Competitive

Strategy
Frameworks
Apple Inc.
Group -
3
Akshata Kudachimath
Michael Prasath
Raj Roshan Sharma
Shreya Sahni
Yasir Ahamed Chittary
Executive Summary
● Overview: This report assesses Apple Inc.’s strategic position in 2024 through PESTEL, Porter’s Five
Forces (with a sixth force), Strategy Group analysis, SWOT, and the Business Model Canvas.
● Key Insights: Apple’s innovation, brand loyalty, and ecosystem integration drive its competitive
edge, positioning it well to face industry challenges.

Why Apple Inc. in 2024?

● Technological Influence: Apple’s advances in AI, AR, and ecosystem expansion highlight its
market leadership.
● Geopolitical Dynamics: Global economic conditions and supply chain shifts (e.g., U.S.-China
tensions) impact Apple’s strategies.
● Sustainability & Privacy Leadership: Apple’s focus on privacy and sustainable practices
differentiates it from competitors.

Competitive Advantage Focus

● Ecosystem Strength: Apple’s integrated hardware, software, and services ecosystem creates a
unique competitive moat.
● Innovation & Brand Loyalty: Innovation drives customer loyalty, reinforcing Apple’s market
position.
● Operational Efficiency: Apple’s scale and efficient supply chain bolster its profitability.

For the comprehensive analysis,

please refer to the full report available here.
 PESTLE Analysis

P E S T E L
Political Economi Sociologi Technologi Legal Environme
Apple computers c cal cal ntal
To acquire a Consumers have Apple has to Apple can face
figures at Apples entry into
comprehensive gladly accepted compete against environmental
$195.57 Billion the financial
picture of the the use of formidable challenges.
concerning cash services industry
economic factor, smartphones competitors
balance is a lucrative
one should Google , Industrial
Apple outsources choice
consider several Social status is Samsung emissions from
manufacturing to aspects
China and the no longer an These business manufacturing
conflict ensuing effective force for Currently the firm arenas entail outlets in China
The business upgrading mobile is providing are another issue
between the USA insurance and
owners can devices as pricey because China is
and China has compliance
therefore plan consumers are accessories to its implementing
imposed expenses for
their selling looking for cost- consumers stricter emission
restrictions on Apple
strategies effective and laws
imports for accordingly to
renewing the US functional
ensure a good solutions
manufacturing profit margin
business
 Porter’s Five Forces - Apple Inc

Threat of New Bargaining Bargaining Threat of Competitive

Entrants power of power of Substitute Rivalry
1. Market Landscape:
suppliers Customers Products •Key Competitors:
1. Barriers to entry 1. Supplier 1. Product 1. Nature of Substitutes
Concentration Differentiation •Smart Phones: Samsung, Samsung, Google,
•High capital requirements
•Limited no. of Suppliers •Unique Ecosystem/ Google & OnePlus Microsoft and OnePlus
•Strong brand loyalty •Segmentation: Premium
(Chips and displays)– High Brand loyalty •Computers & Tablets –
2. Distribution Network 2.Product
degree of power 2. Available Microsoft
•Established relationship differentiation:
2. Switching Costs substitutes •Streaming services-
•Direct to customer sales Spotify, Netflix, Amazon •Unique selling proposition
•High for Apple •High Competition
3. Product Innovation Music •Brand Loyalty
•Low for Suppliers •Switching costs
•Innovation & Technology 2.Price vs Performance 3.Price Competition
3.Supplier 3.Comparative
•Apple’s Eco System •Price sensitivity, Value •Pricing Strategy,
Differentiation analysis
4. Regulatory and Legal •Unique Components •Prices vs Specs proposition Promotions/discount
Challenges 3. Brand Loyalty & 4.Innovation &
•Quality and Performance 4. Buyer &Market
•Compliance Costs Ecosystem Technology
standards share
•Intellectual Properties •Individual - Limited •Strong brand identity •Rapid technological
4. Apple’s Strategic
5. Market Saturation Responses: •Corporate – Can •Ecosystem Lock-in advancements.
•Entrench existing •Long-Term Contracts negotiate 4. Technological •R&D Investment-
competitors leaving •Vertical Integration Innovation: Google/Samsung
5. Economic Factors
limited opportunities for •Cont. innovation & 5.Market share &
5. Global Events Impact: •Economic sensitivity
new players. Distribution Channel
Moderate
•Supply to
Chain Vulnerabilities •Income levels Moderate
Emerging Tech.. to
Low Moderate 5.Market trend & Global •Emerging StrongMkt, Retail,
6. Economic
Apple High
manages the Factors
moderate to high 6. Technological High
Competition Online
The threat of new entrants for Apple bargaining power of suppliers— Advancement
Apple’s customer bargaining power is Competitive rivalry is strong for
is low due to high barriers to entry, stemming from concentrated,
moderate, with strong brand loyalty The moderate-to-high threat of 6. Consumer
Apple due to intense Trends
competition in
including strong brand loyalty, specialized suppliers—through •Innovation and Security substitutes for Apple is mitigated by
and a unique ecosystem limiting the tech sector, but it counters this
established distribution channels, strategies like long-term contracts, strong brand loyalty, ecosystem
individual influence, while corporate with strong brand loyalty, a unique
and significant competitive vertical integration, and integration, and ongoing innovation.
buyers have more leverage due to ecosystem, continuous innovation
advantages. diversification, ensuring stability,
volume. and premium positioning.
innovation, and quality
 Strategy Group Analysis of Apple Inc.
and Competitors (2024)
1.Product Differentiation
• High Quality & Innovation: Apple leads with
innovative products (e.g., iPhone, Mac) and
proprietary technology (M1, M2 chips).
• Market Leader: The iPhone commands a 54%
share of the global premium smartphone
market.

2.Ecosystem Strength
• Integration Across Devices: Over 1.5
billion active devices in Apple's ecosystem,
enhancing customer loyalty.
• Revenue Generation: Apple services
contributed over $90 billion in 2024,
emphasizing ecosystem profitability.

3.Market Share
• Current Position: Apple holds 26% of the
global smartphone market, trailing Samsung
(28%) but ahead of Xiaomi (11%).
• Competitive Footprint: Significant presence
within the market highlights Apple's robust
competitive positioning.

Conclusion: Apple's focus on product innovation and a

strong ecosystem positions it favorably against competitors,
ensuring sustained growth and market relevance.
 Swot Analysis

S W O T
Strength Weakness Opportunity Threats
The distribution network in Apple’s opportunities lies in
Apple’s strong brand image limited that is evident from the expansion of its Threats faced by apple
enables it to easily the fact that the company distribution network Inc. comprises of product
introduce new products and does not kits stores across limitation and raising
services, sustain high profit They have demand for their
many countries cost of labour
margins through premium products and services from
pricing, and offer value that The selling prices are all over the world therefore The company also
justifies its prices. Its robust higher they need to raise their
innovation process and engages in aggressive
volume of sales competition
adaptability to the latest The company is basically
technology further dependent upon the high The company can develop a
strengthen its competitive end market for sale of its new line of product and
advantage. products and services services thereby expanding
which is evident because of
its offerings
the premium pricing
strategy adopted by the
company
 Business Model Canvas - Apple

Activities Relationsh Custom

Partners Values
Product design and OS ips ers
• Component suppliers development (iPhones, Macs, • Premium hardware & D2C personalized • Premium
(e.g., Foxconn, TSMC - wearables) (Apple’s R&D design experience (Apple consumers((Apple
60%) spending for FY24 was
•
( retention rates over 90% ) Stores, online), captures around 75%
Telecom companies approximately $31.37 billion)
• Integrated Subscription models of the global premium
(e.g., AT&T, Vodafone) Ecosystem expansion
(seamless integration of Values
ecosystem of for continuous
smartphone market )
• App developers- Over devices and services) hardware, software, engagement (Apple
1.8 million apps on • Creative
the App Store drive
Marketing and global retail Uranus
and servicesis the One, iCloud), Strong
professionals
operations(500 retail stores support network
significant revenue for globally) seventh (designers,
• Strong privacy & (Genius Bar,
Apple Resources planet
security features Channels
AppleCare)
photographers)
• Retail partners and Strong brand power It is the Apple Stores (physical
authorized resellers • Exceptional • App developers
and premium hottest planet retail experience),
(Best Buy, Amazon) customer service &
positioning of all Apple’s online store (e- • Business
• Content creators (App Intellectual property support (AppleCare) commerce)
Jupiter is the professionals
Store, Apple TV+) Apple and proprietary App Store (digital
has invested over $6 technology, Global fifth planet
• Tech/cloud providers distribution for apps • Service
billion in original Apple supply chain and (Microsoft, AWS) and services) Telecom
TV+ content, aiming to subscribers
increase subscriptions by R&D teams, partnerships and (Apple One, TV+,
Flagship Apple Stores • Sustainability authorized resellers
differentiating its offerings
commitment Music)
and online sales
High investment in R&D ( $31.37 billion in FY24) Product sales (iPhone, Mac, iPad, AirPods)
• Tech/cloud providers (recycled materials,
and product innovationchannels
Saturn isand the ( iPhone, Mac, and iPad Earth
• sales is where
contributed
Cos Costs
(Microsoft,
supplyAWS)
Manufacturing
chain management costs (35% of carbon neutrality) RevenuRevenues
Educational
approximately 50% of Apple’s total revenue,
sixth planet we live on
$201.18 billion in FY24) institutions
ts production costs) Global marketing and retail
e Subscription services (Apple Music, TV+,
operations expenses, Costs related to cloud • Innovative
infrastructure and service delivery ($10 billion to subscription services iCloud - $96.17 billion in FY24) App Store
marketing and retail operations in FY24) commissions (30% from third-party apps),
(Apple TV+, Music, Hardware accessories and advertising
Data Arcade) revenue
Thank
You