MYINT OO ISM BIT COURSEWORK

Information System Management Apple Inc. Case Study
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Student Name: Myint Oo @ Amirul Hassan
UOG Student Registration ID: 000805763
Coursework Title: Strategic Evaluation Consultation
document for Apple Inc.
COMP1646: Information System Management
Due Date: 8 April 2014
Center: KMD (Yangon, Myanmar)

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ACKNOWLEDGEMENT
First of all, I would like to thank to my ISM teacher, Daw Moe Pale for her priceless suggestion to
finish this coursework on time.
Huge thanks to Mrs. Keeran Jamil, Greenwich Coordinator for offering us such a useful and valuable
coursework from which I could know and learn many things I don’t know. Whatever I have learnt
from this coursework has put ineradicable impression on my minds and it is my sincerity that this
learning experience will always be a source of help in my practical life and professional career.
Finally, yet importantly, I would like to express our heartfelt thanks to my beloved parents, for
cooperation, help, kindness and blessings and my family and friends for their help and wishes for the
successful completion of this coursework.

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Table of Content
Acknowledgement………………………………………………………………….………….…..….2
Chapter 1
1.1 Introduction
1.1.1 Establishment of Apple Inc……………………………………………………….……5
1.1.2 Competition with IBM and Apple’s difficulties………………………………...….5
1.1.3 Apple’s Downfall……………………………………………………………………5
1.1.4 Job’s return in Apple…………………………………………………………..……5
1.1.5 Apple’s step to electronic company………………………………....................….6
1.1.6 Introduction to iPhone…………………………………………….....................….6
1.1.7 Introduction to App Store……………………………………………................….6
1.1.8 Introduction to iPad…………………………………………….........................….6
1.2 Strategic Evaluation - Situation Analysis
1.2.1 SWOT Analysis………………………………………………………………..……6-8
1.2.2 PEST Analysis…………….……………………………………………….…....…8-10
1.2.3 Chapter Summary…………………………………………………….…………...…10
Chapter 2
2.1 E-Marketing Strategy
2.1.1 E-Marketing strategy that Apple adopted……………………………………..….…11
2.1.2 Offline promotion method…………………………………………………….....11-12
2.1.3 Online promotion method…………………………………………………….…..…12
2.1.4 Adopted strategy effects on Apple Inc………………………………………...…12-13
2.1.5 Chapter Summary………………………………………………………….….…..…13

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Chapter 3
3.1 Legal and Ethical issues
3.1.1 Legal and Ethical issues on how Apple process data……………………..…….…14
3.1.2 Chapter Summary…………………………………………………………….……14
Chapter 4
4.1 Conclusion
4.1.1 Conclusion………………………………………………………………...….……15
4.2 References
4.1.2 Case study reference…………………………………………………………..…...16
4.1.2 Book references…...……………………………………………………….……....16
4.1.2 Website references...……………………………………………………………....16

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Chapter 1
1.1 Introduction
1.1.1 Establishment of Apple Inc
Apple Incorporated is an American corporation which was founded in April 1, 1975 by Steve
Jobs and Steve Wozniak who are college dropouts. The company was set out in a family garage in
Los Altos, California where they first started building computer parts. Its first product called Apple I
was introduced. Then Apple II was released in April 1978 which sparks Apple to enter the PC
industry and was a successful product. Apple became very famous and successful when it started
producing Apple IIs at the end of 1980. Since then it was widely regarded as an industry leader.
1.1.2 Competition with IBM and Apple’s difficulties
Apple didn’t stop and see and released Macintosh in 1984 when its first competitor called
IBM obtained more market share and increased new standards and rules for the industry.
Unfortunately after the release of Macintosh, apple was fallen into a worst disaster because of its slow
processor speed and other incompatibilities. Because of the effective marketing skills of Scullery who
is also a CEO, Pepsi-Cola, apple was back to its normal market position and it had $1 billion in cash
and became the most commercial PC Company in the world. As Apple’s income fell by 34% to 14
points under 10-year average, Apple’s president replace Scullery by Michael Spindler. Under the
administration of Spindler, Apple got 45% of oversea sales excluding United State.
1.1.3 Apple’s Downfall
Due to the loss of $69 million in 1996, Gilbert Amelio took over as a CEO from Michael
Spindler. Amelio proclaimed to obtain NeXT in December 1996 in order to develop a new OS based
on NeXT software which was founded by Jobs after the departure of Apple. After the loss of $1.6
billion under the administration of Amelio, Jobs returned to the company to save it in September
1997.
1.1.4 Job’s return in Apple
Jobs completely changed the working system of Apple by applying “Close door policy”
which makes Apple the most valuable company in the world. On the Jobs’ return to Apple, it grossed
$309 million profit in its 1998 financial year. In 2011, Apple released a new OS which was based on
UNIX which cost approximately $1 billion to develop. Apple was the third biggest PC retailer in
United State with an 11.0% unit share in 2011. In the same year 2001, Apple first opened its retail
store in McLean, Virginia in 2001and it has more than 300 stores in 13 countries now.

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1.1.5 Apple’s step to electronic company
Apple started taking its step towards to the electronic company in 2001. iPod was first introduced in
2011 which would later holds more than 70% of the U.S. MP3 market in 2012. Apple opened an
iTunes Music Store with a view to provide more satisfactory services to its users which provides more
than 6 million songs.
1.1.6 Introduction to iPhone
In January 2007, Apple introduced an extraordinary device called iPhone which cost
approximately $150 to develop. The second model was released in 2008 and kept releasing upgraded
iPhone series every 12 to 15 months.
1.1.7 Introduction to App Store
Apple launched App Store in 2008 which would later holds more than 585,000 by 2012 with
a view to provide easy access to its users to download applications.
1.1.8 Introduction to iPad
Apple released iPad in 2010 which completely change the digital world. It’s announced that
over 55 million iPads were sold which grossed $35 billion profit.
1.2 Strategic Evaluation - Situation Analysis
The following offers information concerning existing situation of Apple’s products market
position, strengths and weaknesses and also its possible future situations, threats and opportunities.
1.2.1 SWOT Analysis
Strengths
Due to the innovative and user friendly designs and ease of use of the functions, Apple’s
products are the most popular and attractive products. So, Apple has already gained customer trust
and loyalty as it applies close ecosystem.
In the mobile technology, Apple is the leader of the market and the most profitable company
in the world. In order to gain more profits, Apple invested 9% of sales to research and development in
comparison to other competitors.

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Apple’s adopted e-Marketing strategy helps Apple to set out more than 300 stores in 13
countries which help reach its products to the customers in a short span of time while other
competitors doesn’t have any retail stores.
The role, management and marketing strategy of Steve jobs in developing Apple products
such as iPhone, iPad and iPhone are unbelievably. As a result, customer satisfactions and brand
reputation of Apple products are on the rise because of its continuing use of high technology and
regular support.
Apple’s has no debt and $10,000,000,000 in cash.. App Store is one of the well known
services which make Apple products worth the price. Apple produces its own software and hardware
for its devices which makes Apple an ideal industry.
Weaknesses
As Apple manufactures its products with closed operating systems, its customers don’t have a
choice to download application from other sources but App Store while android customers have.
Because of which, only limited people can use Apple products as they are sold with high prices.
Apple has smaller life cycle on the products introduced which evaluates that the research and
development team must be continually maintained, which needs massive resources.
Unfortunately, Apple’s CEO, Steve jobs is no more in the world which has caused an
excessive damage on developing innovative products. His absence completely effects on its annual
income.
The uses of high technology on Apple’s devices make them expensive and may make
customers unable to buy the products. Because of which Apple decreases market share.
Opportunities
World’s population is on the increase which will widen many new markets and technology is
on the rise as well which will attract and pursue most of them to use Apple’s luxury products. So, the
demand of Apple products such as iPad series and iPhone series are on the rise which will increase
Apple’s market share, will build up firm’s viable advantage.
The interest of other rival customers will likely turn into Apple’s products because of its
brand reputation and customer satisfaction. Due to having customer trust and loyalty, Apple can have
broad customer base in the future.

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The quality of Apple’s products will be more trustworthy and better as Apple has invested 9%
of sales in the research and development. Apple can expand its iCloud services as the use of cloud
computing is increasing.
Having many retail stores in different countries, Apple could focus on introducing new
products and services rather than advertising its products.
Threats
A widely used mobile OS called Android can reduce the popularity and influence of iOS and
stop customers from using Apple’s products. As a result, the expensiveness of Apple products will
stop getting broad customer base.
On the influence of iTunes, many companies such as Amazon and Wal-Mart come out to
provide similar online music services because of which Apple overcomes difficulties. But, Apple
holds a strong reputation and image on technology that may make all its rival companies to keep an
eye on it to produce clone devices which can cause a huge damage on its reputation. Likewise, US
governments may increase tax rate for Apple as it holds strong image and higher income.
On losing Steve Jobs in Apple, it will be difficult to stand on existing reputation and image.
Many of the apple customers download free applications from App Store which will effect on paid
applications from which apple take 30% of sales. Apple made half of its income from oversea so that
the exchange of dollar against other currencies can effect on potential profits which come from
oversea.
1.2.2 PEST Analysis
Political Factors
The distribution and production of several important components is carried out by only-
sourced outsourcing partners in the US, Asia and Europe. Apple’s outsourcing partners of Asia fix its
hardware products. It may be difficult to produce in these locations or distribute or arrange shipment
to another location for various reasons such as not restricted to, human’s mistake, natural disasters,
system failure, economic or military action, business, environmental, labor, public health or political
issues.
War and terrorism and other similar disruption have damaged to international market and
business. Hence, this could cause a bad effect on Apple, its stakeholders such as suppliers, customers,
channel partners etc. Apple doesn’t have any control on these factors.

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Apple has built up presence and relationship with worldwide. Some countries are developed,
some developing and some under developed. But different countries have different rules and
regulations, tax rates. Some rules and regulations are very strict and some tranquil. However, in order
to start business with the foreign countries, Apple has to follow their imposed rules and regulations.
Otherwise and advertising and selling products may be banned.
Economic Factors
As Apple is an internationally recognized company, the international economic situation has
become an important factor which influence Apple Inc. Inflation, currency and recession are the most
critical factors which affect Apple Inc positively or negatively. For instance, within the period of
inflation in the United State, customer’s purchasing rate and Apple’s sale rate will go down. As the
value of US dollar is always changing which cause an adverse effect on Apple Inc, it has purchased
itself foreign currency. Therefore, the impact of global economy on Apple Inc is decreased. By doing
so the revenue of its products has increased in the global market.
Social Factors
Innovative design and quality of Apple products are the key social factors which can effect on
Apple Inc. As Apple products are perceived to be highly reliable, they have held a strong position in
the global market. The rate of purchasing of the products such as iPhone series, iPad series have also
gone up in several markets around the world. Using or holding these products are widely said to be as
status symbols in different societies which also raises the sale rates of Apple products. The rapid
increase of music industry is another social influence to Apple products that have raised markets on
the internet. The biggest online music store is iTunes so that Apple can profit from the social factors
because it started creating a unique lifestyle which fascinates everyone.
Technological Factors
As the rapid growth of technology, the markets get wider and the rival companies will also
increase. Every technological company is competing with each other by producing new innovative
product so that Apple must keep upgrading its products to outdo its rival companies easily. Otherwise
its market position will be snatched by other market leaders. Apple has invested 9% of its sales to the
research and development to improve product quality. For instance, Apple manufactures its products
with its own operating system which increases manufacturing cost. Thus, Apple product holds the top
ranking and customer satisfaction in mobile world. Research and Development cost of Apple is going
up yearly. $1.8 billion in 2010, $2.4 billion and #3.4 billion in 2012 which is an important factor to be
considered.

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As long as the changes of technology exist, Apple Inc could benefit by producing new
products to the markets that finally lead the market.
1.2.3 Chapter Summary
In this chapter, based on the case study, Apple’s strengths, weaknesses, opportunities and
threats are clearly discussed including examples from the case study. Then how these four factors
called political, economic, social and technological can effect Apple Inc is discussed.
Word count for chapter-1 - 1900

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Chapter 2
2.1 e-Marketing Strategy
2.1.1 e-Marketing strategy that Apple adopted
Apple Inc is providing its services and increasing the sales of the products by setting out its
retail stores in different cities of the different countries. Having retail stores in different locations,
Apple can easily introduce and display new products and deliver to the customers at the right time.
Even if it has more than 300 retail stores, it doesn’t have its retail stores in some developing countries
where customers have difficulties to buy and get services directly. As a result, Apple is also losing
plenty of its golden customers. Apple offers skilled retail floor employees to chosen seller’s stores.
Apple has also made an alliance with other companies to supply its products and services.
The e-Marketing strategy Apple has adopted is Internet Market Research because rival
companies are increasing year by year due to the rapid growth of technology. So, it’s very important
for Apple to know what its competitor companies are doing and the requirement of customers. What
most important is to extend retail stores to the remaining areas by collecting data through its own
website and other resources. As Apple always kept an eye to Competitors Company to manufacture
unique products and customer needs, Apple products hold the higher market position in mobile
technology field. Apple retail stores are the most popular and successful because Apple is very good
at internet marketing research. As Customer’s needs are always changing and increasing and
technology is always changing, Apple must keep focusing on internet market research. It also
invested 9% of its sale in research and development to introduce newer quality products.
Almost every country wants to have Apple retail stores because it provides direct customer
experience of Apple’s brand products. The visitors of Apple retail store get absorbing good care, can
learn more about Apple products and get satisfactory services and help for their purchased products
from the employees at their domestic stores. These are the reasons why Apple is the leader of the
mobile technology market.
2.1.2 Offline promotion method
Apple Inc is very strong and energetic in both offline promotion and online promotion to
increase the sale of its products. Apple logo is one of the most attractive and recognizable logos in
mobile technology. Apple promotes its sales by providing training to employees working at retail
stores and customer’s instruction. Apple builds strong relationship with its customers by offering
more discounts and other options such as free delivery, accessories gift and so on. This will make its
customers satisfied and eager to buy more products. Another way of offline promoting for increasing
its sale is to display all its products at its retail stores for the public to let them know more about and

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experience the products at the same time which is lower purchase price and repayment which
permitted its customers to be liberally and comfortable with Apple products.
Apple always targeted its customers especially to the university students who have already
enrolled by providing free iPods to those students who purchased Mac Book laptop which can not
only get the purchasers attention but also other students to purchase more products from Apple Inc.
2.1.3 Online promotion method
Apple launched its own websites to advertise its new products and promote its direct sales
online as the users of internet are on the rise. As soon as new Apple products are available, it also
displays its products on its website to attract the online customers to buy its products. Online
customers as well as customers who don’t have retail stores in their area could also get help for their
purchased products through its website. Not only it increase sales but also gets new online customers.
Another online promotion strategy of Apple is the establishment of iTunes online music store
in 2003 and App Store in 2008. iTunes has become the number one online music store which not only
increased the customers but also the sale of Apple products especially iPod because of its music
selection and ease of use. According Walt Mossberg of Wall Street Journal, “the App Store is what
makes your device worth the price”. Apple provides many free applications to its users though App
Store which attracts its customers as well as potential customers because of its best services. So,
Apple increases its sales and promotes its products through its own websites, iTunes and App Store.
These three are the energy of Apple to increase its sales online.
In conclusion, based on the above facts described, it can be said that Apple Inc has balance
measurement on online and offline promotion.
2.1.4 Adopted strategy effects on Apple Inc
The adopted strategy caused a hug impact on the performance of Apple business such as
business becomes wider by extending retail stores in different countries around the world, distribution
of Apple products to different areas become faster, introduction and display of new products to the
customers become easier, brand name become more popular and attraction of potential customers are
increasing.
Because of the strategy adopted, Apple has opened more than 300 retail stores in key cities
around the world and extending to the remaining locations where its products are introduced and sold
officially. By doing so, its business gets wider and wider in different locations around the world
which makes apple lead the market. Apple retail stores are the reasons how internet market research
effects on Apple.

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Having retail stores in various locations, Apple can supply its products in a faster way so
that customers can get the right products at the right time which not only improve sales but also
receive customer satisfaction and feedback.
Apple had many difficulties to display its products before setting out its retail stores to foreign
lands. It could also display products within the US only. After opening the retail stores in different
areas, Apple can introduce and display its newer products in an easy way where Apple retail stores
exist in at the same time which raise the reputation of Apple and its products. Because of which
Apple becomes the most successful and profitable technological company in the world.
As customers can know and experience more about Apple products physically at its retails
stores in different locations and the trained staffs of Apple retail store patiently explain about the
products, Apple brand name gets more popular which attracts potential customers to buy Apple
products and increases the sale rates of Apple products.
In this chapter, first of all, what type of e-marketing adopted in the Apple Inc. is discussed. Secondly,
discussion on the balance measurement of online and offline promotion made. Finally, how the
adopted strategy could effect on the performance of Apple’s business is explained.

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Chapter 3
3.1 Legal and Ethical issues
3.1.1 Legal and Ethical issues on how Apple process data
Apple Inc is an internationally recognized and the most popular company in the world so that
it may be targeted to attack to gain access to its confidential information to destroy its reputation and
image. Before gathering personal information from customers and employees for future analysis and
business needs, Apple Inc needs to impose Privacy Policy or use Data Protection Act which as 8
principles in the company which covers how data will be collected, used, disclosed, transferred and
stored of customer’s personal information to keep customers, employee’s information secure .When
Apple gather data from the customers and employees, it needs to let them know that how their
personal information will be used. Their personal information should be only used to identify and
contact a single person. If Apple needs to share personal information to third parties such as service
provider, it needs to seek permission from its customers and should convince them that their personal
information will not used for marketing purposes but for national security, law enforcement and other
issues of public importance. When it no longer needs the personal information of customers and
employees, they should be deleted.
Apple should make it easy for customers to keep their personal information accurate,
complete, and up to date. Personal information should be kept for the period necessary to complete
the purposes outlined in this Privacy Policy unless a longer retention period is essential or allowed by
law.
Only authorized employees should be provided access to the personal information of
customers for the tight security. Serious actions should be taken according to the law if they abuse
personal information. Apple Inc has the sole responsibility for the safety of its customers and
employees. Once the information is stolen or misused, it might have a huge impact on its business.
In conclusion, as information is the most important factor for the success of an organization
or company, it should be processed legally and ethically. Only then organization will have many
opportunities to move forward with success. The above facts should be considered for processing
information in order to keep them secure.
In this chapter, discussion on the consideration of Apple’s legal and ethical issues in relation to the
information processing including examples and suggestions are described.

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Chapter 4
4.1 Conclusion and References
4.1.1 Conclusion
In this report, firstly, background information of Apple is written Inc from which it can be
known that how much effort, hard work and sacrifice had to be given to be the most successful
company in the world. Secondly, I used SWOT and PEST analysis to observe much about Apple
business. By analyzing with SWOT, it’s found that Apple has both good things and bad things. Good
things like having strong customer trust, brand popularity, unique technology especially iPhone, iPad
and strategic agreements with large telecommunication companies such as AT&T and bad things like
having many rival companies, expensive products and many more. By using PEST analysis, it can be
known that international market condition is not stable and a huge impact on Apple business due to
the changing US dollar.
By using an e-Marketing strategy called internet market research, it can be known that how
Apple markets its products and extends its market position worldwide by setting out retail stores.
Because of that Apple holds highest market position and becomes the most profitable company.
Through offline and online promotion, it can be known that how Apple sells and promote its sales
offline and how this effect on its business. Likewise, how it increases its sales online. Apple Inc
benefitted from these two methods. In comparison with these methods, offline promotion is more
effective.
Finally, legal and ethical issues are discussed based on Data protection act, privacy policy. It
can be known from the discussion that how Apple should process with the personal information and
how it should seek permission from its customers and employees if it needs to share data with the
third parties.
Word count for chapter-4 – 277
Total Word Count – 3682 (Excluding Acknowledgement, Table of content, and references)

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4.2 References
4.2.1 Case Study Reference
DAVID B. YOFFIE, PENELOPE ROSSANO, (2012). Apple Inc. in 2012. 1st ed. Boston: Harvard
Business School.
4.2.2 Book References
Dr John Ashcroft, (2012). Apple from the iPod to the iPad. 2nd ed. Manchester: Prentice Hall.
Ahmad Al-Rubaie, (2010). Apple innovation; a case study. 1st ed.: EBTIC ETISALAT BT Innovation
Center.
4.2.3 Website References
Ovidijus Jurevicius (2014) SWOT analysis of Apple, Available at:
http://www.strategicmanagementinsight.com/swot-analyses/apple-swot-analysis.html (Accessed: 20
March 2014).
Ishfaque Faruk (2013) Apple: A SWOT Analysis, Available at:
http://beta.fool.com/ishfaque/2013/06/14/apple-a-swot-analysis/36774/?source=TheMotleyFool
(Accessed: 21 March 2014).
Classiqu (2013) APPLE INC. – P.E.S.T ANALYSIS, Available at: http://www.classiqueblog.com/
(Accessed: 20 March 2014).
Rajibul Hasan (2012) Apple Inc. - An Analysis , Available at: http://www.grin.com/en/e-
book/206976/apple-inc-an-analysis (Accessed: 2 April 2014).
Apple Inc (2014) Legal, Available at: http://www.apple.com/legal/ (Accessed: 1 April 2014).

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