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MFBD5 0907A – MMKD5 0906A
Subject: Lecturer: Course:
Working in Organization Mr. Han Kok Kwang MASTER OF SCIENCE
GROUP ASSIGNMENT COVER SHEET
No. Name of Group Member FIN No. Signature
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Auguslyzu Chen Ping Ngo Minh Duc Ngo Ngoc Phu Song Xiao Meng Zhong Yuan
G0715391R G0755609N G0720200N G0715766K G0755680U S8283488E
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Submitted on Due Date? Word limit observed?
(Date Submitted: 24/Apr/2009) (Number of words: 4658 words count excluding tables)
Innovation products……….. Excellent leadership . Supply chain management…………….…. Conclusion…………………………………………………………………………………19 References……………………………………………………………………………………... Introduction……………………………….17 V.……………….7 1. The cult brand…….20 Apple Inc Page 3 ..7 2..………………………………………………. Current problems of Apple……………………………………………………………15 2..……………………………………………..…………………………….. Recommendations…………………………………………………………………………15 1.………………………………………….……………..……………………………………………. Recommendations……………………………………………………………………. Analysis Critical Successful Factors…….....……………………………………………….…….9 4.TABLE OF CONTENT Executive summary…………………………………………………………………………..…………………..4 I.….8 3.10 III.5 II.………. Insights ……………………………………………………………………………………12 IV...
EXCECUTIVE SUMMARY The Apple Company is one of the most admired and success brands in the world. So what are the critical factors contribute to the cult brand called APPLE? Following the researching Apple’s steps to success. Apple continues to lead the technology industry in innovation with its award-winning computers and stands a very high position of rival among competitors. Today. when it is good – is very very good. whereas when it is bad. this assignment is divided into 5 chapters: Chapter 1: Introduction Chapter 2: Situation Analysis Chapter 3: Insights Chapter 4: Recommendations Chapter 5: Conclusion Apple Inc Page 4 . That is company. it flounders.
The company's best-known products include Pro line laptops (MacBook Pro) and desktops (Mac Pro). with over 5 billion downloads by June 19. On January 9. and the iPhone.” that reflected the company's ongoing expansion into the consumer electronics market in addition to its traditional focus on personal computers. Apple software includes the Mac OS X operating system. he took an expanded role as CEO and not only continually pushed for innovative ideas and products but also compelled several structural changes and led Apple to success. Apple was founded in Cupertino.”. it was the first time during 31 years. the iTunes media browser. Inc. IBM. After some disastrous losses in the 1980’s and 1990’s to their main competitor. the iWork suite of productivity software. Apple has about 35. a suite of professional audio and film-industry software products. According to Fortune magazine. 2008 Apple Inc Page 5 . the iLife suite of multimedia and creativity software. The iPod captured 70% market share more than 100 million units and Apple's iTunes Store became the market leader in online music services. the company’s name dropped the word "Computer" and changed into “Apple Inc. California on April 1 in 1976 by Steve Wozniak and Steve Jobs with the name “Apple Computer. 2007. the iPod media player is Apple's main source of revenue.Chapter 1: Introduction Apple Inc. including sales of the player itself and of music and video downloads via the iTunes music store. Mac computers account for from 4% to 5% market share in the world in 2008. When Jobs returned to Apple in 1996. Today. and Final Cut Studio. Apple was able to reinvent the entire company. the iPod( offered with up to 160 GB of storage with the iPod classic or with web browsing and touch screen controls with the iPod touch). consumer line laptops (MacBook) and desktops (iMac). is an American multinational corporation which designs and manufactures computer products and consumer electronics.000 employees worldwide and operates more than 250 retail stores in nine countries and an online store where hardware and software products are sold.
For reasons as various as its philosophy of comprehensive aesthetic design to its distinctive advertising campaigns. This includes a customer base that is devoted to the company and its brand. Also. Apple Inc Page 6 .48 billion in its financial year ending September 29. Apple ranked the number one among Fortune 500 companies for total return to shareholders over both the past five years (94%) and the past ten years (51%). 2008.Apple had worldwide annual sales of US$32. In 2008. particularly in the United States. Fortune magazine named Apple the most admired company in the United States. Apple has established a unique reputation in the consumer electronics industry.
functional PC and customers do not care too much who makes it. Apple is the most successful brand in the world. What Apple did from the start was match function with form. with the consumer’s perspective firmly in mind. it is simplifying it. Apple has some of the most loyal customers there are and Apple brand Apple Inc Page 7 . This is target market Apple focus. Instead of having to consider about modem speeds and random access memory. One of the main contributors. legends and individual philosophies. It appeals to people because. however. There is the large area which is cheap. Apple is not simply company. As a result. Apple is often mentioned a “cult brand” which makes different and takes risks also. people can choose their computers on the basis of aesthetics. in beautifying technology. the strong emotions they create are based on the attitudes they stand for as much as the products they represent. To illustrate. The risks. This love is result of revolutionizing the way viewing the technology sitting on our desks at work or at home. For instance. Apple is one of the few brands that genuinely inspire love. is building brand image. the iMac and iPod. On the other hand. That because Apple’s products have been designed from the outside in. according to an international online poll of marketers. the smaller area is people who are passionate about the products they use. named APPLE. The factor underlying this success is the high quality product. They want a computer that shows off their personality. The brand is built around myths. it represents something beyond business – something that strikes a strong emotional chord with consumers. which provides a stylish and human face to technology. have paid off. even love (Matt Haig 2004). the first concern of customer for iMac is about: What is my favourite color? Should I go for pink or blue or graphite? The words ‘megabyte’ and ‘hard drive’ are not appearing for most people. on the other hand. comfort. The cult brand Branding is an emotional process which involves inspiring trust. have more than compensated for such failures.Chapter 2: Critical success factors 1. desire. Computer owners include broadly into two areas.
four years in a row according to Business Week’s 2008 list of the world's 50 most innovative companies. survey questions include innovation metrics on process.worth of 13. Innovation is then “selecting and executing the right ideas and bringing them to market in record time. 2.” Apple Company is the World's Number One Innovative Company. The company demonstrated the power of viral marketing with Iphone to fans that can help to promote this product.000 global executives of the largest global corporations. Innovation products Increasingly. innovation today is “much more than new products. Apple believed that introduced new product also meant create a new culture. Apple knows that getting customer happy is better than anything else. That is why Apple has a string brand name and image that will be difficult to compete with and Apple’s constant innovation and product improvement make it difficult for other firm’s to stand out in the eyes of the consumer. Business Week proclaims "their creativity goes beyond products to rewiring themselves. Inherently. According to Business Week. corporate competitive success is hinging upon the product innovation. Innovation is a process by which new information is created." Business Week ranks the innovative companies based on the responses received from over 1.7 billion dollars following brand consultants Interbrand Thursday (Ed Sutherland 2008). To understand this process we conceptualize human beings not merely as information processors (Galbraith 1973). product Apple Inc Page 8 . innovation is the process by which new information emerges and is concretized in a product that meets human needs.” The ubiquity of the Internet and globalization of the business expand generation of new ideas. They do not see simply “customers” are customers. Apple inspires fans and followers more akin to a rock group than a computer company and they will discuss the brand in great detail on the internet forums.” Innovation is also “reinventing business processes and building entirely new markets that meet untapped customer needs. Just see what happen when Apple and viral marketing come in. and it is this information that is embodied in the product. but more importantly as information creators.
He made change in the executive leadership and the company’s advertising agency. the new millennium revolution beginning with the iMac in 1998. The leaders directly support the value-adding activities. Firstly. Steve Jobs. the reliable PowerBook introduced in 1991. the PDA named Newton that created a new industry of handhelds in 1993.and business model innovations. He quickly fired all but two of the previous board members and installs new ones. Jobs made the evolution of Apple management. Apple has created great innovations beginning with the first Apple computer in 1976 Graphical User Interface (GUI) along with the popular Macintosh introduced in 1984. Steve Jobs is Apple. iPod shuffle. Steve Jobs is the right man to lead Apple. He knew that improvement was impossible without the change of leadership so he immediately took action. which is central core of the organization. the new iBook hot on the heels of the iMac in 1999. 3. the new iMac with Intel core Duo processors and the new MacBook with Intel processors in 2006. Ability of leaders influences survival of company. So how have they can gain such huge success and became a giant in the electronics industry? We have to admire deeply their products innovative strategies. Excellent leadership Leadership is vitally important at all levels within the company. iPod mini. his return has made success for the company. the co-founder is the key success of Apple. The company was founded by him as leader and then the company fell on its face during the middle years of history (1986-1997) when they lost him. iTunes software and Music store service that changed the Music industry business model and made it easy for fans to listen and buy music piecemealed in 2003. iPod with Video and Mac Mini in 2005. the iPod that put an oomph in the MP3 players and essentially changed music as we know it in 2001. Leadership is the moral and intellectual ability to visualize and work for what is best for the company and its employees. visionary. There is never been anyone at Apple who had impact that Steve Jobs has had since his return. iPod (U2 Special Edition) and iPod photo in 2004. iPod Nano. responsible and genius leader. He issued discipline on Apple about the Apple Inc Page 9 . He is a demanding. When he came back to Apple as the role of CEO in 1997. from main board to the shopfloor.
the new discipline help Apple attract to more new brightest workers who bring Apple to success by their creativity. even through other companies had reject it. Jobs understood what will be the effect that the device could make. Today. made Apple’s workplace to be more effective with the co-operation of workers. The first two retail locations welcomed over 7700 people and sold the total of $599000 of merchandise during their first two-day weekend. In the October of 2001 Apple began introducing iPod and in the spring of 2002. On July 11. The launch of iPod made the most incredible success of Apple through 26 years of Apple’s history. The evolution of Apple management with the change of leaders and the issue of the working regulation made the workers’ belief and loyalty. Apple Inc Page 10 . 2008. Retail stores were located in high traffic place like malls to attract customers’ shopping in the environment. iPod sales were phenomena and have passed the company’s computer sales. It was consistent with his vision for creating a digital lifestyle. Supply chain management Apple retail strategy appears to be a key factor in its success. Apple operates more than 250 retail stores in nine countries and an online store. Apple has sold third party accessories. Apple sold more than 10 million units. This allows. 2001.quality that company had not had many years. Job is the responsible leader when he involved with the iPod is an indication of his leadership. He was involved in every single aspect of project to make it good as much as possible. for instance. On May 19. Apple held 75% of the world market of digital music player 4. Steve was visionary and responsible leader. team – oriented machine. Apple opened the first official Apple Retail Stores in Virginia and California. Jobs got it. The company that used to be known as the “ship that leaks from the top” was soon transformed into a tightly controlled. When an independent contractor and hardware expert named Tony Fadell approached Apple with an idea of an MP3 player and a music sales companies. Apple was making profit while other technology companies suffered. In the end of 2005. Jobs paid 100 percent of his time involved in iPod since it started. Ever since the first Apple Store opened. Nikon and Canon to sell their Mac-compatible digital cameras and camcorders inside the store. Also.
99 a song and integration with the iPod. with computer games for kids and a Genius Bar for their parents and so much cool stuff to touch that it's a magnet for young people Apple Inc Page 11 . The Apple Store could become a billion-dollar business for Apple and help Apple had become the third-largest mobile handset supplier in the world due to the popularity of the iPhone in 2008 The success of Apple also goes along with the opening of online store. Almost everything Apple makes transcends gender. the store sold 60 million applications and brought in $1 million daily on average. Within a month. age. An Apple Store is a demographic melting pot. S. 2008. The service quickly became the market leader in online music services. Apple's iTunes Store was introduced.. geography. In February 2008 the iTunes Store became the second-largest music retailer in the U. offering online music downloads for $0. and race. In 2003.Apple launched the Apple Store to sell third-party applications for the iPhone and iPod Touch. right behind Wal-Mart. with over 5 billion downloads by June 19.
but Apple has the strong brand name and innovation that is difficult for the competitors to overcome. Therefore. the expectation of market increased dramatically and distributors of BMW got so many orders from future customers who want to own this car even before seeing it. Whereas. Holding an iMac. Ten years ago people are walking around with Sony Walkman. but they want to belong. MiniCooper of BMW is one of similar example. you can bet Dell Company never said that about their computers.Chapter 3: Insights Apple is a technology brand like no other. the key success factors for Apple would be the extent of their product offerings. and has a long history of improving on their current products while constantly developing new ones. and MP3 players. Apple Inc Page 12 . After promulgated about this car. It like all cult brand. today they are using Ipod. Apple is the oldest hardware manufacturer. Apple products inspire strong emotions because the brand defines the identity of its customers. Company understands that people choose brands based on emotional responses. but it not sold to robots. a PC might me a machine. they are not using their computers that are simply another item of furniture. it seems like owning a Ferrari car says something about you. build expectation or forecast. May say there is no other tech company that possesses the kind of mind share and respect Apple does. impulse the holdings growth base on company brand name and increase productions investment. Apple has effectively taken the coolness factor to a max. it might as well be pleasing on the eye. With the edible name and the products “make you want to lick them”. And the order happened even before new product comes to the market. In my opinion. people want to be different. They know what a good looking product should look like and they have a good handle on what the world wants. a collective individuality. are design icons. Apple holders. such as the legendary iMac. Competitors such as Dell are now also offering peripherals. Moreover. It has taken the fear factor out of technology by giving it a personality. Apple’s computers.
not only occupy the biggest part of market share. The iPhone featured the largest screen (8. Apple’s iPhone innovation strategy is of huge importance to Apple. In 2001. 320x480) of any standard-sized cell phone. An open mind and ability to put new twists on old technique was one of the key distinguishing factors between Jobs and his competitors like Dell leader or IBM leader.9cm diagonal. and instead uses a touch screen for dialing and other input functions.From Apple I personal computer to iPhone for over 30 years. he did not follow this. while other computer manufacturers were pursuing PDAs. there is a belief in Apple’s culture that is on the absolute belief in products innovation. with an iPhone-specific user interface that’s claimed to match the ease of use of the Macintosh and iPod. who is the excellent leader. Macintosh. Such as compared to earlier generations of cell phones. He did not like other previous CEOs only focus on sales and financing. the main difference in the iPhone’s features was the screen. iPod and the iPhone. To make room for the larger screen. He is a encourage leader who keep his eyes and ears open and had the courage to seize new opportunities as they come along. of which the best known are the Apple II. Apple Company has introduced a series of innovative products that changed the electronics industry. Under this screen was a stripped-down version of Apple’s Unix-based OS X operating system. PDAs (1993) and portable music players (2001). “Think different” help Jobs make his products unique and available to the market effectively. The company has combined product innovation with industrial design and clever marketing to gain a reputation far out of proportion to its size or market share. Apple incessantly to invest substantial funds to research and development new products so that their products become a fashion trend and influence more young people uses them. the phone deleted a dialing keypad. We can say that any product from the Apple wins the market wherever it appears although their price much higher than others. Steve Jobs is the key lead Apple to success. Over the past decade. especially in product marketing and innovation. but also marking only its fourth industry entry after personal computers (1977). Jobs was out to prove any way he could do to satisfy your needs. In addition. Many of the strategies are dictated by the core competencies that the company has acquired over its thirty year history. he decided to turn Apple from just only focus on computers in the past into focus on digital music player Apple Inc Page 13 . If you dreamed of changing the world. Jobs work to ensure Apple a place at the top of market next coming years.
of course. 6 mp3 player. Other companies create the store quite small and not colorful while colorful Apple stores are set to be around 6000 square feet and will carry Apple hardware and third-part software.market. retail stores can become the key success of Apple because it can meet customer satisfaction. pay for repairs if they have not purchased the AppleCare extended warranty. Apple stores are attractive to customers. customers to avoid confusion over what the rights they choose with Apple consider 6 best options of third-party products in each peripheral category: 6 cameras. the other side of the river is coming to us". Also we can recognize that in Apple stores. So it's not like we have to cross the river to go somewhere else. Unlike many other companies' policies. Finally. Apple Inc Page 14 . where consumers cannot even talk to tech support if they are out of warranty or they do not have an extended support plan. "The place where Apple has been standing for the last two decades is exactly where computer technology and the consumer electronics markets are converging. 6 camcorders. Steve Jobs said. and 6 handheld organizers. Customers must. any Apple customer can bring a machine into the store and get a free diagnosis. We can identify that Apple retails are successful as we can compare Apple store to other companies’ store.
The supply chain management also is the Apple big advantage. which in turn forces them create new markets and large quantities of its products to fulfill the demands of its target markets. there are over 2. Steve Jobs who is excellent visionary leaders and work to ensure Apple a place at the top of market next coming years. this has not paid off. so can it around the world. large and the “top of the rank” computer companies like Apple continuously keeps on increasing its research and development. Apple is one of the best companies in the world at supply chain management and logistics. For example. so there would be one supply chain group for the whole company with the special design and effective staff and operation. In Apple. Thirdly. it may be more difficult to predict and then recover from. Apple spends a few hundred million a year on advertising and has one of the most recognizable name brands in the world. Apple has CEO. Apple is a pretty good new product company. as we know that the computer industry is one of the fastest growing industries globally. Current problems of Apple There are some competitive advantages of Apple: Firstly it is cult brand names. As following “cult brand”. even Apple also seemed confused about the function of the product when ran adverts “ What is it”. Just as political changes and consumer taste can change here in the United States.Chapter 4: Recommendations 1. to have customer loyalty and gain competitive advantage. In the international market. Apple has the stable finance statement with over $4 billion in the bank. Apple Inc Page 15 . A risk associated with focusing on the international market is again. Furthermore. However. Apple has taken a risk on practically every product it has made and sometime. the Apple Newton “personal digital assistant” failed because of the remarkably for an Apple product makes customers confused. retail strategy. Globalization itself has increased competition against each of the computer companies to strive their best towards their target markets. it is new product pipeline.000 folks in our engineering groups who work on new and exciting products. unpredictability. Due to this reason. The retail stores would be viewed as extra warehouses in the current system. the company has the necessary financing to expend the product system and marketing. Secondly.
Yet. the use of the low price licensing strategy by Microsoft enabled it to achieve adoption for a variety of manufacturers and hence to create a virtual standard. Apple had launched Macintosh which is a promise of making its position strongly and gaining proprietary benefits. Microsoft Windows was launched in 1985). Apple did not realise that Microsoft was a close follower and ready to launch the Microsoft Windows which had similar characteristics to MacOS and would reduce the point of differentiation of Apple’s Graphical User Interface (GUI) that Apple intended to use for gaining superior benefits (Apple Macintosh was launched in 1984. there will be a required margin of differentiation in order create separate needs and target markets. Furthermore. This would make pressure on Apple whether it can keep coming out with popular product like iPod and iPhone because some fear that lack of clarity would affect the company in many ways. the MacOS failed to take off as quickly as Microsoft Windows. Continuing the strategy of not licensing MacOS to Orriginal Equipment Manufacturer (OEM). Furthermore. the strategy of not licensing constrained the growth in the installed base of Apple machines. In addition. Jobs is also an elite products developer whose name is on the patents for iPhone and iPhone 3G smart phones. According to many analysts. In term of pricing strategy. The strategy of not licensing also reveals that Apple overlooked the importance of speed in using other PC manufacturers’ distribution capability to bring the innovation to market. lowered Apple’s capability to compete and limited the potential to create a business platform whereas Microsoft could create both technology platform and business platform.Moreover. It is likely true that Macbook Air had announced as lightest and slimmest laptop in 2008. Once. Apple Inc Page 16 . Apple has lost competitive advantage. Apple had made a revolution in the Smartphone market. the risk in Apple using the broad differentiation strategy is that competitors can imitate what they are doing. and also that consumer’s tastes can change. Consequently. its revenue is not as high as Black berry. The selfreinforcing effect was evident in that the pursuit of low price licensing strategy to the PC manufacturers led to the growing installed base of PCs running Microsoft Windows operating system. RIM ranks the top position and make a further distance to Apple. Although. Apple has no product blockbuster to make after the launch of its iconic device 3G iPhone. this year’s Trade show was witnessed as no big unveiling. As a result.
5 percent in the third. other competitors of Apple give good offers for their consumers who can download free many songs they would like. analysts fear that share price will be tumble. long enough that consumer demand and expenditure become extremely weak. and recently are iPod and iPhone cult. Notebook sales have been very strong and represent a large contribution to income. They must also be able to retain customer loyalty which has contributed to their success. Apple Inc Page 17 . Particularly. Apple has also been under pressure from the music industry to increase prices on iTunes. Once in case Jobs products are ineffectiveness or he is not back at the helm. so to speak.Finally. These are the reasons of distinguishing Apple products from others competitor. On the other hand. Apple must continue to develop new products as well as improve on their current products in order to remain competitive and achieve growth. we can see the fervent devotion of Jobs for his company – the Mac faithful. Recommendations The concern is that what Apple should do to overcome these problems? There is a trend toward the notebook computer and away from desktops PC’s. One mention relates directly to the iPod and iTunes. A tough time for Apple has been not only the sudden absence of Jobs but coming with the troubled economy in America. consumers have to pay $. Many people say that Apple is Steve Jobs who is an excellent leader. Apple’s share of the US computer market fell to 8 percent during the fourth quarter of 2008 from 9. Currently. Apple may develop and focus on their version of the laptop in order to keep up with this trend. During almost 33 years since 1976.99 for a song or typically $9.99 for an album through iTunes. The economy has fallen far enough. According to a recent report from research firm IDC. one of the biggest challenges for Apple as well as the interim CEO is Steve Jobs. They might have to completely reconsider their pricing strategy in order to try to satisfy consumers as well as the music industry. That is why there is a big amount of consumer not interested in that. 2. for downloading songs. Apple is leaving money on the table. Apple has decreased from third to fourth rank in the US computer market share.
the company could exploit the potential market segments such as China. Apple seems to have nailed it when it comes to the MP3 player market and can possibly create a strong brand name from that in the international market. Vietnam. Apple Inc Page 18 . in the next year. Apple could aim to attract more new consumers and expect that they would be interested in other Apple products in long term. and Thailand. there is plenty of room for growth. consumers will be satisfied by new products which are considered as further and longer paces than its rivals. thereby Apple should implement internationally strategic plan. Hopefully.With this adaptation. Furthermore. Hence. with very low market share internationally.
Chapter 5: Conclusion In technology industry. Apple has seen success and growth in the past two year in the architecture. Apple can be called as a leading computer and entertainment products nowadays which is still able to make great money on their excellent products. Basing on all advantages in the whole market like that. In order to continue with rapid growth both on American soil and beyond. Apple Inc Page 19 . and construction industries. Apple is more and more successful when continue to push more innovation products to the market. engineering. Apple may focus on distinguishing themselves with top of the line products and services.
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