Table of Contents

- Increase the service quality Following the objectives, there are some strategies: - Having more distribution channels in Vietnam - Localize iStores and Apple Stores in Hanoi and Ho Chi

Table of Contents

Executive Summary

Business Strategy is a subject to develop the learner’s ability to evaluate and select strategies appropriate to business organizations This will involve an analysis of the impacts of the external operating environment and the need to plan organization strategies to ensure effective business performance (Business Strategy course book, BPP professional education, 2004)

The report is to address the following areas: This is a continuation of your previously prepared report for Assignment 1-Strategic plan It reviews the previously prepared report on Apple Inc., the directors are now interested in examining the various approaches to strategy evaluation and selection that are applicable to Apple Inc In addition, the directors are also keen to analyze how strategy implementation can be realized in the company

• Evaluate possible alternative strategies such as substantive and limited growth or

• Identify and evaluate resource requirements to implement a new strategy for Apple Inc

• Propose targets and timescales for achievement in Apple Inc to monitor a given strategy

In the very first page of Apple, it was called as Apple Computer, Inc., established in 1976 as a computer company with the outstanding computer - Apple Macintosh, However, it has expanded into majoring in more than just computers In 2001, Apple launched iPod- the music player which open the significant new page for Apple, help it dominate the music players market Additionally, along with iPod, the iTune music store was introduced in 2002 iPhone marked a milestone in 2007 This product informed that Apple joined the phone industry in which it becomes widely successful Apple is famous for not only high quality products but also aesthetic designed ones Besides, the distinctive advertising campaigns are also one of its success reasons However, all these things are based on Apple’s compass: “Think different”

I. Alternative strategies to achieve goal and objectives of the Apple

As the first report mentioned before, the brand APPLE has become more and more familiar

with Vietnam market Apple can see that they can invest, develop and gain profit from Vietnam market because there are many advantages in Vietnam such as: rich labour source, hard-

working and interested in technology people, a strong developing economy and so on From the first assignment, there are three objectives have been mentioned:

- Increase the sale growth rate to 40% in 2008-2013

- Open two officials representative in Hanoi and Ho Chi Minh City

- Increase the service quality

Following the objectives, there are some strategies:

- Having more distribution channels in Vietnam

- Localize iStores and Apple Stores in Hanoi and Ho Chi Minh

- Doing research the customer’s behavior toward Apple’s service

1 Evaluation according to the methods of growth.

1 Having more distribution

channels in Vietnam Joint venture The standard of living of Vietnamese people

increase gradually Apple should joint venture with some distributors such as Vinaphone, Mobiphone

or Viettel, FPT to transport the products

to customers

2 Localize iStores and Apple

Stores in Hanoi and Ho Chi

Minh

Building up new businesses - Focus on taking care of

customers and rising up the reputation of Apple

in customer’s mind

- Protect the customer’s rights within the boundary of Vietnam, avoid the fact that many fake iStores are

overwhelming the market

3 Doing research the

customer’s behavior

toward Apple’s service

Joint venture Apple should build up a

department where collects the information concerning to customer

in Vietnam This department can support for Apple in many aspects, for instance: helps manager in making business decision, research the circumstance of market

- For the first strategy, Vinaphone, Mobifone and Viettel could be Apple’s partners as

their strength in Vietnam Besides, there are a lot of applications and tools in

Vietnamese forums which might be work for Apple To conclude, working with

third-parties to make more Vietnamese applications is important

- For the second strategy, these stores mainly located on Hanoi, Ho Chi Minh City, and Hai Phong Agree that these 3 cities are big city in Vietnam but there are many more

developed cities in Vietnam that Apple can open stores such as Da Nang city

Furthermore, Apple’s products mainly bought in stores while buying through website was not supported

- For the third strategy, as to the method of growth in joint venture, the co-operation

between Apple and the other companies is very useful Apple can receive the support in supplying information from the partner about customer’s feedback

2 Evaluating the strategies according to market- product strategies.

No Strategies Types of market- product

Market development It is the process by which the

firm seeks new market for its current products When having more distribution channels, Apple has to find the new market for the product With the development of economy in

Vietnam, the condition of the people is raising, so the demand

of the people toward the technological equipment will be increased Thus, expanding the distribution channels to the other cities in Vietnam is the good strategy to develop the business

2 Localize iStores

and Apple Stores

in Hanoi and Ho

Chi Minh

Market development: This kind market is applied for

the new market and current product For the Vietnam market, Apple is a new company

to them although their reputation is known widely New market will be the new challenge for Apple First they need to focus on Hanoi and Ho Chi Minh cities, two biggest cities of Vietnam From here, they need to start to investigate

as well as find out about their current situation and appropriate policies for their products for profit in the future

3 Doing research

the customer’s

behavior toward

Apple’s service

Market development It is the process by which the

firm seeks new market for its current products When having more distribution channels, Apple has to find the new market for the product With the development of economy in Vietnam, the condition of the people is raising, so the demand

of the people toward the technological equipment will be increased Thus, expanding the distribution channels to the other cities in Vietnam is the good strategy to develop the business

3 Evaluation the strategies according to the diversification

There are two types of diversification: related diversification, and unrelated diversification In the below table, the strategies will be identified their kind diversification, and its function

No Strategies Type of diversification

1 Having more distribution

channels in Vietnam Vertical intergration It occurs when a company becomes its own supplier or distributors With this method, Apple’s

stores in Vietnam can be the distributor of for the other cities Apple can control the process of supply to the each place that leads to reduce the cost for transportation, and prevent the products of Apple from overflowing in the stores, where are not under the control and management

of Apple Inc

2 Localize iStores and Apple

Stores in Hanoi and Ho

Chi Minh

Related diversification (horizontal integration) This kind

of integration is the development of the activities, which are competitive with or, complementary with the current operation of the company

Look at first, two Apple stores can be considered as competitor of each other, but the truth is they are contributing for the sale volumes and benefits of the company

3 Doing research the

customer’s behavior

toward Apple’s service

Related diversification (vertical integration)

This kind of integration is the development of the activities, which are competitive with or, complementary with the current operation of the company This strategy

is in the objective of increasing the quality of customer service Hence, it is supplement the benefits of the holding company of Apple in USA Having the thorough grasp of information of Vietnam’s customer is very necessary It is the base for Apple to start the first steps in making business in Vietnam as general

4 Evaluation the strategies according to the potential risks.

1 Having more distribution They might be the business risk and the financial

channels in Vietnam risks The economy in the small cities of Vietnam

always changes; it can impact on the effectiveness

of the strategy in the process of the strategy performance For example, the inflation is happening in Vietnam, the purchasing power of each place will be different If Apple keeps the same strategy, it is very hard to achieve the good result, and goes along with the damages in the financial risk, such as the cost to carrying the strategy

2 Localize iStores and Apple

Stores in Hanoi and Ho Chi

Minh

Apple should take a prompt action to this strategy due to the fact that there are many fake iStores all around Vietnam This is a really serious problem towards Apple as their development in Vietnam market in the future It not only ruins the reputation of Apple but also makes customers feel untrustworthy towards their expectation Although Apple hasn’t made any announcement about their official iStores in Vietnam, but at least they should

do something to make their customers feel that they are protected when using Apple products

3 Doing research the

customer’s behavior toward

Apple’s service

The trend of the Vietnamese in technology and lifestyle is always changing So if the information is collected from the paper, its exact is not high Thus, Apple shall get the wrong data and information This has the strong influences to the operation of Apple’s stores in Vietnam For example, if the potential risk is easy to happen, typically can cause the business risk for Apple Attitude of the employees impacts on many things, especially the evaluation of the customer toward the stores of Apple in Vietnam The misunderstanding the importance of the attitude

of staffs can cause the physical and prestige damages for the company

5 Evaluation according to the benefits and costs of the strategies.

1 Having more - Control the process of - Transportation cost to

distribution channels in

Vietnam supply to the places Prevent the costs in

many sections for the holding company, like

be shared at all stages

of the value chain

delivery to the brands,

or the stores of the joint venture company

- Advertisement cost to advertise the products

of Apple in the small cities This way is to introduce the new distribution channels of Apple

- Training employees in using the products and guiding them the way

to introduce effectively

to customers

2 Localize iStores and

Apple Stores in Hanoi

and Ho Chi Minh

Bring the reputation of Apple to Vietnamese consumers widely and more popular

Bring more loyalty customers to the company

Rise faith of customers

in purchasing products

Spend money on finding places and building and recruitingNeed time to recruit people working in the building

Expanding into other provinces costs a lot of money in finding places and recruiting people again

3 Doing research the

customer’s behavior

toward Apple’s service

- Get the suitable strategies in designing the stores and marketing to introduce the customer to achieve the good result

- Identify the kind of customer that will have the demand toward its products Apple shall have the solution to reach the good result in operation in Vietnam

- Apple takes a lot of time to collect the information, clarify and remove the wrong information, and come

up with the change of the lifestyle as well as the trend of the consumers

II Selection the strategy

1 The advantage and disadvantages of the strategies

Reduce the overflowing products of the stores which are not under the

Besides, the competition among the suppliers will

be weak that leads to the reduction in the result while the cost keeps on high

2 Localize iStores and

-Build up a new business selling Apple products in Vietnam also control the quality of their products, protect the brand name of the company in Vietnam market

-Increases the profit and customized the vision, mission of Apple There won’t be any risk of running off existing employees, vendors or customers

-It will cost Apple a lot of financial and other kinds

of resources such as human resource, etc-The legal procedures also need to be completed

-Apple will have to build

relationships, product lines and workflows to enable them to service their customers—once they have them

-The risk will be higher and directly effect on Apple

3 Doing research the

Population of Vietnam is quite crowded, so to do research is hard and waste a lot time

- Vietnamese often think highly of the function of

well as technological skill

of people survey, so their answer is cursory It leads to the

exact in result of survey

is not both high and effect

2 Suitability, feasibility and acceptability to stakeholders of the strategies

No Strategies Suitability, feasibility and acceptability

1 Having more distribution channels in Vietnam - Exploit the strengths in terms of finance and the prestige.

- Create more chance to spread business in a potential market

- The products’ life cycle are short Apple can reduce the glut that cause the increase of cost and loss in profit and loss account

- Maybe it is difficult to bring profit for stakeholders in short time but gradually the prestige of Apple will increase

- Bring long term profit in dividend for shareholders

- The customers in Vietnam will served by the professional employees, and the guarantee services trained carefully and professionally, so they can reliable in the service of Apple

2 Localize iStores and Apple Stores in Hanoi and Ho Chi

Minh

- Improve the current distribution system of the company This is to satisfy the customers And also help the company sell more products

- The relationship between Apple and its hardware suppliers is very tigh It’s high feasibility to

implement the manufacturing strategy to give the high quality products for the products

development strategies

- Bring many profit to stakeholders such as reputation, revenue and closer relationship with customers so it is acceptable

3 Doing research the customer’s behavior toward

- The managers can make strategies that are suitable with the economic development of Vietnam Apple can set a suitable level of pricing that has the advantages for both the customers and for Apple

The strategy will influence to owners decision

They examine whether the objective are optimistic, and achieves the high profit or not From that, their acceptability is made

- In term of customers, this strategy is an opportunity to send their opinions to receive the service with better quality

3 Ranking and scoring the strategy.

Ranking and scoring matrixN

o Strategies Scoring for each above criteria

Potential risk

Benefits Costs Advantages Disadvantages Suitability Feasibility Acceptability Total