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Business Administration MBA

Marketing Project
Apple Inc.

Presented By:
Passant El-Gheriany Riham Abd ElSalam
Heba Adel Dina Hisham
Mostafa Ahmed

Supervised By:
Dr. Dina El-Salmy

June - 2023
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ACKNOWLEDGEMENT
We would like to express our sincere gratitude to the entire team who worked on this project. The unwavering
commitment to excellence and willingness to go above and beyond to ensure the success of this endeavor have been
truly inspiring.

We would also like to extend our heartfelt appreciation to Dr. Dina ElSalmy, our esteemed professor, for her
invaluable guidance, support, and encouragement throughout the MBA course. Her insightful lectures, helpful
materials, and expert advice have been instrumental in shaping our understanding of the subject matter and our
approach to the project. Her unwavering dedication to our education has been truly inspiring, and we are grateful for
the opportunity to have learned from such a knowledgeable and inspiring mentor.

Once again, thank you to everyone who has contributed to this project and throughout this course. Your support and
collaboration have been invaluable.

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ABSTRACT
This report is a marketing management project aims to provide a comprehensive overview of Apple
Inc.'s marketing strategies and their effectiveness in achieving the company's objectives. Apple Inc. is a
multinational technology company renowned for its innovative products and services, including the
iPhone, iPad, Mac, and Apple Watch. The project explores various aspects of Apple's marketing
management, including product development, pricing strategies, distribution channels, and promotional
activities.
The project begins with an analysis of Apple's target market and customer segmentation. It
examines how Apple identifies and understands the needs and preferences of its target customers, allowing
the company to develop products that resonate with their desires. The project also investigates Apple's
product portfolio, highlighting the company's commitment to innovation and continuous improvement.
Pricing strategies play a crucial role in Apple's marketing management. This project examines Apple's
pricing approach, which often positions its products as premium offerings. It explores how Apple justifies
premium pricing through product differentiation, brand reputation, and perceived value. Additionally, the
project evaluates the impact of pricing strategies on Apple's market share and profitability.
The distribution channels employed by Apple are another critical aspect of its marketing
management. This project delves into Apple's distribution strategy, including its retail stores, online sales,
and partnerships with third-party retailers. It explores the advantages and challenges associated with each
channel and analyzes how Apple ensures a seamless and consistent customer experience across all
touchpoints.
Overall, this marketing management project provides insights into Apple Inc.'s strategies for
product development, pricing, distribution, and promotion. By analyzing these key elements, it aims to
understand how Apple maintains its position as a market leader and successfully navigates the dynamic
and highly competitive technology industry.

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Table of Contents
LIST OF FIGURES .................................................................................................................................................. 5
Phase 1: Introduction to Apple company.................................................................................................................. 6
Project Overview ................................................................................................................................................... 7
Introduction ........................................................................................................................................................... 8
 History ....................................................................................................................................................... 10
 Products ..................................................................................................................................................... 10
 Services...................................................................................................................................................... 10
 Mission ...................................................................................................................................................... 11
 Vision......................................................................................................................................................... 11
 LOGO ........................................................................................................................................................ 12
 Objectives .................................................................................................................................................. 12
 Competitors ............................................................................................................................................... 13
Phase 2: Choose only one product (iPhone) manufactured by Apple .................................................................... 15
Demonstrate the Segmentation, targeting, and positioning ............................................................................. 16
1. Segmentation ............................................................................................................................................. 16
2. Targeting.................................................................................................................................................... 16
3. Positioning ................................................................................................................................................. 17
Provide information about the Marketing Mix ................................................................................................ 18
 4Ps of Marketing Mix ................................................................................................................................ 18
 The 6Ps of Marketing Communication Strategy Model ............................................................................ 20
Apple Inc. orientation.......................................................................................................................................... 21
The marketing environment forces that affect the product ............................................................................. 22
Core Competencies of Apple Inc. and its competitive advantages .................................................................. 23
The product orientation vs. the market orientation of Apple.......................................................................... 24
The generic strategy used by the company........................................................................................................ 25
Phase 3: the Apple Inc., product/brand analysis ..................................................................................................... 26
SWOT Analysis .................................................................................................................................................... 27
 Strengths .................................................................................................................................................... 27
 Weaknesses................................................................................................................................................ 27
 Opportunities ............................................................................................................................................. 27
 Threats ....................................................................................................................................................... 28
BCG matrix .......................................................................................................................................................... 29
Analysis of the five brand asset valuators of the iPhone ................................................................................. 31
Analysis of the five product levels ..................................................................................................................... 33
Phase 4: Conclusion and Recommendations .......................................................................................................... 35
Conclusion and Recommendations .................................................................................................................... 36
References: ............................................................................................................................................................. 37

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LIST OF FIGURES
Figure 1 - Apple Inc. .................................................................................................................................................. 7
Figure 2 - Apple Park ................................................................................................................................................ 9
Figure 3 - Make Great Products............................................................................................................................. 11
Figure 4 - Apple Mission Vision Values ................................................................................................................. 11
Figure 5 - History of Apple’s logo .......................................................................................................................... 12
Figure 6 – Competitors............................................................................................................................................ 13
Figure 7 - Apple iPhone 14 Pro Max...................................................................................................................... 15
Figure 8 - Swot Analysis Of Apple ......................................................................................................................... 27
Figure 9 - Apple BCG Matrix Analysis ................................................................................................................. 29
Figure 10 - Product levels ....................................................................................................................................... 33

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Phase 1: Introduction to Apple company

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Project Overview

Apple Incorporation is an American

multinational technology company founded
by Steve Jobs, Steve Wozniak, and Ronald
Wayne in April 1976 to develop and sell
Wozniak's Apple I personal computer.
Apple Inc. is the largest brand in the
technology industry in terms of its revenue
generated as well as its brand ranking. It is
not a surprise to many because Apple Inc.
has time and time again presented products
which were ground breaking and
revolutionized the market. Apple Inc. has
given us many delights over the years
including the MacBook, the iPod, iPhone,
Figure 1 - Apple Inc.
IPad, Iwatch, iTunes and others. And due
to its excellent product and differentiation, it is close to the heart of many techie enthusiasts Apple Inc.
is already known for a great marketing strategy and it is also a source of competitive advantage for the
brand. Another is its unique technological capability. Sales of the brand have risen fast from 170 Billion
dollars 2013 to 229 Billion dollars in 2017.

The project report titled "Apple Marketing Management" provides a comprehensive analysis of
Apple Inc.'s marketing strategies. The report begins with an introduction to Apple Inc., including its
history, mission, and vision. It then delves into a detailed market analysis, examining Apple's target
market segments, consumer behaviour, and the competitive landscape. The report evaluates Apple's
product positioning by analyzing its product portfolio, differentiation strategies, and value creation for
customers. Furthermore, it assesses Apple's marketing mix elements, such as product, price, place, and
promotion, and their contributions to Apple's marketing objectives. The report also investigates Apple's
branding strategies, including brand identity, positioning, and communication. It explores Apple's
marketing successes, such as notable product launches and effective campaigns, while addressing the
challenges faced by the company in a dynamic market environment. Lastly, the report concludes with
recommendations aimed at improving Apple's marketing strategies, enhancing market positioning, and
leveraging emerging marketing channels. The project report offers valuable insights into Apple's
marketing management and provides stakeholders with actionable recommendations for future success.

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Introduction

Apple Computer's 47-year history is full of highs and lows, which is what we would expect in a
highly innovative company. They evolved throughout the years into an organization that is very much a
representation of its leader, Steven Jobs. Apple made several hugely successful product introductions
over the years. They have also completely fallen on their face on several occasions. They struggled
mightily while Jobs was not a part of the organization. Apple reached a point where many thought they
would not survive. When asked in late 1997 what Jobs should do as head of Apple. Dell Inc.’is (DELL)
then-CEO Michael S. Dell said at an investor conference: I’d shut it down and give the money back to
the shareholders." (Burrows, Grover, and Green).

Apple increases the appeal of these products by making them stylish and more functional. They
now appear poised to make significant strides in the home computer market and to creating a total digital
lifestyle whack the home is a multimedia hub.

Apple is the world's largest information technology company by revenue and the world's second-
largest mobile phone manufacturer after Samsung. In February 2015, Apple became the first U.S.
company to be valued at over US$700 billion. The company employs 116,000 full-time employees as of
October 2016 and maintains 498 retail stors in 22 countries as of July 2017. It operates the iTunes Store,
which is the world's largest music retailer. As of January 2016, more than one billion Apple products are
actively in use worldwide.

Apple's worldwide annual revenue totaled $215 billion for the 2016 fiscal year. The company
enjoys a high level of brand loyalty and has been repeatedly ranked as the world's most valuable brand.
However, it receives significant criticism regarding the labor practices of its contractors and its
environmental and business practices, including the origins of source materials.

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Figure 2 - Apple Park

Apple Computer Company (1976–1977)

Formerly called
Apple, Inc. (1977–2023)
Type Public
NASDAQ: AAPL / NASDAQ-100 component / DJIA component / S&P 100
Traded
component / S&P 500 component
Computer hardware / Computer software / Consumer electronics / Digital
Industry distribution / Semiconductors / Fabless silicon design / Corporate venture
capital
Founded May 19, 2001 Tysons, Virginia, and Glendale, California U.S.

Founders Steve Jobs / Steve Wozniak / Ronald Wayne

Headquarters Apple Campus, 1 Infinite Loop, Cupertino, California, U.S.
Number of locations 526 retail stores (2023)
Area served Worldwide
Arthur D. Levinson(Chairman) / Tim Cook(CEO) / Jonathan Ive(CDO) /
Key people
Luca Maestri(CFO) / Jeff Williams(COO)
Macintosh / iPod / iPhone / iPad / Apple Watch / Apple TV / HomePod /
Products
macOS / iOS / watchOS / tvOS / iLife / iWork
Apple Pay / Apple Store / iTunes Store / App Store / Mac App Store / iBooks
Services
Store / iCloud / Apple Music

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Revenue 394.33 billion U.S. dollars (2022)

Operating income $112.304B (2022)
Net income $102 billion (2022)
Total assets 102 billion (2022)
Total equity $50.672B (2022)
Number of employees 164,000 (2022)
FileMaker Inc. / Anobit / Braeburn Capital / Beats Electronics / Apple
Subsidiaries
Energy, LLC / Apple Sales Internationa
Website www.apple.com

 History
Apple Inc formerly known as Apple Computer Inc provides corporate Server, MAC OS Systems
and Operating Systems, Apple's core product lines are the iPhone, iPod and Macintosh Systems. Steve
Jobs and Steve Wozniak, The founder of Apple created the Apple Computer on 1st April 1976 and
integrated with the company on 3rd January 1977, in Cupertino California. It has driven the Computer
manufacturing market For more than two decades. Mr. Steve Jobs who was expelled in 1985 was returned
as CEO of APPLE Inc in 1996 with new Ideas and corporate philosophy. With the introduction of the
successful IPod Player in 2001 Apple has again proved itself as a Market leader in consumer electronics.
The latest era of the extraordinary success of the company is in iOS-based Apple products like iPhone,
iPod Slim, Pad and now I iPad 1 Now a day's Apple is the biggest technology corporation in the planet
with profits of more than $65 billion. It has about 49,400 employees all over the world. Fortune
Magazine's Most Admired company in United States in 2012 and in the world in 2012, 2009.
Apple has over 240 Store all over the world and the bifurcation of these store in different countries are
as below. If you are wondering about the profit that Apple Incorporation earns, then you’ll be amazed to
know that AppleInc. has made a profit ofUS$59.531 billionin the year 2018.With the successful products
that you saw in the marketplace by Apple, you should not doubt the figure of thenet profit that we have
highlighted above. Apart from the number of employees that are, working on the netprofit earn the
company is enough to show its worth.

 Products
Macintosh / iPod / iPhone / iPad / Apple Watch / Apple TV / HomePod / macOS / iOS / watchOS /
tvOS / iLife / iWork/ Airpods Pro / Mac Book / Mac Studio /

 Services
Apple Pay / Apple Store / iTunes Store / App Store / Mac App Store / iBooks Store / iCloud / Apple
Music

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 Mission
Apple Inc. designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and
professional software. Apple Inc. leads the digital music revolution with its iPods and iTunes online store.
Apple Inc. has reinvented the mobile phone with its revolutionary iPhone and App store, and is defining
the future of mobile media and computing devices with iPad"
Apple’s mission is committed to providing the best innovations and technologies in the world.
The company also strives to protect the environment, to ensure good health and safety of the company’s
employees, customers and the global communities where they operate (Capilla, 2011).
Apple is committed to bringing the best personal computing experience to students, education,
creative professionals and consumers around the world through its innovative hardware software and
internet offerings

 Vision

We are “committed “in producing high-quality products and providing high-quality service thus
setting high industry standards for other competitors.
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.

Figure 3 - Make Great Products Figure 4 - Apple Mission Vision Values

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 LOGO

Figure 5 - History of Apple’s logo

 Objectives
 Marketing objectives:
 Position Apple as a premium brand
 Increase brand value and market share
 Manufacture and sell products directly
 Invest in research and development to come up with new products and technologies
 Financial objectives
For the quarter, Apple posted revenue of $117.2 billion and a net quarterly profit of $30.0 billion, or
$1.88 per diluted share, compared to revenue of $123.9 billion and a net quarterly profit of $34.6 billion,
or $2.10 per diluted share, in the year-ago quarter.

Apple's revenue was down approximately 5% year-over-year, a steeper decline than had been expected
by analysts as Apple grappled with iPhone supply issues in particular but which also saw declines in Mac
and wearables.

Apple’s board of directors has declared a cash dividend of $0.24 per share of the Company’s common
stock, an increase of 4 %. The dividend is payable on May 18, 2023, to shareholders of record as of the
close of business on May 15, 2023. The board of directors has also authorized an additional program to
repurchase up to $90 billion of the Company’s common stock.

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 Competitors

Figure 6 – Competitors

Though Apple has a narrow product line, it still has strong competitors in the global market for
its different product line especially for laptops and smartphones.

 Samsung is one of the Top competitors of Apple in the Smartphone segment. Samsung is the
leader in smartphone market share. Galaxy smartphones is considered the pioneer in the industry.
Apple iPhone and Samsung Galaxy are strongly competing to increase market share.

 Dell is a strong competitor of Apple in the Laptop segment. This rivalry started many years ago
when Dell introduced a competitive product Dell DJ and become one of the early competitors of
iPod. A few years back Dell launched XPS laptops product line which are competing with
MacBook Pro.

 HP Inc. and Lenovo are top companies having almost 22% market share followed by Dell and
Acer and Apple. HP Inc. is providing acceptable quality products at affordable prices. On the
other hand, Apple is providing high-quality products with premium pricing.

 Sony brand is known for its PlayStation which has a larger chunk of the market share i.e. over
50%. Sony is one of Apple's competitors based on their laptops and smartphones.

 Microsoft. In the past 4 decades, Microsoft achieved its objectives through the visionary
leadership of Bill Gates. MSFT product line includes Windows, office, gaming Xbox, surface and
mobiles. Microsoft is one of the leading competitors of Apple in many segments i.e. operating

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systems, computers and smartphones.

 Google is a primary competitor to Apple in the operating system segment. Google's strategy is
focused on mass penetration as Android hold 84.7% of the market share. On the other hand, Apple
iOS has 11.7% market. Windows and Blackberry phones have 8 and 3.6 respectively.

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Phase 2: Choose only one product (iPhone)

manufactured by Apple

Figure 7 - Apple iPhone 14 Pro Max

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Demonstrate the Segmentation, targeting, and positioning

Market segmentation is the process of dividing a broad consumer or business market into sub-groups
of consumers (known as segments) based on some types of shared characteristics.
Apple generally uses three market segmentation which are based on lifestyle, demographics and
psychographic characteristics.

Apple iPhone 14 Pro Max Target Audience

1. Segmentation 2. Targeting
Geographic Globally

Demographics Age 25– 35 years

The target audience for the iPhone 14 is tech-
savvy millennials between the ages of 25-35.
This audience is likely to be well-educated
and have a higher-than-average income. They
are early adopters of technology and are
always on the lookout for the latest and
greatest products.
Gender Male and Female

Income level high-income individuals

Lifestyle Modern middle-class and upper-class users
can pay higher for products that provide them
with an incredible user experience. This
means that these users have a higher
disposable income and are willing to pay more
for as high-priced products as Apple's
Psychographic Aspirer, succeeder, explorer, innovator

Behavioural Loyalty Hardcore loyalists

Once an Apple Inc. user, always an Apple
user
Usage Pattern Personal and professional use
Personality Determined & ambitious

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3. Positioning
iPhone is perceived by the customer as a luxurious product with the latest technology and the highest
security features.

Apple’s brand positioning is based on three key elements: innovation, design, and customer
experience. These three factors allow Apple to stay ahead of competitors while maintaining a strong
sense of identity.

The positioning approach for every marketing plan plays a critical role in promoting a brand image
in the customers' minds. A practical and critically selected positioning strategy can hugely influence the
firm's success. When deciding on the brand's positioning, companies vary on the aspects they want to
highlight and emphasize, based on the industry, company time, size, and products.

The technology industry is rapidly growing and constantly evolving, hence the continuous
introduction of new products with technical resolutions and innovative features. Apple is one of the top
firms in this sphere, and most of the players in the industry often look up to Apple, its new technologies
and products.

This success is partially due to its solid and effective positioning based on various elements. Apple
positions itself in the market as a premium brand sought by everyone. Surely, the company's products
are not cheap, but you will find people, even those who cannot afford to find ways to get their hands on
Apple products.

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Provide information about the Marketing Mix

Types of Marketing Mix
 4Ps of Marketing Mix
framework can be applied to analyze the marketing mix for the hypothetical product "iPhone 14 Pro
Max." Please note that as of my knowledge cutoff in September 2021, the latest iPhone model
available is the iPhone 13 series. However, I can provide a generalized analysis based on Apple's
marketing strategies for previous iPhone models.
 Product
The iPhone 14 Pro Max is expected to be a flagship smartphone offering from Apple. It would
likely feature advanced hardware specifications, innovative technologies, and a range of enhanced
features compared to its predecessors. The product's unique selling points may include a large high-
resolution display, powerful processor, improved camera system, enhanced battery life, and new
software capabilities. Apple's focus on design and user experience would likely be evident in the
iPhone 14 Pro Max's sleek and premium aesthetics.
Apple Inc. offers premium products at premium prices while still maintaining large market share and
high-profit margins.
Objective Strategy
1. Continue to create To create groundbreaking products Apple will need to have a
groundbreaking great team-building culture along with a strong research and
products. development team. Too they will have to operate with a sense
of no complacency and not let current success limit future
potential.
2. Innovate and To continue the success of having the best products, Apple
dictate the must study the market to understand what consumers want next
movement for while improving their current products by listening to customer
future technology. feedback.

 Price
Apple follows a premium pricing strategy for its flagship products. The iPhone 14 Pro Max,
being a high-end device, would likely be positioned at a premium price point compared to other
smartphone models. The pricing would reflect the perceived value associated with Apple's brand,
cutting-edge technology, and exclusive features. Additionally, Apple often offers different storage
capacity options, allowing customers to choose based on their needs and budget.
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.

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Objective Strategy
1. Enter and sustain premium Strategically price all products at the top of the market
pricing while attempting to base price relying on brand and quality to offset the
gain market share. price differential.
2. Increase profit margins. Continue to push to lower costs to make products
while sustaining the same retail price in the market.

 Place (Channels of Distribution)

Apple employs a multi-channel distribution strategy for its products, including both online
and offline channels. Customers can purchase iPhones directly from Apple's official website and
physical retail stores worldwide. Additionally, Apple partners with various authorized resellers and
mobile network carriers to expand its distribution reach. The iPhone 14 Pro Max would be available
in Apple stores, authorized retailers, and online platforms, ensuring broad accessibility for customers.
Apple products are found in most areas of the world and that is certainly the overall goal for
global business.
Objective Strategy
1. Expand nationwide chain of Begin placing stores in all large markets and expand
Apple stores globally. outward based on population and demand of products.
2. Make products available in Place products in every retail store that carries electronic
every other possible retail devices, all e-commerce websites, and make sure mobile
channel, ex. Online, Big Box devices are featured on every large mobile carrier.
retailer

 Promotion
Apple is known for its meticulously crafted marketing campaigns that create hype and
anticipation for new product launches. The promotion of the iPhone 14 Pro Max would likely involve
a combination of strategies, including advertising, public relations, and digital marketing. Apple's
marketing efforts often emphasize the product's key features, advanced technology, and the overall
Apple ecosystem. This could involve TV commercials, online ads, social media campaigns, and
collaborations with influencers or celebrities to generate excitement and drive consumer interest.
Apple's Successes like is not built without excellent marketing and promotion strategies which
Apple has certainly demonstrated they have.
Objective Strategy
1. Build hype and Use annual conferences and events to announce releases and

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anticipation for new information on each new product before it hits the market. This
upcoming products. allows the consumer to build a demand for the product before
it ever hits the shelf.
2. Sustain and expand Be a trendsetter, enter new product markets before the
on a strongly branded competition, and deliver current products at an unreachable
name. standard of quality.

 The 6Ps of Marketing Communication Strategy Model

In addition to the traditional 4Ps, Apple's marketing mix also emphasizes two additional elements:
 People
Apple recognizes the importance of people in its marketing mix, both within the organization
and among its customers. Internally, Apple focuses on hiring and nurturing a talented workforce
that is passionate about its products and shares the company's vision. The employees play a
crucial role in product development, customer service, and creating a positive brand experience.
Externally, Apple fosters a loyal and dedicated customer base who are enthusiastic about the
brand. Apple's marketing efforts aim to engage and build a strong relationship with its customers,
creating a sense of community and advocacy.
 Process
Apple places a significant emphasis on the process aspect of its marketing mix. This includes
the meticulous attention to detail in product development, manufacturing, and supply chain
management. Apple's product development process is known for its secrecy, innovation, and
focus on delivering exceptional quality. The manufacturing process involves a combination of
in-house production and collaboration with trusted suppliers. Apple's supply chain management
is designed to ensure efficiency, sustainability, and timely delivery of products. The marketing
strategy for the iPhone 14 Pro Max would highlight Apple's commitment to the highest standards
of process excellence, which translates into superior products and customer satisfaction..

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Apple Inc. orientation

Apple, Inc. is both product-oriented and market-oriented:

 Product oriented:
Apple has continued to bring innovative products that would pave the way for the new standard of
technology since its founding of the Mac. Due to its focus on releasing innovative products, Apple
Inc. has been branded as a product oriented company; however Apple spends a lot of time and effort
on figuring out what the consumers want through their intensive market research which convinces
some to believe that they are indeed a market oriented company Apple Inc. continually focuses on
the development of their products and makes them innovative, attractive and competitive with other
competing brands which makes them product-oriented.
 Market oriented:
With the death of Steve Jobs, and with the position of CEO transferred to Tim Cook, Apple Inc. seem
to move towards a different direction. In their recent launch of the iPhone 5c, 5s, 6 and 6 Plus, it can
clearly be seen that they are listening to what the consumers want due to the fact that they put bigger
screens, being deemed a market follower rather than a market leader by some. In the blog, CIO
Perspectives, Scott Lowe (2013) states that, “Apple has proven that they are a company that will react
to market forces in an attempt to grow share rather than just focus on breathtaking innovation to do
so.” This proves that they are currently considering their customer as king. Apple Inc. uses an
intensive market research as their building block to develop highly innovative products. Apple has
built up a very strong brand attachment towards its customers, making sure that the customers are
given the best products with the most stable and easy to use interface. They also make sure to have
an edge towards their competition.

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The marketing environment forces that affect the product

This PESTEL analysis (PESTLE analysis) of Apple Inc. indicates that most of the external factors
in the company’s remote or macro-environment present opportunities for the consumer electronics and
information technology services business.

 The political external factors in Apple’s remote or macro-environment mainly present

opportunities. In Apple’s case, the following are some of the major political external factors:
Improving free trade policies (opportunity), Stable politics in developed countries (opportunity),
and Trade disputes, especially between the U.S. and China (threat).
 The economic stability of developed countries creates opportunities for Apple’s expansion. For
example, the high economic growth rates of Asian countries are opportunities for Apple to
increase its revenues through sales in these markets. On the other hand, unstable disposable
incomes create unpredictability in selling the company’s relatively high-priced technology
products.
 Apple’s business is subject to the effects of Social or sociocultural trends. The following
sociocultural trends are significant in the remote or macro-environment: Rising use of mobile
access (opportunity), Increasing dependence on digital systems (opportunity), and International
anti-Apple sentiments (threat). The rising use of mobile access is an opportunity to grow Apple’s
revenues. This social external factor relates to the increasing demand for mobile devices, like
smartphones and tablets.
 The technological external factors in Apple’s remote or macro-environment provide
opportunities for the enterprise. In Apple’s external analysis case, the following technological
external factors are the most significant: Growing demand for cloud computing (opportunity),
Increasing technological integration in businesses (opportunity), Growing mobile market
(opportunity), and Growing technological capabilities of other firms (threat).
 The ecological factors in Apple Inc.’s remote or macro-environment provide opportunities for
business improvement. In Apple’s case, the following ecological external factors are important:
Business sustainability trend (opportunity), Energy efficiency trend (opportunity). The business
sustainability trend is an ecological factor linked to increasing favour among businesses to adopt
sustainable practices to reduce the environmental impact of business operations.
 The legal external factors in Apple’s remote or macro-environment create threats to the
business. Governmental pressure for privacy in the digital age has resulted in increasing privacy
regulations on businesses, like Apple Inc. This legal external factor is a threat that could impose
costly regulatory compliance requirements and more limits on the technology company.
The political external factors in Apple ’s remote or macro-environment mainly present opportunities.

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Core Competencies of Apple Inc. and its competitive advantages

Core competencies are defined as the skills and capabilities of an organization which make it unique
and give it a competitive advantage over its competitors.

Apple Inc. is strong in its core competencies as well as in dynamic capability. It has always been
responsive to any changes brought in by its competitors. Because Apple Inc. is a financially very strong
company, it pays a lot of money to the research and development department to develop such devices
which are highly technological, the core competencies of Apple Inc. are its innovative designs and
technology based on software.

The core competencies of Apple Inc. are robust. It is very hard to imitate Apple products, and this
gives it an edge over its competitors. It has a closed proprietary system, which ensures no copying of its
skills and its secret recipe. On the other side, Apple Inc. is very consistent in its product portfolio
development.

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The product orientation vs. the market orientation of Apple

Product Orientation Market Orientation
The iPhone 14 Pro Max has the same hardware and design as Apple has done a brilliant job at
the iPhone 14 Pro, but in a larger package .The iPhone 14 Pro defining their target market and they
Max is one of the most durable, speedy, and powerful have struck the bullseye for iPhone 14
devices. Enjoy high-speed reactivity thanks to the new A16 pro max by capturing the heartbeat of
Bionic chip, the best battery yet, and a new customizable lock their target audience. They never
screen that fits your needs. The iPhone 14 Pro Max contains competed in price wars. iPhone is
new features, such as the Dynamic Island, that keeps music, considered to be a status symbol in
FaceTime, and more at your fingertips, along with a 65% many societies and people buy it less
larger sensor and 4x the resolution that helps you capture because of innovation and more
more detail than ever before. Let’s not forget that the iPhone because it seems ‘cool’ to own an
14 Pro Max brings 2x brighter lighting and all-day battery life iPhone. This is one of the most
to this device. And let’s not forget the iPhone 14 Pro Max’s obvious reasons why do people buy
newest live-saving technology: Collision Detection and iPhones. This is the reason why
Emergency SOS. The new iPhone 14 Pro Max feature a suite iPhone’s prices stay consistent, unlike
of new camera features and hardware improvements. The other smartphones. Because premium
most notable you'll be able to take advantage of is a new products cannot be bought at cheaper
48MP Main camera that takes even sharper and more detailed prices.
photos.
Pros:
 Premium design
 Great display
 Excellent performance and battery
 Excellent camera.

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The generic strategy used by the company

Apple's generic strategy and rapid growth strategies are connected to the company strategies areas
of business, pricing, and marketing. As one of the most useful brands in the world, Apple shows it is
generic strategy is the main factor of the privilege against others companies like Samsung and
BlackBerry. With the high level of innovation and excellent design, Apple manages to maintain top
position even with the high prices of products.

Apple Inc.'s generic strategy is broad differentiation. This generic strategy focuses on key
features that differentiate the company and its information technology products from competitors.
Through the broad differentiation generic strategy, Apple stands out in the market.
The company's goal is to gain a competitive advantage over its main competitors. Through
innovation, Apple can provide consumers with unique products that are aligned with their changing
needs.

To effectively apply this strategy, Apple has to continuously innovate its products through research
and development, because competitors eventually catch up with new products, so the broad
differentiation generic strategy compels Apple to always innovate to keep itself always ahead of
competitors.

Apple’s generic strategy of broad differentiation is the best option that helps the company stands out
in the market. Differentiation and innovative design supports the firm’s goal of leading the market
through innovative products. Innovation is at the heart of Apple’s business.

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Phase 3: the Apple Inc., product/brand

analysis

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SWOT Analysis

Figure 8 - Swot Analysis Of Apple

 Strengths
o Well-recognized, product differentiation unique design, easy-to-use products
o 4th largest player in the global mobile phone market
o Strong brand image, brand stability, high brand loyalty
o Powerfully financial performance
o Focused R&D driving innovation holds a 5% market share in the mobile phone market
o 18.5% market share of the global Smartphone market
o Complete hardware/software package

 Weaknesses
o Patent infringement lawsuits may affect the financial condition and operating results Product
recalls, and defects may harm the reputation and as significant warranty and other expenses,
antennae problems as in iPhone 4 replacements free of charge.
o Apple products may be the best in the market, but not everyone can afford them. Prices set by
Apple are very much inflated, due to which many potential costumes switch to their substitutes.

 Opportunities

o Strong growth in Smartphone and tablet markets to boost Apple’s revenues

o Robust outlook for the mobile advertising market provides a growth opportunity
o Development of the AI, Apple can benefit from the recent developments in artificial intelligence
to make its products more user-friendly.
o Use if Virtual Reality, Although virtual reality is usually associated with entertainment purposes,
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Apple can use virtual reality for its marketing purposes.

o Increasing demand of online music and other like cloud-based service

 Threats

o Rapid Technological Change

The field of consumer electronics is continually evolving with new technological advancements every
other day. It will be a great challenge for the company to keep up with the latest trends. So far, Apple
has been able to bring some revolutionary products to the market. Still, recently Apple has not yet
announced its new product plan.
o Android OS Growth
One of the significant threats faced by the company is the considerable growth of its competitors OS,
Android. Android’s hegemony reduces iOS’s control to encourage consumers to join Apple.
o Competitors in The Online Music Market
Online music subscription companies such as Amazon, Wal Mart, and Spotify are a threat to Apple.
o COVID-19 pandemic
Up to 20% of Apple’s yearly revenue is affected by the COVID-19 outbreak. Revenue is expected to
range from $63 billion to $ 67 billion, but the company was able to achieve revenue of $57 billion only.
o Strong Dollar
Apple earns more than half of its revenue from outside the US. Therefore, the changes in currencies of
other countries could affect Apple's profits. In other words, other countries' currencies are more
changeable than the US dollar.

Final Thoughts
Through this Apple SWOT Analysis report, one can learn the exclusive details of Apple. This SWOT
report is ideal for case studies. This report closely examines Apple’s strengths, weaknesses,
opportunities, and threats.

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BCG matrix

Figure 9 - Apple BCG Matrix Analysis

The BCG matrix, also known as the Boston Consulting Group matrix, is a strategic tool used to
analyze a company's portfolio of products or business units based on their market growth rate and
relative market share. However, since Apple Inc. is primarily a company that sells products rather than
operating diverse business units, the traditional BCG matrix may not be the most suitable framework to
analyze Apple's portfolio. Nevertheless, we can provide a simplified interpretation of how Apple's
product categories could be positioned within a hypothetical BCG matrix based on their market growth
and market share.

The product portfolio of Apple Inc. is clearly divided into four parts:
1. Stars
In the BCG matrix, stars represent products or business units that have a high market share in a rapidly
growing market. For Apple, the iPhone product line could be considered a star. Despite being a mature
product, the iPhone maintains a significant market share and continues to experience demand and
growth due to ongoing product innovation, expanding customer base, and market penetration.

2. Cash Cows
Cash cows refer to products or business units with a high market share in a slow-growth market. For
Apple, its Mac computers and services could be categorized as cash cows. While the overall growth rate
of the personal computer market has slowed down, Mac computers still maintain a loyal customer base,
and Apple's services such as iCloud, Apple Music, and the App Store contribute significantly to the
company's revenue and profitability.
3. Question Marks (Problem Children)
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Question marks, also known as problem children, represent products or business units with low market
share in a high-growth market. Apple's Apple Watch and Apple TV could be considered question marks.
Although these products have gained traction in the market, they still face competition and have a
relatively smaller market share compared to other Apple product categories. However, they have the
potential to grow and become stars if Apple continues to invest in their development and marketing.

4. Dogs:
Dogs represent products or business units with low market share in a slow-growth market. It is
challenging to identify a specific product category from Apple that could be considered a dog as the
company is known for its focus on high-quality and successful product lines. However, if we consider
less successful or discontinued products, devices like iPods or Apple's attempt at the smart speaker
market with the HomePod could potentially fit this category.

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Analysis of the five brand asset valuators of the iPhone

The brand asset valuator model is based on four pillars: differentiation, relevance, esteem, and
knowledge. Apple has a business model that is divided into products and services. Apple generated over
$394 billion in revenues in 2022, of which $205.5 came from iPhone sales, $40 billion came from Mac
sales, over $41 billion came from accessories and wearables (Air Pods, Apple TV, Apple Watch, Beats
products, HomePod, iPod touch, and accessories), $29.3 billion came from iPad sales, and $78.13 billion
came from services.

 Differentiation:
Apple can capture attention in the cultural landscape like no other. In a now-infamous 1997 speech
announcing Apple’s rebirth, CEO Steve Jobs introduced the mantra “Think Different” to his colleagues
and employees.
Brand differentiation for Apple is mostly due to product design, which has been a hallmark of the
company since it was founded.
When the iMac, iPod, iPad, and iPhone were released, there was nothing else on the market that could
match these products for their intuitive and streamlined functionality.
Pricing is also used to differentiate the Apple brand. While most manufacturers of consumer electronics
sell lower-priced goods at higher volumes for slimmer profit margins, most of Apple’s products occupy
the premium end of the market with a price proportionate to quality.

 Relevance:
In 2021, it was announced that Apple was the most relevant brand to consumers for the sixth year
running after a survey involving 13,000 consumers and 228 brands, According to consultancy company
Prophet, Apple earned near-perfect scores in the following characteristics of brand relevance.

 Esteem:
The public perception of the Apple brand is extremely favorable in terms of product quality and
popularity. This increases perceived value which, as we discussed earlier, means customers are willing
to pay a higher price for Apple products.
Product quality has obvious connotations for perceived value, but the status afforded to consumers who
own Apple products also increases brand esteem in a no less significant way.
Considering Apple is the world’s most valuable brand with the App Store available in 175 countries and
regions, these traits likely differ less when compared to other brands.

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 Knowledge:
Apple has carefully and methodically built its brand for over 40 years and has consistently delivered
innovative products that have enriched consumers and society as a whole, also The Company has a core
identity that consumers understand and are intimate with.
This has been facilitated by consistent brand attributes that have remained more or less the same
throughout the company’s history. These attributes include:
 Progressive.
 Up to date.
 Worth more.
 Intelligent.
 Innovative.

Apple’s logo and the lowercase “i” it places before its product names are also instantly recognizable.
This increases the sense of intimacy between consumers and what is a profoundly humanistic company
that supports worthy causes, communities, and people.

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Analysis of the five product levels

Apple is a company that offers a range of products, including computers, smartphones, tablets,
and other consumer electronics. To apply the five product levels to one of Apple's products, let's consider
the iPhone.

Figure 10 - Product levels

1. Core Benefit Level: The core benefit of the iPhone is communication and connectivity. The
iPhone allows users to make phone calls, send text messages, and access the internet from
anywhere, providing convenience and connectivity.

2. Generic Product Level: The generic product level of the iPhone includes its physical features,
such as its design, size, and features. For example, the iPhone has a sleek design, a high-
resolution display, a powerful processor, and a variety of features such as a camera, GPS, and
access to the App Store.

3. Expected Product Level: The expected product level of the iPhone includes the basic features
and functions that customers expect from a smartphone, such as the ability to make phone calls,
send text messages, access the internet, and take photos.

4. Augmented Product Level: The augmented product level of the iPhone includes additional
features and services that enhance the customer experience. For example, Apple offers a range
of accessories such as cases and chargers, as well as additional services such as AppleCare and
iCloud storage.

5. Potential Product Level: The potential product level of the iPhone includes future innovations
and developments that could further enhance the product's value and appeal to customers. For
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example, Apple is constantly working on new technologies such as augmented reality and
artificial intelligence, which could be integrated into future versions of the iPhone.

Overall, by considering the five product levels, we can see that the iPhone is more than just a
device for making phone calls and sending messages. It provides a range of features and services that
enhance the customer experience and creates a strong emotional connection with its users, leading to
high levels of customer loyalty and repeat business for Apple.

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Phase 4: Conclusion and Recommendations

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Conclusion and Recommendations

Apple Inc. is very strong in promotion and the place. IPhone is massively marketed using online
and retail promotions. In the first few years, apple smashed the whole market of the mobile phone.
Apple is in continuous efforts to lower the prices of the device to target as many possible potential
buyers. One of the major reasons which make users reluctant to buy Apple products, in general, is the
strategy of keeping their technology closed and intact, and not allowing the developers to explore the
horizons to the next level. If Apple can stretch the iPhone product line in both ways, such as releasing
the device with lower prices with process optimization and increased efficiency as well as coming up
with new models in the upper segment of the product range to target the corporates and professionals,
then it will ensure that the company grows in terms of user base and revenues.

Recommendations:
Apple can also consider filling the product line with the new developments in the current product
mix by adding variations such as the new version with 64 or more Gigs memory, smarter and more
powerful camera lens technology etc. Apple strives for innovation and new technology; the product
range Apple currently offers consists of many high ends products such as iPhone, iMac, iPad and
others. Apple advertises its products massively using push and pulls promotion strategies. With
innovation, promotion and place become one of the key platforms to market the product to the targeted
segment.

To conclude, Apple is positioned as "High quality = High price". If the company can perform at
par with the striking new technology, high-class design and stability, the company has a bright future
in the coming years. With its remarkable marketing strategy going in hand with powerful innovation
and pioneering technology, there are lot of opportunities and market segments, in which Apple can
penetrate and secure the pole position.

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