Table of Contents

1. Introduction.......................................................................................................................................2
1.1 Management................................................................................................................................2
1.2 Competing Values Framework....................................................................................................2
2. Organizational Analysis.....................................................................................................................4
2.1. Apple overview...........................................................................................................................4
2.2. Porter's Five Forces Analysisof Apple........................................................................................5
2.3 SWOT Analysis of Apple............................................................................................................6
2.4 PEST Analysis of Apple..............................................................................................................8
2.5 Management at Apple, Inc...........................................................................................................9
3. The Challenges................................................................................................................................10
4. Recommendations..........................................................................................................................11
5. Conclusion.......................................................................................................................................12
6. References.......................................................................................................................................13
7. Appendices......................................................................................................................................14
Appendix A.................................................................................................................................14
Appendix B..................................................................................................................................15
Appendix C..................................................................................................................................16
Appendix D.................................................................................................................................17
Appendix E..................................................................................................................................21
Appendix F..................................................................................................................................22

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1. Introduction

1.1 Management
Management is a universal process which directs the various efforts into a definite object.
According to Boddy, "Management is an activity which everyone undertakes to some extent
as they manage their everyday lives. It is an activity which shapes the performance of
organizationsmainly deals with planning, leading, organizing and controlling." (Boddy,
2002).Thetheories of management were developed during the Second World War and the
first management theory was started by Frederick Taylor asFrederickTaylor’s Scientific
Management. "Taylor wanted to remove the management by rule of thumb and Taylor’s
strongest positive legacy was the concept of breaking a complex task down into a number of
subtasks, and optimizing the performance of the subtasks; hence, his stop-watch measured
time tests" (Olum, 2004).In management there isMintzberg's ten management role(see
appendix A) which completes set of roles and each role is different within a business
environment.Frank and Gilbrethhaveintroduced the management as incremental
activitieswhich reduce the number of activities in task to increase efficiency in both profit and
satisfaction in work.

1.2 Competing Values Framework

There are various approachesto management like the internal process, open systems etc. (See
appendix B) which are placed over twenty-five years ago in the competing value framework
(CVF). The concept was transpired in 1983by Quinn and Rohrbaugh while researching on the
question of what makes organizations effective. It is used for organizing culture, decision
making, HR practices, motivation, strategy and financial performance. There are two
dimensionswhich are framework differentiatea direction toward discretion, flexibility, and
dynamism from an orientation toward order, stability, and control andframework
differentiates an orientation toward an external focus and opportunities from an internal focus
and capability and rivalry about outsiders.
CVF has got four sections in which Internal Process Model brings stability and control based
on a hierarchy which emphasis on documentation, measurement and information
management. Open Systems Model is based on an organic system which emphasizes on
expansion, adaptability, willingness, resource acquisition and external support. Rational Goal
Model assumes that planning and goal setting results into productivity which emphasis on
rational action based on profit. In Human Relations Model people are seen not as remote

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individuals, but as cooperating members of a common social system with a common stake in
whatthe emphasis on human resource and training.Inthe premise of CVF there are four
quadrants which represent competing assumptions within every business."The lower‐left
quadrant (Control) relates to value‐enhancing activities includingimprovements in efficiency
by implementing better processes. The lower‐right quadrant (Compete)relates to value‐
enhancing activities including being aggressive and forceful in the pursuit ofcompetitiveness.
The upper‐right quadrant (Create) relates to value‐enhancing activities that deal with
innovation in the products and services an organization produces. The upper‐left quadrant
(Collaborate) relates to value‐enhancing activities that deal with building human
competencies, developing people, and solidifying an organizational culture"(Abbett et al.,
2010).The CVF has been used as an instrument to judge the existing and desired culture (see
appendix B) within organizations and evaluate whether culture change has actually been
achieved.

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2. Organizational Analysis

The main focus will be challenges it faced based on technological and economic challenges.
Here Apple's external and internal factors are analysis with SWOT analysis.

2.1. Apple overview

Since the beginning of the first innovative product of the Apple like Apple I, Apple II
computer engaged in the development, design and marketing of personal computers has been
providing leading-edge electronic device offerings comprises Macintosh (Mac) computing
systems, portable digital music players and media devices as well as revolutionizes mobile
phones. The journey began in 1976 with the two Steves, Apple co-founders Steve Jobs and
Steve Wozniak (Apple chief executive). The company primarily operates in the US and its
headquartered is located in Cupertino, California, USA. It employs 46,600 employees.

"In 1997 Apple’s share price was $3.30. In 2011 its share price had risen to $339.87. For the
past four years, Apple has earned first place among Fortune magazine’s World’s Most
Admired Companies. To millions of consumers, the Apple brand embodies quality, prestige,
and innovation. The brand is valued at more than $153 billion, making it the most valuable
brand worldwide" (Daniels Fund Ethics Initiative, n.d.). Their mission is to bringinnovating,
manufacturing, marketing and selling computer hardware, software and related peripherals,
and communications equipment.

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2.2. Porter's Five Forces Analysisof Apple

Porter states that "the state of competition in an industry depends on five basic forces" (see
appendix E).In order to focus Apple Inc. Using Porter’s specified framework, this section will
analysis it.

Bargaining power of supplier

Many the companies do not suffer a big threat from the bargaining power of suppliers
because, just as they are dependent on Apple Inc. For their sales, hence are their suppliers on
them. The companies do incur manufacturing costs, labor costs and component costs, in order
to come up with the products to supply their customers.

Bargaining power of buyers

Apple Inc. Is the biggest Porter force of its connection of supply.As exhibited by its massive
influence on its supplier’s revenues. The various suppliers’ revenues are 30% to 50% of the
tech giant purchases accounts which means a simple movement in Apple’s orders, can move
a supplier’s revenue. This refers Apple has givena large advantage over its suppliers.

Threat of new entrants

If there is a ready market of goods and service supply, there is eliminating one of the barriers
to entry. Apple offers its suppliers a ready market, and if the terms are correct it could easy
for any company to offer it the desired components at the expense of an existing vendor.

Threat of substitutes

The threat of substitutes is discussed to the revolutionary nature of Apple. The company can
change the kind of material it utilizes on its informational products, which opens the door for
substitute productsto test their luck.

Industry rivalry

The company can determine the level of competition by rationing the allocation amounts
from the product it seeks to develop. It can determine the behavior of its suppliers and buyers.
This is what it makes Porter force largest betweenall of them.

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2.3 SWOT Analysis of Apple
SWOT analysis is theoverall strategic planning method used to identify Strengths,
Weaknesses, Opportunities, and Threats in the organization source for the decision making.

Strength
Strong brand image: Apple products have a high level of brand to all over the global market.
In terms of industry source Apple mobile phone is the fourth ranked player with
approximately 5%and Apple's is platform is the third ranked player with approximately
18.5% in the global world of marketing(David, 2011).

Intuitive gadgets and easy to use:Apple has got good design products like iPods, mobile
phones etc. In which iPods has got optical pads and digital ear phones. Likewise tablets are
easy to apply due to the presence of touch screen technology.

Reliable operating system and product integration:Apple has provided reliable Mac OS
which is rumored as virus free. The increase in Mac sales has beenbelieved to flopthe
Windows Vista.

Weakness
Patent infringement lawsuit: This can create effects in financial situation and operating
system.Apple is involved in legal complaints relating to patent infringement.

Limited product range: The product of Apple is limited where it believes in high end
consumer. "As much as 'bait and the switch' strategy work for the Apple customers be happy
if there will buy the cheaper iPhone and an expansive Mac book"(David, 2011).

Product recalls:The product and service were facing quality problems time to time where it
was selling highly complex and defects in manufacture and design software and hardware. In
2010, iPhone 4 Smartphone has antenna problems which raised the product recalls.

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 Opportunities

Strong growth in Smartphone segment: There is the strong chance to growSmartphone,

tablets and iPad market segment in the future. The number of Smartphone and tablet is
expected to reach approximately 850 million and 150 million by the ends of 2013
respectively.

The robust outlook forthe mobile advertising market: Mobile advertising market has
forecastedto grow in the future. "According to industry sources the mobile advertising market
is forecast to reach approximately $25 billion globally by the year 2015, riding on the strong
growth of Smartphone in both developed and emerging nations" (Datamonitor, 2011).

Threats

The rising popularity of Google Android: As we know the Google Android OS in

Smartphone is increasing popularity rapidly. Having Android Inc. In 2005, and the after
launch of Google's mobile OS Android differences the competitive Smartphone business in
the whole world.

Intense competition:Apple operates a high competition among HTC, Samsung, etc.

InSmartphone devices in the market (see appendixF). Since competition in different markets
will operate may affect the company’s profitability and revenues in the long run.

Product substitutability: Technology is changing rapidly from the physical gadget it is

replaced by wireless technologies. The fast changing technology refers to spending on a
continuous R&D project for Apple by endowed with resources.

Depending on specific suppliers: Apple depends on the third party suppliers for different
product. Most key components are necessary to business which is generally available from
multiple components including enclosures, microprocessor. The company depends on few
suppliers by influence to pricing risks andsupply, which may affect the company’s
operations.

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2.4 PEST Analysis of Apple
Pest analysis of Applestands for political, economical, social and technological aspects to analysis the
current situation of Apple Inc.

Political aspects:In 2007 sales of Apple from outside America were 52% which
influence bad international relations. The vote of candidate determines the
Corporation, complies with all laws governing political contributions and
expenditures.

Economical aspects
Due to high inflation and lessconsumer’s incomes causes increase the unemployment, leading
consumers to spend less. Though the rate of the dollar lost its value it don't effect in economical
aspect.To minimize the economic effects of inflation on AppleInc,it has purchased itself foreign
currency.
Social aspects
"In an analysis of the world's most valuable brands, Apple ranked among the top
companies in generating social media interest on services such as Facebook, and
Twitter"(Garner, 2009). It allows consumerstoshape and share their experience for the
easiness of the user.

Technological aspects:
There is a huge technological market and more competition for mobiles and
computers in the market. Regarding innovative products Apple is in the top of the
marketincluding the work for competitor's to follow. Still it is better because of the
brand innovation is a big part.

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2.5 Management at Apple, Inc.
The analysis shows that the model is used in Apple at the moment is the Rational Goal Model
as Apple is very focused with their vision.The rational goal model helps to increase the
production capacity as well as produced more in less time therefore reducing cost level.
Apple goes after Fredrick Taylor theory of the scientific management idea. For example
Apple production uses an assembly line that decreases the time it use to produce a single
product. The Chief operating officer, Timothy Cook has closed down the industries and built-
up relationships with contract manufacturers. So it referred that the stock of apple is moving
fast and more profitability on the financial statement as stock was manufactured increase and
stock days decrease. It also examines the Human Relation Model for the betterment of the
company and motivates people to come together and built team work.

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3. The Challenges

For many years, Apple has been a very popular company for the both consumers and
investors but many challenges it has experienced throughout its history of business. In recent
weeks, Apple’s historic seems to be fading away where both consumers and investors have
shown an enthusiasm for the new product, the iPhone 5. Though Apple is facing many
immediate challenges here is only shownthe technology and economic challenges.

Technology Challenge

In 2010, iPhone 4 Smartphone has antenna problems which raised the product recalls. This
can harm the reputation of Apple and add particular warranties. Judging from the Smartphone
features ofApple; its radical discovered machine seems to be running out of steam. The phone
like iPhone 4S is a marginal in terms of a radical improvement over its predecessor, both in
its physical attributes and technological ability. But over the 30 years of the IBM PC, Apple
did not achieve the type of market share and technology of the HP’s, Dells, etc. During much
of this period, nobody can refuse their impact during this time and now, it is the HP, Dells
and other all who are all chasing Apple.

Economy challenge
Apple has enjoyed a strong brand image from consumers which may demands for its products
inelastic. Their sales are sensitive to an impending downturn, mainly in Europe.
"Apple is facing headwinds that may cool its buzz and momentum, at least in the immediate
future" (Mourdoukoutas, 2011).

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4. Recommendations

Thus Apple have focused on the external part of their company by challenging or competing
with others, lowest cost of products and maintaining the same quality standards may fromthe
undertaking of knowledge and management. For easier access, continuous innovation to
expandthe number of retail stores. As Apple gives value to high end consumers which means
it has there is a limited market share. Many consumers are highly aware of the price and they
may hesitate for apple's product. Apple should concern upon consumer choice where they
want hardware and software part of their size of the pocket.
Though the company is making a large profit most of the developments in software are not
happy. For example; most of the iPhone application users are getting disturbed of its problem
and developers are selling the application just in the fewest amount. There is need to launch a
feasible system where developers can make money to complete effective with the company.
This creates that interesting application will drawn far from Apple to suggesting no
differentiate advantages.

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5. Conclusion

As mentioned in the introduction of management theory provides us management is related to

planning, organizing, controlling and leadingwhich try to shape its outcome in an
organization. While analysis on Apple Inc shows management they are clear meaning of
theory into practice and it signifies that it is very effective within the organization. Apple
follows a scientific management system. It mainly helps in mapping out future goals and
visions for the organizations which achieve those goals fast and efficiently using the
necessary management models. Their goals and aims have been obviously set out from the
starting which allows Apple to focus on their profit and emphasizes on rational action.Apple
Company has faced some challenges in the business market due to lack of environmental
friendly operations within the company. Apple in a huge manner; moreover these are all factors Apple
has no ability to control. 

6. References

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Abbett, L., Coldham, A. & Whisnant, R., 2010. Organization Culture and The Success of Corporate
Sustainability Initiative: An empirical analysis using the competing values framework. Master of
Science (Natural Resources and Environment) Thesis. University of Michigan.

Boddy, D., 2002. Management: An Introduction. 2nd ed. England: Pearson Education Limited.

Daniels Fund Ethics Initiative, n.d. Apple Inc.’s Ethical Success and Challenges. University of New
Mexico.

Datamonitor, 2011. Apple Inc: company profile. England: Datamonitor plc.

David, F.R., 2011. Strategic Management: Concept and Case. 13th ed. Pearson Prentice Hall.

Garner, B., 2009. Apple insider. [Online] Available at:

http://appleinsider.com/articles/09/10/17/apple_ranks_among_top_in_social_media_influence
[Accessed 17 January 2013].

Mourdoukoutas, P., 2011. Forbes. [Online] Available at:

http://www.forbes.com/sites/panosmourdoukoutas/2011/10/05/apples-four-challenges/ [Accessed 30
December 2012].

Olum, D.Y., 2004. Modern Management Theories and Practices. Uganda: Makerere University.

Rouse, M., 2009. Apple. [Online] Available at: http://whatis.techtarget.com/definition/Apple

[Accessed 12 January 2013].

7. Appendices

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 Appendix A

Mintzberg’s ten management roles

Category Role Activity
Informational Monitor Seek and receive information, scan papers and reports,
maintain interpersonal contacts
DisseminatorForward information to others, send memos, make
phone calls
Spokesperson Represent the unit to outsiders in speeches and
reports
InterpersonalFigurehead Perform ceremonial and symbolic duties, receive
visitors
Leader Direct and motivate subordinates, train, advise and
influence
Liaison Maintain information links in and beyond the
organisation
Decisional EntrepreneurInitiate new projects, spot opportunities, identify areas
of business development
Disturbance Take corrective action during crises, resolve conflicts
Handler amongst staff, adapt to external changes
Resource Decide who gets resources, schedule, budget, set
allocator priorities
Negotiator Represent department during negotiations with unions,
suppliers, and generally defend interests

Source: Based on Mintzberg (1973).

Appendix B

Competing Value Framework (CVF) Model(Pillai, 2011)

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 The eight general values that operate in the Competing Values Framework are shown in the
triangles on the perimeter. Each value both compliments the values next to it and contrasts with
the one directly opposite to it

Source:Pillai, j., 2011. Jay Pillai. [Online] Available at: http://www.jaypillai.com/tag/management/

[Accessed 16 January 2013].

Appendix C

Description of CVF Culture Types (Cameron and Quinn, 2006)

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The "A very friendly place to work where people share a lot of themselves. It is like an extended
Collaborate family.The leaders, or head of the organization, are considered to be mentors and, maybe
(Clan) even, parentfigures. The organization is held together by loyalty or tradition. Commitment
Culture: is high. Theorganization emphasizes the long-term benefit of human resource
development and attaches greatimportance to cohesion and morale. Success is defined in
terms of sensitivity to customers andconcern for people. The organization places a
premium on teamwork, participation, andconsensus."

The Create "A dynamic, entrepreneurial, and creative place to work. People stick their necks out and
(Adhocracy) take risks. The leaders are considered to be innovators and risk takers. The glue that holds
Culture: the organization together is commitment to experimentation and innovation. The emphasis
is on being on the leading edge. The organization's long-term emphasis is on growth and
acquiring new resources. Success means gaining unique and new products to services.
Being a product or service leader is important. The organization encourages individual
initiative and freedom."

The "A results-oriented organization. The major concern is getting the job done. People are
Compete competitive and goal-oriented. The leaders are hard drivers, producers, and competitors.
(Market) They are tough and demanding. The glue that holds the organization together is an
Culture: emphasis on winning. Reputation and success are common concerns. The long-term focus
is on competitive actions and achievement of measurable goals and targets. Success is
defined in terms of market share and penetration. Competitive pricing and market
leadership are important. The organizational style is hard-driving competitiveness."

The Control "A very formalized and structured place to work. Procedures govern what people do. The
(Hierarchy) leaders pride themselves on being good coordinators and organizers, who are efficiency-
Culture: minded. Maintaining a smooth-running organization is most critical. Formal rules and
policies hold the organization is most critical. Formal rules and policies hold the
organization together. The longtermconcern is on stability and performance with efficient,
smooth operations. Success is defined in terms of dependable delivery, smooth
scheduling, and low cost. The management of employees is concerned with secure
employment and predictability."

Appendix D

HISTORY

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Apple or "the company" was incorporated in 1977. It was co-founded by Steven Wozniak
and StevenP. Jobs. They introduced the first Apple I computer in 1976. The Apple I was a
failure but Apple II launched in 1980 was successful. The company offered its IPO in the
year 1980. In the early eighties, competition from the PC market and internal difficulties led
to critical management changes. By 1983, Apple faced stiff competition with the entry of
IBM into the PC market, and the failure of its Apple III version computer. Apple introduced
its first mouse driven PC, the Macintosh, in 1984.

Fig: Steve Jobs

By 1990, the market was flooded with cheap PC clones and Microsoft had launched
Windows 3.0. In 1994, the company launched the PowerPC chip based PowerMac, which
allowed Macs to compete with the speed of Intel's PC processors. Apple still had problems
though and in 1995, the company had a $1 billion order backlog. These problems were
compounded by the launch of Windows 95. The company's performance nosedived in 1995-
96 when it lost $68 million.
In 1996, Apple acquired next, and by virtue of which, its operating system (OS), Rhapsody,
became Apple's next-generation OS. By 1997, Apple had incurred huge losses running in
millions of dollars.
Mr. Jobs, the co-founder returned as interim CEO. Under his leadership, Apple reorganized
to concentrate on its more profitable competencies, and divested its unsuccessful businesses
as spin-offs, including Newton, its personal digital assistant line of products.
Soon after Mr. Jobs returned, an agreement was made with Microsoft, and was subsequently
followed with the appearance of MS Office on Mac PCs. In 2001, the company acquired
Power School, one of the providers of web-based student information systems for K-12

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schools and school districts, and Spruce Technologies, a privately held company involved in
developing and marketing DVD authoring products.
In the following year, Apple, Ericsson and Sun Microsystems formed an alliance to create a
standard format for delivering multimedia content to wireless devices, such as smartphones
and PDAs. The alliance combined Apple's QuickTime video creation software, Sun's content
distribution software and hardware, and Ericsson's mobile infrastructure and services
expertise.Apple pursued a number of acquisitions during 2002. The company acquired
Prismo Graphics,Silicon Grail, certain assets of Zayante, and also acquired the German based
specialist musicsoftware manufacturer, Emagic. Additionally, in 2002, the company acquired
certain assets of NothingReal, a privately held company engaged in the development of high
performance tools designed for the digital image creation market.
Apple launched its iTunes music store, an online store for downloading music tracks and
albums,in 2003. In the following year, the company signed licensing agreements with three of
the largestEuropean independent music labels, Beggars Group, Sanctuary Records Group and
V2, adding tens of thousands of additional independent tracks from leading artists to the
iTunes music store inthe UK, France and Germany. In the same year, Apple introduced its
fourth generation iPod portable digital music player.
In 2005, the company made an agreement to use Intel microprocessors in its Macintosh PCs.
Later in the year, the company collaborated with Acura, Audi, Honda and Volkswagen to
deliver iPod with their car stereos for 2006 model lines, and also introduced mobile phone
with iTunes in collaboration with Motorola and Cingular Wireless. Chrysler, in association
with Apple, integrated iPod option in the audio systems in its 2006 models. In the same year,
Apple sold its student information systems (SIS) division, PowerSchool, to Pearson.
Later in the year, Ford, General Motors and Mazda teamed up with Apple to integrate iPod
acrosstheir brand and models. In 2006, Apple teamed up with Air France, Continental, Delta,
Emirates,KLM and United Airlines to integrate iPod with in-flight entertainment systems.The
company changed its name from Apple Computer, Inc to Apple Inc in 2007, representing
itsexpanding product portfolio and increasing focus on consumer electronics market. Apple
resolvedits 'iPhone' trademark issue with Cisco Systems by entering into an agreement in
2007. Accordingto the agreement, both the companies acknowledged the ownership rights
and will use the trademarkin their products. In the same year, Apple launched its
revolutionary product, iPhone, a smartphonedevice, and also launched iPod nano, featuring
two inch display.

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In 2008, Apple introduced Time Capsule, a backup appliance that automatically and
wirelessly backsup everything on one or more Macs running Leopard. Subsequently, it also
introduced Mac Pro witheight processor cores, and MacBook Air, a thin notebook, which
measures a maximum height of0.76-inch.Apple introduced Xsan 2, the first major upgrade to
its easy-to-use, high performance, enterprise class SAN file system for Mac OS X, in 2008.
Subsequently, the company introduced MobileMe, a new internet service that offers push
email, push contacts and push calendars to native applications on iPhone, iPod touch, Macs
and PCs. Also in 2008, Apple announced iPod touch. In 2009, Apple introduced iWork '09, a
new version of Apple's office productivity suite, and iLife '09, which features major upgrades
to iPhoto, iMovie and GarageBand, and included iDVD and an updated version of iWeb.
Subsequently, the company introduced the iPhone 3GS, Apple's third-generation smartphone
with new features such as, longer battery life, high-quality 3 megapixel autofocus camera,
easy to use video recording and hands free voice control. Later in the year, Apple launched its
iTunes Store in Mexico with a selection of Mexican and international music from all the
major labels and independent labels. Subsequently, Apple launched its previously announced
iPod touch lineup with features including Apple Multi-Touch user interface, 3.5-inch
widescreen glass display, Wi-Fi, Bluetooth, and a built-in accelerometer and speaker.
During the last quarter of 2009, the company updated its MacBook with LED-backlit display,
AppleMulti-Touch trackpad and built-in seven-hour battery, and subsequently, introduced its
wireless Magic Mouse, the world's first mouse to use Apple's Multi-Touch technology.
Subsequently, Appleresponded to a lawsuit brought against it by Nokia with a countersuit,
claiming that Nokia infringed 13 Apple patents.
In January 2010, Apple announced iPad, a high-resolution, Multi-Touch display device for
browsingthe web, reading, sending email, and viewing entertainment content.In March 2010,
Apple filed a lawsuit against HTC for infringing of 20 Apple patents related to theiPhone's
user interface, underlying architecture and hardware. In the next month, the company'siPad,
which was announced in January 2010, was made available in the US, Australia,
Canada,France, Germany, Italy, Japan, Spain, Switzerland and the UK, and sold 300,000
units on the firstday of its launch in the US. Subsequently in April 2010, the company
previewed its iPhone OS 4software and released a beta version of the software to iPhone
Developer Program members.
The company launched iPad in nine more countries, including Australia, Canada, France,
Germany,Italy, Japan, Spain, Switzerland and the UK in May 2010.In the following month,

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Apple introducedthe new iPhone 4 featuring FaceTime, which allows video calling, and
Apple’s new Retina displayfor super crisp text, images and video.
In July 2010, Apple released Safari 5.0.1 with extensions support allowing developers to
createextensions with HTML5, CSS3 and JavaScript web standards. In the same month, the
iPhone 4 waslaunched in 17 more countries. Also in the month, Apple updated its all-in-one
iMac line, with thelatest Intel Core i3, Core i5 and Core i7 processors and powerful new
graphics.Apple announced the new iPod touch in September 2010, with new features
including Retina display,FaceTime video calling, HD video recording, Apple’s A4 chip, 3-
axis gyro, iOS 4.1 and Game Center.In the same month, Apple introduced iTunes 10 with
Ping, a new music-oriented social network.Subsequently, Apple announced the new Apple
TV which allows viewers to watch HD movies andTV shows.
In October 2010, Apple introduced the Apple Store in China (apple.com.cn) to shop online
for Appleproducts. In the same month, Apple unveiled an all new MacBook Air. In the same
month, VerizonWireless and Apple announced the availability of iPad at over 2,000 Verizon
Wireless Stores in theUS.The company announced that iOS 4.2, the latest version of Apple's
mobile operating system, is available for download for iPad, iPhone and iPod touch in
November 2010. In the same month,Oracle and Apple launched the OpenJDK project for
Mac OS X. Subsequently, Apple and TheDentsu Group formed a partnership to expand
Apple’s iAd mobile advertising network to Japan inearly 2011. As part of the agreement,
Dentsu will be responsible for the selling and creative executionof iAds in Japan, and Apple
will host, target and deliver the iAds to its iPhone and iPod touch users.
In January 2011, Verizon Wireless launched the iPhone on its network, ending the exclusivity
ofAT&T. In the same month, Apple launched the Mac App Store with more than 1,000 free
and paidapplications. Apple updated its MacBook Pro family with next generation processors
and graphics, high-speedThunderbolt I/O technology and a new FaceTime HD camera in
February 2011. In the same month,Apple introduced iPad 2, featuring a new design that is
33% thinner and up to 15% lighter than theoriginal iPad.In March 2011, Apple introduced
iOS 4.3, the latest version of its mobile operating system, withfaster Safari mobile browsing
performance with the Nitro JavaScript engine; iTunes Home Sharing;enhancements to
AirPlay; and the Personal Hotspot feature for sharing an iPhone 4 cellular dataconnection
over Wi-Fi.
Source:Datamonitor, 2011. Apple Inc: Comapany profile. England: Datamonitor plc.

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 Appendix E

Model of Porter's five force analysis

Source:paulspring.wordpress.com

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 Appendix F

Major competitors of Apple Inc.

1. The following companies are the major competitors of Apple Inc.

2. Dell Inc.
3. Fujitsu Limited
4. Hewlett-Packard Company
5. International Business Machines Corporation
6. Samsung Electronics Co., Ltd.
7. Sony Corporation
8. Toshiba Corporation
9. Research In Motion Limited
10. Nokia Corporation
11. Sony Ericsson Mobile Communications AB
12. Lenovo Group Limited
13. Motorola, Inc.
14. Microsoft Corporation
15. Acer Inc
16. LG Electronics, Inc.
17. Oracle Corporation
18. Google Inc.
19. Apple

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