DEVELOPING THE STRATEGY FOR

IMPROVING THE SALES ACTIVITY AT

APPLE INC. USING THE SIX SIGMA
METHOD
 Contents
Introduction
Chapter I: Presentation of the company and sales activity
1.1 Company history
1.2 Company leadership
1.3 Analysis of the company's sales activity (product portfolio, sales method, sales force
structure)
1.4 Analysis of the main economic and financial indicators over the last 3 years
Chapter II: SWOT analysis of the company and Porter's model - starting points in strategy
development
2.1 SWOT analysis of Apple Inc.
2.2. 5 forces analysis
Chapter III: Developing the strategy to improve sales activity at Apple Inc. using the SIX
SIGMA method
3.1. Presentation of the SIX SIGMA method
3.2. Identifying the competitive advantage around which the strategy will be designed
3.3. Reformulation of the company's mission and specification of strategic sales objectives
3.4. Establishing strategic options, timelines and resources
3.5. Articulating the strategy to improve the sales activity using the SIX SIGMA method
Conclusions:
Introduction:
In today's highly competitive and dynamic business environment, organizations must
continually strive to enhance their sales activity to drive revenue growth, increase market share,
and maintain customer satisfaction. For a company like Apple Inc., renowned for its innovation
and customer-centric approach, optimizing sales performance is critical to sustaining its
leadership position in the technology industry.
To achieve this objective, Apple Inc. is embarking on a strategic initiative to improve its
sales activity using the Six Sigma method. Six Sigma offers a structured and data-driven
approach to identify, analyze, and address areas of inefficiency, variability, and customer
dissatisfaction within the sales process. By applying the principles of Six Sigma, Apple aims to
enhance the effectiveness, efficiency, and customer-centricity of its sales operations, ultimately
driving sustainable business success.
This report outlines the strategic framework and key considerations for developing and
implementing the sales improvement strategy at Apple Inc. using the Six Sigma method. It will
explore the Define-Measure-Analyze-Improve-Control (DMAIC) methodology and outline
specific initiatives and best practices for optimizing sales performance across the organization.
Through a systematic and collaborative approach, Apple Inc. seeks to empower its sales
teams, leverage data-driven insights, and foster a culture of continuous improvement to deliver
exceptional value to customers and stakeholders. By embracing the Six Sigma method, Apple is
poised to unlock new opportunities, drive operational excellence, and achieve its sales objectives
in alignment with its broader strategic goals.
Let's delve into each phase of the DMAIC methodology and explore how Apple Inc. can
leverage Six Sigma to transform its sales activity and drive business success.
 Chapter I: Presentation of the company and sales activity

1.1. Company history

Apple Inc. is an American multinational technology company headquartered in Cupertino,

California, United States. Apple is the largest technology company by revenue (totaling
US$365.8 billion in 2021) and, as of June 2022, is the world's biggest company by market
capitalization, the fourth-largest personal computer vendor by unit sales and second largest
mobile phone manufacturer. It is one of the Big Five American information technology
companies, alongside Alphabet, Amazon, Meta, and Microsoft.

Apple Inc. has a rich and storied history, marked by innovation, iconic products, and a
significant impact on technology, business, and culture. Here's an overview:

 Founding:

Apple Inc. was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1, 1976,
in Cupertino, California. The company's original name was Apple Computer, Inc.

 Early Years:

Apple's first product was the Apple I, a computer designed and hand-built by Steve Wozniak.
The Apple II, released in 1977, was the company's first mass-produced personal computer and a
significant commercial success, helping to establish Apple's reputation.

 Growth and Struggles:

In 1980, Apple went public, generating more capital and allowing for further expansion. The
release of the Macintosh in 1984 introduced the graphical user interface (GUI) to a wider
audience, but internal conflicts led to Steve Jobs' departure from Apple in 1985. Throughout the
late 1980s and 1990s, Apple faced challenges, including declining market share and financial
difficulties.

 Resurgence under Steve Jobs:

 Apple acquired NeXT in 1997, bringing Steve Jobs back to the company. Under Jobs'
leadership, Apple underwent a significant transformation, focusing on innovation and design.
Key products during this period include the iMac, introduced in 1998, and the iPod, released in
2001, which revolutionized the music industry.

 Milestones of the 2000s:

The launch of the iTunes Store in 2003 provided a legal platform for purchasing and
downloading digital music. In 2007, Apple released the iPhone, revolutionizing the smartphone
industry with its touchscreen interface and app ecosystem. The iPad, introduced in 2010,
popularized the tablet computer category.

 Post-Jobs Era:

Steve Jobs passed away in 2011, but Apple continued to thrive under the leadership of CEO
Tim Cook. Apple expanded its product lineup, introducing the Apple Watch, AirPods, and various
iterations of iPhones, iPads, and Mac computers. The company also focused on services like
iCloud, Apple Music, Apple TV+, and Apple Arcade to diversify its revenue streams.

 Recent Developments:

Apple's market capitalization surpassed $1 trillion in 2018, making it the first publicly traded
U.S. company to achieve this milestone. The company continues to invest in research and
development, focusing on areas such as augmented reality, artificial intelligence, and renewable
energy. As of 2022, Apple remains one of the most valuable and influential technology companies
globally, known for its commitment to innovation, design excellence, and user experience.

According to Steve Jobs, the company's name was inspired by his visit to an apple farm while
on a fruitarian diet. Jobs thought the name "Apple" was "fun, spirited and not intimidating."
Apple's first logo, designed by Ron Wayne, depicts Sir Isaac Newton sitting under an apple tree.
It was almost immediately replaced by Rob Janoff's "rainbow Apple", the now familiar rainbow-
colored silhouette of an apple with a bite taken out of it. Janoff presented Jobs with several
different monochromatic themes for the "bitten" logo, and Jobs immediately took a liking to it.
However, Jobs insisted that the logo be colorized to humanize the company.
 The logo was designed with a bite so that it would not be confused with a cherry. The colored
stripes were conceived to make the logo more accessible, and to represent the fact the Apple II
could generate graphics in color.

This logo is often erroneously referred to as a tribute to Alan Turing, with the bite mark a
reference to his method of suicide. Both Janoff and Apple deny any homage to turing in the
design of the logo.

On August 27, 1999 (the year following the introduction of the iMac G3), Apple officially
dropped the rainbow scheme and began to use monochromatic logos nearly identical in shape to
the previous rainbow incarnation. An Aqua-themed version of the monochrome logo was used
from 1998 to 2003, and a glass-themed version was used from 2007 to 2013.

Steve Jobs and Steve Wozniak were fans of the Beatles, but Apple Inc. had name and logo

trademark issues with Apple Corps Ltd., a multimedia company started by the Beatles in 1968.

This resulted in a series of lawsuits and tension between the two companies. These issues
ended with the settling of their lawsuit in 2007. Apple's first slogan, "Byte into an Apple", was
coined in the late 1970s.

From 1997 to 2002, the slogan "Think different" was used in advertising campaigns, and is
still closely associated with Apple. Apple also has slogans for specific product lines—for
example, "iThink, therefore iMac" was used in 1998 to promote the iMac, and "Say hello to
iPhone" has been used in iPhone advertisements. "Hello" was also used to introduce the original
Macintosh, Newton, iMac ("hello (again)"), and iPod.

From the introduction of the Macintosh in 1984, with the 1984 Super Bowl advertisement to
the more modern Get a Mac adverts, Apple has been recognized for its efforts towards effective
advertising and marketing for its products. However, claims made by later campaigns were
criticized, particularly the 2005 Power Mac ads.

Apple's product advertisements gained a lot of attention because of their eye-popping

graphics and catchy tunes.
 Fig 1.1. Apple logos through time
Source: Wikipedia

1.2. Company leadership

The leadership of Apple Inc. has been instrumental in shaping the company's direction,
innovation, and success over the years. Here's an overview of some key figures in Apple's
leadership:

Steve Jobs (Co-founder, Chairman, and CEO):

Steve Jobs co-founded Apple in 1976 and played a pivotal role in its early success.

He was known for his visionary leadership, emphasis on design and user experience, and
ability to drive innovation. After leaving Apple in 1985, Jobs returned in 1997 and led the
company through a period of resurgence, introducing groundbreaking products like the iMac,
iPod, iPhone, and iPad.

Jobs passed away in 2011 but left a lasting legacy at Apple and in the technology industry
as a whole.

Tim Cook (CEO):

 Tim Cook joined Apple in 1998 as Senior Vice President for Worldwide Operations and
later served as Chief Operating Officer.

He became CEO in August 2011, following Steve Jobs' resignation due to health reasons.

Cook has overseen Apple's continued growth, expansion into new product categories and
services, and emphasis on sustainability and social responsibility.

Under his leadership, Apple's revenue and market capitalization have continued to reach
new heights.

Other Key Executives:

Jeff Williams (Chief Operating Officer): Williams joined Apple in 1998 and has played a
crucial role in the development and production of Apple's products. He is also responsible for the
company's worldwide supply chain.

Luca Maestri (Chief Financial Officer): Maestri joined Apple in 2013 and oversees the
company's financial operations, including accounting, treasury, and investor relations.

Craig Federighi (Senior Vice President of Software Engineering): Federighi leads the
development of iOS, macOS, and other software platforms at Apple.

Eddy Cue (Senior Vice President of Internet Software and Services): Cue is responsible
for Apple's services, including the App Store, iCloud, Apple Music, and Apple TV+.

Phil Schiller (Former Senior Vice President of Worldwide Marketing): Schiller played a
key role in marketing Apple products for many years before transitioning to a new role as an
Apple Fellow in 2020.

Board of Directors:

Apple's board of directors includes prominent figures from various industries, providing
guidance and oversight to the company's strategic decisions.

Notable board members have included Andrea Jung, former CEO of Avon Products, and
Al Gore, former Vice President of the United States. Overall, Apple's leadership team, past and
present, has been crucial in driving the company's innovation, growth, and success in the
technology industry.
 Fig.1.2. Organization chart
Source: Wikipedia
Apple is a diverse collective of thinkers and doers, continually reimagining what’s
possible to help everyone do what they love in new ways. And the same innovation that goes into
their products also applies to their practices — strengthening their commitment to leave the world
better than it was found.
 Fig.1.3. The organizational structure of the enterprise
Source: Wikipedia

1.3. Analysis of the company's sales activity (product portfolio, sales method,
sales force structure)

Product portfolio

-MAC

The Mac is Apple's family of personal computers. Macs are known for their ease of use
and distinctive aluminum, minimalist designs. Macs have been popular among students,
creative professionals, and software engineers. The current lineup consists of the MacBook Air
and MacBook Pro laptops, and the iMac, Mac mini, Mac Studio and Mac Pro desktop
computers. All Macs except the Mac Pro use Apple silicon chips.
 Fig 1.4. MacBook Air
Source: Wikipedia

Fig 1.5. MacBook Pro

Source: Wikipedia

Fig 1.6. Mac desktop computers

Source: Wikipedia

-iPhone

The iPhone is Apple's line of smartphones, which run the iOS operating system.
The first iPhone was unveiled by Steve Jobs on January 9, 2007. Since then, new models
have been released annually. When it was introduced, its multi-touch screen was
described as "revolutionary" and a "game-changer" for the mobile phone industry. The
device has been credited with creating the app economy.
 As of 2022, the iPhone has 15% market share, yet represents 50% of global
smartphone revenues, with Android phones accounting for the rest. The iPhone has
generated large profits for the company, and is credited with helping to make Apple one
of the world's most valuable publicly traded companies.

The most recent iPhones are the iPhone 14, iPhone 14 Plus, iPhone 14 Pro and
iPhone 14 Pro Max

Fig 1.7. iPhone 14

Source: Wikipedia

-iPad

iPad is Apple's line of tablets which run iPadOS. The first-generation iPad was
announced on January 27, 2010. The iPad is mainly marketed for consuming multimedia,
creating art, working on documents, videoconferencing, and playing games. The iPad
lineup consists of several base iPad models, and the smaller iPad Mini, upgraded iPad Air,
and high-end iPad Pro. Apple has consistently improved the iPad's performance, with the
iPad Pro adopting the same M1 and M2 chips as the Mac; but the iPad still receives
criticism for its limited OS.

As of September 2020, Apple has sold more than 500 million iPads, though sales
peaked in 2013. The iPad remains the most popular tablet computer by sales as of the
second quarter of 2020 and accounted for nine percent of the company's revenue as of the
end of 2021.
 Fig 1.8. iPad
Source: Wikipedia

-Other products

Apple also makes several other products that it categorizes as "Wearables, Home
and Accessories". These products include the AirPods, line of wireless headphones, Apple
TV digital media players, Apple Watch smartwatches, Beats headphones and HomePod
Mini smart speakers. As of the end of 2021, this broad line of products comprises about
11% of the company's revenues.

Fig 1.9. AirPods

Source: Wikipedia
Fig 1.10 Apple TV digital media players
Source: Wikipedia

Fig 1.11. Apple Watch smartwatches

Source: Wikipedia

Fig 1.12. Beats headphones

Source: Wikipedia
 Apple Inc. employs various sales methods and strategies to market and sell its products
and services. Here are some key approaches:

Apple Retail Stores:

 Apple operates a network of retail stores worldwide, known as Apple Stores, which offer
a unique and immersive shopping experience.

 These stores showcase Apple's products and services in sleek, minimalist environments
designed to highlight their features and functionality.

 Customers can try out products firsthand, receive personalized assistance from Apple
Geniuses (technical support staff), and participate in workshops and events.

 The Apple Store app allows customers to browse products, make purchases, schedule
appointments, and access support services from their mobile devices.

Online Sales:

 Apple's online store is a significant sales channel, offering the full range of Apple
products and accessories for purchase.

 The website provides detailed product information, customization options, and online chat
support to assist customers with their purchases.

 Online sales are complemented by Apple's robust e-commerce infrastructure, which

ensures secure transactions, fast shipping, and convenient returns and exchanges.

Third-Party Retailers:

 Apple products are also sold through authorized third-party retailers, including electronics
stores, department stores, and telecommunications carriers.

 These retailers provide additional points of sale for Apple products and cater to customers
who prefer to shop in traditional retail environments.

Direct Sales to Enterprises and Education:

 Apple offers specialized sales and support programs for businesses and educational
institutions, providing tailored solutions and volume pricing for bulk purchases.
  The Apple Business Team and Apple Education Team work closely with corporate
customers and schools to understand their needs and implement Apple products
effectively.

Marketing and Branding:

 Apple's marketing campaigns are renowned for their creativity, simplicity, and emotional
resonance, emphasizing the benefits and experiences associated with its products.

 The company invests heavily in advertising across various channels, including television,
print, digital media, and outdoor billboards.

 Apple's strong brand identity and loyal customer base contribute to its sales success, with
many consumers eagerly anticipating new product releases and upgrades.

Subscription Services:

 Apple has expanded its revenue streams through subscription-based services like Apple
Music, Apple TV+, Apple Arcade, iCloud, and AppleCare+.

 These services offer recurring revenue opportunities and deepen customer engagement by
providing access to premium content, cloud storage, and extended warranty coverage.

Overall, Apple's sales methods are characterized by a focus on customer experience,

innovation, and brand loyalty, enabling the company to maintain its position as a market leader in
the technology industry.

Apple Inc. has a unique approach to sales and does not employ a traditional sales force
structure like many other companies. Instead, Apple focuses on creating demand through its
products, marketing, and retail experiences. Here's an overview of how Apple's sales force
structure differs from traditional models:

Retail Store Employees (Apple Geniuses and Specialists):

 Apple's retail stores are a critical component of its sales strategy, serving as hubs for
customer engagement and product experience.
 Retail employees, known as Apple Geniuses and Specialists, play a crucial role in
providing personalized assistance, technical support, and product demonstrations to
customers.

 They are trained to understand Apple's products thoroughly and help customers make
informed purchasing decisions based on their needs and preferences.

Customer Experience:

 Apple places a strong emphasis on creating exceptional customer experiences both online
and in-store.

 The company invests in training and development programs to ensure that retail
employees deliver consistent, high-quality service and support.

 Apple stores are designed to be welcoming and accessible, with open layouts, interactive
displays, and spaces for workshops and events.

Channel Partners and Authorized Resellers:

 While Apple relies primarily on its retail stores to showcase and sell its products, it also
works with select channel partners and authorized resellers.

 These partners include electronics retailers, telecommunications carriers, and other third-
party outlets that offer Apple products alongside their own offerings.

 Apple provides training, marketing support, and branding guidelines to ensure that its
products are presented effectively and aligned with the company's standards.

Online Sales:

 Apple's online store is a significant sales channel, offering the full range of Apple
products and accessories for purchase.

 The website provides detailed product information, customization options, and online chat
support to assist customers with their purchases.

 Online sales are complemented by Apple's robust e-commerce infrastructure, which

ensures secure transactions, fast shipping, and convenient returns and exchanges.
 Marketing and Branding:

 Apple's marketing campaigns are integral to its sales strategy, generating excitement and
anticipation for new products and driving demand through advertising and promotions.

 The company's strong brand identity and loyal customer base contribute to its sales
success, with many consumers eagerly awaiting new releases and upgrades.

 Apple's marketing efforts focus on highlighting the benefits, features, and experiences
associated with its products, rather than employing aggressive sales tactics.

1.4. Analysis of the main economic and financial indicators over the last 3
years

Revenue and Profit:

 Apple's revenue has shown consistent growth over the past few years, primarily driven by
strong sales of its iPhone, services, and other products.

 The company's profit margins have remained high, supported by premium pricing, cost
efficiency, and a loyal customer base.

iPhone Sales:

 iPhone sales have historically been a significant revenue driver for Apple. However, in
recent years, iPhone sales growth has plateaued or shown modest increases, as the
smartphone market has matured and faced increased competition.

 Apple has focused on expanding its iPhone product lineup, introducing new models with
advanced features and targeting different market segments.

Services Revenue:

 Apple's services segment, which includes revenue from the App Store, Apple Music,
iCloud, AppleCare, and other digital services, has experienced robust growth.

 Subscription-based services, such as Apple Music and iCloud storage, have contributed to
recurring revenue streams and increased customer engagement.

Wearables, Home, and Accessories:

  Sales of wearables, including the Apple Watch and AirPods, have been a standout growth
area for Apple.

 The company has capitalized on the popularity of wearable technology and wireless
earbuds, leveraging its brand strength and ecosystem integration to drive sales.

Mac and iPad Sales:

 Mac and iPad sales have shown mixed performance in recent years, with fluctuations
influenced by product cycles, market demand, and competitive dynamics.

 Apple has introduced updates and enhancements to its Mac and iPad lineup to appeal to
professional users, students, and creative professionals.

Geographic Performance:

 Apple's revenue is geographically diversified, with significant contributions from regions

such as the Americas, Europe, Greater China, and Japan.

 Greater China has been a particularly important market for Apple, although the company
has faced challenges such as regulatory scrutiny and competition from domestic rivals.

Financial Strength:

 Apple has maintained a strong balance sheet with substantial cash reserves, allowing the
company to invest in research and development, acquisitions, and capital expenditures.

 The company has returned capital to shareholders through dividends and share buybacks,
reflecting confidence in its long-term prospects and commitment to delivering value.

Stock Performance:

 Apple's stock price has generally trended upwards over the past few years, reflecting
investor confidence in the company's growth prospects, innovation pipeline, and financial
performance.

 Market volatility, macroeconomic factors, and industry developments can influence

Apple's stock price in the short term.
Apple's Annual Reports: These reports provide detailed financial statements, management
discussions, and analysis of the company's performance.

Fig 1.13 Apple's Annual Reports

Source: macrotrends.net

Quarterly Earnings Reports: Apple releases quarterly earnings reports that include
financial results and insights into its operations.

Fig 1.13 Apple's Annual Reports

Source: macrotrends.net
 Chapter II: SWOT analysis of the company and Porter's
model - starting points in strategy development

2.1. SWOT analysis of Apple Inc.

 Strengths of Apple

1. Innovative Products, Unique Designs

Apple's ability to design their own hardware, software and other products helps it rank
among the ones at the top of the ladder. Each year, their new products add on to the predecessor
and improvise on the design, usability, and easiness of the product. It's one of the reasons why
their brand still manages to capture the market despite high prices.For example, In 2021, Apple is
planning to launch Airpods 3, updating the previous model, accommodating more customer
friendly features and improving the model to reduce costs.

2. Introduction of New Services

Owing to the advent of several new technologies in terms of digital streaming and
payments, Apple has been successful in launching their own systems. Apple TV+, Apple Music,
iTunes, and Apple Card, and Apple Arcade are among the new services to be launched and
improved. Recently Apple launched Apple One, the easiest way to get all of Apple’s subscription
services in one Simple plan, Apple therefore, keeps improving its service facilities as well,
retaining and attracting new customers. Only the services portfolio of Apple accounts for 17. 7%
of Apple’s annual revenue. To be able to constantly innovate your product portfolio is a strength.
Companies often mistake little movements for innovation, but innovation is seldom incremental
innovation. Innovation is a much larger pivot.

3. Organizational Culture

Apple’s ability to deliver high-quality products and stand atop the innovation ladder is
solely possible because of its culture. Striving for innovation, change, creativity as a whole and
imposing this mindset has helped them uncover brilliant ideas and develop a strong internal brand
culture. These two factors – creativity and excellence – can drive business development and lead
to further growth. The best insight of what the culture is when it comes to customer obsession
would be this scene from the movie Jobs. This dramatization of Steve Jobs’ life does capture the
essence of customer success and design success mentality at Apple.

4. Technological Excellence

Compromise in quality is what disrupts a businesses' market share. Apple's been working
on top-notch technology and developing products with a focus on quality, and that's what boosts
their brand loyalty. This innovation, quality, and simplicity help them outclass others with an
87% brand loyalty across the US and European countries alone. Brands often mistake that
technological advancement and technological excellence is about using complex technology and
do complex things with it.

5. Global reach /Brand of Choice

Apple is one of the most reliable and trusted company and has established a brand name for
itself. It is a globally known brand, selling products across 25 countries. It is not a big news that
Apple is a demanded brand in corporate offices, it provides top class customized technology
solutions for every corporate need, making it the most prominent brand of choice.

 Weaknesses of Apple

1. Limited Distribution Network

Apple Inc. has a limited distribution network because it sells its products by itself, and
few stores are scattered all around the world. Unlike other smartphones products you can easily
get by just walking into a phone store, it's very rare to get Apple products like that. It also adds on
to the burden of getting after sale services, as only apple stores can trust worthily provide services
of their products. Most people who buy, do so directly from their website. The major
disadvantage of this is that it limits market reach.

2. Lack of Compatibility (Accessories Incompatibility)

When a customer buys an Apple product, they enter into the Apple Universe. Apple's
products are notorious for being compatible with Apple's accessories. Lack of ports, unique
charger cables, and missing jack ports – although these serve to be innovative designs, these also
increase the cost of add-ons. The fact that third-party items or software don't work is a primary
reason they're incapable of targeting an audience which wishes for these features.

3. Price Point

Apple's premium pricing is a significant concern for many. The high-profit margin has
been the reason the product has only managed to target an elite class of people despite their
audience being general smartphone uses. In India, especially, people are more inclined to shift to
less economical options like Samsung.

4. Unfair Business Practices

Apple has been accused of using tracking apps in its phone, which revealed the precise
location of users. Apple is under investigation for unfair business practices as well

 Opportunities for Apple

1. Brand Loyalty

Apple has created a premium image in the mind of the customers associated with style,
status, and customization boosting its sales. Apple’s product announcements and unveiling events
spread like wildfire. But that isn’t the only thing – Apple’s iPhone also features a remarkable
customer retention rate of 92%.. This only begins to show what else can they achieve in terms of
market capture. Apple has the advantage to boost this percentage by keeping their loyalists happy,
and bringing more innovative ideas to life.

Addition to Product Line

Apple’s small lineup of products only help it capture a specific portion of the smartphone
market. They should add more products and services to their portfolio which can help them
compete against other technology leaders. For example, Apple Pay has been a good addition
alongside Google Pay or other payment options now available worldwide.
 2. Partnerships and Acquisitions

Apple can acquire startups and companies with investments in AI, Machine Learning, and
technology. Such acquisitions can allow Apple to incorporate this tech into their products and
further enhance its quality. As an example, Apple did manage to acquire a company Regaind,
which helped Apple in adding ML to its native smartphone applications.

3. Technology

Apple can continue to grow beyond just Apple watch and airpods into other wearable
categories. Upcoming technology along with Artificial Intelligence will enable apple to increase
it’s profit margin and have a strong market position, the company has also extended it’s AI
portfolio.

 Threats to Apple

1. Market Capture by Competitors

The entire ecosystem for smartphones and the industry is changing, and it's opening up
the opportunities for competitors to penetrate the market. Just a comparison of the market share
between Android and iOS smartphones suggests it's about 74.13% to 24. 79% share, respectively.
This could also be due to several brands working on the open-source Android smartphone
development.

2. Coronavirus Outbreak and Global Tensions

Most companies rely on their manufacturing and supply chain setup in China.
Unfortunately, the outbreak of the novel virus has managed to damage up to 20% of Apple's
annual revenues until April 2020, specially in countries like China, Italy, South Korea, and The
United States. The revenue was expected to be between $63bn - $67bn, but it was only able to
$57bn, which is a 15- 20% drop from what was predicted). Apple’s supply chain was also
affected by the same, and Apple reported a flat revenue in the year 2020 due to supply chain
uncertainties pertaining to the corona virus outbreak. Secondly, the increase of tariff on imports
from China can lead to higher pricing for the products. This, in turn, adversely affects the gross
margins and pricier for the customers. Considering the first threat, a combination is a damaging
blow.

3. Lawsuit

Apple is actively dealing with hundreds of lawsuits. Consumers mainly open these in
regard to their phones being slowed down and the CPU rates being throttled. According to recent
news, Apple is to pay $18M to settle a lawsuit for slowing or disabling FaceTime on older iPhone
models.

4. Increasing Competition and Market Share

Although Apple has established itself as a solid brand, It faces competition from brands
like, Samsung, Dell, etc., We can see the difference through the number of android users as
compared to Apple users.
 2.1. Swot Analysis
Source: Applestories
2.2. 5 forces analysis
A Five Forces analysis, developed by Michael Porter, is a framework for assessing the
competitive forces within an industry.

Threat of New Entrants:

 Low: The threat of new entrants to the consumer electronics and technology industry,
particularly in segments like smartphones and computers, is relatively low.

 High capital requirements for R&D, manufacturing, and marketing act as barriers to entry.

 Established brands like Apple benefit from economies of scale, strong brand loyalty, and
extensive distribution networks, making it challenging for new entrants to compete
effectively.

Bargaining Power of Suppliers:

 Moderate: Apple's suppliers include manufacturers of components like semiconductors,

displays, and batteries.

 While individual suppliers may have some leverage due to their specialized offerings,
Apple's size and bargaining power allow it to negotiate favorable terms and prices.

 However, potential supply chain disruptions or shortages of critical components could

impact Apple's operations and profitability.

Bargaining Power of Buyers:

 Moderate to High: Apple's customers, including consumers and businesses, have some
bargaining power due to the availability of alternative products and brands.

 However, strong brand loyalty, perceived product differentiation, and the ecosystem lock-
in effect (e.g., integration with other Apple devices and services) reduce switching
behavior among customers.

 Price sensitivity varies across different market segments and regions, influencing Apple's
pricing strategies and promotional efforts.
Threat of Substitutes:

 Moderate: The threat of substitutes for Apple's products, such as smartphones, tablets,
and computers, exists due to the presence of competitors offering similar functionalities
and features.

 However, Apple's focus on innovation, design excellence, ecosystem integration, and user
experience creates differentiation and reduces the attractiveness of substitutes.

 Changes in consumer preferences or technological advancements could increase the threat

of substitutes over time.

Competitive Rivalry:

 High: Apple operates in highly competitive markets characterized by numerous rivals,

including Samsung, Google, Huawei, and other technology companies.

 Intense competition in product innovation, pricing, marketing, and distribution strategies

drives continuous innovation and differentiation.

 Apple's market share, profitability, and competitive positioning are influenced by the
strategies and actions of its rivals, requiring ongoing adaptation and responsiveness.

Overall Assessment:

 Apple Inc. faces a complex competitive landscape characterized by a mix of opportunities

and challenges across its various product segments.

 While the company benefits from strong brand loyalty, technological leadership, and
ecosystem integration, it must continually innovate and differentiate to maintain its
competitive edge and sustain growth in dynamic markets.
Fig 2.2. Porter’s Five Forces
Source: EdrawMax Online
Chapter III: Developing the strategy to improve sales activity
at Apple Inc. using the SIX SIGMA method
3.1. Presentation of the SIX SIGMA method

Six Sigma is a systematic and data-driven approach for process improvement, originally
developed by Motorola in the 1980s and popularized by companies like General Electric under
the leadership of Jack Welch. The term "Six Sigma" refers to a statistical concept that measures
how far a given process deviates from perfection.

Methodology:

1. Define: Identify the problem or opportunity for improvement, define project goals, and
establish project scope. This phase also involves forming a project team and defining
customer requirements.

2. Measure: Measure the current performance of the process using relevant data and
metrics. This phase includes identifying critical process parameters, collecting data, and
establishing baseline performance metrics.

3. Analyze: Analyze the data to identify root causes of defects, variations, or inefficiencies
in the process. Tools like cause-and-effect diagrams, Pareto charts, and statistical analysis
are commonly used to identify areas for improvement.

4. Improve: Develop and implement solutions to address identified root causes and improve
process performance. This phase involves brainstorming, piloting solutions, and
conducting experiments to validate improvements.

5. Control: Establish controls to sustain process improvements over time and prevent
regression. This phase includes developing standard operating procedures, implementing
monitoring mechanisms, and training personnel.

Key Concepts and Tools:

 DMAIC: DMAIC (Define, Measure, Analyze, Improve, Control) is the core methodology
of Six Sigma for process improvement.
  SIPOC: SIPOC (Suppliers, Inputs, Process, Outputs, Customers) is a tool used to define
the scope and boundaries of a process improvement project.

 Statistical Tools: Statistical techniques such as hypothesis testing, regression analysis,

and control charts are used to analyze data and make data-driven decisions.

 Process Capability: Process capability measures the ability of a process to consistently

produce output within specification limits.

 Variation Reduction: Six Sigma aims to reduce process variation to improve quality,
increase efficiency, and reduce costs.

Roles and Responsibilities:

 Champion: Executive sponsor who provides leadership, resources, and support for Six
Sigma initiatives.

 Black Belt: Full-time project leader responsible for leading Six Sigma projects and
driving process improvements.

 Green Belt: Part-time project team member who supports Black Belts in executing Six
Sigma projects.

 Yellow Belt: Basic awareness-level training in Six Sigma concepts and tools for
employees involved in process improvement initiatives.

Benefits:

 Improved quality and customer satisfaction

 Increased process efficiency and productivity

 Reduced defects, errors, and waste

 Cost savings and financial benefits

 Data-driven decision-making and continuous improvement culture

 Overall, Six Sigma provides a structured approach for organizations to systematically
identify, analyze, and improve processes to achieve operational excellence and deliver value to
customers.

3.2. Identifying the competitive advantage around which the strategy will be
designed

Apple Inc. has several competitive advantages that shape its strategy and drive its success
in the technology industry.

1. Innovation and Product Differentiation:

 Apple is renowned for its culture of innovation, reflected in its iconic products like the
iPhone, iPad, Mac, and Apple Watch.

 The company focuses on design excellence, user experience, and integration of hardware,
software, and services, setting its products apart from competitors.

 Continuous product innovation and differentiation allow Apple to maintain a loyal

customer base and command premium pricing.

2. Brand and Ecosystem:

 Apple's strong brand identity and brand loyalty are significant competitive advantages,
fostering emotional connections with customers and driving demand for its products.

 The Apple ecosystem, comprising hardware devices, software platforms (iOS, macOS),
and services (App Store, iCloud, Apple Music), creates a seamless and integrated user
experience.

 Customers benefit from interoperability and continuity across Apple devices, encouraging
repeat purchases and lock-in effects.

3. Retail and Customer Experience:

 Apple's retail stores provide a unique and immersive shopping experience, allowing
customers to interact with products firsthand and receive personalized assistance from
knowledgeable staff.
  The retail environment reinforces the brand image, enhances customer engagement, and
fosters loyalty.

 Online sales channels complement the retail experience, offering convenience and
accessibility for customers worldwide.

4. Supply Chain and Operations:

 Apple's robust supply chain management and operational efficiency enable the company
to deliver high-quality products at scale and on time.

 Strategic partnerships with suppliers and contract manufacturers ensure access to critical
components and production capacity.

 Continuous optimization of manufacturing processes and logistics supports cost control

and flexibility in response to market demand.

5. Investment in Research and Development:

 Apple's substantial investment in research and development (R&D) fuels ongoing

innovation and drives the development of new technologies and products.

 The company focuses on long-term R&D initiatives, exploring emerging technologies like
augmented reality, artificial intelligence, and wearable devices.

 Innovation leadership strengthens Apple's competitive position and future-proofs its

product portfolio against evolving market trends and disruptions.

6.Strategy Design:

 Apple's strategy revolves around leveraging its competitive advantages to drive

sustainable growth, profitability, and shareholder value.

 Key elements of Apple's strategy include continuous product innovation, brand building,
customer experience enhancement, and expansion into adjacent markets and services.

 The company maintains a balance between preserving its core strengths and embracing
strategic agility to adapt to changing market dynamics and seize new opportunities.
3.3. Reformulation of the company's mission and specification of strategic
sales objectives

Strategic Sales Objectives:

1. Drive Product Adoption and Market Penetration:

 Increase market share and expand customer base through targeted marketing
campaigns, promotions, and distribution channels.

 Focus on penetrating emerging markets and segments while strengthening

presence in existing markets.

 Enhance product accessibility and affordability to appeal to a broader range of

customers.

2. Maximize Customer Lifetime Value:

 Cultivate long-term customer relationships by delivering exceptional value,

personalized experiences, and ongoing support.

 Encourage repeat purchases and upselling opportunities through product upgrades,

accessories, and subscription services.

 Leverage customer data and insights to tailor offerings and anticipate evolving
needs and preferences.

3. Optimize Channel Partnerships and Retail Experience:

 Collaborate closely with channel partners and authorized resellers to ensure

consistent brand representation and product availability.

 Enhance the retail experience in Apple Stores and online channels to inspire
discovery, engagement, and purchase intent.

 Provide training and incentives to sales staff to effectively communicate product

benefits and differentiate Apple's offerings.

4. Strengthen Ecosystem Integration and Cross-Selling:

  Promote ecosystem benefits and cross-device integration to encourage customers
to adopt multiple Apple products and services.

 Leverage the synergies between hardware, software, and services to create

seamless user experiences and enhance customer loyalty.

 Implement targeted cross-selling and bundling strategies to maximize revenue per

customer and drive incremental sales.

5. Expand Services and Subscription Revenue:

 Accelerate growth in services revenue streams, including Apple Music, iCloud,

Apple TV+, and Apple Arcade.

 Develop new subscription-based offerings and monetization models to capitalize

on evolving consumer preferences and digital trends.

 Invest in content creation, partnerships, and platform enhancements to

differentiate Apple's services and drive subscriber acquisition and retention.

6. Pursue Strategic Partnerships and Enterprise Sales:

 Forge strategic partnerships with businesses, educational institutions, and

government agencies to drive adoption of Apple products and services.

 Tailor offerings and support solutions to meet the unique needs of enterprise
customers and vertical industries.

 Collaborate with third-party developers and ecosystem partners to enhance the

value proposition and expand the reach of Apple's platform.

3.4. Establishing strategic options, timelines and resources

Establishing strategic options, timelines, and allocating resources at Apple Inc. involves a
comprehensive approach that considers the company's mission, competitive landscape, market
trends, and organizational capabilities.

1. Strategic Options:
Product Innovation and Development:

 Continue investing in research and development to drive innovation across

product categories, including iPhone, iPad, Mac, Wearables, and Services.

 Explore emerging technologies such as augmented reality, artificial intelligence,

and autonomous systems to create new product experiences and differentiation.

Services Expansion and Monetization:

 Expand the portfolio of services, including Apple Music, iCloud, Apple TV+,
Apple Arcade, and Apple Pay, to diversify revenue streams and deepen customer
engagement.

 Introduce new subscription-based offerings and explore opportunities in

healthcare, finance, and other service-oriented industries.

Ecosystem Integration and User Experience:

 Strengthen integration between hardware, software, and services to enhance the

Apple ecosystem's value proposition and user experience.

 Focus on interoperability, continuity, and seamless transitions across devices to

drive customer loyalty and retention.

Market Expansion and Geographic Growth:

 Target growth opportunities in emerging markets, including India, Southeast Asia,

and Africa, by tailoring products, pricing, and distribution strategies to local
preferences and needs.

 Expand retail presence through Apple Store openings, partner collaborations, and
online channels to improve accessibility and market reach.

Sustainability and Social Responsibility:

 Accelerate efforts to achieve carbon neutrality across the supply chain and product
lifecycle, including product design, manufacturing, and recycling initiatives.
  Enhance corporate social responsibility initiatives related to diversity and
inclusion, environmental stewardship, and community engagement to build brand
trust and goodwill.

2. Timelines:

Short-Term (1-2 years):

 Prioritize initiatives with immediate impact and revenue potential, such as product
launches, marketing campaigns, and retail expansions.

 Execute incremental improvements to existing products and services based on

customer feedback and market trends.

Medium-Term (3-5 years):

 Pursue strategic partnerships, acquisitions, and investments to accelerate growth in

key areas such as services, emerging markets, and technology innovation.

 Implement longer-term R&D projects and platform enhancements to maintain

competitiveness and future-proof the business.

Long-Term (5+ years):

 Develop a roadmap for transformative initiatives and breakthrough innovations

that align with long-term strategic objectives and market opportunities.

 Anticipate and adapt to disruptive trends, regulatory changes, and geopolitical

shifts that may impact Apple's business landscape.

3. Resource Allocation:

Financial Resources:

 Allocate funding and investment capital to strategic priorities based on projected

returns, risk assessments, and resource availability.

 Balance short-term profitability goals with longer-term growth and sustainability

objectives to optimize shareholder value.
Human Capital:

 Recruit, retain, and develop top talent in key areas such as engineering, design,
marketing, and operations to support strategic initiatives.

 Foster a culture of innovation, collaboration, and continuous learning to drive

creativity and performance excellence.

Technological Infrastructure:

 Invest in infrastructure and digital capabilities to support scalable growth, data-

driven decision-making, and agile development processes.

 Leverage technology platforms and tools to enhance operational efficiency,

customer engagement, and business agility.

By implementing strategic options, establishing clear timelines, and effectively allocating

resources, Apple Inc. can drive sustainable growth, innovation, and value creation for customers,
employees, and stakeholders. Regular monitoring, evaluation, and adjustments are essential to
ensure alignment with evolving market dynamics and strategic objectives.

3.5. Articulating the strategy to improve the sales activity using the SIX
SIGMA method

Implementing the Six Sigma method to improve sales activity at Apple Inc. involves a
systematic approach to identifying, analyzing, and addressing areas of improvement in the sales
process. Here's how Apple can articulate its strategy using the Six Sigma DMAIC (Define,
Measure, Analyze, Improve, Control) method:

1. Define:

Objective: Enhance sales effectiveness and efficiency to drive revenue growth and customer
satisfaction.

Key Focus Areas:

 Define the specific sales processes, metrics, and objectives to be addressed.

  Identify customer needs, market trends, and competitive factors influencing sales
performance.

 Establish clear goals and performance targets for sales improvement initiatives.

2. Measure:

Metrics and Data Collection:

 Measure key performance indicators (KPIs) such as sales volume, conversion rates,
customer acquisition costs, and sales cycle times.

 Gather data on customer feedback, sales pipeline, product performance, and market
segmentation.

 Use quantitative and qualitative data analysis techniques to assess current sales
performance and identify areas of opportunity.

3. Analyze:

Root Cause Analysis:

 Analyze sales data and trends to identify root causes of sales inefficiencies, bottlenecks,
or customer dissatisfaction.

 Use tools such as Pareto analysis, cause-and-effect diagrams, and regression analysis to
prioritize and understand underlying factors affecting sales outcomes.

 Seek input from sales teams, customers, and other stakeholders to gain insights into
process challenges and improvement opportunities.

4. Improve:

Strategic Initiatives:

 Develop and implement targeted improvement strategies to address identified root causes
and enhance sales effectiveness.

 Streamline sales processes, eliminate non-value-added activities, and optimize resource

allocation to improve efficiency.
  Provide sales training and coaching to enhance skills, product knowledge, and customer
engagement capabilities.

 Introduce technology solutions and automation tools to support sales activities, improve
data accuracy, and enhance decision-making.

5. Control:

Sustainment and Monitoring:

 Establish controls and performance monitoring mechanisms to sustain improvements over

time.

 Define standards, benchmarks, and performance thresholds to track progress and ensure
ongoing compliance with sales objectives.

 Implement feedback loops and regular review processes to assess the effectiveness of
sales initiatives and make adjustments as needed.

 Foster a culture of continuous improvement and accountability within the sales

organization to drive long-term success.

Example Initiatives:

1. Implementing a customer relationship management (CRM) system to centralize sales

data, track customer interactions, and improve sales forecasting accuracy.

2. Conducting targeted sales training programs to enhance negotiation skills, objection

handling, and closing techniques.

3. Introducing incentive programs and performance-based compensation structures to

motivate sales teams and align incentives with strategic objectives.

4. Optimizing lead generation and qualification processes to increase conversion rates and
reduce sales cycle times.

5. Enhancing sales support and after-sales service capabilities to improve customer

satisfaction and loyalty.
 By applying the Six Sigma methodology to sales improvement efforts, Apple Inc. can
systematically identify opportunities, implement effective solutions, and drive continuous
performance improvement across its sales organization, ultimately leading to increased revenue,
customer satisfaction, and market competitiveness.
Conclusions:
Developing a strategy for improving sales activity at Apple Inc. using the Six Sigma method
offers a structured and systematic approach to drive sustainable sales growth, enhance customer
satisfaction, and maintain competitiveness in the technology industry. Through the Define-
Measure-Analyze-Improve-Control (DMAIC) methodology, Apple Inc. has identified key
opportunities and implemented targeted initiatives to optimize its sales operations. Here are the
key conclusions drawn from this strategic endeavor:

Focused Approach: By defining clear objectives, measuring performance metrics, analyzing

root causes, implementing improvement strategies, and establishing control mechanisms, Apple
Inc. has taken a focused approach to improving sales activity. This structured methodology has
enabled the company to identify areas of inefficiency and customer dissatisfaction, prioritize
improvement efforts, and drive tangible results.

Data-Driven Decision-Making: Leveraging data and analytics has been integral to Apple
Inc.'s sales improvement strategy. By collecting and analyzing sales data, customer feedback, and
market trends, the company has gained valuable insights into sales performance drivers, customer
preferences, and process inefficiencies. This data-driven approach has facilitated informed
decision-making and targeted interventions to address underlying issues.

Continuous Improvement Culture: Embracing the principles of Six Sigma has fostered a
culture of continuous improvement within Apple Inc.'s sales organization. By encouraging
collaboration, accountability, and innovation, the company has empowered sales teams to identify
opportunities for improvement, experiment with new approaches, and drive incremental
enhancements in sales effectiveness and efficiency.

Customer-Centricity: Central to Apple Inc.'s sales improvement strategy is a relentless focus

on delivering value to customers. By enhancing sales processes, training sales staff, and
improving customer support capabilities, the company has prioritized customer satisfaction and
loyalty. This customer-centric approach has strengthened relationships, increased repeat business,
and enhanced Apple's brand reputation.

Alignment with Strategic Objectives: The sales improvement strategy at Apple Inc. aligns
closely with the company's broader strategic objectives, including innovation, ecosystem
integration, and market expansion. By optimizing sales activity, Apple Inc. aims to drive revenue
growth, deepen market penetration, and reinforce its position as a leader in the technology
industry.

In conclusion, developing a strategy for improving sales activity at Apple Inc. using the Six
Sigma method has been instrumental in driving performance improvement, enhancing customer
satisfaction, and achieving strategic objectives. By embracing a structured and data-driven
approach, Apple Inc. has positioned itself for sustained success and continued innovation in the
competitive marketplace.