Discussion Question Apple Inc. Company

PLEASE READ CAREFULLY THE INSTRUCTIONS. YOU NEED TO DO JUST PART THAT IS UNDERLINE AND BOLD.

NO MORE THAN 300 WORDS

NO PLAGIARISM

✅ GOOD GRAMMAR

APA REFERENCE

APPLE INC. IS THE COMPANY

Paste the problem statement and recommendations section from your organization’s strategic analysis as your initial post (including any references these sections cite). Include a short paragraph of how important you believe the processes of strategic analysis, planning, and implementation are in general and, specifically, how this company might (or does) effectively integrate the 3 processes into their organization.

——————————————————————

problem statement

Even Apple is the largest technology company in the world, the company has lost its market position in the last financial years. Even with consistent revenue increase stream from 2007-2015, in 2016 the total revenue of the company has been dropped from USD 233715 million to USD 215639 million (Figure 1). The product and services sold by the company have been decreased in last year. The decline of total sales revenue has negatively affected the profitability of the company. In 2016, most of the profitability ratios of the company including net profit margin, Return on Assets (ROA), Return on Equity (ROE), and EPS of Apple have been decreased (Figure 2). The deterioration of the profit profitability of the Apple had a negative impact on the share price of the company in the market. The share price of Apple has experienced a negative trend during the 2015-2016 period (Figure 3).

recommendations

Given the current condition of opportunities & prospects of external market, and internal business resources and capacities of the company, Apple can be recommended to pursue geographic business expansion, and catching of middle-income customers segment through by reducing product price to resolve its recent problem.

For the implementation of the suggested strategic alternatives, Apple will require to proliferate its business in the untapped market including commonwealth, South Asian, and African countries where the business prospect is high, and reach to middle-income customer segment by reducing the product price. The current high assets, cash, and supply chain management of the Apple will enable it to easily expand business in these areas. As the company has already reached its breakeven point for existing products offered in the market reduction of product price will be a problem for the company. Given consideration of the high price elasticity of the demand for a technology product, middle-income people, who have now less access to products of the company, will have more access (Dyer, Godfrey, Jensen, & Bryce, 2016). The product lifecycle of the company will be extended upon geographic business expansion, and new customer segment capturing.

The implementation of these recommended strategies will have a favorable impact on the market positioning and future sales revenue of the company. Overall sales revenue of the company in the future will be increased as well as profitability ratios will be improved from the geographic business expansion, and catching of middle-income customers segment through by reducing product price (Rothaermel, 2011). Through these actions, the company will mainly approach the untapped market segments. Here, the idea of the company will be purely following of ‘blue ocean strategy’ as competitive response strategy.

Apple has the capacity to implement the suggested recommendations very successfully. The current leadership, skilled manpower, and business resources will provide a good support to the implantation of the suggested strategies.