Apple Inc Case study Michael strobel, Luke hall, Tamira lewis & i-chun Lin
B.L.U.F.
Expounding off of Apple's current Apple Pay/Apple Music strategy by liquidating all iPod assets to incorporate new free streaming option while growing Apple Music revenue
Current Mission Statement
"Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App store, and is defining the future of mobile media and computing devices with iPad."
Improved Mission Statement
Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with Apple Music and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store and is defining the future of mobile media and computing devices with iPad. Apple enhances the customer experience by including Apple Pay on all iPhone devices allowing customers to easily and securely conduct payment solutions.
Financial Ratios and Growth
Apple's Internal Assessment
How does Apple Compare?
Apple's External Assessment
SWOT MATRIX
Appendix 9
Strengths & Opportunities
Introduce free Apple music streaming option (S3,O1,S5,O2)
Expand number of banks Apple is usable with (S5,O5)
Implement Mac OS into IPAD (S6,O6)
Weaknesses & Opportunties
Introduce Apple Pay to Universities (O5,W7)
Introduce free Apple Music Streaming with new advertising options with customer control (W5,O2)
Strengths & Threats
Create an advertising campaign by 10% in 3 years (S2,T3,T8)
Create Ad. Camp, on Ethical issues of stealing music from unknown artists (S1,S5,T7)
Weaknesses & Threats
Phase 2-1 iPad into production (T1,W2,W4)
Increase R&D department to boast innovation of Smartphone and tablets (T1,W8)
Scratch iPod production and input into Apple music (T7,W3)
Space Matrix
Apple holds a competitive profile with its competitors
Integration and intensive tactics are best used for these situations
iPhone and Mac are growing in market share
iPad has steadily declined in the past 3 years
Apple has become more involved in offering more services to customers
Quantitative Strategic Planning Matrix
See Appendix 13
Recommendations
- Liquidate all iPod assets
- Reinvest to enhance Apple Music by offering free streaming option
- Offer 25% monthly discount off Apple Music if consumer uses Apple Pay 10 times per month
How Apple can Implement this Strategy
Revenue and Cost Analysis
NPV
Pro Forma Income Statement
Pro Forma Balance Sheet
Projected Ratio Analysis
Strategy Evaluation
Balanced Scorecard
Conclusion
STRATEGY
Expounding off of Apple's current Apple Pay/Apple Music strategy by liquidating all iPod assets to incorporate new free streaming option while growing Apple Music revenue
RETURN
Return on Assets
Projecting a growth from 20% to 29.4% from 2016 to the end of 2018
Earnings per Share
Projecting a growth of 42% from 2016 to the end of 2018