Apple strategic analysis. This paper includes SWOT/TOWS analysis, PEST analysis, and strategic environmental scan.

APPLE COMPUTER

CASE ISSUES

Core Competency (CI#1) : orchard apple tree design, develop and market numerous intersection and service lines. They sell their products to education, consumer creative professional, furrow and government customers. dapple apple seems to display numerous products and conduct business on different segments, it is legitimate to wonder what the company is really intimately at? Too much diversity is exactly what crushed Apple during the John Scully days.

Cannibalization (CI#2): Through January 2005, Apple has opened 102 retail stores. Although these launches are potentially beneficial, Apple stores are hurting the resellers business and not all of them will survive. Considering that the companys resellers still account for more than 50% of its domestic gross gross sales, the company is facing the risk of cannibalization and qualification deeply suffer.

High Cash (CI#3): Why is Apple holding so much cash? Having too much cash in reserve might either mean that the company does not know yet how to allocate it or that they may realize some risk concerns about future potential investment.

Succession (CI#4): Apple is clearly one of the handful of companies where the fortunes are seen to be elaborately tied to the person in charge. The star quality and the conjuror talents associated with Steve Jobs are certainly contributed to the success of the company.



So the news of Jobs crabby person surgery might lead to a succession problem and compromise the companys future.

I. CURRENT SITUATION

A.CURRENT PERFORMANCE

Apple achieved a solid performance for the maiden quarter of 2005 compared to the same quarter 2004 with strong net sales in the Americas segment (+77%) in Europe (+63%) and in Japan (+18%). The Americas segment represents approximately 47% of the companys total net sales. The increase in net sales in the Americas, Europe and Japan was primarily driven by increased demand of...

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