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Apple Inc. Strategic Analysis Plan

Executive Summary

Apple Inc. is an American-based multinational company operating in the information and technology industry. It specializes in computer software, electronics, and online services. Founded in 1976 as a computer company by Steve Jobs and Steve Wozniak, it has grown and expanded the product offering allowing it to operate a chain of retail stores across the world. High quality and aesthetically pleasing products set Apple apart from other technology companies. Unlike other tech companies, Apple manufactures both the hardware and software for all its devices and maintains the designs easily and friendly to customers. It has been ranked the most profitable company in the technology industry with sales revenues of $274.515B representing a 5.51% increase from the previous year (Li, 2021). The sales revenues have continues to grow exponentially, mainly boosted by the sale of iPhones. This analysis covers Apple’s mission and vision statement, balanced scorecard, dominant economic traits, five forces model of completion, competitive strength assessment, and the present generic strategy.

Mission Statement

Apple’s mission statement is “to bring the best personal computing products and support to students, educators, designers, scientists, engineers, businesspersons, and consumers in over 140 countries around the world.”

Corporate Vision

Apple’s vision is “to make the best products on earth, and to leave the world better than we found it.”

Apple’s Balanced Scorecard

Financial Perspective

Increase market share

Increase sales revenues

Increase profits

Increase shareholder value

Customer Perspective

Customer-friendly interface

Producing aesthetically pleasing products

Effective distribution systems

Friendly prices

The Perspective of Internal Business processes

Equipping employees with innovative solutions

Employee commitment and alignment

Enhance core competencies

The Perspective of Learning and Growth

Invest in research and development

Retain the best cadre of employees

Sponsor employees to pursue developmental courses

Dominant Economic Traits

The global information and technology industry is expected to grow at an annual rate of 5% for the next five years and is projected to reach a market value of approximately 5.2 trillion US dollars by the end of 2021 (Li, 2021). New technological innovations continue to be developed every day, with change occurring rapidly. This trend is backed by consumers’ patterns, who are always trying to upgrade or purchase new devices. There are over 500,000 IT companies globally, with 50% of them being small and medium-sized companies. Although competition is stiff, large companies like Apple have their place in the industry, controlling the largest market share for electronics, software, hardware, and operating systems. Apple’s products attract buyers from various sources, including corporations, businesses, schools, and individuals from various origins. Thus, the market for Apple’s product offerings is fragmented (Li, 2021). In addition, Apple can be described as highly vertically integrated given that it develops its own hardware, owns the software, and equips the software. It also controls the entire selling through its chain of retail stores.

The Five Forces Model of Competition

Apple has achieved massive success being one of the most valuable companies in terms of market capitalization and net worth. Michael Porter’s five forces analysis provides an insight into the external factors that influence the company’s growth (Bruijl, 2018). The company’s five forces analysis can be summarized in the table below:

Five Forces Framework Top 10 Major competitors

From 1-10

Competitive rivalry/competition Microsoft, Samsung Strong
Bargaining power of buyers/customers DELL, LENOVO Strong
Bargaining power of suppliers HP, SONY Weak
The Threat of substitutes ASUS, XIAOMI Weak
The Threat of new entrants HUAWEI, OPPO Moderate

Apple’s strongest force is the competitive rivalry of buyers and customers. This strength allows the company to remain highly innovative. Through continuous innovation, the company has effectively addressed the five forces that define its external environment (Bruijl, 2018). As a recommendation, Apple should deepen research and development in order to develop novel products that can supplement its existing products.

Competitive Strength Assessment

Apple’s five sources of competitive advantage include brand equity, premium pricing, innovation, global presence, and customer loyalty. Apple is popular for producing products of high quality, which enhances the brand image. The products are highly reliable and outstanding in terms of style and design (Khan et al., 2015). Through premium pricing, Apple is able to sustain a distinctive image that is different from those of competitors. Further to this, Apple is known to be a highly innovative company since its inception. It has developed innovative products such as iPhones, iPads, and MacBook that set the company apart from competitors (Khan et al., 2015). Operating globally is another source of competitive advantage as it allows the company to generate high sales revenues. The premium quality feature of all Apple products helps the company to build strong customer loyalty. The products provide customers with a distinct experience, which is why they are the most sought for in the market.

The Present Generic Strategy

I strongly agree with the stated Apple’s mix of present generic strategies, including Best-Cost provider, overall Low-Cost leadership, Broad Differentiation, and Focused Differentiation. The company should continue with this generic strategy as it guarantees a sustainable competitive advantage. Through this mix of strategies, the company is now the largest in the IT industry in terms of net worth and market capitalization.


Overall, Apple’s strategic analysis shows that through innovation, the company continues to maintain a competitive advantage. The external factors analysis shows that Apple is ahead of competitors in terms of market share, competitiveness, and profits generated. Thus, operating a business that can compete against large corporations like Apple would require high capitalization and huge investment in research and development.


Bruijl, G. H. T. (2018). The relevance of Porter’s five forces in today’s innovative and changing business environment. Available at SSRN 3192207.

Khan, U. A., Alam, M. N., & Alam, S. (2015). A critical analysis of internal and external environment of Apple Inc. International Journal of Economics, Commerce and Management3(6), 955-961.

Li, Y. (2021). Apple Inc. Analysis and Forecast Evaluation. Proceedings of Business and Economic Studies4(4), 71-78.


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