Sustainable Solutions Paper
- Introduction (at beginning of SSP after cover page)
- Executive Summary (completed for Week 7�leave blank for Week 4)
- Stakeholder Identification and Value Analysis
- General Force Analysis
- Porter�s Five Forces Industry Analysis
- Value Chain & Relative Core Competency and Resource Analysis
Introduction
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Apple Inc. is a standout amongst the most world compelling and mainstream
organizations on the planet. The organization bargains underway of PCs and
correspondence contraptions, for example, iPhone, iPod, Smartphones among numerous
others. The organization pioneer and originator Steve Jobs began the organization
together with Steve Wozniak. The organization has developed and extended through the
years to its status. Some of these contenders incorporate, Nokia and IBM. Thusly, this
organization is imperative in this study, as it will help to comprehend the procedures
utilized to stays economical in this focused markets. The purpose of this paper is to give
bits of knowledge on how Apple makes its values and how it can even improve by
adjusting to different systems (Sahoo, 2012). The parts that will be covered in this paper
will be inclusive of stakeholder identification and value chain analysis, general forces
analysis of Apple, porter five forces industry Analysis: industry environment and a
detailed value chain analysis: internal environment. Customized value chain of activities
in table form, detailed SWOT analysis, key success factor analysis, the company strategy
type, industry evolution modelling, sustainable value framework analysis are all key
areas of coverage in this paper.
Executive summary
[Student Instructions Begin]
Complete this section after you finish the Week 7 analysis:
Summarize the entire paper covering each of the key elements (sections)
presented throughout the document. Provide specifics, not generalities.
State the organization name along with a very brief description of it.
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The executive summary should be between two and three pages and written last
for obvious reasons, because you can’t summarize until you have completed the
full analysis.
An Executive Summary is NOT an introduction. A summary provides a concise
portrayal of the results/outcomes of the entire SSP. It is not a restatement of the
process; it is a detailed, bottom line summary of the paper. Be very clear and be
very specific. This section should be between one and two pages.
Summary of Key Takeaways and Insights
Summarize all of the key sections of the paper being as specific as can be. Be sure
to list the summarized sections. For example: Stakeholder Culture for this
organization can be described as ……. Economic trends of interest include ….
The top three Threats and the top three Opportunities identified are ….
Organizational leaders embrace the concept of Whole-Systems Thinking by….
Note: executives would prefer to read a short but detailed summary and may not
have time to read a 20–40 page paper to get the main focus.
List and discuss the key takeaways of the paper. What are the “ah ha” discoveries
from the paper? Key takeaways could be things like “our vision and culture
are/are not congruent/aligned” or “our competitive strengths are exceptional/not
clear”)
Consider the following: how is strategy and sustainability affected by
vision/mission, values, value chain, value system, life cycle, etc? What is the
information flow from the external (GFA, FFA) and internal (SHA, VCA)
analyses to the SWOT, KSF – from SHA, SWOT, KSF to Analyzing Company
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Strategy Type, Action Plan Analysis, and the Week 7 Analyses in the paper? How
do the theories/concepts synthesize to facilitate the information flow? How do the
theories/concepts integrate to facilitate the setting and executing of strategy?
[Student Instructions End]
Stakeholder Identification and Value Chain Analysis
[Student Instructions Begin]
Please see the Sustainable Solutions Paper–Applying Traditional Strategic Thinking
Tools Part I Handout for completing the following sections of the template which you
will submit on Day 7 of Week 4.
[Student Instructions End]
Enterprise Level Strategy
Apple is likely to continue with their Consumerization chance as it aims to outdo
increased competition in the market. All in all, the company applies high end
technologies to improve the design of their products (Aiburn, 2013). The employees at
the company are highly skilled and motivated such that they are capable of bringing
iPhones and iPads to work. Unlike other firms, Apple thinks about the consumer and
enterprise opportunities at significant different verticals with the aim of dominating the
enterprise market. Over the years, the company has taken control over the product line to
their customers by ensuring that their products are what their clients want. In this regard,
the company is highly focused on delivering the best consumer products by relying on
consumer tastes and preferences as they design their products.
Organizational Culture Type
The constant innovations at Apple have formed part of their culture that is
constantly driven by the passion for new products and strategies. The corporate culture at
Apple has greatly been intensive work ethics in a relaxed environment that promotes
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strong commitment to the objectives of the organization (Apple Case Study, 2012). The
culture at Apple is seen as a demanding fun that enables the organization to implement
their objectives with a lot of ease.
Integrated Concepts from Readings, Evidence and Implications
Sustainability is one of the concepts that is gaining more approval in most of businesses
across the world. Companies deal in different areas of production and they are required
to remain sensitive to the environment even as they carry out their activities to be
sustainable even in the future. Competition has become very stiff due to aggressive
business techniques and strategies employed by businesses in the same industry (Sahoo,
2012). Therefore, a company has to come up with competitive strategies in order to
remain relevant in the market and to realize more profits. For Apple, creativity and
innovation has enabled the company to remain sustainable and competitive in the
international business environment. Stakeholder identification and value analysis is an
important sustainability concept for any profit oriented organization (Aiburn, 2013). The
competitive rivalry among the companies in the same industry is critical for the success
or the failure of the organization. Associations embrace diverse systems to guarantee that
they attain to their objectives. Understanding the methods qualities and shortcomings is
imperative for the accomplishment of these substances.
General Force Analysis: External – Remote Environment
On the external scene, the company is well positioned to handle intense
competition in the industry. The company is outdoing competition by making quality
products that are highly attractive to the market, leading to more sales. In this regard, the
company has a strong brand name that enables it to be more competitive on the global
scene.
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General Force Matrix Analysis
Economics
Apple is faced with a challenge of greater expectations that they have to make to
ensure that they remain at the fore front in terms of being competitive at all time. The
Company is still at the top in terms of money making because, its sales are so high
compared to its rival due to the quality of products despite their prices being reasonably
high. The company is still targeting to make more money form software’s and services
that is renders to its customers. Smart watches are still to be released with the
expectations of impacting the company economy positively. Billions of dollars will be
expected upon the launch of the new product in the market.
Technology
Apple is a company that has employed the use of high technology and this has
enabled the company to carry out reputable research and development that led to the
production of the Smartphones that really hit the market due to their high demand. The
company products are due to the high technology that is employed in their production to
ensure that they give the best to their customers who are always eagerly waiting for the
release of any new product from the company.
Demographics / social / culture
The demographic target of Apple Company is the college students who are the
main users of the Apple products. These students user computer in their classwork and to
type notes and submit assignment. They use the iPhone produced by Apple to connect
with fiends via the social media where they can communicate and uses the iPhones for
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the purpose of entertainment like listening to music. There are applications that the
college students use in the iPhones and iPads that they use to socialize and classic
cameras for photo taking.
Government / legal /military
The government as really benefited a lot from the sales made by Apple Company.
This is because it imposes heavy taxes to the company whose profit making rate is too
high. The products of Apple Company are of high quality and highly demanded to imply
that at the end of the day, the company sales are very high compared to its rivals and the
government has high benefits of tax collection.
Physical environment
Apple is a company that is majorly based in United States and its physical
environment is very much conducing due to the fact that it targets the market of young
people who are all over in the world. Apple is surrounded by a conducive environment
that allows it to offer its products according to the demands of its customers.
Implications, Threats, and Opportunities of GFA
The industry environment also provides an enabling environment that allows them
to work diligently. The company has a good work ethics that enables the members to
work hard by sticking to the company objectives in good time. The company thrives on
secrecy and obsessive attention to detail which enables them to advance their innovation
without being copied.
Porter’s Five Forces Industry Analysis: External – Industry Environment
Porter’s Five Forces investigation is an instrument intended to help assess
aggressive powers and the business method suitable for a firm in an industry it works. In
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the event that the powers in the business work wholesomely then it implies that the
business is not alluring. The business gets to be more defenseless if the level of rivalry is
higher (Porter, 2008). PC and Smartphone assembling has turned into a key area as the
world adjust to new types of innovation. The players thusly, must characterize their
business before there break down them utilizing the doormen five strengths. The dangers
and powers in this business sector won’t be like those in different markets outside, for
example, Japan and China. The five strengths has even and vertical powers that influence
and industry and accordingly oblige investigation. Level strengths incorporate danger of
new participants, rivalry in the same business, and risk of created adversaries and
substitute items. Then again, vertical strengths are those that start from inventory network
or the vertical rivalry and incorporate dealing force of suppliers and bartering force of
clients (Harvard Business School Press, 2005). The utilization of General Forces and
Porter’s Five Forces examination, it can be inferred that; the industry has low dangers on
new contestants, haggling force of the clients/purchasers is low, there is a risk of
substitute items, suppliers have much dealing forces and there is a noteworthy level of
contention among contenders. In view of this investigation, the industry is interested in
more noteworthy open doors in future. The way that the risk to new contestant is low; the
organization can utilize this chance to expand its deals in future. Bartering force of
purchasers is low and along these lines, the industry can have a high ground subsequently
will keep on reaping abundantly. Risk to substitutes exists as diverse organizations have
items that offer option items. The bartering force of suppliers is high and this is prone to
expand the expenses of supplies. The level of competition is critical henceforth, the
industry is relied upon to adjust to fitting methods to reach to the clients and win over
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them. As examined, these patterns and figures have repercussions on the business. To
guarantee that the business stays aggressive, the organizations must keep on putting
resources into quality and expand showcasing. The business also may confront a build
number of new participants if the business is seen to be gainful.
Five forces matrix analysis
Based on Porter’s five analysis, a number of factors may impact on the Apple
Inc., profitability. One of the external forces that may affect profitability of the industry is
the increased level of competition and rivalry. This will push the company profitability
low as the firm adopts strategies to attract more customers. Higher level of bargaining
power of suppliers will also reduce profitability on the industry (Narayanan & Fahey,
2005). Other forces include higher bargaining power, and increased number of
substitutes. Other forces may include, stiff government regulations among others.
Potential opportunities created by the five forces include increased number of customers
through increased advertising. The industry is open to opportunity as the market share is
yet to be exploited as is low. Threats includes, increase threats of new investors due to the
perception that it is profitable. General Forces Analysis and Porter’s Five Forces analyses
is used to developing organizational strategy because it provides vital information about
the industry. Through this analysis, a firm like Apple gets insights on the industry at large
hence can adopt suitable strategies to enable it gain a competitive edge.
Barriers to entry
The threat to entrant in the industry is low because Apple company dominates the
consumer electronic industry thus, making it next to impossible for other companies to
join the industry. The new entrants have to put a lot of effort on the research and
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development that is done in the industry and this entails a lot of capital that is not always
available. The produce of Apple company are unique and not easily imitated because they
are of high quality and with high originality. The production of Apple is wide spread and
is very low costly with high rate of revenue being experienced by the company.
Substitutes
Apple is a company that is well known in the production of iPod that contain mp3
player and sony MP3player, iPad comprising of a Samsung tab and iPhone that contain
the Samsung galaxy note and sony ericcson. The cost of production of the company
substitutes is low due to the achieving of economies of scale that is not common with its
competitors. The market of Apple products is much better compared to that of its
competitors due to the quality of products produced. Unlike most of its competitors,
Apple brand is well known and recognized by many people globally.
Bargaining power of suppliers
The bargaining power of the company suppliers is high because, they supply
unique material to the company and the materials are very special and not easily found.
This is the reason as to why Apple produces quality products through the use of the
unique material that give yield to quality and unique material.
Bargaining power of buyers
The bargaining power of buyers is very low and this is not a threat to the
company. The company has the ability to increase the price of its products due to their
uniqueness and quality with no complaints from its buyers who deem it worth. Despite
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the company having the power to increase its prices, it makes sure that the prices are not
too drastic to be attained by their customers.
Competitive rivalry
Competition is not a threat to the company due to the production of iPad and
iPhones that have made many customers stick to Apple. A lot of research and
development has been done by the rivalry for them to match Apple but the company has
always been in the fore front of ensuring that it is not easily beaten by its rivalry. The
efforts form the rivalry is not an issue to Apple who will always be number one in the
industry.
Implications, Threats, and Opportunities of Porter’s Five Forces
Opportunities of these tools include, it is easy to use, and it provides insights about the
industry and allows a firm to understand the competiveness of the industry. The
limitations of the tool are that it may not provide accurate result because firms in an
industry may vary due to circumstances. The tool requires good analysis and it may take
considerable time to understand the industry as a whole because of the size (Apple Case
Study, 2012). Therefore, this analysis is important and has implication for practice.
Apple Inc., can use this information to understand the industry and adopt suitable
strategies that can enable it achieve its goals. In such industry, it is expected that the
company remains creative and innovative to remain competitive. The two questions that
should be considered in this analysis are; does the size of the industry affect analysis
using Porters Five forces? How can a firm use the tool to change its weakness into
strengths?
Detailed Value Chain Analysis: Internal Environment
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Apple Inc. Company is in the industry of communication technology where it is
mostly based. The company has continued to expand and grow and currently it is one of
the most popular brands. The company is renowned for its creative and innovation
products such as iPods, iPhone, Smartphone’s and many others. The hard work
employed by the company’s CEO is what makes it to be where it is up to date.
Value chain is a concept that most firms employ to create value. It is a set of
activities that an entity carries out in order to create value for its customers hence,
instrumental in creating competitive advantages involved. The value chain consists of
various activities categorized as support activities and primary activities. The supporting
activities includes human resource management, procurement and technology
development while primary activity includes inbound logistics, operations , outbound
logistics , marketing and sales and services. These activities are important as they
contribute to firms’ creation of value. Value chain impacts on a business strategy as they
provide impetus for the business to achieve its goals. For instance, a firm is expected to
carry out sales and marketing of its products to ensure that it succeeds. Therefore, value
chain acts as a catalyst in achieving these objectives and goals. Technology has become
important in the functioning and operations of business. Technology impacts on value
chain in various ways. One of the ways is that it ensures good management and
processing of information in an entity. Information is critical as it provides avenues for
an entity to improve in its operations. Technology is important in protecting the
knowledge base of the company as well. This is important as it plays a key role in
creating value. Technology as is also important in reducing costs of information
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technology ensuring the firm stays current with advancements in technologies and
maintains technical excellence (Buciuni & Mola, 2014).
The company has a number of strengths as well as weaknesses. The company
understands the impact of employees. It has therefore put in place appropriate
mechanisms that ensure hiring of the right employees. The HRM is up to the task as
employees are treated well and motivated contributing to its success. Teamwork and
unity have helped to enhance creativity and innovation. The company is also up to date in
terms of technological advancement. Technology has played a key role in its success. It
has reduced costs of doing business. The company has as well established infrastructure
that facilitates its operations. The company as well as values its customers and this has
contributed to its success. The loyalty of its customer has enabled it to climb to the tip.
Some of the weaknesses are challenges in procurement. The company faces challenges
when it comes to its suppliers who are not reliable. The source of raw materials is also
higher affecting its operations (Sahoo, 2012). Various areas in the organization value
chain links. For instance, the shipped in raw materials are transformed to output. The
finished products are then delivered to customers. Marketing and sales are carried out to
persuade and seduce customer to buy them. The company has put mechanisms in place
to ensure that customer receive quality products and can return defective products if
purchased. This value chain therefore is important to the organization as a whole. It has
enabled the organization to expand and be in operations in various countries. The profit
margins of the organization have as well increased tremendously over the years. The
company has also managed to engage in corporate social responsibility impacting lives of
many people (Cravens, Piercy & Baldauf, 2009). Therefore, this research is important as
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it enhances understanding of the significance of value chain. It as well provides insights
to various activities of value chain and how it can impact business strategy. Leadership
of an organization is required to do a lot to ensure that an organization promotes
sustainability initiatives as they create value. Table 1: Value Chain Analysis
Business Process Your Organization
Competitor 1
(Microsoft)
Competitor 2
(Google)
Management Good Good Good
R&D Spend high in R&D Spend high in R&D Spend high in R&D
HR Good Good Good
Procurement Good Good Good
Inbound logistics Good Good Good
Operations Good Good Good
Outbound logistics Good Good Good
Sales Very high High High
Service Good Good Good
Implications of Competitive Analysis
Strengths One of the strength of Apple is that the company has powerful brand
that is associated with its quality and superior design. The company has very loyal users
of their product who are very determined in using all the products that are associated with
the apple company. In addition, the company has high supply chain that gives it strengths
because; it caters for all the needs of the customers.
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Weaknesses On the other hand, the company has various weaknesses that limit
their ability to take advantage of their business strategy. When apple introduces a new
product, its customers want to switch to the latest product and this makes the company
reduce its production of the earlier products. There are products which are produced by
the company but have high prices to an extent not all customers can be able to afford it.
Skills
Apple employs the skill of producing beautiful products that are lovely
passionately by their audience despite them having justified price. The company
communicates in the language of its audience because, it helps them extent their
experience of being the best in the industry. The company is very skillful in ensuring that
it serves an elite audience and embraces all their audience accordingly. The skill used by
the company to entice its customers is turning the ordinary into something beautiful that
in turn is loved by many.
Capabilities
Apple is capable of going to higher heights than it is now due to the high research
that is done on how to improve its products and services. With the high usage of
information technology in the company it may remain to be the top ranking company for
a long period of time. The company has employed the best brains who are capable of
making high difference to the company.
Detailed SWOT Analysis
SWOT Factor Matrix
SO strategies
Apple has strengths and opportunities that are geared towards developing new
web-oriented products that will be of high quality and need to their customers. These
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products are launched in the social networks where customers can easily view them and
familiarize with them. In this case, all the opportunities that act as strength to the
company are all pursued accordingly to ensure the company continuity is considered. The
social networks help the customers easily know the new launched products by the
company. This strategy also helps the customer communities in social media to be fast in
knowing the newly released product by Apple into the market, and be in the fore front of
knowing how to purchase it wholly.
ST strategies
Apple is a company whose strength and threat strategy is focused on developing
new innovative products and services that aim at strengthening the current product line
that is in existence. This strategy adds new features and services that aim at increasing the
value of the product that is in existence. All the positive feedback given by the customer
through the website are given out to the public to view them accordingly. This strategy
ensures that Apple uses its available strength to overcome any external threat in the
company.
WO strategies
Weakness and opportunities is a strategy that is geared towards developing the
standard work flow of the social media response that is given in the website of the
company. Weakness-opportunity strategy helps the company to purse all the
opportunities that are present in the company and be in a better position of overcoming
all the weaknesses present. This strategy also uses the standard work flow of the
company to respond to the positive feedback and comments given by their customers in
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the website. This is a strategy that despite the challenges it faces it remains focused on
educating the customers about the newly released product by the company.
WT strategies
This strategy explains the price of the new product though the use of the media
for customers to purchase it online. It helps make work easier for all the customers of the
company who are willing to purchase the product. All the perception of innovations is
highly monitored in the social media through the use of this strategy employed in the
Apple Company (Apple Case Study, 2012). Apart from the positive feedback from the
customers, there is still negative feedback that is given out and this strategy is more
concerned about giving feedback to all that has been said. This strategy establishes a
defensive plan that will be useful in preventing the weakness evident in Apple that might
make it susceptible to any occurring external threat in the industry.
Key Success Factor Analysis
Apple Company carries out extensive research and development that is useful in
developing new products that are highly needed for use by the company customers. There
are different innovative activities done to ensure that all the products produced are of
great benefit to the company. These innovative activities are inclusive of iPod, iTunes,
iPhone, App Exchange and the Apple store that are likely so much by their customers in
the whole globe. The company is successful following its advertising and differentiation
mode that is employed. Its products are well recognized due to the cherished brand name.
The retail and distribution networks and the breath of all the products have made the
company successful.
Analyzing the Company Strategy Type
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Action plan Analysis
The authority was visionary and esteemed its clients. Inventiveness and
advancement of the pioneers and workers also added to its prosperity (Apple Case Study,
2012). The position of the organization is to address the issues and tastes of the clients.
The organization guarantees that it delivers items that are of amazing and creative.
Moreover, the organization has put all the more in preparing and improvement and
innovative work to guarantee future manageability. The organization has various
contenders that seek the same markets. Contenders too bargain in comparable items
consequently diminishing the piece of the pie of the organization.
Boid Analysis
There are different rules of boid analysis that are employed for use by Apple Inc.
Company includes attraction that is given to all customers through the use of the
company products. All the products are well aligned towards achieving the best sales in
the market and all the negative circumstances avoided to the latter (Apple Case Study,
2012). The success stories of competitors and all the business operations are not avoided
as this will be a set back to the company in terms of being competent. All the company
strategies are aligned with the customer demand and delivers customer focused products
in the whole globe to satisfy and make their customers happy.
Industry Evolution Modelling
Apple has a guaranteed recurring cash flows to all customers who are not its
regular users of its products. Apple has the computing hardware and software’s that are
of high use to its model of business. There are iTunes stores and mobile devices are
produced and owned by the company in ensuring that it betters its business model. The
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company has canvas useful in describing, visualizing assessing and change te business
model to make it better and high performing at it was.
Life Cycle Assessment
Companies usually undergo a life cycle that informs their decisions and strength
in their industry in which they are situated. It can be said that Apple has successfully
passed through the development stage, startup stage, growth stage, expansion stage, and
is currently at the maturity state. At this stage, the market is very competitive; since, there
are only few and vibrant players who have successfully survived all the stages (Hodgson,
2012). This stage is also characterized by mergers and acquisition from the competition
industries. Currently, Apple Inc. faces major competition from big companies that have
been existence in the industry over a long period of time. With these big names in the
industry, competition is very stiff and the strategy the company employs is what makes
them remain profitable. Over the years, Apple Inc. has continued to differentiate their
models such, that the market is aware of their differences of their products and the
product from other companies.
Sustainable Value Framework Analysis
This discussion is essential on the practice as it provides valuable information on
strategic planning and strategic intent thinking (Liedtka, 2011). The process of executing
and linking strategy and tactics can only be realized through a comprehensive action plan.
Organization should adopt strategic internet thinking to ensure they remain competitive.
The issues raised are also important for my own research; since, they provide a basis to
understand the strategy that the organization has adopted and whether it is sustainable or
not. The core planning teams can effectively use various measurement instruments and
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establish weekly reports and evaluation results. This will help the management at Apple
to maintain the status of each strategic objective for tracking and continuous oversight.
Detailed Analysis of All Four Quadrants
Table 2: Sustainable Value Framework
Today Future
External Strategy: Good Customer
Relations
Payoff: Good Sales
Strategy: M&A
Payoff: Expansion
Internal Strategy: Ethics
Payoff: Hard work
Strategy: Innovation
Payoff: Improved
Productivity
Conclusions
Apple is likely to continue with their consumerization dance as it aims to outdo
increased competition in the market. All in all, the company applies high end
technologies to improve the design of their products. The employees at the company are
highly skilled and motivated such that they are capable of bringing iPhones and iPads to
work. The constant innovations at Apple have formed part of their culture that is
constantly driven by the passion for new products and strategies. The corporate culture at
Apple has greatly been intensive work ethics in a relaxed environment that promotes
strong commitment to the objectives of the organization.
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References
Apple Case Study. (2012). Apple Inc.: The Steve Jobs Effect. The Steve Jobs Effect, 1-
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Millar, V., & Porter, M. (1985). How information gives you competitive advantage.
Harvard Business Review, 63, 149–160.
Sahoo, D. (2012). Strategic Change of Campaign at Apple Inc. The Indian Journal of
Management, 5(2), 38-48.
Harvard Business School Press. (2005). Strategy: Create and implement the best strategy
for your business. Boston, MA: Author.
Narayanan, V., & Fahey, L. (2005). The Relevance of the Institutional Underpinnings of
Porter’s Five Forces Framework to Emerging Economies: An Epistemological
Analysis. Journal of Management Studies, 42(1): 207-223.
Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard Business
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