Aapl Industry Analysis

Mission and Vision

Because Apple Computer Inc. has an outdated mission statement, our proposed mission statement is:

Apple is committed to bringing the best computing lifestyle to all consumers and "prosumers" (professional consumers) around the world through its innovative hardware, software and Internet offerings. At Apple, we are the forerunners of performance, innovation, and style. We're not selling just world class computers; we're selling a revolutionary lifestyle: technology infused with art, blending seamlessly with your living room's modern look. Why settle for just a window to the digital experience when you can immerse yourself with a Mac?

Apple has yet not released a formal vision statement. Thus our suggested vision statement is:

Our vision is for modern consumers everywhere to get the best. Our goal is to induce all consumers to make the switch to a Mac, by providing the most convenient, hassle-free experience. We envision doing more with less: a minimalist approach to technology that unplugs everything, giving the consumer wireless freedom with less clutter. We will do this by being committed to researching the fastest, most-efficient technology and also being responsive, up-to-date with the latest technological developments. Apple Computer Inc.: Get a Mac.

Environmental Scanning

Opportunities

Among the opportunities that Apple can take advantage of is the soaring global demand for computers and tech products. Another is the fact that computers are used in virtually all industries; in reality, some industries could not survive without computers. Moreover, the microchip industry has been experiencing rapid technological advancement. Every few years, advancements in microchips make it possible to have more data stored on smaller chips, thus producing more compact and powerful computers. Also, consumers demand "safer" computers that are virus, crash, and hacker free.

Threats

The threats to the company include: (1) the very high level of competition in the technology markets, (2) competing computer and IT firms always develop similar and substitutable products to any new product that is introduced into the market, (3) Microsoft Windows is the standard operating system (OS) for IBM computers.

TEMPLES Analysis Summary

In the computer and technology industry, technological factors or improvements that are of significance lie in the areas of personal computers (PC's), portable media players, software, hardware and accessories, digital technology, wireless technology and of course, the internet. Important economic factors are: the outsourcing of manufacturing, increasing rate of new product launches, global growth in income levels and spending, and the diminishing prices of computers and tech products. On the other hand, important market trends are: heavy industry competition, the presence of substitute and similar products, Microsoft's OS dominance, the high demand for tech products, the use of computers in every business, the use of computers in home and school, the global population rise, and the emergence of China and other Asian markets.

In the areas of governmental policies, laws and the environment: patent and copyright laws, protection of intellectual property rights, product standards, tariffs, and waste disposal laws are of importance to firms like Apple. Societal trends to look out for include: the increasing global level of computer-literacy, increasing reliance of people on computers and tech gadgets, the mp3 player craze the, take-your-work anywhere culture, and the practice of file sharing.

Internal Assessment

Strengths

Apple is one of the most established and healthy IT brands in the world, with an extremely loyal set of customers. As a world class company, Apple not only gains new customers but also keep old/current ones - they come back for the same great products and services; they know Apple is synonymous with performance, style, and quality. In addition, the company's products are also considered to be among the easiest to use in the market. Apple is a manufacturer both of computers and also the operating systems which they run. This enables Apple to deliver a tightly coupled, integrated product. Lastly, Apple constantly comes up with innovative products (e.g. Mac Pro's, the Mac OS X operating system, iTunes media player, and the iPod just to name a few).

Weaknesses

One of the company's weaknesses is that some of its products are incompatible with the widely used IBM computers and most software in the market. Another weakness is that Apple is not able to overtake the popularity of the Windows/PC platform. Although the conduct of Apple's customers (mostly Mac users) is a sort of phenomenon in that they are zealously devoted to the company and its products, these devotees are still a small minority compared to the mass number of people who still prefer the Windows/PC platform.

Financial Analysis

Apple Computer Inc. has been through rough times in almost a period of two decades due to mismanagement of its CEO. And its financial stability was even impaired due to strong competition that even drained the company's pocket. It has incurred a lot of liabilities that was absorbed by Steve Jobs when he regained Apple's management by the year 1998. And with Steve Jobs' well-thought management, the company has regained its share in the competitive market and has been recovering very well.

As of now, it could be said that Apple is financially well in general. It has recovered very fast given the huge amount of liabilities it has absorbed. In terms of liquidity, the company is very capable of paying its short-term debts. In terms of financing, it could be said that the company has regained the trust of its financers given the fact that the company is being greatly financed by its shareholders which is in fact increasing exponentially every year. Also, the company is doing very well in terms of debt management because it does not use debts anymore to finance its operations. The increasing number of shareholders and better profits are enough to finance the company's business operations. The only debt expense the company incurs is the past debt it has absorbed which is near clearance. In terms of profitability, the company is doing very well and is now able to payback its shareholders through dividends which have been halted in the past due to its tremendous losses. At present,