5 Presentation slides of International business presentation
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APPLE Inc Analysis
Apple Inc Key global Issue
Limited distribution network
Company has few distribution centres which should be expanded to increase the demand.
High selling prices
High selling price does not attract the low-income segment.
Dependence of sales on high-end market segments
High – end segment is considered as minority in business market. Too much dependency can lead towards low demand.
Apple Inc Key global Issue
Aggressive competition
Samsung has more market share than Apple Inc which is threat and need to be addressed strategically.
Imitation
Due to high competition many firms imitate the Apple design and Apple product feature.
Rising labour cost in various countries
Contract manufacturer cost is increasing which is hurting Apple Inc profit margin.
Operating Profit Margin
2015 Operating Profit Margin % 22.85 2016 Operating Profit Margin % 21.19 2017 Operating Profit Margin % 21.09 2018 Operating Profit Margin % 22.41 2019 Operating Profit Margin % 21.24
Profitability Analysis
Operating Profit margin Ration has been decreased from previous years which is concerning issue and need to address.
Return on Equity & Assets
2015 ROE % ROA % 44.74 18.38 2016 ROE % ROA % 35.619999999999997 14.2 2017 ROE % ROA % 36.07 12.88 2018 ROE % ROA % 55.56 16.28 2019 ROE % ROA % 61.06 16.32
ROE & ROA Analysis
Both measure has improved from previous years which is good thing from investment point of view
Apple Inc Competitive Positioning
Following are the strategies which makes Apple Inc competitive:
Good Brand Image
Innovative Products
Strong network of Supply Chain
Premium Pricing Strategies
Recommendation
Apple Inc should expand its distribution network
Apple Inc needs to Increase the sales base on demand
Apple Inc should develop new- product line
Apple Inc should invest more in new product
Apple need to decrease the price to attract low income segment
Apple Inc needs to look its strategies to compete Samsung
References
Linton, I., 2018. bizfluent. [Online] Available at: https://bizfluent.com/how-4687979-start-credit-card-issuing-company.html [Accessed 04 05 2020].
NASDAQ, 2019. Stock Analysis on Net. [Online] Available at: https://www.stock-analysis-on.net/NASDAQ/Company/Apple-Inc/Ratios/Profitability#Operating-Profit-Margin [Accessed 04 05 2020].
SMITHSON, N., 2019. panmore. [Online] Available at: http://panmore.com/apple-inc-swot-analysis-recommendations [Accessed 04 05 2020].
