A Strategic Analysis of Apple Computer Inc. & Recommendations for the Future Direction

TAN Jinjin[a],*
[a]

“Think Different” (continuous innovation spirit), direct sale business model, customer-focused services and
Apple brand power. With “Think Different” spirit, Apple
innovates and upgrades its products inexhaustibly. As a
successful imitation, Apple sells the products directly to
customers over the web, by phone, and Apple stores in
an endless stream. Implementing the customer-focused
services and “Switcher” campaign, the population of
Apple World and even People’s Republic of Mac (Feng,
2009) is proliferating day after day. Apple is not only an
illustrious innovator and inventor, but also a successful
imitator and strategist.

School of Foreign Language, Shandong International University, Jinan, China.
* Corresponding author.
Received 11 April 2013; accepted 23 May 2013

Abstract

Apple® today announced financial results for its fiscal
2012 fourth quarter ended September 28, 2012. For the
quarter, the Company posted a net profit of US$45 million
or US$0.13 per share. These results compare to a net
profit of US$66 million, or US$0.19 per diluted share,
in the year-ago quarter (Bryan Chaffin, 2012). Apple is
ranked number six among the main computer makers,
with a market share of 3.48 percent, and worldwide, it
is in ninth place with only 2.4 percent market shares for
the first quarter of the year 2012. As one of the computer
giants, Apple’s predominance position is losing. Before
we provide recommendations and suggestions for the
future strategy choices and direction of the company,
it is essential to have an integrative understanding of
the external environment and internal environment,
identifying the opportunities, threats, strengths and
weaknesses, and explore the core competencies, which
can generate competitive advantages.
Key words: Apple Computer Inc.; Strategic analysis;
Recommendation

2. THE PROBLEM: HAMLET’S
SOLILOQUIES: TO BE, OR NOT TO BE:
THAT IS THE QUESTION
Comparing with Apple’s market shares for both the desktop
and portable computer decreasing by half, computer maker
Dell is in first place in U.S. market share with 26 percent and worldwide with 14.3 percent (Jim Dalrymple, 2011). HP and
Compaq, IBM, Gateway and Microsoft are also indulging
themselves in “the excitement of combat, of living on the
edge” (Nelson DeMille).
Encountering those fierce heavyweights, how can
Apple settle the deficit and effectively fight with those
competitors in these arenas? How can Apple recapture
the market shares in the general computer battlefields and
achieve continuous victories in the consumer electronic
market? The principle of survival of the fittest and the law of the jungle are always dominating the markets, so that
how to defeat the adversaries is an enigma concerning life
and death.
To be, or not to be: that is the question. Tough
questions usually don’t have easy answers. Synthesis of
analysis should be utilized to analyze the environments
and consequently, then the solutions could be self-evident.

TAN Jinjin (2013). A Strategic Analysis of Apple Computer Inc. & Recommendations for the Future Direction. Management Science and Engineering, 7(2), 94-103. Available from: http://www.cscanada. net/index.php/mse/article/view/j.mse.1913035X20130702.Z001

DOI: http://dx.doi.org/10.3968/j.mse.1913035X20130702.Z001

1. THE APPLE MODEL
As a computer and consumer electronics giant, Apple
expands itself with four core philosophies, which are

Copyright © Canadian Research & Development Center of Sciences and Cultures

94

TAN Jinjin (2013).
Management Science and Engineering, 7 (2), 94-103

3. THE EXTERNAL ENVIRONMENTAL
ANALYSIS

products...

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U S $ 7 m i l l i o n p ro f i t b e f o re n o n - re c u r r i n g c o s t s ,
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stockwatch/2012/10/16.2.shtml (Accessed 2/11/2012).
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stuff for the people, macsimumnews
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industryweek.com/ReadArticle.aspx?ArticleID=325
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Hitt, M., Ireland, R. and Hoskisson, R. (2012). Strategic
management: competitiveness and globalization (concepts
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Macworld
news/2012/10/16/financial/ (Accessed 2/11/2012).
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from http://www.forbes.com/asap/2012/1007/013a.html
(Accessed 2/11/2012).
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economy doesn’t sour
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TAN Jinjin (2013).
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