Planning is the activity of preparing a scheme, program, or method that is worked out beforehand for the accomplishment of some set objectives. There are different types of planning which include strategic, tactical, operational and contingency planning. Apple Inc. is one of the most successful and recognizable companies in the world. It was founded by the renown and celebrated Steve Jobs. It is an American multinational corporation that designs, manufactures and sells personal computers, consumer electronics and software, and provides related services.
The business has experienced major growth over the past years. Its survival for over thirty years has been dependent on the thorough planning and organization that the can puts in place. It uses a strategic method of planning. The strategic planning is necessary for the company in that it is a technological multinational. It has seen a lot of changes in the computer industry. Competition has also proved to be stiff. Planning enables the company to be prepared for what the future holds for the computer giant in a rapidly changing world and advancements in technology and consumer tastes and preferences.
It also enables it to know how to allocate resources between its more traditional products and its newer products which include the iPhones and Apple TV, in order to improve its market position. Also, it enables the company to allocate resources and utilize its unique retail strategy to support the company’s product decisions, and by capitalizing on new and emerging trends thus further maintaining its competitive advantage over its competitors. On a regular basis, Apple Inc. conducts analyses. They conduct the SWOT analysis which puts them on the forefront in terms of performance and competition. This type of analysis focuses on the strengths, weaknesses, opportunities and threats facing the company.
The strengths of this company are plentiful. The main strength, is the customer loyalty combined with a closed ecosystem. This means that the company has developed a full range of applications, software that interlinked. Apple is also a leading innovator in mobile device technology. It has a strong financial performance and strong reputation. It has widely distributed retail stores and strong marketing and advertising terms. Its weaknesses include high prices of all its products, incompatibility of their products with other operating systems, decreasing of its market share in the industry, it is faced with patent infringements. Apple faces further changes in management, defects of new products and finally long-term gross margin decline.
The opportunities of the company include, high demand for its products which include the iPhone 5 and iPad mini, iTV launch, increasing demand for cloud based services, emergence of new providers for application processors obtaining patents through acquisition, increased market for tablets and smartphones and strong growth of mobile advertising market. The threats faced by the company include, rapid technological changes in the industry, increments in taxes and production costs, rising pay levels for worker, price pressures posed by its competitors which include Samsung and Nokia, the growth of Android OS and also the strong dollar.
This analysis enables the company to prepare for any possible outcome of the future and helps I n risk avoidance. It also helps the firm to maximize the utility of all resources and exploit all the opportunities available in the industry. Finally it assists in the planning of the company and decision making.