Subject corporate policy and strategy topic apple incorporated

Trang 1 MINISTRY OF FINANCE UNIVERSITY OF FINANCE – MARKETING ---&--- GROUP ASSIGNMENTSubject: Corporate Policy and StrategyTopic: APPLE INCORPORATEDMember of Group Trang 2 I.Introduct

lOMoARcPSD|38784156 MINISTRY OF FINANCE UNIVERSITY OF FINANCE – MARKETING -& - GROUP ASSIGNMENT Subject: Corporate Policy and Strategy Topic: APPLE INCORPORATED Member of Group Nguyễn Thị Kim Chi – 2021001334 Nguyễn Thị Hồng Nhung – 2021006373 Nguyễn Đặng Nhã An – 2021009195 Downloaded by Lan Nguyen (tailieuso.18@gmail.com) lOMoARcPSD|38784156 I Introduction: Currently, every company always must operate in a competitive and fierce environment, competitors constantly change policies to attract customers to their side, each type of goods, consumers in general face many different choices of types and trademarks At the same time, the needs of customers are also increasingly rich and diverse Therefore, customers have the right to choose the most attractive goods to satisfy their needs and benefits Faced with such a fiercely competitive environment, what companies must do to survive and win To attract customers, it is necessary to have a positioning strategy to make a difference compared to the competition At the same time, you must always monitor each competitor's movements to react promptly Therefore, companies need to identify their strengths and weaknesses in order to position and differentiate to create competitive advantages, along with finding the weaknesses and loopholes of competitors to attack and dodge Apple is no exception to those rules From a company founded by two people: One is Steve Jobs who really wanted to do business in the electronics field and Steve Wozniak an electronics engineer On August 10, 2011, Apple became the largest company in the United States, with a total value of 342 billion USD, of which the stock price was 368 USD Before the undeniable success of Apple, the research to find out the reasons for this success is very meaningful for managers, especially Vietnamese managers, when we Downloaded by Lan Nguyen (tailieuso.18@gmail.com) lOMoARcPSD|38784156 are entering the process of globalization integration with the world economy, is facing the fierce competitiveness of this dynamic and fierce market economy With the desire to learn more deeply about corporate policy and strategy theory to practice of Apple company, this essay topic is directed at: "Analysis of Apple's business strategy" In which, we will go deeper into analyzing the strategy for Iphone products and especially the pricing strategy for this product Apple Inc is an American multinational technology corporation headquartered in Cupertino, California The firm, founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne, has evolved to become one of the world's most valuable corporations, recognized for its creative and fashionable consumer electronics and software products Apple’s core business includes the manufacturing and sale of mobile devices, personal computers, and software, with popular products including the iPhone, iPad, Mac computers, and iTunes software The company has a reputation for its strict design standards and emphasis on user experience and has also expanded into digital services with offerings such as Apple Music and Apple Pay Apple is widely recognized for its iconic branding, including its signature logo of a bitten apple, and its ubiquitous tagline “Think different.” II Vision, mission, and core value:  Vision: “We believe that we are on the face of the earth to make great products, and that’s not changing.” Apple's vision is to create technology that enhances people's lives and empowers them to achieve their potential The company has always been committed to innovation and improving the way people interact with technology From the very beginning, Apple's founder, Steve Jobs, had a vision to make computers accessible and user-friendly He wanted to create products that were intuitive and easy to use, even for people who were not tech-savvy Downloaded by Lan Nguyen (tailieuso.18@gmail.com) lOMoARcPSD|38784156 Today, that vision has expanded to include a wide range of devices, from iPhones and Macs to iPads and Apple Watches But the company's core values remain the same: the belief that technology should be intuitive, elegant, and easy to use Apple's commitment to design and user experience is evident in every product it creates The company is known for its sleek, minimalist designs that prioritize functionality over complexity This approach has helped to make Apple one of the most recognizable technology brands in the world Beyond its products, Apple's vision also extends to the environment and social responsibility The company is dedicated to reducing its carbon footprint and has set ambitious goals to become carbon neutral by 2030 Apple also works to improve working conditions for its suppliers and is committed to protecting the privacy and security of its users Overall, Apple's vision is to use technology to improve people's lives in meaningful ways Whether that is through making communication easier, helping people work more efficiently, or simply providing new ways to be entertained, Apple is always pushing the boundaries of what technology can do  Mission: “Bringing the best user experience to its customers through its innovative hardware, software, and services.” The mission of Apple, one of the most significant tech companies in the world, has always been to create innovative products that enhance the user experience To accomplish this mission, Apple's products combine cutting-edge technology with sleek design to produce an unrivaled experience for its customers Downloaded by Lan Nguyen (tailieuso.18@gmail.com) lOMoARcPSD|38784156 Apple's mission is not just about producing the best products but also about how these products can benefit people's lives For instance, the iPhone revolutionized the way people communicate, making it possible to stay connected with loved ones regardless of where they are in the world Apple's commitment to producing the best products has continued to see the development of new products like the Apple Watch, iPad, and Air Pods, among others Apple's mission has always focused on the consumer, and this is evident in the company's commitment to quality, simplicity, and perfection The company firmly believes that customers deserve the best, and this is why every product is meticulously designed and crafted to the highest standards Overall, Apple's mission is to provide customers with a unique experience that is unmatched in the market By putting the consumers' needs first, the company continues to lead the tech world, pushing the boundaries of innovation while remaining committed to its mission of providing quality products that enhance the user experience  Core Value: Passionate about technology: "Every day, we go to work without thinking about when Apple will change direction, but we simply believe that we can do better and be more creative" Innovation: the company is built on innovation, always innovating to create great products, combined with technological design, and always improving to simplify complex details Creativity: always create products with unique and different properties Honesty: Accepting what is wrong and being able to be sure to change Downloaded by Lan Nguyen (tailieuso.18@gmail.com) lOMoARcPSD|38784156 Team spirit: Team spirit is ingrained in Apple's spirit People realize that: This is a job where success never comes from a single outstanding individual With that in mind, at Apple, individuals are always encouraged to interact with all levels of management, share ideas, and always have a tight distribution between departments High sense of responsibility: At Apple, there is always a burning love for technology products Everyone has faced this with a passionate passion “We may not be the gentlest company, but we always try to make the best products for everyone” Therefore, Apple's products are deeply technological and human III Environmental analysis according to the PESTEL model To develop and implement a strategy, a very important model that businesses need to use is the PEST model, abbreviated (P - L) Politics - law, (E) Economy, (S) Socio-cultural factors and (T) technology  Macro Environment  Economic factors: - Economic growth + The largest market is the US  1996-2000: CPI: 3.4%, GDP: 6.96%  2001-2005: 5.1% 7.51%  2006-2010: 11.4% 7.2% The U.S recession began in December 2007, and most regions of the world were hit hard and fell into a global recession in 2009 The US fell into recession, Japan and Western Europe fell into negative growth, and industrialized countries fell into the same situation as Downloaded by Lan Nguyen (tailieuso.18@gmail.com) lOMoARcPSD|38784156 Japan in the 90s that of 0% interest rates and prices fell to no growth The economies with negative growth led by the UK (-1.3%), Germany (-0.8%), USA, and Spain (-0.7%), some countries, such as Russia, grew only about 3.5%, and China about 8.5% Currently, economic recovery, although still slow, is still progressing well overall The U.S Commerce Department announced that U.S GDP reached 2.5 percent in the third quarter of 2011, doubling from the previous quarter, and the strongest increase in a year  This is considered an encouraging sign in the first 6 months of 2011: inflation 13.29, GDP: 5.57  Personal spending also increased by 2.4%, contributing significantly to the overall growth However, business investment, which was strong during the economic recovery, is still growing well, with 13.3 percent growth in non-resident housing and 17.4 percent growth in equipment and software The unemployment rate remains at a staggering 9.5% Effects of recession: during the economic crisis cycle, a difficult time for the electronics industry, Apple overcame difficulties and made a net profit of $ 1.7 billion in the third quarter Not only profits, sales that Apple achieved: $ 9.9 billion in the third quarter, up $ 2 billion compared to the same period in 2008 + China Market China is Apple's second-largest market after the US In October, the consumer price index (CPI) in China rose 5.5% year- on-year If compared to September, the index decreased by 0.6 percentage points, the sharpest decline since February 2009 GDP grew by 9.5% in Q2 compared to the same period last year, the Q1 growth rate was 9.7% Downloaded by Lan Nguyen (tailieuso.18@gmail.com) lOMoARcPSD|38784156 In the third quarter, which ended on Sept 24, Apple earned $4.5 billion from the market, which includes mainland China, Hong Kong, and Taiwan, accounting for 16 percent of Apple's total revenue, 2 percent higher than in fiscal 2009 - Inflation: Inflation in developed nations shows signs of rising faster than in developing nations The increase in the consumer price index (CPI) year-on-year to the end of May 2011 in the US was 3.6%, the highest since July 2008, in the UK it was 4.5%, in Canada it was 3.7%; Inflation has risen to high levels and threatens to hinder the pace of world economic recovery as well as the macroeconomic stability of the electronics-computer industry  Political-legal factors: Bringing their products into the market of a certain country requires marketers to study the political-legal environment as an essential part of marketing planning Political instability and rapid change create a risky environment for doing business, as there are different laws and regulations in every country To protect its rights and consumers' rights, Apple has been involved in a series of patent copyright lawsuits Apple is very aggressive and goes to great lengths to protect its products Even some technologies that are not actually wholly owned by Apple "set a boundary marker that prohibits infringement" Typically, the litigation over design copyright between two technology giants Samsung and Apple has not ended The EVIDENCE suggests that Apple is fierce about political disputes: SUICIDE-RELATED LAWSUITS AGAINST APPLE'S LARGEST SUPPLIER IN TAIWAN Downloaded by Lan Nguyen (tailieuso.18@gmail.com) lOMoARcPSD|38784156 Apple experienced political pressure when suicide lawsuits were brought against one of Apple's largest suppliers – Foxconn (a Taiwanese company) In May 2010, suicide cases were filed against Foxconn, responsible for forcing employees to work long hours Two of the workers committed suicide In another incident, 16 other people were injured in an explosion at one of the Apple supplier's facilities POLITICAL INSTABILITY IN CHINA Apple relies heavily on low labor costs in China But the volatile political environment in China often disrupts production As a result, production costs increase There is also a restriction imposed on Chinese imports into the U.S to boost production in the U.S Political bonds with the Chinese government have immensely affected the U.S.-based company If the company tries to find an alternative to China, it will cost the company more and will lead to price increases for Apple products Due to growing nationalism in China, Apple could become a potential target for anti-Americanism in China leading to a decrease in market share OPPORTUNITIES FOR TERRORIST ATTACKS Despite the fact that the UK boasts a stable government, the risk of a terrorist attack is always present It can leave a negative impact on the company The current political challenges in the UK that Apple can deal with are the growing tensions in the ruling coalition and the weakening of the government HIGHER TARIFFS ON CHINA Under Mr Cook's leadership, Apple's business in China has grown from an early success to an empire with annual revenue of about $50 billion Now, when Trumps say they will identify another $200 Downloaded by Lan Nguyen (tailieuso.18@gmail.com) lOMoARcPSD|38784156 billion in Chinese goods that could face tariffs on over $50 billion, and China has threatened retaliation, Apple is stuck in the middle The Trump administration has told Cook it will not impose tariffs on iPhones, assembled in China, according to a person familiar with the negotiations who declined to speak in the filing for fear of upsetting the talks But Apple worries China will retaliate in a way that hinders its business  Socio-cultural factors: Today, not only economists but also cultural experts agree that culture is both a goal and a driving force of socio-economic development The impact of culture on the economy is vast and complex Culture is understood as an element of the marketing environment that comprehensively affects the marketing activities of businesses, specifically: - Culture influences a wide range of strategic issues in marketing, such as: business sector selection, target market selection, general marketing strategy selection, decisions about the overall mission objectives of the business and marketing activities - Culture also influences the implementation of specific tactics, strategies, measures, manipulations and behaviors of market activists in the marketing process - Culture almost comprehensively influences the various tools of your marketing-mix system, with particular notability influencing the product, distribution, and promotion tools  Technology factors: Downloaded by Lan Nguyen (tailieuso.18@gmail.com) lOMoARcPSD|38784156 Xiaomi is a Chinese electronics design and manufacturing company Xiaomi's consumer devices and computing devices are among the most popular in China Xiaomi's rapid growth involves Samsung and Apple as the business is on the verge of overtaking Samsung and Apple to become the top smartphone manufacturer in China Apple's competitor Xiaomi is growing rapidly, operating in more than 30 countries According to IDC, Xiaomi is the world's third-largest smartphone manufacturer and has China's top smartphone sales Huawei Huawei is a private Chinese enterprise that is a large-scale supplier of communication networks and telecommunications equipment as well as smart devices and is one of China's most famous companies The company has deployed its products and services in more than 170 countries and regions The group surpassed Ericsson in 2012, becoming the largest telecommunications equipment manufacturer in the world, and surpassed Apple in 2018 to become the second- largest smartphone manufacturer in the world, behind Samsung Electronics Downloaded by Lan Nguyen (tailieuso.18@gmail.com) lOMoARcPSD|38784156  Customer: Currently, the awareness and education level of potential customers is increasing, and there is extensive knowledge Therefore, when a new product is about to be launched, it is almost always sought after by customers, so technology products are increasingly popular and widely used around the world Evidence suggests that today a household usually has at least 3-4 phones for each family member, including adults or children However, customer pressure on Apple is increasingly strict, because the demand for high-end luxury products is increasing sharply because most of Apple's customers are young people, so they tend to change products very quickly once a year, because they think that when a new product is released, there will be new technologies added to improve features that the old product line cannot meet, so the demand for high-tech goods  Customers have many choices when deciding to buy a new product  Supplier: Downloaded by Lan Nguyen (tailieuso.18@gmail.com) lOMoARcPSD|38784156 - Samsung is both a supplier and rival to Apple in smartphones and tablets In 2010, the two companies got into a dispute when Apple accused Samsung of copying the iPhone's software and model In response, Samsung also sued Apple for copyright infringement Despite the disputes, these 2 companies maintain a cooperative relationship in production and distribution Multiple reports say the partnership is worth over $5 billion - The relationship between Intel and Apple dates back to 2005, when Apple announced, it was switching to Intel processors in Apple computers (PCs) instead of IBM as before The first generation of Mac computers using Intel processors was released in 2006 The pressure of this supplier on Apple is not great - Catcher Technology is one of the world's leading manufacturers of computer cases and cell phones The company currently supplies metal casings for Apple's Macbooks - Wintek is an electronic components manufacturer based in Taiwan and operates in China and India This company specializes in supplying touch screens for Apple's iPhones The price war is placing a lot of burden on Winteck According to a report by Digitimes, Winteck has received touchscreen orders from Apple at a nearly 50% discount compared to the previous shipment, even the number of orders for the third quarter has increased significantly Analysts speculate that Apple may be preparing for price cuts before launching new products  In general, the pressure of suppliers on Apple is not great  Substitutes: Downloaded by Lan Nguyen (tailieuso.18@gmail.com) lOMoARcPSD|38784156 For Apple products, substitutes are available on the market Big technology companies are growing, so they also launch their latest and strongest product lines to promote and compete directly with each other For example, the iPhone 14 is subject to fierce competition from the Samsung Galaxy S23, so the pressure on maintaining its position in the market is huge for Apple To do this, many factors are needed, including product marketing campaigns, Apple has done a great job of that, as they have been creating a sense of desire for consumers In terms of technology alone, the configuration of a product can be easily distinguished, but the way one creates the impression of the product is so that consumers can feel the quality of the product That is what determines the success and failure of that company and that product  Potential opponents: Apple's potential rivals in the foreseeable near future are few The pressure of having a new competitor is not much But depending on the product line, the appearance of new competitors is different [CITATION Trư \l 1066 ] SWOT: Strengths - Unique and advanced mobile device technology: Apple company has the ability to design the hardware and software for the product itself Every year they improve the product, and create a new design (eg: Features like Airdrop and Siri are two of the most prominent features that always attract buyers In addition, the concept of the good quality camera on mobile phones was also initiated by Apple [ CITATION Ngu221 \l 1066 ] Downloaded by Lan Nguyen (tailieuso.18@gmail.com) lOMoARcPSD|38784156 - Strong marketing teams ( Apple is known as the master of advertising): Apple's marketing team is very talented and creative They know how to make an impression on customers Apple often creates hype about its upcoming products before product launches Apple's PR and marketing are so effective that it generates word of mouth, which helps increase brand awareness and buyer demand - Corporate culture: They apply innovative thinking, and continuous creativity has helped each individual discover and explore the best ideas, and develop a strong internal culture Two factors "creativity - excellence" become Apple's guideline, helping to promote business development and continuous growth In addition, Apple has a rather special culture that is "absolute secrecy" They always keep all information private to protect their plans and creativity While businesses want to shorten the distance with customers through different communication channels from social to offline, Apple minimizes communication with its media, customers, and shareholder[ CITATION Lươ22 \l 1066 ] - High-quality customer service: Apple retail stores provide consumers with a high-quality customer service experience Customers can interact and receive direct support from professional staff When there is a request for support, the operator team and chat via chat always respond quickly, right to the point with a friendly attitude In addition, Apple is also focused on enhancing its services In the first quarter of 2022, Apple generated nearly 19% of revenue by offering its services Such as AppleCare, Apple Card, Apple TV+, etc Downloaded by Lan Nguyen (tailieuso.18@gmail.com) lOMoARcPSD|38784156 In 2022, Apple was honored as the company with the best customer care service online and on social networking sites today This is also the third year in a row Apple has won the Tech Support Showdown award with a total score of 93/10 for customer care over the phone with an average resolution time of 6 minutes [ CITATION Đăn22 \l 1066 ]  Thanks to the fact that Apple has launched many services, the annual revenue has increased significantly - Strong financial performance: Apple topped the list of the most valuable brands of the famous business magazine Forbes Apple has achieved hundreds of billions of dollars in revenue for many years in a row, mainly due to the speed of product sales (mainly iPhones and Macs) - Strong brand reputation for its products (eg: iPad, iPod, iPhone, Apple TV, Mac computer hardware, and software) Apple is considered one of the companies with a certain number of loyal customers  Therefore, the company just enjoys customer loyalty for its products and services, making it highly competitive in the market ( In fact, most of the reason why users are loyal to this brand is its ability to provide a large degree of security features that make users feel more secure than other competitors[ CITATION Ngu221 \l 1066 ]  Weaknesses : - High Cost: Apple's price is a significant concern for many people Apple aims to achieve high-profit margins, so this Downloaded by Lan Nguyen (tailieuso.18@gmail.com) lOMoARcPSD|38784156 product is only focused on a high-end customer class, although its audience is the general smartphone user[ CITATION Lươ22 \l 1066 ]  Therefore, there are customers who want to own quality products but at an average and cheaper price Rival electronics companies have also been born, they aim for mid-priced, low-priced products and quality depending on the price to suit many needs of customers - iPhone-dependent revenue: Most of Apple's revenue comes from selling iPhones Despite Apple's efforts to diversify its products, it still relies heavily on the iPhone for revenue  This dependency could lead to serious trouble for Apple if people stop buying iPhones for some reason - Design patterns that lack novelty: Except for the size and thickness of the iPhone, the model of the first iPhone, and from the iPhone 8 until now, there is almost no difference in appearance It seems that Apple only focuses on adding new features to versions  Innovation and design diversity is considered a significant weakness in this Apple SWOT model - Limited Distribution Network: Apple incorporated has a limited distribution network because it sells its products on its own and has very few stores scattered around the world While other smartphone products, customers can easily buy products at any phone store in the world But with Apple, customers can hardly do so they have to buy directly from the Apple Web site  This makes Apple's market access limited Downloaded by Lan Nguyen (tailieuso.18@gmail.com)