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

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

I Introduction:

Currently, every company always must operate in a competitive and fierceenvironment, competitors constantly change policies to attract customers to their side,each type of goods, consumers in general face many different choices of types andtrademarks At the same time, the needs of customers are also increasingly rich anddiverse Therefore, customers have the right to choose the most attractive goods tosatisfy their needs and benefits

Faced with such a fiercely competitive environment, what companies must do tosurvive and win To attract customers, it is necessary to have a positioning strategy tomake a difference compared to the competition At the same time, you must alwaysmonitor each competitor's movements to react promptly Therefore, companies need toidentify their strengths and weaknesses in order to position and differentiate to createcompetitive advantages, along with finding the weaknesses and loopholes ofcompetitors to attack and dodge Apple is no exception to those rules From acompany 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 thissuccess is very meaningful for managers, especially Vietnamese managers, when we

are entering the process of globalization integration with the world economy, is facingthe 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 Applecompany, this essay topic is directed at: "Analysis of Apple's business strategy" Inwhich, we will go deeper into analyzing the strategy for Iphone products andespecially the pricing strategy for this product

Apple Inc is an American multinational technology corporation headquartered inCupertino, California The firm, founded in 1976 by Steve Jobs, Steve Wozniak, andRonald Wayne, has evolved to become one of the world's most valuable corporations,recognized for its creative and fashionable consumer electronics and softwareproducts Apple’s core business includes the manufacturing and sale of mobiledevices, personal computers, and software, with popular products including theiPhone, iPad, Mac computers, and iTunes software The company has a reputation forits strict design standards and emphasis on user experience and has also expanded intodigital services with offerings such as Apple Music and Apple Pay Apple is widelyrecognized for its iconic branding, including its signature logo of a bitten apple, andits ubiquitous tagline “Think different.”

II Vision, mission, and core value:

From the very beginning, Apple's founder, Steve Jobs, had a vision tomake computers accessible and user-friendly He wanted to createproducts that were intuitive and easy to use, even for people whowere not tech-savvy

Today, that vision has expanded to include a wide range of devices,from iPhones and Macs to iPads and Apple Watches But thecompany's core values remain the same: the belief that technologyshould be intuitive, elegant, and easy to use.

Apple's commitment to design and user experience is evident inevery product it creates The company is known for its sleek,minimalist designs that prioritize functionality over complexity Thisapproach has helped to make Apple one of the most recognizabletechnology brands in the world

Beyond its products, Apple's vision also extends to the environmentand social responsibility The company is dedicated to reducing itscarbon footprint and has set ambitious goals to become carbonneutral by 2030 Apple also works to improve working conditions forits 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 communicationeasier, helping people work more efficiently, or simply providing newways to be entertained, Apple is always pushing the boundaries ofwhat technology can do

Apple's mission is not just about producing the best products butalso about how these products can benefit people's lives Forinstance, the iPhone revolutionized the way people communicate,making it possible to stay connected with loved ones regardless ofwhere they are in the world Apple's commitment to producing thebest products has continued to see the development of newproducts like the Apple Watch, iPad, and Air Pods, among others.Apple's mission has always focused on the consumer, and this isevident in the company's commitment to quality, simplicity, andperfection The company firmly believes that customers deserve thebest, and this is why every product is meticulously designed andcrafted to the highest standards.

Overall, Apple's mission is to provide customers with a uniqueexperience that is unmatched in the market By putting theconsumers' needs first, the company continues to lead the techworld, pushing the boundaries of innovation while remainingcommitted to its mission of providing quality products that enhancethe user experience

 Core Value:

Passionate about technology: "Every day, we go to work without

thinking about when Apple will change direction, but we simplybelieve 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, andalways 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

Team spirit: Team spirit is ingrained in Apple's spirit People realize

that: This is a job where success never comes from a singleoutstanding individual With that in mind, at Apple, individuals arealways encouraged to interact with all levels of management, shareideas, 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 apassionate passion “We may not be the gentlest company, but wealways 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 thatbusinesses need to use is the PEST model, abbreviated (P - L)Politics - law, (E) Economy, (S) Socio-cultural factors and (T)technology

Japan in the 90s that of 0% interest rates and prices fell to nogrowth The economies with negative growth led by the UK (-1.3%),Germany (-0.8%), USA, and Spain (-0.7%), some countries, such asRussia, grew only about 3.5%, and China about 8.5%

Currently, economic recovery, although still slow, is still progressingwell overall The U.S Commerce Department announced that U.S.GDP reached 2.5 percent in the third quarter of 2011, doubling fromthe previous quarter, and the strongest increase in a year

 This is considered an encouraging sign in the first 6months of 2011: inflation 13.29, GDP: 5.57

 Personal spending also increased by 2.4%, contributingsignificantly to the overall growth

However, business investment, which was strong during theeconomic recovery, is still growing well, with 13.3 percent growth innon-resident housing and 17.4 percent growth in equipment andsoftware The unemployment rate remains at a staggering 9.5%.Effects of recession: during the economic crisis cycle, a difficult timefor the electronics industry, Apple overcame difficulties and made anet profit of $ 1.7 billion in the third quarter Not only profits, salesthat Apple achieved: $ 9.9 billion in the third quarter, up $ 2 billioncompared 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% on-year If compared to September, the index decreased by 0.6percentage points, the sharpest decline since February 2009 GDPgrew by 9.5% in Q2 compared to the same period last year, the Q1growth rate was 9.7%

year-In the third quarter, which ended on Sept 24, Apple earned $4.5billion from the market, which includes mainland China, Hong Kong,and Taiwan, accounting for 16 percent of Apple's total revenue, 2percent higher than in fiscal 2009.

- Inflation:

Inflation in developed nations shows signs of rising faster than indeveloping 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 highestsince 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 ofworld economic recovery as well as the macroeconomic stability ofthe electronics-computer industry

 Political-legal factors:

Bringing their products into the market of a certain country requiresmarketers to study the political-legal environment as an essentialpart of marketing planning Political instability and rapid changecreate a risky environment for doing business, as there are differentlaws and regulations in every country To protect its rights andconsumers' rights, Apple has been involved in a series of patentcopyright lawsuits Apple is very aggressive and goes to greatlengths to protect its products Even some technologies that are notactually wholly owned by Apple "set a boundary marker thatprohibits infringement" Typically, the litigation over designcopyright between two technology giants Samsung and Apple hasnot ended

The EVIDENCE suggests that Apple is fierce about political disputes:

SUICIDE-RELATED LAWSUITS AGAINST APPLE'S LARGEST SUPPLIER IN TAIWAN

Apple experienced political pressure when suicide lawsuits werebrought against one of Apple's largest suppliers – Foxconn (aTaiwanese company) In May 2010, suicide cases were filed againstFoxconn, responsible for forcing employees to work long hours Two

of the workers committed suicide In another incident, 16 otherpeople were injured in an explosion at one of the Apple supplier'sfacilities

POLITICAL INSTABILITY IN CHINA

Apple relies heavily on low labor costs in China But the volatilepolitical environment in China often disrupts production As a result,production costs increase There is also a restriction imposed onChinese imports into the U.S to boost production in the U.S Politicalbonds with the Chinese government have immensely affected theU.S.-based company If the company tries to find an alternative toChina, it will cost the company more and will lead to price increasesfor Apple products Due to growing nationalism in China, Apple couldbecome a potential target for anti-Americanism in China leading to adecrease 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 thatApple can deal with are the growing tensions in the ruling coalitionand the weakening of the government

HIGHER TARIFFS ON CHINA

Under Mr Cook's leadership, Apple's business in China has grownfrom an early success to an empire with annual revenue of about

$50 billion Now, when Trumps say they will identify another $200

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 oniPhones, assembled in China, according to a person familiar with thenegotiations who declined to speak in the filing for fear of upsettingthe talks But Apple worries China will retaliate in a way that hindersits business.

 Socio-cultural factors:

Today, not only economists but also cultural experts agree thatculture is both a goal and a driving force of socio-economicdevelopment The impact of culture on the economy is vast andcomplex

Culture is understood as an element of the marketing environmentthat 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, generalmarketing strategy selection, decisions about the overall missionobjectives of the business and marketing activities

- Culture also influences the implementation of specific tactics,strategies, measures, manipulations and behaviors of marketactivists in the marketing process

- Culture almost comprehensively influences the various tools ofyour marketing-mix system, with particular notability influencing theproduct, distribution, and promotion tools

 Technology factors:

Smartphones are one of the products with extremely fast newproduct launches Every month, even every week, new products arelaunched Therefore, it can be said that the level of competition inthe phone market in general and smartphones, in particular, isfierce In particular, Apple is considered a pioneer in the technologyindustry in the market Apple takes advantage of its main advantage

of taking smart technology as a highlight, making a difference indesign is the highlight of Apple compared to other technologyproduct lines such as Nokia, Samsung, and Huawei A typicalexample is that the most popular products that almost everycustomer is passionate about technology in general and Apple, inparticular, is the iPhone, iPod, iPad, and MacBook all sell very well atApple stores around the world When the above products appeared,there were many other companies that produced products tocompete directly with these products, but Apple's products almostmade a strong mark on consumers in terms of quality, productdesign, and accompanying technology applications So Apple knowshow to take advantage of the opportunity to develop the brand andlaunch more diverse product lines with the world's leading advancedtechnology [ CITATION UEH \l 1066 ] [CITATION Trư \l 1066 ]

 Microenvironment

 Industry environment:

2009 was a booming year of the smartphone market in the world Injust 1 year, all technology orders in the market have beensignificantly disturbed, with the presence of many faces: Apple,Samsung, Nokia, HTC, BlackBerry And that is the basis for marketresearch companies to believe that the fierce competition ofsmartphones has begun According to research by IDC,smartphones are a commodity with great attraction

Currently, technology is developing at a rapid pace, so it is easy tounderstand why the number of smartphones launched in 2015 andlater is so fast and numerous As of October, there were more than 1billion smartphones worldwide 2012 is considered a year when thesmartphone market witnessed many changes in both the form andinternal configuration of devices We have a lot of new technologiesapplied to smartphones, such as faster processors with longer usagetime, large screens with special construction, and cameras withmore "dots", and software inside the device is also improved in away that is more suitable for consumers In addition, smartphonesofficially ushered in the era of chips that integrated voice controland expanded connectivity even more

 Competitor environment:

Apple's competitors include Samsung, Xiaomi, Vivo, Oppo,

Huawei, Asus, Dell, HP, Lenovo, Acer, Microsoft, Logitech, Spotify,Amazon Prime Video, Netflix, Disney+

Samsung

Samsung Group is a South Korean global conglomerate Samsungentered electronics in the late 1960s and has grown steadily eversince

Xiaomi

Xiaomi is a Chinese electronics design and manufacturing company.Xiaomi's consumer devices and computing devices are among themost popular in China Xiaomi's rapid growth involves Samsungand Apple as the business is on the verge of overtaking Samsungand 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-largestsmartphone 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 aswell 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 largest smartphone manufacturer in the world, behind SamsungElectronics