Apple Inc Strategic Analysis

3215 words 13 pages
Case 10: Apple Computer and Steve P. Jobs

CURRENT SITUATION * Performance
The current performance at Apple Inc. shows a slightly higher gross margin percentage of 33.9 compared to 32.9 for the previous year. This is based on figures from the quarterly report ending March 29, 2008 and the date for the comparison figure is the previous year ending March 31, 2007.
The revenue for that same quarter was $7.51 billion with a net quarterly profit of $1.05 billion. The Macintosh computers unit showed a 51% unit growth while the IPOD unit showed a 1% unit growth. According to Steve Jobs, Apple's CEO, "We're delighted to report 43 percent revenue growth and the strongest March quarter revenue and earnings in Apple's history." * Strategic
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* Increasing the number of patents and copyrights awarded to representatives of the company touts the innovative attitude of Apple and its staff. * Improving sourcing procedures for the raw materials used in Apple's products can reduce costs and assist competitiveness when those savings are passed to the customer. * Searching for and taking advantage of foreign opportunities are a large opportunity as long as the associated costs are not insurmountable. * The increasing worldwide number of computer savvy citizens provides an ever-widening base to target for advertising and new product developments. o Threats * The numerous lawsuits and other litigation in progress against Apple, Inc. seems like a distraction from the necessities of running a business. The financial outcome of the lawsuits could have a negative effect on the company's profits. * Losing market share to competitors in today's business world is always a consideration. Dedicating as much in resources as possible to R&D and new developments still does not guarantee success. * Inventory and other assets could become a potential threat with the volatile pricing and short lifespan of new technology. If you inventory a high volume of components or finished product it could become obsolete while sitting on the shelf. * With instability in many current foreign economies the future supply of raw materials and components produced overseas could pose a threat to continued

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