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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 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 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.

AREAS OF CONSIDERATION

STRENGTHS

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 shareProducts are expensive compared to Microsoft and other

competitorsReliance on suppliers for MP, App, and MemoryiTunes: Low marginiPhone:

Lacking featuresLess market presence overseasContent provider relationsTechnological

Limitations

OPPORTUNITIESTHREATSGood relationship through joint venture with other big

Companies coupled to bring out new hitsConstant growth of PC and mobile industryMore

international expansionIncreasing demand of online music and other applications like cloud

based servicesGrowing market of “Green” and energy efficient productsCapitalize on iPhone,

iPhone, and iPad growthiTunes and app storeStrong growth of mobile advertising

marketCompetition in technology with other PC industry giants like Dell, HP, Lenovo and

mobile industry giants like Nokia, Motorola and SamsungExpensive products as compared to

other competitors such as Dell, Nokia, MicrosoftHigh product substitution effect in the

innovative and competitive technology marketIncompatibility with windows

platformImitatorsRapid technology changesNew Entrants like GoogleDying Mp3

marketPiracy and free content availabilityHighly competitive and saturated marketThe rise of

Android OS

Problem of the case

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.

9 Alternative courses of action

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.

10 Alternative courses of action

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 growthPros: The brand is already strong. It

is trusted and widely knownCons: Expensive developmentEmploy on Market expansion and

penetrationPro: Retail store strategy is effective and iTunes worldwide content is already

popularCon: Competition

11 recommendationWith the given alternative courses of action, increasing its budget

allocation on its Research & Development is the best course of action for Apple Inc. It would

ensure that Apple’s products be ahead of other competitors’ products. This would also retain

the company’s reputation for rapid innovation. Continuous innovation in technology and its

products would allow Apple Inc. to continue its momentum.

12 Action plan WHAT WHO WHEN Date gathering on Finance Finance Department

WHATWHOWHENDate gathering on FinanceFinance DepartmentASAPAdjust budget

allocationTop Mgt and Finance DeptExplore possible partners for R&DTop Mgt and
R&DContinuous innovation in technology and in its productsR&DSet timelines and deadlines

for innovationsTop mgt

13 conclusionApple 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.

Alternative courses of action at least 5

Conclution

recommendation