Las Piñas Campus

Phone : (02) 8872-7041

Email : marketing.laspinas@perpertualdalta.edu.ph

Subject:
Strategic Management and Decision Making

Case study of
Banco de Oro Unibank

Submitted by:

CHEMA C. PACIONES

Submitted to:
Dr. Ronaldo A. Poblete, CMITAP, CFMP, CATA, CAEA
Professor

JULY, 2020
Background of the Case

The company started off as “Apple Computer” by Steve Jobs and Steve Wozniak, a pair

of 20-something college dropouts in 1976. Jobs then went to work and transformed

“Apple Computer” into “Apple Inc.” with innovative and technologically sophisticated

non-PC products in 2000’s. By 2010, the company also viewed itself as a “mobile

device company.” Apple became the fourth- largest PC vendor in the US market with an 8%

share by the end of 2009. Its market capitalization went to $220 billion in spring of 2010 through

multi-million dollar marketing campaigns such as the successful “Think Different” ads and catch

slogan. Apple promoted itself as a hip alternative to other computer brands. It also highlighted

its computers as the world “greenest line-up of notebooks”. The goal of Apple is to differentiate

its products amid intense competition in the PC and mobile device industry.

PROBLEM STATEMENT

What should Apple Inc. do, amidst growing competition and challenges, to thrive and maintain

its status as a successful full-fledged digital convergence company?

Areas of consideration

STRENGHT

 Pioneer of innovative and high-tech quality products like iPod, iPhone, iPad and

Mac

 Globally recognized brand name

 Large segment of loyal customer of “Apple culture”

 Strong research and development Department

  Retail stores providing the eye-catching products and experience of Apple’s

Software

 Innovative culture

 High quality and user experience

 Revolutionary products

 Appealing designs

WEAKNESSES

 Lower market share

 Products are expensive compared to Microsoft and other competitors

 Reliance on suppliers for MP, App, and Memory

 iTunes: Low margin

 iPhone: Lacking features

 Less market presence overseas

 Content provider relations

 Technological Limitations

OPPORTUNITIES

 Good relationship through joint venture with other big Companies coupled to

bring out new hits

 Constant growth of PC and mobile industry

 More international expansion

  Increasing demand of online music and other applications like cloud based

services

 Growing market of “Green” and energy efficient products

 Capitalize on iPhone, iPhone, and iPad growth

 iTunes and app store

 Strong growth of mobile advertising market

THREATS

 Competition in technology with other PC industry giants like Dell, HP, Lenovo

and mobile industry giants like Nokia, Motorola and Samsung

 Expensive products as compared to other competitors such as Dell, Nokia,

Microsoft

 High product substitution effect in the innovative and competitive technology

market

 Incompatibility with windows platform

 Imitators

 Rapid technology changes

 New Entrants like Google

 Dying Mp3 market

 Piracy and free content availability

 Highly competitive and saturated market

 The rise of Android OS

Alternative courses of action

The Apple Inc.’s identified markets are: PC market (Macintosh), phone market (iPhone)

and other digital device markets (iPod Touch and iPad).

 The first alternative course of action is international expansion like looking into

the China and other developing countries.

Pros: China has 616 million mobile subscribers, there are a lot of opportunities and

possibilities that Apple Inc. can do with that population of mobile subscribers.

Cons: International expansion would mean high expenses and costs.

 One of Apple Inc.’s competitive advantages is its Research and Development

rapid innovation. The second alternative course of action is based on this

competitive advantage. It is to increase its budget allocation on its R&D.

Pros: With the rapid changes in technology in this contemporary society, it is logical for

Apple Inc. to increase its budget allocation on its R&D. Furthermore, one of the core

strengths of the company is rapid innovation, an increase of budget on its R&D would

ensure that this core strength would still remain as one.

Cons: The Apple Inc. may decrease its budget on one or some of its value chain link

like sales, marketing, and advertising in order to give in to the increase of the budget

allocation on its R&D.

 Capitalize on iPhone, iPad, and iPod growth

Pros: The brand is already strong. It is trusted and widely known

Cons: Expensive development

 Employ on Market expansion and penetration

Pro: Retail store strategy is effective and iTunes worldwide content is already popular

Con: Competition
Action plan

Conclusion

Apple Inc. is a leader in global product innovation. Over the years, the company has

introduced one of a kind technological advancement. However, due to the rapid

changes in technology, some of Apple’s contemporaries are becoming at par with them.

Thus, it is only logical for Apple Inc. to increase its budget allocation on its Research

and Development. Further innovation and improvement of their products will not only

maintain their competitive advantage but it will also boost their market penetration.