APPLE INC.

( MBA 660 USM)

Presented By:
Jennifer Cao
Mercy Antony
Tejal Sinora
Lashunda Price
Logan Tisdale
 “Change the World through
Technology”
• April 1976, Apple Computer, Founder Steve Jobs
• Industry: Computer Hardware and Software,
Consumer Electronics
• 1984, Macintosh
• Sculley- Mac with new features
• Amelio- Return to “Premium Price”
• Jobs back-Apple Turnaround
 Current Scenario
• Sales
 Current Issues

Steve Jobs
 Current Issues
1Q Market Share08

Low Market Dell

Share HP
Acer
Apple

6.6% Toshiba
Others
 Opportunities
• Fast growing Industry (Customer Electronics
Industry)
• Technological Innovations
• Extend new products to loyal customers
• High Potential music phone market
• Strategic Alliances
 
 Big Move
• Jan 2007- Apple Inc.
• CE Industry
 Competitor Environment
• High Competition
• Share of Dell and HP
• Microsoft and Intel-Leaders of Software
• CE Industry- Sony, Nokia, Samsung, Cisco,
Motorola
Competitor Environment
 Threats
• Extensive Competition
• Substitute Products
• Low prices of Competitors
• Technical Advancements
• Economy downfall
Five Forces Model
 Strengths
• Branding
• Innovation
• Differentiated Product
• Ease of Use
• Superior Quality
• Retail Strategy
 Strengths

• Marketing and Sales

• Customer Loyalty
• Online Sales
 Weaknesses
• High Price Proprietary System

• Niche Market, Less Penetration

• Cannibalization
 Core Competencies

• Differentiation Strategy

• Value Creation
 Differentiation Strategy
Sustainable Competitive
• Unique Features and characteristics Advantage
• Commands Premium Price
• High Customer Service
• Superior Quality
• Prestige
• Rapid Innovation
 Value Creation Process
Apple I,II,III
Mac

FF

Focus On Education

C
o eMac
n
v Music Strategy (iTunes)
e
r Lifestyle Strategy
Video Strategy (iMovie) Adding Value
g
e
n Internet Strategy (iTools) Digital Hub
c iMac
e
 Technology Development

New Product Ideation

Designing/ Funding Product Creation Diffusing products
across company
 Value Chain

Inbound Logistics
Operations Distribution Sales and Service
Marketing
 Apple’s Strategy
• Apple employs a Product Differentiation
• Drawbacks as a result of their strategy
include:
– Not appealing to Price Conscious Consumers
– Risk of Imitation by Competitors
– Risk of Change in Customer Taste
Apple’s Problems
 Strategic Alternatives
Problem Strategy Alternative
Low Market-Share Price Extend their
Differentiation current product
line to include
some products
with a lower price
point.
Ex. Re-launch
“Mac Mini”
 The Strategy
Two Fold Agenda

• Continue to focus on niche market

• Set up for Job’s replacement
 Market Share
• Consistently low share
• High success in niche market
• Brand differentiation
 Previous CEOs
• Ups and Downs of their own
• Established Identity of Apple
• Jobs’ success rate
 Focus
• Concentrate on current customers
• Expand niche market
• Use iPod as gateway
 Replacement Plan
• One year planning phase
• Jobs appoints successor
• Two year mentoring phase
• Chief advisor position
Questions????