Introduction
A mission statement is a brief document that explains why an organization operates, what its overarching aim is, and what its operational goals are. It stresses the type of product or service it offers, its key clients or market, and the geographic location in which it operates. It might comprise a short outline of the organization’s principles or philosophy, the company’s major comparative edge, or a planned future condition, the vision. A mission is more than a characterization of a business by an outsider; it is a reflection of the company’s leaders’ aspirations and intentions. A mission statement’s aim is to explain the organization’s mission and strategy to its workers, clients, suppliers, and other stakeholders. In addition, a clear mission statement gives employees a sense of belonging. Since mission statements represent an organization’s constant, continuing purpose and emphasis, they are seldom changed over time.
The Apple corporation, due to its worldwide activities, plans, and strategies, attempted to elaborate a concrete and global mission statement in order to describe the substantial essence. Apple’s overall aim is to provide its clients and buyers with the greatest possible user experience via new hardware, applications, and services. The company’s further vision was defined in the specific manner that the management considers they are on the planet to develop amazing items and that this will not change. The incidents of COVID-19 influenced a specific component of the Apple company’s mission statement: unleash human performance and development (Qermane & Mancha, 2021). Apple adjusted its approach to concentrate on fitness-related capabilities, and the Apple Watch became one of the corporation’s key domains (Qermane & Mancha, 2021). Thus, Apple highlights the need for constantly increasing the level of interactions between the firm and the customers.
Situation Analysis
Apple Inc. is a global technology firm headquartered in Cupertino, California, that focuses on consumer goods, software, and Internet services. Along with Alphabet, Amazon, Meta, and Microsoft, it is believed to be one of America’s Big Five information and technology corporations. Steve Jobs, Steve Wozniak, and Ronald Wayne created Apple Computer Company in order to build and market Wozniak’s Apple I computer system. Wozniak, an electronics expert, started creating devices that led to the formulation of inexpensive long-distance calls.
Concerning the product line of the company, it is feasible to specify several categories. Firstly, some of the current hardware systems include AirTag, Apple TV, HomePod mini, iPad, Apple Watch, iMac, iPhone, iPod touch, Mac mini, Mac Pro, Mac Studio, MacBook Air, MacBook Pro. Furthermore, the relevant operating systems are bridgeOS, HomePod Software, iOS, IPadOS, macOS, tvOS, watchOS. Moreover, some of the current software applications and services include App Store, Apple Arcade, Apple Business Essentials, Apple Card, Apple Developer, Apple Fitness+, Apple One, Apple Music, Apple News+, Apple Store, Apple TV+, FaceTime, iTunes.
Apple’s general financial and non-financial results were severely impacted by the consequences of COVID-19. Apple’s Financial Report for 2020 Apple released its financial statement for the second financial quarter of 2020 (Kangyi, 2021). Overall revenue was estimated as 58.3 billion dollars and net income was 11.2 billion dollars under the effect of the pandemic (Kangyi, 2021). Sales turnover was US$58 billion and operating earnings were US$11.6 billion in the same time previous year, comparing to the level of competition (Kangyi, 2021). Non-financial results, due to the pandemic, were decreased since major events were cancelled and the competitive advantage was negatively influenced.
Apple’s goal is to use several channels for various items, based on product portfolios and item classifications. Furthermore, Apple’s distribution systems span both online and physical channels, facilitating purchases and ensuring that sales opportunities are maximized. Apple claims that both direct and indirect channels contributed to their net revenue. Apple goods are available via third-party vendors and wireless carriers. Stores, for instance, BestBuy, Walmart, and Target share many characteristics with this category since they are conveniently accessible and may provide discounts.
External Environment
The Americas are Apple’s largest geographical market, with net sales accounting for a significant portion of cash flow and profit. In addition, Europe and China are two of Apple’s most important geographical markets. Apple’s major market segment consists of medium and upper-income individuals who are competent and ready to spend a premium price after being tempted by a superior customer experience. The consumer should be identified as a well-motivated, technologically committed client with a high buying power (Mandrekar & Carvalho e Rodrigues, 2020). Samsung, Huawei, Lenovo, HP Inc, Dell, Asus, and Xiaomi are Apple’s key rivals in the international market.
With its share in the market, Apple is the clear leader in the worldwide tablet, personal computer, and phone industries. Considering that Apple competes in the desktop, laptop, and tablet computer markets, as well as the smartphone sector, it confronts increasing competition from a variety of sources. In the competitiveness of smart phone product releases, Apple Inc. preserves an oligopoly market competition, while in branded personal computers, Apple Inc. is recognized as monopolistic market. Monopolistic competition occurs when a large number of vendors provide highly differentiated goods.
Apple’s economic environment encompasses the market’s broad macroeconomic condition, interest rates and inflation, and external currency exchange rates. Furthermore, the cost of labor and fluctuations in consumer spending power and personal income variations have an impact on the world’s largest IT firm by sales. Apple Inc.’s corporate social and cultural environment are critical to the company’s long-term success. The organizational ideology, values, attitudes, and associated behaviors of workers are established and maintained through the element of corporate culture of a firm. The company’s cultural qualities are in accordance with the company’s desire for creativity, a main component in determining organizational efficiency in technology and internet services sectors.
The technological external variables in Apple’s macro-environment generate opportunities and technological potential for them. The following technologies external elements are the most important in Apple’s environmental analysis: demand for cloud computing is expanding, as is the chance for organizations to integrate technology. In addition, the mobile industry is growing and cloud computing is gaining increased popularity among organizations and consumers. Thus, Apple represents a substantial part of the global technological environment.
SWOT Analysis
Concerning the strengths of the Apple company, it is feasible to underline several notions. Apple is considered to be a significantly valuable brand with a brand value of $408 billion (Lockamy III, 2017). Apple is one of the most dependable companies and the first firm to invent historically significant products. Referring to the weaknesses, due to their high costs, Apple’s items might be considered objectively expensive. Moreover, tracking users erodes confidence, and Apple has been criticized for installing tracking applications on its phones that disclosed users’ exact positions.
In terms of potential opportunities, Apple has dominated the technology industry, providing high-quality, cutting-edge products that create a revolution in consumer experience. Apple’s researchers, engineers, and product experts are a group of highly skilled individuals with extensive expertise in consumer brand positioning. Apple Inc. also has the chance to extend its distribution system. Considering threats, Apple’s production and supply chain are heavily reliant on China. While Apple’s AirTags are intended to assist customers locate commonly misplaced things using Bluetooth, the system is also being exploited for malevolent purposes. The critical issues are generally related to various claims and litigation that can negatively impact brand reputation.
Marketing Objectives
Apple’s corporate marketing approach is simple yet effective in expressing the brand. Apple’s marketing strategy places a strong emphasis on the product portion of the marketing process, and the firm’s categorization and positioning strategies are geared towards premium product purchasers. Apple concentrates on their unique value offer, which is attractive design that functions straight out of the box with minimalistic packaging, which gives them a competitive edge and increases their customer base.
Concerning specific marketing objectives of the product Apple Watch, through the creativity, inventiveness, and architecture of their iWatch, the brand embodies their basic ideals. In addition, it gives emotional branding that is experienced by the mind and emotions of the clients. As a result, through their user experience, quality control, and promotional activities, Apple watches’ branding powerfully displays their emotional bond and attachment with customers. Frequent smartwatch owners will be the first prospective target customers for Apple watches, as well as those who want to take use of the devices’ unique characteristics.
Marketing Strategies
Apple’s major target market consists of medium and upper-income users who are competent and ready to spend a premium price after being tempted by a superior customer experience. Apple services and programs proposed are based on people’s extensive familiarity with Apple products over many years (Hsu et al., 2021). Apple’s pricing strategy is based on differentiation strategy, which aims to make products emphasized and appeal to a wide range of customers. Apple has been effective at differentiating its goods and hence increasing demand for them, and this, along with their brand devotion, has given the business price power. Apple advertises its goods via commercials and print advertising, emphasizing how their goods differ from those of competitors. When an item is first released, commercial commercials run, and print advertising run throughout the project’s lifecycle. Since the introduction of the first and initial iteration iPhone, Apple Inc.’s product strategic plan has been to develop high-end smartphones and other technological solutions that prioritize the user experience over a plethora of capabilities.
Recommendations and Conclusions
Concerning a detailed account of how the business accomplishes the pricing, promotion, and product strategies, it can be stated that the offered level of quality and consistency for Apple Watch is high. Apple Watch product is related to popular segments of smart and fitness watches; hence, the company considers the question of quantity and quality. The strategies fall in the product life cycle at the stages of planning, organizing, and prototyping. The recommendations for improvements to the offering to meet the needs of the target market include creating and elaborating separate models that will be appropriate for customers of different income levels, and generating new designs. The Apple Watch product delivers value by explaining potential customers that this item can become a full-fledged daily personal assistant and tracker with a huge variation in functionality.
References
Kangyi, W. (2021). Analysis of financial policy at Apple company in 2020. Advances in Economics, Business and Management Research, 178, 150-153.
Hsu, T. H., Her, S. T., Chang, Y. H., & Hou, J. J. (2021). The application of an innovative marketing strategy MADM Model—SIVA-Need: A case study of Apple company. International Journal of Electronic Commerce Studies, 13(1), 33-68.
Lockamy III, A. (2017). An examination of external risk factors in Apple Inc.’s supply chain. Supply Chain Forum: An International Journal, 18(3), 177-188.
Mandrekar, B., & Carvalho e Rodrigues, M. (2020). Marketing of library and information products and services during Covid -19 pandemic: A study. Library Philosophy and Practice, 4514.
Qermane, K., & Mancha, R. (2021). WHOOP, Inc.: Digital entrepreneurship during the Covid-19 pandemic. Entrepreneurship Education and Pedagogy, 4(3), 500-514.
