Marketing Plan : Apple Company

Mark Joseph D. Gallo

I. Introduction

A. Company Name, History and Profile

Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop
and sell Wozniak's Apple I personal computer, though Wayne sold his share back within 12 days. It was
incorporated as Apple Computer, Inc., in January 1977, and sales of its computers, including the Apple II,
grew quickly. Within a few years, Jobs and Wozniak had hired a staff of computer designers and had a
production line. Apple went public in 1980 to instant financial success. Over the next few years, Apple
shipped new computers featuring innovative graphical user interfaces, such as the original Macintosh in
1984, and Apple's marketing advertisements for its products received widespread critical acclaim.
However, the high price of its products and limited application library caused problems, as did power
struggles between executives. In 1985, Wozniak departed Apple amicably and remained an honorary
employee, while Jobs and others resigned to found NeXT.

As the market for personal computers expanded and evolved through the 1990s, Apple lost market
share to the lower-priced duopoly of Microsoft Windows on Intel PC clones. The board recruited CEO Gil
Amelio to what would be a 500-day charge for him to rehabilitate the financially troubled company—
reshaping it with layoffs, executive restructuring, and product focus. In 1997, he led Apple to buy NeXT,
solving the desperately failed operating system strategy and bringing Jobs back. Jobs pensively regained
leadership status, becoming CEO in 2000. Apple swiftly returned to profitability under the revitalizing
Think different campaign, as he rebuilt Apple's status by launching the iMac in 1998, opening the retail
chain of Apple Stores in 2001, and acquiring numerous companies to broaden the software portfolio. In
January 2007, Jobs renamed the company Apple Inc., reflecting its shifted focus toward consumer
electronics, and launched the iPhone to great critical acclaim and financial success. In August 2011, Jobs
resigned as CEO due to health complications, and Tim Cook became the new CEO. Two months later,
Jobs died, marking the end of an era for the company.

Apple is well known for its size and revenues. Its worldwide annual revenue totaled $265 billion for the
2018 fiscal year. Apple is the world's largest information technology company by revenue and the
world's third-largest mobile phone manufacturer after Samsung and Huawei. In August 2018, Apple
became the first public U.S. company to be valued at over $1 trillion. The company employs 123,000 full-
time employees and maintains 504 retail stores in 24 countries as of 2018. It operates the iTunes Store,
which is the world's largest music retailer. As of January 2018, more than 1.3 billion Apple products are
actively in use worldwide. The company also has a high level of brand loyalty and is ranked as the
world's most valuable brand. However, Apple receives significant criticism regarding the labor practices
of its contractors, its environmental practices and unethical business practices, including anti-
competitive behavior, as well as the origins of source materials.

Source : https://en.wikipedia.org/wiki/Apple_Inc.
B. Industry Profile

Apple Inc. designs, manufactures, and markets mobile communication and media devices, and
personal computers. It also sells various related software, services, accessories, and third-party digital
content and applications. The company offers iPhone, a line of smartphones; iPad, a line of multi-
purpose tablets; and Mac, a line of desktop and portable personal computers, as well as iOS, macOS,
watchOS, and tvOS operating systems. It also provides iTunes Store, an app store that allows customers
to purchase and download, or stream music and TV shows; rent or purchase movies; and download free
podcasts, as well as iCloud, a cloud service, which stores music, photos, contacts, calendars, mail,
documents, and others. In addition, the company offers AppleCare support services; Apple Pay, a
cashless payment service; Apple TV that connects to consumers' TVs and enables them to access digital
content directly for streaming video, playing music and games, and viewing photos; and Apple Watch, a
personal electronic device, as well as AirPods, Beats products, HomePod, iPod touch, and other Apple-
branded and third-party accessories. The company serves consumers, and small and mid-sized
businesses; and education, enterprise, and government customers worldwide. It sells and delivers digital
content and applications through the iTunes Store, App Store, Mac App Store, TV App Store, Book Store,
and Apple Music. The company also sells its products through its retail and online stores, and direct
sales force; and third-party cellular network carriers, wholesalers, retailers, and resellers. Apple Inc. was
founded in 1977 and is headquartered in Cupertino, California.

II. Macro Analysis (PESTEL)

 How Political Factors Affect Apple

The China-US trade war is an alarming political issue that affects Apple performance and market share in
the Chinese market. If the US tariffs rapidly increases on Chinese imports into the US then the Apple
products can also face heavily taxes from Chinese government. This political issue can affect Chinese
consumers demand for iPhone and other Apple product.

The Ireland Government and Apple resolved the back taxes and interest dispute. In this regard Apple
paid more than £15 billion. Apple is a leading tax payer in the world and such political issues can affect
its financial performance. There are many other political factors that can affect Apple’s performance in
many countries. Political instability and unrest are one of them that affect Apple sales and supply chain.

India is in the good books of Apple Inc. as it is the third biggest smart phone market in the world. If the
Indian government and Bureaucracy favor the Apple premium brand that can be a great success for the
company. The cost associated with finding alternative to Chinese manufacturing could increase price of
many apple products in the world.
  How Economic Factors Affect Apple

In pestel analysis, economic external factors mean both positive and negative influences that can affect
the business environment and performance of a Apple Inc. Economic growth, inflation, deflation,
unemployment rate, wage policies are good examples of economic factors.

The economic stability of many developed countries in world can create opportunities for a tech brand
like Apple. It can exploit these opportunities for business expansion. For example the higher growth
rates of Asian countries are great opportunities for Apple to increase market share and revenue. Keep in
mind the competitors; Apple must exploit such opportunities in the first place.

Increased labor cost in the Apple manufacturing countries can affect Apple products and profitability.
A Strong U.S dollar can negatively affects exchange rate that make it more challenging for Apple to do
business operations in countries like China, India, Pakistan.

Apple manufactures premium products that mean it targets high end markets only. Using the premium
pricing strategy Apple is unable to penetrate in the Asian market effectively like Samsung and Huawei.
Samsung and Huawei both are targeting low and high-end consumers and ruling the smartphones
market.

Apple is also facing furious competition from top tech companies like Samsung and Lenovo. These
companies offer premium laptops and smart phones on affordable prices.

 How Social Factors Affect Apple

The current trends of the increasing popularity of smart phone devices are somewhat a great
opportunity for Apple unless they provide easy to use and affordable phones in the market. Increasing
social media and mobile trends present both opportunities and challenges to Apple.

Apple has a close connection with China and many customers from North America and Europe can feel
offended. If the tension increases between US-China it can affect brand image of Apple.

Another social factors is Urbanization trends in both India and China can be more favorable for the
world leading brand Apple.

Africa is another country where consumer spending is growing but still many people are unheard of
Apple products.

 How Technological Factors Affect Apple

There are many competitors who are providing advance technological products of high value at
affordable prices which negatively affected brand image and financial performance of Apple. For
example companies like Lenovo maintained its position in the PC market while Apple lost it. It is because
of these competitors who are providing technologically advanced products at low prices.

Cloud computing is another technological impact becoming more popular these days. Apple has a great
opportunity to exploit it by offering cloud related devices and apps.

These days the Apps market is growing that is another opportunity and challenger for Apple. It should
expand it App Store.
Another opportunity for Apple is the trend of the integrating different devices. Apple should exploit this
opportunity by providing products that can be easily connected devices and platforms.

 How Legal Factors Affect Apple

Legal factors are external environment factors that can create threat to Apple. Compliance is mandatory
or Apple can face law suit and fines that will lead to bad brand image.

Privacy issues are another concern for technology users and Governments at the same time. Few
months back US Congress was asking Apple and Google to protect users’ privacy. This legal factor is
threat to Apple that creates more challenges for those products that deals with private information.

Technology companies like Apple has a strict telecommunication regulation that is an alarming threat to
Apple.

Apple is also planning to enter in the automobile industry and also working on electric car project code
name “Titan”. Apple is facing immense pressure from investors to launch the car and return their
money. This project will further increase regulations and litigation costs.

 How Environmental Factors Affect Apple

Apple is manufacturing most of its products in China where pollution and environmental side effects are
great concerns for the company that can affect manufacturing cost and regulations.

Apple is also working for new technology solution by providing energy efficient products like batteries
and processor and other equipment with less heat emission.

Apple is working on business sustainability program through disposal and recycling nonworking electric
devices.

Global warming is creating climate change that can affect Apple supply chain.

Apple is depending on huge internet infrastructure and data center that can lead to increase the
electricity cost in the future.
SWOT ANALYSIS

III. Vision Analysis

Apple’s Corporate Vision Statement

"We believe that we are on the face of the earth to make great products and that’s not changing. We are
constantly focusing on innovating. We believe in the simple not the complex. We believe that we need to
own and control the primary technologies behind the products that we make, and participate only in
markets where we can make a significant contribution. We believe in saying no to thousands of projects,
so that we can really focus on the few that are truly important and meaningful to us. We believe in deep
collaboration and cross-pollination of our groups, which allow us to innovate in a way that others
cannot. And frankly, we don’t settle for anything less than excellence in every group in the company, and
we have the self-honesty to admit when we’re wrong and the courage to change. And I think regardless
of who is in what job those values are so embedded in this company that Apple will do extremely well."

The vision statement of Apple is quite detailed; much more detailed than most companies have. The
stresses is mainly upon the core philosophy. Main focus remains on innovation and complete quality. It
also stresses upon Apple’s values like honesty, product excellence and deep collaboration. The vision
statement also talks of its core beliefs like simplicity. Apple believes in doing meaningful work that really
adds value to the company’s image.

Apart from these things, it highlights the high standards Apple has set for itself. The vision statement
beautifully explains the company’s focus and cause. Innovation is enshrined in the foundational values
of the organization and employees at all levels know and understand it. The statement shows what is
most original about Apple and which is never going to change. It is here to deliver matchless
performance and unequalled product quality.
Technology is the basis of all innovation but Apple is not focused at just profits. It believes in
contributing to the society in the right way. It works in areas where its contribution really generates
value and operates only in the markets where its contribution holds significance. Apple has set high
standards for itself and is focused on achieving them, gets clear from its vision statement. Still, there are
just two things mainly that it keeps talking about – technological innovation and values like simplicity
and honesty. there is nothing about employees, a vague description of a social responsibility and little
about the business, customers and markets.

IV. Corporate Objectives and Strategies

When a company has established its marketing mix and began to understand its plan for the four P’s:
product, place, price, and promotion. It must then incorporate objectives and strategies for what the
company aims to do and how it will reach its goals. Apple Inc., a market leader in the technology market
is great at marketing and branding their products but it does not come easy. It’s all about your action
plan for meeting and accomplishing your objectives.

Product

Apple offers premium products at premium prices while still maintaining large market share and high
profit margins.

Objective 1- Continue to create groundbreaking products. Apple has made a name for itself becoming a
trend setter in the market with every one of their products introducing something new and exciting to
the world.

Strategy- To create groundbreaking products Apple will need to have a great team building culture along
with a strong research and development team. Too they will have to operate with a sense of no
complacency and not let current success limit future potential.

Objective 2- Innovate and dictate the movement for future technology

Technology is forever changing and even the biggest companies can get left behind. The consumer will
always buy the next big thing and brand loyalty is hard to come by. This is why Apple must continue to
lead the serge of the innovative world.

Strategy- To continue success of having the best products, Apple must study the market to understand
what consumers want next while improving their current products from listening to customer feedback.

Place

You can find an Apple product in most areas of the world and that is certainly the overall goal for global
business. However where there is product demand there must be supply.

Objective 1- Expand nationwide chain of Apple stores globally.

The Apple store accounts for the majority of the company’s sells. Therefore there must be more stores
to increase sells substantially.
Strategy- Begin placing stores in all large markets and expand outward based on population and demand
of products.

Objective 2- Make products available in every other possible retail channel, ex. Online, Big Box retailer

Even though the Apple store leads in sells, Apple must make sure it’s products are accessible to every
consumer since their demand is so high.

Strategy- Place products in every retail store that carries electronic devices, all e-commerce web sites,
and make sure mobile devices are featured on every large mobile carrier.

Price

With every premium branded product there will come a premium price. It’s to be expected that the big
name brands that present superior quality will bring the highest price.

Objective 1- Enter and sustain premium pricing while attempting to gain market share.

As long as their products are cutting edge consumers will have no problem paying more for them. It’s
important this trade off does not subside in order for the premium pricing to be sustained.

Strategy-Strategically price all products at the top of the market base price relying on brand and quality
to offset the price differential.

Objective 2- Increase profit margins.

Even with a high or low share of the market it’s your margins that make or break you. Apple has great
margins but a low market share across the board due to competitors low price points.

Strategy- Continue push to lower cost to make products while sustaining the same retail price in the
market.

Promotion

Building a brand may be the toughest challenge in all of business. To start at absolutely nothing and
build something that persuades millions of consumers to buy your products. Success like this is not built
without excellent marketing and promotion strategies which Apple has certainly demonstrated they
have.

Objective 1- Build hype and anticipation for new upcoming products.

No better promotion than getting consumers to anticipate your next release. Every great product’s next
version will always do great despite its functionality based solely on the anticipation from its previous
version. Ex: If you liked the iPhone 5 why would you not like the 5S with newly added features and
design?
Strategy- Use annual conference and events to announce release and information on each new product
before it hits the market. This allows the consumer to build a demand for the product before it ever hits
the shelf.

Objective 2- Sustain and expand on strongly branded name.

There is no bigger name in the tech world and it can only get bigger as we go. Apple has changed the
way we look at phones and tablets. Who says the word tablet anymore, most associate the device with
iPad.

Strategy- Be a trend setter, enter new product markets before competition, and deliver current products
at an unreachable standard of quality.

If they continue to set trends, enter new product lines and take their share of the market they will not
only build their brand they will dominate the competition.

V. Marketing

Despite its record-breaking sales performance and a high level of popularity, there are no extensive
marketing strategy for the iPhone apart from product and pricing strategies and publicities coursed
through tradeshows and media relations.

It is worth noting that there is minimal advertising budget for the iPhone. Apple has never advertised
this product through print and broadcast media, although it occasionally produces contents for online
and social media distribution. For traditional media, consumers are still exposed to advertising messages
related to the iPhone delivered through different traditional mediums simply because they are created
and paid by network carriers.

Whenever a new iteration to the iPhone series arrives, network carriers are eager to announce to their
existing consumer base and target market that they are already offering the product under several
service plans. Although it seems they are doing Apple a favor, these carriers are actually marketing
themselves using the iPhone as bait, thereby luring customers or the target market toward their
respective mobile and data services.

However, these network carriers are not free from restrictions. Apple has maintained stringent branding
guidelines that essentially dictate the manner in which carriers develop and implement their
advertisements. The company does this to maintain and protect its brand and promote uniformity in its
established marketing message. iPhone ads virtually look the same even though they came from
different advertisers.

This unique marketing and advertising situation of the iPhone demonstrates the effectiveness of the
overall marketing strategy of Apple that moreover, centers on product and pricing strategies. The
product is highly valuable because of its popularity and if network carriers want to capitalize on its
success, they need to advertise that they have it.

Generally, Apple marketing strategy integrates the following:

  Focus on value not price.

You don’t have to be a multi-billion dollar giant to have the suave attitude Apple has on pricing. Perhaps
Apple got to where they are today partly because of their stick-to-your-guns attitude on price.

Apple doesn’t get caught up in price wars because they know their value and aren’t afraid to price for it.
What does this mean for you from a project standpoint? Don’t be afraid to charge what you’re worth
when budgeting for your project.

This doesn’t mean you should expect customers to pay a premium for your deliverable or expect your
suppliers to hand out bargains based on the unfounded assumption that you’re a special snowflake.

Charging what you’re worth doesn’t mean you’re hoodwinking yourself into thinking you’re a snowflake;
it means finding out where you can be of real value to your customers, nurturing that value proposition,
and making it your thing. Making it something great something worth paying for. Something that’ll make
you so good you won’t even get nervous about the price tag you put on it.

 Find your fanboys (and fangirls).

It’s pretty much every brand’s dream that they’d have a following of users named as fervently as “Cult of
Mac,” right?

They worked hard to get that fan club and the brand loyalty, but now that they’ve got it, we have to
admit it’s probably a bit smoother sailing for them when it comes to pitching ideas and getting everyone
on board.

So find your fans; you’ll face a lot less resistance that way. In this case, your fans are your stakeholders:
your investors, your suppliers, your board or your higher-ups. Your team. Your partners.

If you can get these guys on your side with this project, if you can get a strong buy-in on this project—
and then deliver on your promises—it’s likely you’ll have an easier time getting it on projects in the
future. So find your tribe and romance them. Make them fall in love with your ideas.

You can do that by being really, really good at what you’re doing. It’s easier said than done, but once
you’ve done it, be sure to leverage that value with your tribe.

 Simplicity is key in everything.

Not just in advertising (and in our case, pitching as well), with their simple commercials without voice-
overs or feature lists, with the plain white backgrounds and simple home-made iPhone videos.

But also with the product. The goods. The deliverables. Can you even remember a time where your
phone had more than one button on its face?

We could learn something from Apple’s simplicity in advertising and in product design. In the way their
advertising copy focuses not so much on features, but on why those features matter to the customer.
Look at your project plan, look at your pitch, and ask yourself: Am I getting my point across as simply
and concisely as I possibly can? Am I taking any extra steps that we don’t actually need? Is there
anywhere I can cut out waste so we can focus on what matters at the core?

After all, it’s easy to throw everything on a page and explode at the seams with superfluous details.
That’s just brainstorming. It’s word vomit. It’s more complicated—and more worthwhile—to boil
everything down to its core.

 Know what you stand for.

Having a true north, a true identity consisting of what you believe in, what you want for yourself and
your customers, and what kind of company you want to be or product you want to have, will help point
you in the right direction no matter what problems arise throughout your project. And problems will
arise.

So you might as well know what you stand for now, before you begin. You might as well know what you
want from this project, what your brand stands for, and how those 2 dynamics will work together.

Knowing what you and your brand stand for can be not only a guiding principle throughout the project,
but it’ll also help with consistency in pitching, creating, communicating, and advertising.

Oh, and the other good thing about knowing what you’re all about? That kind of confidence and
conviction is irresistibly attractive to stakeholders, team members, and customers.

 Create an experience that drives attention.

Apple is one of the first pioneers for selling experiences rather than just products.

But what does this mean, exactly? It means not focusing so much on the tangible product, but more on
the feelings it elicits in the customer.

Apple does it by maintaining an air of secrecy around everything they do, creating movie-like TV ads,
hosting Keynotes and product launches like they’re rock concerts, and making sure all their support staff
and Apple store employees are polite and incredibly knowledgeable. It’s all about the experience.

This kind of bakingexperience into everything you do begins at the planning phase of your project. It’s
not something you can just slap onto the final deliverable; it’s something you’ve got to keep at the core
of what you’re doing from the beginning.

When planning your deliverables, ask yourself: is there a special experience for the customer here, or is
this simply a product they’re holding in their hands? Or seeing on a screen? Are we handing them a
thing, or are we giving them a memorable experience?
  Create captivating visuals to win people over.

There’s no such thing as an ugly Apple ad.

Apple doesn’t do anything ugly, and you shouldn’t either. Even if it’s “just a pitch” or “just a mockup,” if
you’re showing it to your stakeholders, make it pretty. You can start winning over their hearts by
winning over their eyes.

So whether it’s your pitch, a mockup or wireframe, a project plan, or your final deliverable, make it look
good. Make it simple—the visuals you use, the words you use to accompany those visuals. Make the
visuals your priority and make what few words you use count. They’ll hit harder that way.

This makes sense, right? After all we talked about above with keeping it simple and creating
experiences, it makes sense that we’d want to focus more on visuals—something that has the power to
speak to customers and stakeholders more quickly, on a more instinctual level, and across all languages
and culture barriers—than on words and clutter.

So do just that. Where can you use visuals instead of words? Ask yourself this question all the way
through—from pitch creation to getting your deliverable in front of customers.

 Use the stakeholder’s language.

I don’t know about you, but one of the initial appeals of Apple’s products for me was the way they
talked to me like I was a regular MP3-player user. A regular cellphone user. Just your average laptop
user. A human being.

Here’s what I mean: when they advertised the 80 gigabyte iPod, the biggest text in their ad said “store
20,000 songs”—because what the heck is a gig? I mean, we know what it is, but what does that mean
for us?

That’s one of the reasons I first fell in love with Apple. They spoke to me in terms I’d understand
(because I’m no techie), they spoke to me in units I care about (songs, not gigs), and they advertised
with hip music that connected with me and made me realize: Wow. Apple is cool, and Apple totally gets
me.

That’s what you want your stakeholders to say. “Wow, they get me.” Because your pitch and even your
entire project is not actually about you at all. It’s not even really about your company. It’s about the 1)
experience you’re creating (remember?) and 2) what the success of selling that experience will mean for
your stakeholders.

And if you’re counting your customers as your stakeholders, really that’s all that matters. Your
stakeholders are all that matters, so from pitch to deliverable-in-hands, you should only be speaking in
language that matters to them.

 Appeal to emotion.
Did anyone else cry at Apple’s Christmas ad of the kid constantly playing on his phone to the chagrin of
his family, only for them to find out that he was creating a family video the entire time? No? Oh, right,
me neither.
Except we do want our customers and stakeholders to cry. But, like, in a good way.

Or maybe we don’t want them to cry, we just want them to feel something. What that something is will
depend on your brand, what you stand for, and what experience you want your customers to have. It
could be the feeling of being touched, which might make them cry. But it also could be excitement, joy,
hope, outrage (accompanied by a strong urge to help facilitate change), a sense of community, or peace.

It could be anything. Whatever it is, make that clear—not just to your customer or to your client, but to
your team. To all of your stakeholders. Get that all-important buy-in and use emotion to do it.

 Master your target markets.

You know that famous quote by Henry Ford that goes, “If I had asked people what they wanted, they
would’ve said faster horses”? I love that. It’s like he knew what his customers wanted before they did.

And that’s the telltale sign of whether or not you’ve mastered your market. Do you know what your
target customers want, even before they can articulate it?

Steve Jobs was a pro at this. We didn’t know we wanted all-touch screen phones until they were in our
hands. At least I didn’t want an all-touch screen phone. I thought the idea was ludicrous.

And now I can’t imagine it any other way. It’s not some magical power to predict the future; it’s knowing
your target markets so well, mastering the different segments of your target market so well, and being
so in touch with their pain points that you can guess a solution to their problem before they do. It’s
fixing problems in a way that’s so beautiful and unpredictable that it turns heads.

Keep that in mind when you’re planning market research into your project. If you’re wondering whether
or not you should cut your research budget to save money, here’s a hint: Don’t.

 Do it differently.

If I could sum up all of these previous 9 points into one big, unforgettable takeaway, it’d be to do it
differently.

It’s not as easy as it sounds, sure. In order to think differently, you’ll have to strip away your
assumptions, your past, your textbook knowledge, and your own appraisal of your limits. You have to
think yourself into a void almost, into a space untethered by what everyone else is doing.

Apple’s ability to think into the void is what made them successful despite their minimal amount of
traditional advertising. It’s what made the famous for shaking up the mobile phone industry in 2005,
changing history forever by putting the phone manufacturers and their accompanying software in
charge instead of the providers.

Just because everyone else—your previous stakeholders, your colleagues, your competitors, your
customers—all assume a certain thing should be a certain way doesn’t mean it’s the best way.

Keep this in mind; with your advertising, with your pitching, with the design of your deliverable. Make it
your credo.
VI. Impact on Other Functional Areas

1. Design of Goods and Services. Apple’s processes in the design of its products are handled through a
number of organizational components and officials. For example, the development and production of
Macs involve a Senior VP for Mac Hardware Engineering and a VP for Mac Software Engineering. This
coordination reflects the nature and characteristics of the corporate structure of Apple Inc. In this
decision area of operations management, these VPs coordinate with the company’s Senior VP for
Operations. The system of interactions ensures that the outputs in this operational area are successful in
making Apple excel in the design of its technological products.

2. Quality Management. This decision area of operations management emphasizes quality standards
and controls. Apple Inc.’s Senior VP for Operations coordinates with eight other Senior VPs to ensure
compliance with the company’s quality standards. The company is known for high quality standards that
permeate different areas of the business, including product design and development, retail, marketing,
online sales, industrial design, and human resource management. Thus, Apple has a holistic approach in
ensuring quality to address this decision area of operations management.

3. Process and Capacity Design. Apple’s human resource management strategies include support to
maximize workforce capacity for product development and design. In addition, the company works with
suppliers to ensure efficient processes and adequate capacity in this decision area of operations
management. For instance, suppliers are given directives for process design, as well as the Apple
Supplier Code of Conduct to optimize their human resource management. Moreover, Apple Inc. strives
for innovation in its facilities to optimize capacity and process efficiency. Thus, the company has a
comprehensive approach for this decision area of operations management.

4. Location Strategy. Apple Inc.’s location strategy is selective, involving limited authorization of sellers.
However, most authorized sellers are located in urban centers to maximize foot traffic and brand
exposure. At present, the company has hundreds of stores in more than 20 countries around the world.
Despite this limited approach to seller authorization, the company is now among the most profitable in
the world, and Apple Stores have the highest revenue per square foot of retail space in the United
States. Thus, Apple’s selective location strategy successfully satisfies this decision area of operations
management.

5. Layout Design and Strategy. Apple’s layout design and strategy emphasize customer expectations. For
example, company-owned and authorized-seller stores are spacious with minimal décor to ensure focus
on Apple products. In the company’s other facilities, this decision area of operations management is
addressed through innovative office layouts that encourage creativity and efficiency of workflows.
Creativity is a critical factor among employees involved in product design and development processes at
Apple Inc.

6. Job Design and Human Resources. This decision area of operations management requires job design
and human resource strategies specific to the trends in relevant HR management needs. In Apple’s case,
job design and HR strategies are based on Steve Jobs’ original emphasis on excellence. However, the
company has been gradually changing its HR strategies under Tim Cook to reflect a more sociable
workplace for optimum employee morale. Apple Inc. has mastered job design and human resource
strategies to ensure continued support for its industry leadership.
7. Supply Chain Management. Apple’s supply chain is among the most efficient and streamlined in the
world. To address this decision area of operations management, the company uses automation of
processes and regular monitoring of suppliers. This monitoring evaluates supplier capacity and
productivity, as well as compliance with the Apple Supplier Code of Conduct. The automation aspect
serves as the main strength of the corporation’s approach to supply chain management.

8. Inventory Management. In this decision area of operations management, Apple Inc. uses different
methods of inventory management, such as the serialized method for effective tracking and control of
products. The company also uses the first in, first out (FIFO) method, which ensures that most old-model
units are sold before new Apple product models are released to the market. Apple Store managers also
handle the inventory management of their respective stores.

9. Scheduling. Apple Inc. applies this decision area of operations management through a combination of
automation and manual processes. Automation is used for scheduling activities in the supply chain and
production processes. On the other hand, manual scheduling is used for individual Apple Stores and in
some aspects of the company’s offices. The main aim of the firm in this decision area of operations
management is to maximize the capacity utilization of facilities, equipment and human resources.

10. Maintenance. Apple Inc. addresses maintenance needs through dedicated maintenance teams. For
example, the company has different maintenance teams for its various facilities. Apple’s IT teams also
function as maintenance teams for the firm’s servers and other IT assets. The VP for Human Resources
ensures that the company’s personnel are always at adequate capacity to maintain high performance at
the company’s facilities. Thus, Apple effectively addresses this decision area of operations management.

The key people who work for Apple are at the marketing, technical, staff positions. The primary
objective of the company is to attract and retain its employees (Rees & Smith, 2017). To achieve this,
the company has employed different strategic human resource practices to attract skilled professionals.
Apple is interested in maximizing the efforts of its workforce by investing in their skills. The company
recognizes human capital as a vital element for overall competitiveness (Storey, 2014). The human
resources are the driving force towards its development strategy. As such, the firm has capitalized on
the competencies of its staff with the primary objective of achieving competitive advantage in the
market. The great talents and people management approaches used in the company have enabled it to
become the most innovative firm in the consumer electronics industry.
VII. Financial Projections

With Apple's current position in the market, sales and revenue are expected to go higher since a
Huawei, a direct competitor has recently ban made possible none other by Trump. And with yearly
innovation and tweaks on their products, it is expected to gain new market and retain their current
consumers.

Annual Income Statement Data

Actuals in M $ Estimates in M $

Fiscal Period September 2016 2017 2018 2019 2020 2021

Sales 215 639 229 234 265 595 257 148 269 153 283 507

EBITDA 70 529 71 501 81 801 74 715 78 179 81 789

Operating profit (EBIT) 60 024 61 344 70 898 62 630 65 832 70 294

Pre-Tax Profit (EBT) - - - - - -

Net income 45 687 48 351 59 531 53 422 55 458 57 337

P/E ratio 13,6 16,7 19,0 15,5 13,9 12,5

EPS ( $ ) 8,31 9,21 11,9 11,5 12,7 14,1

Dividend per Share ( $ ) 2,18 2,40 2,72 2,98 3,22 3,63

Yield 1,93% 1,56% 1,20% 1,68% 1,81% 2,05%

Reference price ( $ ) 113.05 154.12 225.74 177.38 177.38 177.38

10/25/2016 11/02/2017 11/01/2018

Announcement Date - -
08:30pm 08:30pm 08:30pm

Estimates in M $
Actuals in M $

Fiscal Period September 2016 2017 2018 2019 2020 2021

Debt 19 877 - 48 182 - - -

Finance - 133 967 - 97 442 83 729 74 450

Operating income (EBITDA) 70 529 71 501 81 801 74 715 78 179 81 789

Leverage
0,28x - 0,59x - - -
(Debt/EBITDA)

Capital Expenditure 12 734 12 451 13 313 12 584 13 746 14 270

Book Value Per Share (BVPS) 24,0 $ 26,1 $ 22,5 $ 19,7 $ 20,0 $ 21,9 $

Cash Flow per Share 12,0 $ 12,1 $ 15,5 $ 14,9 $ 16,6 $ 19,3 $

10/25/2016 11/02/2017 11/01/2018

Announcement Date - - -
08:30pm 08:30pm 08:30pm

https://www.marketscreener.com/APPLE-4849/financials/
VIII. Execution, Implementation, Monitoring

We’re in a period of relatively flat innovation across most of the tech industry, where new
gizmos improve only incrementally each year. It’s impossible to tell which wild idea will actually end up
taking off and which will fizzle.

There’s strong evidence Apple is once again actively “cannibalizing itself,” putting massive
resources behind consumer tech that will render its own iPhone obsolete. Augmented reality is the
company’s biggest bet. New AR apps are on the way, and there is new evidence AR glasses are also in
the works. Wearables such as the Apple Watch and in-ear computers like the AirPods already allow
Apple’s customers to make and receive calls without an iPhone.

Apple's next iPhones should be getting a boost to battery life and wireless charging capabilities .
According to reports on a new research note from well-known Apple analyst Ming-Chi Kuo of TF
International Securities, the 2019 iPhone lineup will feature larger batteries and an option for two-way
wireless charging.

Two-way wireless charging would allow the new iPhones to serve as wireless charging pads, capable of
charging a second iPhone or another wirelessly chargeable device, such as the new AirPods by placing
them on the back of the phone. The two-way wireless charging feature is available in devices such as
Samsung's recently released Galaxy S10 lineup.

The form factor for the upcoming iPhones is not expected to change, according to Kuo, with successors
coming in the same sizes as the 5.8-inch iPhone XS, 6.5-inch XS Max and 6.1-inch XR. A battery size
increase is a leading upgrade that Kuo is predicting for the new iPhones. The successor model to the
iPhone XS could get a battery that's as much as 25 percent larger, while the XS Max successor may get
up to a 15 percent larger battery, according to reports on Kuo's research note.

Apple should go all in on OLED displays for its 2020 iPhone lineup. OLED, which offers more vibrant
colors and picture, is currently featured in two of Apple's three latest iPhones, the iPhone XS and XS
Max. The iPhone XR sticks with LCD. That breakdown between OLED and LCD is expected to continue for
2019, but 2020 will see Apple switch to three OLED iPhones.

Meanwhile the infrared camera tech behind the iPhone X can also underpin Apple’s future moves into
augmented reality and more. Apple should look at holograms as a possible UI.

Another self-reinvention may require a new design philosophy that embraces failure. It may require a
deeper appeal to fostering a developer community, and could even require a re-organization to better
organize Apple’s sprawling (and sometimes converging) product lines.

Above all else, Apple must retain its revolutionary spirit while shedding its past. It’s a tall order for any
company, let alone the world’s most valuable one. But as Apple searches for its next platform
technology, it should recall the words of its late founder: “If you haven’t found it yet, keep looking. Don’t
settle.”