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064 - Maramba, Denise Daniela Nicole O.

064 – Maramba, Denise Daniela Nicole O.
BME 90 – Strategic Management
A.Y 2021 – 2022 1ST Semester (Thursday, 3:00 PM – 5:00 PM)
WAC #10: Apple Inc.: Is the Innovation Over?
December 15, 2021
I. Problem Statement
For many years Apple Inc. is the leading in the electronic industry. They are placed
in the market as a producer of superior smartphones and other mobile gadgets. They
maintained their dynamic strategies in producing top quality products while continuing
innovating it. They continue working on developing their products by making sure that the
raw materials they use are also on their top quality. The electronic industry is becoming
competitive day by day in 2017 the time where Apple Inc. golden time suddenly stopped
as its main two competitors Google and Samsung overtake Apple Inc.
II. Strategic Analysis
Demographic Factor
In today’s generation Apple products become a social symbol, it is known to be
expensive because of its differentiation from other products offered of its competitors.
Apple Inc. targets consumers who have high living style and high-income level, most
Apple users value quality and differentiation. Mostly user of Apple products are teenagers
with parents that are financially stable, Millennials are hooked into technology they
wanted what is currently on trend. Therefore, this comes with more profit and sales for
Apple Inc.
Political Factor
Profit maximization of Apple Inc. is greatly affected by wide range of political
factors. Importation of products to United states to China and vice versa impose high tariff
due to tensions. Apple Inc. should take advantage on stable politics of developing
Economic Factor
Since economic stability of developed countries create opportunities for Apple’s
expansion. International operations of Apple Inc. are much negatively affected by
United states, foreign operations in Asian countries could increase sales since these
countries have increasing disposable income.
Social Factor
Apple Inc. have strong brand image that stands for stylish technological products. It
created a strong customer loyalty and brand awareness. There is also a social threat to Apple
Inc. the creates online international anti – apple sentiments, this could affect the sales of the
company negatively since every person now is on social media.
Technological Factor