Apple Global Business Strategy

Introduction

Apple Inc. is a multinational company that deals in technology and is famous for its products such as iPhone, MacBook, and Apple Watch. However, the company has some threats in the global business environment which include; iPhone market share decline in China, supply chain interruption due to geopolitical rivalry, and poor integration of AI than competitors (Business Standard, 2025). These issues bring out the need for strategic planning and leadership to maintain its competitive advantage. This portfolio will seek to analyse and assess Apple’s strategic direction, leadership values, and innovation strategies and change management solutions for its sustainable development and competitive advantage in the global market.  

Unit 1 – 3 – Selecting a Global Company, Problem Identification and Business Environment

Figure 1: Apple’s Diverse Products

(Source: Rawat, 2023)

Strategic Purpose and Objectives

Apple Inc. is a multinational technology company that has a vision of creating the best user experience for its customers through its innovative hardware, software and services. The vision of this company is “to create the best products on the planet and to leave the planet in a better state than we inherited it”. Apple’s key goals are to increase the company’s research and development spending to $31.4 billion in 2024, deepen the integration of its products (iPhone, MacBook, Apple Watch, etc.), and enter new markets while retaining the luxury positioning of its products (DCF.FM, 2024). These objectives focus on the integration of the ecosystem and customer loyalty and differentiation from competitors.

Figure 2: Apple Mission and Vision Statement

(Source: Pereira, 2024)

Challenges Faced by Apple (Past 5 Years)

Declining Market Share in China: Apple’s iPhone market share reduced to 18% in 2024 because of Xiaomi and Vivo, which provide AI features at a cheaper cost (Khan, 2025).

Operational Challenges: Trade wars, for instance, the trade war between the US and China affected Apple’s supply chain by raising the costs and the time taken to acquire the materials needed. High dependence on the manufacturing industry in China increases the firm’s vulnerability to regulatory risks.

Lagging AI Integration: Apple has been less aggressive in the introduction of AI features compared to rivals such as Google and Huawei, thus reducing its market viability.

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Business Environment Analysis

Internal Analysis (SWOT)

Strengths: High brand awareness; solid financials with diverse income sources (e.g., services accounting for 24.6% of total sales in 2024) (DCF.FM, 2024).

Weaknesses: Dependence on iPhone revenue (51.5% in 2024); Apple is less innovative than competitors in AI (Business Standard, 2025).

Opportunities: New product categories: Apple Watch; new regions: India; new services: Apple Music; new technologies: health and fitness.

Threats: Rivals like Samsung and Huawei are pushing hard; regulators are investigating App Store policies; recessions mean people buy fewer luxury goods.

Figure 3: Apple’s SWOT Analysis

(Source: Business Model Analyst, 2024)

External Analysis

PESTEL Analysis

Political: The trade tensions between the US and China are a threat to the stability of the supply chain (Lombardo, 2024).

Economic: Premium pricing restricts market coverage in sensitive price areas.

Social: Increasing customer concern with sustainability corresponds with Apple’s carbon neutral plans by 2030 (Apple, 2024).

Technological: AI progress presents threats from slow development from the following considerations.

Legal: Antitrust issues bring regulatory issues that increase compliance expenses.

Environmental: Sustainability efforts benefit Apple’s brand but are costly.

Porter’s Five Forces Analysis

• High threat of aggression by competitors because of the high level of competition (Ferguson, 2024).
• Another force is the buyer power because customers can easily switch to other products.
• Moderate supplier power was also offset by supplier diversification.
• Low threat of substitutes because of the Apple’s ecosystem (Ferguson, 2024).
• Moderate threat of new entrants because of the high capital intensity.

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Unit 4–6: Sustainable Business Strategies, Strategic Leadership, and Market Entry Strategy

Diversification Strategy

Apple uses Porter’s Generic Strategy of Differentiation, where the company aims at differentiating itself from other companies such as Samsung and Huawei through innovation, branding, and easy to use designs. So, Apple should continue to incorporate AI into its products including iPhones and MacBooks to maintain its competitive edge in the market. This approach is consistent with Bowman’s Clock by focusing more on product differentiation than on price competition to maintain Apple’s premium position as it seeks to address its AI deficit.

Figure 4: Bowman’s Strategy Clock

(Source: Bhasin, 2019)

Growth Strategy

Using the Ansoff Matrix, Apple can pursue:

Market Penetration: Expand the market share in the existing geographical locations such as North America by employing competitive marketing and sales campaigns.

Market Development: Increase its market share in new markets such as Africa by developing cheaper products that appeal to the lower end market.

Product Development: Develop new products such as AR/VR gadgets and AI wearables to enhance the ecosystem (Rane et al., 2023).

Diversification: Expand into new markets with new products, for instance, healthcare technology solutions. 

Figure 5: Merits of Using the Ansoff Matrix

(Source: The Strategy Institute, 2024)

BCG Matrix shows that Apple has heavily relied on ‘stars’ such as iPhone. Apple can manage its risks by developing its “cash cows” such as iCloud services and investing in “question marks” such as AR/VR technology.

International Market Entry

Apple should use a joint venture approach to market its products in Africa because the region has unique regulatory and cultural barriers. The Dunning OLI Paradigm also backs this approach as it entails Apple’s ownership advantages (brand equity), location advantages (Africa’s growing middle class) and internalization benefits (control over quality). On the other hand, the Uppsala Model advocates for a gradual entry mode, which first involves exporting before proceeding to manufacture in the foreign country.

Leadership Style for Strategic Change                         

During strategic transitions, Tim Cook’s democratic leadership style ensures that everyone is involved, and the best decisions are made. Some of the values that Cook has championed such as ethics such as privacy and sustainability such as carbon neutrality goals are good governance principles. He has brought changes in the organizational culture of Apple through his transformational leadership and has encouraged the company to come up with new ideas while at the same time ensuring that it upholds the right ethical standards. This leadership approach facilitates the achievement of Apple’s strategic goals and objectives, governance practices, and global competitiveness.

Figure 6: Benefits of democratic leadership style

(Source: Yadav, 2023)

Unit 7–8: Strategic Change, Leadership, and Governance

Strategic Change Management

Apple has been very keen in managing change due to the decrease in its market share especially in China. One of them is shifting focus to new markets such as India where Apple is expected to rank third by 2026 (Communications Today, 2024). Apple has outsourced manufacturing under India’s “Make in India” policy, which has cut costs and diversified risks. It has also helped Apple to adapt to the Indian market by providing credit facilities and mid-range products. Furthermore, Apple is focusing on AI as a way to reduce the company’s technological deficit in comparison with such competitors as Huawei and Google, as well as to maintain the company’s products’ relevance on the international market.

Figure 7: Apple’s Expansion in India

(Source: The Economic Times, 2024)

Ethics and Governance

Apple also shows a good corporate governance in terms of supply chain and environmental responsibility. The company has Supplier Code of Conduct that ensures that workers are treated fairly and working conditions are safe and environment is protected. For instance, more than 320 suppliers have signed the Apple’s 100% renewable energy pledge for production by 2030 (Ruberti, 2024). Also, the company has recycling programs that incorporate 22% recycled materials in its products and plans to achieve net-zero emissions across the entire company by 2030.

Figure 8: Apple’s Carbon Neutrality Goals

(Source: Apple Newsroom, 2022)

In governance, Apple has advanced board diversity by raising the number of women directors and increasing the sustainability report (Permutable AI, 2024). The company has a clear relationship between the executives’ remuneration and performance, and communicates with the shareholders through general meetings. These practices show how Apple tries to ensure that governance is consistent with sustainable development while being ethical. This section focuses on the Apple Company’s strategic reorientation towards new markets, technology, and ethical leadership as key factors of global competitiveness.

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Unit 9: Good Strategy Execution, Recommendations, Conclusion & Reflection

Good Strategy Execution

The strategy execution in the case of Apple can be explained by the BSC, which links its strategic map to the performance indicators like customer satisfaction, innovation, and financial performance (Fouad, 2024). The continuous improvement is also seen in the latest developments in Apple’s products such as the use of Artificial Intelligence in its products and the manufacturing of its products in India to minimize on the risks that are associated with geopolitics. Also, Total Quality Management (TQM) helps to control the processes and product quality with the help of such tools as Six Sigma, which is important for Apple’s competitive advantage.

Figure 9: Principles of TQM

(Source: Needle, 2023)

Recommendations

Accelerate AI Integration: Optimise the use of AI in all products to recover technological advantage and enrich customers’ experiences (Krysiak-Adamczyk, 2024).

Diversify Manufacturing: Increase production capacities in countries such as India and Vietnam to minimize reliance on China and enhance supply chain vulnerability.

Target Untapped Markets: Get into African markets with mid-end products that suit the market’s low-end consumers through joint venture.

Conclusion

The portfolio focused on Apple’s strategic issues such as the reduction in its market share, weaknesses in the supply chain and the lack of advancement in AI technology. The analysis suggested specific steps like the fast pace of AI adoption, expanding production facilities’ geographical distribution, and focusing on the virgin markets to guarantee the company’s future growth. Apple has been on the forefront in ethical governance and innovation under the leadership of Tim Cook.

Reflection

This portfolio was informative in terms of understanding global business strategies and leadership. I realized that innovation should be in harmony with governance for the growth of the economy. Studying Apple’s difficulties helped me to gain more insight into the strategic tools such as the Balanced Scorecard and Ansoff Matrix. Still, it was difficult to distil large amounts of information into clear recommendations but it was a good experience that helped improve my problem solving abilities.

Reference

Apple (2024) Apple’s Carbon Removal Strategy. Available at: https://www.apple.com/environment/pdf/Apples_Carbon_Removal_Strategy_White_Paper.pdf (Accessed: 13 January 2025).

Apple Newsroom (2022) Apple calls on global supply chain to decarbonise by 2030. Available at: https://www.apple.com/in/newsroom/2022/10/apple-calls-on-global-supply-chain-to-decarbonize-by-2030/ (Accessed: 14 January 2025).

Bhasin, H. (2019) What is Bowman’s Strategy Clock? Available at: https://www.marketing91.com/what-is-bowmans-strategy-clock/ (Accessed: 14 January 2025).

Business Model Analyst (2024) Apple SWOT Analysis. Available at: https://businessmodelanalyst.com/apple-swot-analysis/ (Accessed: 14 January 2025).

Business Standard (2025) iPhone loses global market share to rivals with Apple AI absent in China. Available at: https://www.business-standard.com/technology/tech-news/iphone-loses-global-market-share-to-rivals-with-apple-ai-absent-in-china-125011300182_1.html (Accessed: 13 January 2025).

Communications Today (2024) India to become Apple’s third-largest market by 2026. Available at: https://www.communicationstoday.co.in/india-to-become-apples-third-largest-market-by-2026/ (Accessed: 13 January 2025).

DCF.FM (2024) Apple Inc. (AAPL): SWOT analysis. Available at: https://dcf.fm/products/aapl-swot-analysis (Accessed: 13 January 2025).

Ferguson, E. (2024) Apple Five Forces Analysis & Recommendations (Porter’s Model). Available at: https://panmore.com/apple-inc-five-forces-analysis-porters-model-case-study (Accessed: 13 January 2025).

Fouad, B., 2024. Innovation Accounting’s Impact on Organizational Performance and Strategic Decision-Making-A Quantitative Study of Performance Metrics, Challenges and Opportunities.

Khan, N. (2025) Apple’s iPhone Market Share Slips to 18% Amid Rising Competition. Available at: https://finance.yahoo.com/news/apples-iphone-market-share-slips-073130519.html (Accessed: 13 January 2025).

Krysiak-Adamczyk, A. (2024) Enhancing Digital Interfaces: How AI User Experience Elevates Design. Available at: https://survicate.com/blog/ai-user-experience/ (Accessed: 13 January 2025).

Lombardo, J. (2024) Apple PESTLE/PESTEL Analysis. Available at: https://panmore.com/apple-inc-pestel-pestle-analysis-recommendations (Accessed: 13 January 2025).

Needle, F. (2023) What Is Total Quality Management & What’s Its Impact on Customers. Available at: https://blog.hubspot.com/service/total-quality-management (Accessed: 14 January 2025).

Pereira, D. (2024) Apple Mission and Vision Statement. Available at: https://businessmodelanalyst.com/apple-mission-and-vision-statement/ (Accessed: 14 January 2025).

Permutable AI (2024) Analyzing Apple’s governance issues: Key challenges in 2024. Available at: https://permutable.ai/apples-governance-issues/ (Accessed: 13 January 2025).

Rane, N., Choudhary, S. and Rane, J., 2023. Enhanced product design and development using Artificial Intelligence (AI), Virtual Reality (VR), Augmented Reality (AR), 4D/5D/6D Printing, Internet of Things (IoT), and blockchain: A review. Virtual Reality (VR), Augmented Reality (AR) D, 4.

Rawat, A. (2023) Innovative Mojo Wanes as Apple Products Loose Their Charm. Available at: https://www.linkedin.com/pulse/has-apple-lost-its-innovative-edge-closer-look-tech-giants-rawat (Accessed: 14 January 2025).

Ruberti, G., 2024. Sustainability in Apple’s Global Supply Chain: a comprehensive analysis of challenges, strategic initiatives, and performance optimization (Doctoral dissertation, Politecnico di Torino).

The Economic Times (2024) How Apple is doubling down on its India Manufacturing Plan. Available at: https://economictimes.indiatimes.com/tech/tech-bytes/how-apple-is-doubling-down-on-its-india-manufacturing-plan/articleshow/112060705.cms?from=mdr (Accessed: 14 January 2025).

The Strategy Institute (2024) The Ansoff Matrix: A Powerful Tool for Business Strategy and Growth. Available at: https://www.thestrategyinstitute.org/insights/the-ansoff-matrix-a-powerful-tool-for-business-strategy-and-growth (Accessed: 14 January 2025).

Yadav, M. (2023) Practice Democratic Leadership Style To Empowering Your Team for Success. Available at: https://www.risely.me/democratic-leadership-for-team-success/ (Accessed: 14 January 2025).

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