Company Overveiw Case

COMPANY OVERVEIW

Apple was founded in 1976 with a core business in computers, which has now been transformed into a consumer electronics company. In 2012, Apple became the most valuable company in the world with a market capitalisation of over $620bn1. However, the recession proved that Apple is not immune to an economy downturn. In 2009, its earnings growth dropped from 75% to 35% in one year. Therefore, this report will analyse the company using major analytical tools and provide a recommendation.

EXTERNAL - INDUSTRY SUMMARY

Apple had 63% of the tablet market share in 20122 whilst a 12% market share for computers in 2012 and a 34% market share for smartphones in the US 2012. The graphs in appendix A, B and C shows the market share of each of Apples products. In 2012, Apple dominates the tablet market compared to their market share in smartphones and PCs. However, from the analysis of their most recent release of their iPhone 5, which had just sold 2million items in 24 hours, the market share for iPhones would most definitely increase. There was a demand shift from businesses and consumers to replace desktop PCs with portable PCs and Apple’s market share in the personal computer industry improved from 4% to 8% from 2005 to 2009 primarily from the success of the iPod and iPhone. Although Apple has been continuingly releasing newer and improved versions of hardware and software the company’s position is weaker than its position in tablets and smartphones.

FIVE FORCES

The five forces are described in APPENDIX D with a description of the level from LOW, MEDIUM or STRONG. From the analysis, there are two categories which had a STRONG level and APPLE should focus on is in existing rivalry in the industry for computers and smartphones. The threat for new entrants in each category are low as the barriers

...