Running Head: APPLE INC f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f 1
BUS400:7-2 Project Submission
Southern New Hampshire University
APPLE INC f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f 2
1. Value proposition:
The selected organization is Apple Inc., which is manufacturing, designing, and markets
tablets, smartphones, portable and wearable devices, laptops, and personal computers (PCs).
This company is currently offering a vast range of products and services to its customers.
Presently, the company is offering a wide range of products like iPhone, Mac, iPad, Apple
Watch, iPod, and Apple TV. These products of Apple company have worldwide demand that is
fuelling the company's growth across the world. Moreover, this company provides various
professional software applications to its consumers, including Apple Pay, iOS, iPadOS,
macOS, watchOS, AppleCare, iCloud, and other accessories (Plc, 2021). Apple inc. has always
given more presence to generate more value for its potential consumers. Even though the
company has much competition with the competitors in the industry, it has shown its potential
to generate value among the potential consumers.
Apple Inc organization has presently adopted the blue ocean strategy to gain uncontested
and unexplored market spaces. The company could achieve its goals and explore many things
by creating a new cybersecurity software specifically designed for Apple smartphones and
laptops. The development of the cybersecurity software will provide major value to its users by
offering an additional security layer to the electronic products of Apple in the vast cyber domain
(Kim & Mauborgne, 2014). However, the company’s one step toward reducing the
cybersecurity issues could be very helpful for its users.
2. Competitive advantage:
Apple company has developed the iPhone brand, which has created a sustainable
competitive advantage for itself. In just a few years, the Apple company has been able to
generate more revenue sharply and rapidly with the continuous innovation of the new products.
It has been identified that Apple company is making more profits and margins with the support
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of a good quality product. The company is continuously focusing on effectively fulfilling the
needs and requirements of its customers by using its new and unique products and design
innovation so that it can gain strong brand loyalty. Research results show that the ability of the
company to develop innovative products which share the same applications, operating systems,
and software with its users is one of the key competitive advantages for the company. Apple is
widely focusing on minimizing the costs of product development, timescale, and the risks that
are enabling it to stay ahead of competitors and introduce a stream of new products (Linton,
2021). In the present context, if Apple company has a more competitive advantage to gain
profits from the project funding. This is because of the rising cyber crimes and malware
activities on the internet that has grown more concern among electronic product users. Here, the
development and findings on the product that is providing better cybersecurity solutions could
give more scope to the users and increase competition from the companies like Sony, Samsung,
etc. Moreover, an innovative strategy could be implemented in the development of the
cybersecurity software so that it could create a better opportunity for the new product to
compete with the competitors. Additionally, the value proposition of the company can be
shifted with the new services and products by giving more privacy to its customers by
differentiating itself from the other competitors in the industry.
3. Risks and opportunities:
Apple Inc organization presently has many risks and opportunism that need to be given
more focus by the organizational team. This company is associated with many risks that include
counterfeiting, cost of innovation, terror threats, market competition, etc. Moreover, Apple inc.
has lucrative opportunities because of the Autonomous Vehicles, AR & VR, and Wearable
market (Street, 2021). The current industry can be disrupted by the new product and services as
the cybersecurity software requires frequent maintenance. Moreover, the cost of installation
could be one of the disruptions with the development of the new product and services in the
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current industry. Additionally, the development of this new product or service is associated
with many risks that include the strident rules and regulations by the government, rising
competition, and the cost of innovation in the industry. However, it is important for the
technical experts to give focus on reducing the risks and bringing significant opportunities at the
organizational level as well as worldwide level.
4. Growth opportunities:
Apple Inc. organization has specific areas of potential growth that could thrive the
organization at the global level. It has been identified that this company has potential growth
opportunities in five specific fields such as payments, augmented reality/virtual reality,
advertising, health care, and the rumored "Apple Car." The forecast report of the company
shows that AR smartphone and glasses market is expected to expand nearly $130B in revenue
by the end of the year 2030. This can be seen in graph 1, which explains the augmented reality
market opportunity for Apple Inc. organization (Street, 2021).
Graph-1: Augmented reality market opportunity for the Apple
APPLE INC f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f 5
Source: (Street, 2021)
Moreover, the expansion of the distribution network for the global consumer electronic
market is one of the greatest growth opportunities for Apple inc. organization. However, the
development of new products or services like cybersecurity software can be projected to drive
market growth as well as generate lucrative opportunities for the company. In general, the
competitive advantages allow a business or company to produce services or goods more
cheaply or in better ways as compared to its rivals. In the present context of Apple company, the
competitive advantages are allowing the growth of the product and services by meeting the
specific needs of the consumers who are currently very concerned about privacy issues.
5. Distinguish as a new product or innovation:
In the present context, it has been identified that the new product or service is considered to
be distinguished from an improvement or innovation on an existing product or service. Here, a
APPLE INC f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f 6
SWOT analysis has been conducted to understand a deeper insight into the company to
maximize the business growth on the basis of its strengths and opportunities. It has been
identified that the ecosystem of the company is successful because of the ease of use of products
and its good integration with the company’s services. This is considered to be one of the major
strengths of Apple company. Moreover, the company has other strengths like its management
and culture, and brand recognition & customer loyalty. Additionally, Apple company has many
growth opportunities that include augmented reality/virtual reality, autonomous vehicles, and
wearable markets. However, the company currently has some weaknesses that include
declining global smartphone market share, overreliance on iPhone revenue, and introduction of
new successful product innovations over a longer period. The company is presently associated
with certain threats that include litigation over app store fees, international economic and
political risk, and smartphones and tablets (Street, 2021).
After the SWOT analysis, it has been very clear about the strength, weaknesses,
opportunities, and threats associated with the existing product and services. Thus, it has been
identified that the cyber security software fits within the company's capabilities as it is fulfilling
the devices required by Apple's customers. This new product or service has the potential to add
new opportunities and scope to the company's portfolio. It has been estimated that this new
product or service will address the problems associated with the data leakages, privacy issues,
upgrade in the IT infrastructure, and others.
6. Target segment:
In the Apple inc. Organization, the target customers are the current users of Apple. The
users who are using Apple's smartphones, tablets, and laptops are considered to be the main
target of the company. Apple company is targeting these customers and fulfilling their
requirements over its products and services. Likely, the development of the cybersecurity
APPLE INC f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f 7
software is fulfilling the requirement over the solution to the privacy issues. Currently, the
company is focusing on the blue ocean strategy to create a new market for the new and unique
products or services as well as to remove competition among the tech giants. Moreover, the
company is using this strategy to develop its own market so that it can reach a higher rank or top
in the market. For instance, Apple inc. organization has used this strategy to develop its Apple
iTunes (Blue Ocean Strategy: Apple's Blue Ocean Strategy, 2021). Likely, the blue ocean
strategy could be implemented in the development of the new product or services so that a better
outcome could be generated and customers get more benefits from it. The development of
cybersecurity software could use this strategy to enhance the new market in the upcoming
years.
7. Speculate sales:
It has been identified that Apple inc. organization is growing its market revenue with the
product line of AirPods, watches, and services. The research shows that iPhone is one of the
important segments that are responsible for 50% of revenue in the company. This segment has
generated a market value of over $2 trillion by the end of the year 2021. Further, the research
indicates that the company's return on investment (ROI) capital averaged 29.5% for the fiscal
year 2017 to 2021 (Return on Invested Capital for Apple Inc. The Complete Toolbox for
Investors, 2021). The below graph-2 shows that the Return on Invested Capital has increased
and slowed down in the specific years. However, it has been estimated to grow its ROI in the
further coming years.
Graph-2: analysis of Apple's Return on Invested Capital
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Source: (Return on Invested Capital for Apple Inc. The Complete Toolbox for Investors, 2021).
While discussion the currently projected revenue gain, it has been predicted that the new
product or services will generate 15% more ROI capital as compared to the year 2021. Thus, it
can be said that the new product or services return on invested capital could peak at 64.5%,
which justifies the project for the senior management and investors. However, Apple company
has certain risks associated with the projected sales, which can be the sales risk, and uncertainty
with the quantity and price of the goods.
8. Speculate profitability:
The new product or service project is projected to be profitable as it has various factors that
can meet the needs of the consumers. In the year 2021, the Apple company’s current income
statement was 365,817 million in sales or revenue, 33.44% sales growth, 25.18% COGS
growth, 46.95% Gross income growth, and 41.78% gross profit margin (Dow Jones &
Company, 2021). Thus, the present product or service development is speculated to be
profitable as it has the aim to achieve 55% Gross income growth and 52% gross profit margin in
the fiscal years. Moreover, it can be said that the company has a positive effect on the
marketplace. It has been projected that other competitors have not found a proper solution to the
issues of cybercrimes. Thus, it could be a great opportunity for the company to develop software
that could meet all the specific needs of the potential users. However, many risks and
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uncertainty are associated with the new product development, but there is a great impact on the
business's functional areas like marketing, accounting, sales, and others. This project could
enhance the sales by featuring a new software as well as it can result in enhancing the marketing
strategy and improve the account balance of the company.
9. CSR plan:
There is a better CRS plan that could be implemented in the new services so that it could
provide better services to the customers or community that purchase the services or products.
Corporate social responsibility (CSR) usually focuses on the positive influence on society.
Thus, the corporate social responsibility is corporate in the cybersecurity software could
generate awareness about maintaining safe personal data and reduce cybercrime in the society
as well as a worldwide basis. Presently, the company has invested in safeguarding the personal
data of the customers that could serve the community of users at an extensively level. It has been
identified that the company could gain a competitive advantage with a good CSR plan as it can
influence the organization's stakeholders' decisions in its favor. Usually, the stakeholders prefer
an organization that usually gets engaged in CSR initiatives. Moreover, it is also helpful to meet
the moral obligations that g beyond the regulations and laws in the industry.
10. DEI plan:
Here, the company could take the help of a strategic partnership with the experts in the
industry so that a variety of perspectives can be gathered to get a better unique value proposition
for the new product or services. The development of cybersecurity software could safeguard
users from cyber hackers and crimes. Here, the company has a corporate culture built on
Diversity, Equity, and Inclusion (DEI), which is helpful in increasing diversity, building an
inclusive workforce and culture, and promoting equity within the company as well as across the
world. However, it has been identified that the DIE plan of the project could fit into the overall
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strategic plan of the company as it focuses on providing equality to all the users by serving them
a service that fulfills their needs regarding cybersecurity issues.
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%20blue%20ocean%20strategy.
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Kim, W. C., & Mauborgne, R. (2014). Blue ocean strategy, expanded edition: How to create
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APPLE INC f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f 12
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