Apple Case Analysis

Apple Inc. - Case Analysis

______________________________________________________________________________________

1.0 Introduction

Apple Inc. (hereafter referred to as Apple) designs and sells a range of innovative consumer electronics and software as well as digital distribution of video and music products though online and physical retail stores. Apple is the largest technology company in the world by revenue and profit. This is a large market with Apple's revenue in 2011 totalling more than US $65 billion. Apple has differentiated its products through continued innovation and the belief that if you build something "really great, then everybody will want to use it" as stated by former Apple CEO, Steve Jobs. This focus on innovation has helped Apple maintain its competitive advantage, however iTunes faces fierce competition from new and existing online music and video services and the iPod, iPad, iPhone and Apple TV face the threat of lower priced rivals and possible substitutes.

2.0 Analysing the External Environment

2.1 The General Environment

2.1.1 Demographic - Due to Apple's diverse product mix and engaging technological offering their customer demographic split is a global audience with slight variations depending on product range. Market segments are split into the Americas (North and South), Europe, Middle East, Africa, Japan and Asia Pacific. The North and South American markets continues to dominate the largest revenue stream for Apple.

2.1.2 Economic - Due to of the global nature of Apple's business varying economic factors have had a large influence over sales growth. Post the 2009 global financial crisis all segments have seen increases in sales, with Asia Pacific seeing the largest percentage increases. Strong market penetration has been experienced in high yielding GDP countries including the Americas, Europe and Japan.

2.1.3 Socio-Cultural - Early adopters of technology who traditionally seek first world lifestyles are...