BUS 890: Strategic Management

(Communication Equipment Industry) ------------------

Group #10: 1. Binh Thieu 2. Lan Phan 3. Minh Thu Luu 4. Tung Duong

What is the one item you never leave home without?

Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis

Industry Analysis – Smartphone 1. Why does it matter? 2. Driving forces 3. Dominant features 4. Five-Forces model 5. Strategic group map 6. Key Success Factors

Company Analysis – Apple's iPhone 1. Company Overview 2. Value Chain Analysis 3. SWOT Analysis 4. Competencies 5. Business Analysis 6. Competitive Strategy

Competencies

Strategic Recommendations

Business Analysis Competitive Strategy Recommen dations

   entertainment install programs. along with using a mobile phone in one device Competencies Business Analysis Competitive Strategy Recommen dations . internet store information.Outline Industry Analysis Why? Driving Forces Smart-phones Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis allow users to:   e-mail.

Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Products • Provides new capabilities & applications at anywhere and anytime Technology • Business tools to cool items for entertainment • Google – the next powerful entrant • No sign of major firms exiting • Although 3G still fresh. talks of 4G already on the way Competition Competencies Business Analysis Competitive Strategy Recommen dations Innovation .

palminfocenter. Source: http://www.com Competencies Business Analysis Competitive Strategy Recommen dations .Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis  Market size and growth rate  Number of rivals  Product Innovations  Learning/experience curve effects Total Mobile Sales: .Mobile phone sales to exceed 1billion in 2009 .More than 200 million smartphones will be sold in 2008.

Corporate market Buyers Weak 1. OS providers Linux. Consumers market 2. Features phone Nokia. Strong brands and finance Competencies Business Analysis Competitive Strategy Recommen dations . PDA phone Palm… 3. More companies enters… 2. LG … Substitute Products Emerged Industry Rapidly Emerging Suppliers Strong 2. Software giants: Google. Establish mobile manufacture: LG.Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis 1. VoIP Skype… 1. Hardware makers Intel … 1. MSFT New Entrants Threat Rivals Strong 1. WM… 3. Carriers AT&T … 2. Samsung 2.

wikinvest.com Strategy Group Map Key Success Factors Company Analysis Apple RIM HTC Overview Value Chain Analysis PALM Samsung Nokia Motorola SWOT Analysis Competencies Business Analysis Competitive Strategy Recommen dations .Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Source: www.

Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies Business Analysis Competitive Strategy Source: http://blog.com Recommen dations .bryanstarbuck.

part of it is technology. faster.Internet driven force .Well-know and well-respected brand name .Outline Industry Analysis Why? Driving Forces Consumer-oriented Factors Technology ------------------. more convenient than the alternatives) .A strong network of wholesale distributors/ dealers .Value added (cheaper.Fast introduction and application of services Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies Business Analysis Competitive Strategy Recommen dations “This is a difficult industry.Market segmentation . part of it is fashion…” .Targeting and Pricing effectiveness Skill and Capability ------------------.Design and innovation expertise Distribution -------------------.Next generation experience Dominant Features Five Forces Strategy Group Map Marketing ------------------.Replacing communication tools .

Outline Industry Analysis Why? Driving Forces Apple Timeline Jobs became chairman Jobs back as "interim CEO" in 1997 iPhone launched 6/29/2007 iPhone 3G hit market 7/11/2008 Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Founded (4/1/1976) IBM released its first PC Introduced Macintosh 1975 1980 1/1/1977 incoporated by Steven Jobs & Steven Wozniak 1985 1990 1995 2000 2005 2010 iApple ? Overview Value Chain Analysis SWOT Analysis Jobs left Apple Apple was in trouble 1990s iTunes unveiled iMac released iPod went to life 2001 Competencies Business Analysis Competitive Strategy Recommen dations .

creative professionals and consumers around the world through its innovative hardware. software and Internet offerings. 2. and not subordinate to them" Industry: Computer software & hardware Consumer electronics Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies 1. Business Analysis Competitive Strategy Recommen dations . As such he should be above systems and structures." Vision: "Man is the creator of change in this world.Outline Industry Analysis Why? Driving Forces Mission: "Apple is committed to bringing the best personal computing experience to students. educators.

stainless casings Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies US – Facilities of touch screen.com .Outline Industry Analysis Why? Driving Forces Supply chain Operation Distribution Sales and Marketing Service Dominant Features Five Forces Strategy Group Map Key Success Factors China – Shenzhen Assembly Facility Taiwan – Facilities of camera. circuitry.shmula. processing chips Business Analysis Competitive Strategy Recommen dations Source: http://www. connectors. specific parts Singapore – Facilities of CPU.

can add new features  3G Apple iPhones to captivate business demand worldwide Competencies Business Analysis Competitive Strategy Recommen dations Source: http://www.Outline Industry Analysis Why? Driving Forces  Sharp rise in consumer demand  Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis 56% of smart-phone buyers prefer iphone  New target market – price reduction attract more customers  High Potential Software – upgradable.com .linuxdevices.

Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors   New powerful entrant .Google Many similar or substitute products  Company Analysis Overview Value Chain Analysis SWOT Analysis Intense competition with major rivals  Increasing bargaining power of buyers Competencies Business Analysis Competitive Strategy Recommen dations .

com .Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces   First mover advantage Ownership of technological patents Strategy Group Map Key Success Factors Company Analysis Overview  Apple is one of the most established brand Value Chain Analysis SWOT Analysis  Customers loyalty  Cultural. fashion identity Competencies Business Analysis Competitive Strategy Recommen dations Source: http://www.appleinsider.

Content Provider.Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis  Dependence on third party provider:  AT&T. Application provider  Less  appeal to corporate customers Technological complication  Gorilla arm Limitation of particular features Competencies  Business Analysis  Application slow down and freeze Competitive Strategy Recommen dations .

 User interface of consumer gadgets and computing devices  Intuitive design.App store and Apple devices.Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis  iTunes : Synchronization between the iTunes . easy-to-use and self-discoverable Competencies Business Analysis Competitive Strategy Recommen dations .

com Recommen dations .Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Users’ experience Competencies Business Analysis Competitive Strategy Source: http://blog.wired.

7 billion in cash. and could have $40 billion in 2 years iPod 36% Mac 59% Revenue Contribution Q2/2008 Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis PROFIT MARGIN Apple has recently doubled its net income 8000% 7000% 6000% 5000% 4000% 3000% 2000% 1000% 0% 2008 2007 2006 2005 2004 2003 Competencies Business Analysis Competitive Strategy Recommen dations Profit margin Source: http://www.Outline iPhone 5% Industry Analysis Why? Driving Forces Dominant Features Five Forces Apple may well pass Microsoft.businessweek. which has $23.com Net income Net sales Data: Standard & Poor’s .

com .Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies Business Analysis Competitive Strategy Recommen dations Source: http://www.artechnica.

Outline Industry Analysis Why?  Broad-Differentiation Strategy  Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Offer more products to a broad of buyers  Deliver value to customers by differentiating  Focus-Differentiation Strategy  Value Chain Analysis SWOT Analysis A narrow market niche with unique needs Competencies  Premium Price to target high-end consumers . business market Business Analysis Competitive Strategy Recommen dations Source: Textbook .

alliances.Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Expansion: M&A. partnership… Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies Business Analysis Competitive Strategy Recommen dations __APPL-IZATION__ .

Apple Q2 2008: Mac sales surge. Retrieved August 11. Retrieved August 11. iPhone not so much.com/journals/apple.shmula. from http://blog. Retrieved August 11.vibgior. Business Week.com/?p=17      . 2008.7.ars/2008/04/23/apple-earnings-mac-sales-surgeiphones-not-so-much Bryan Gardiner (2008. 2008.html?chan=top+news_top+news+index_news+%2B+analysis Peter Abilla (2007.com/magazine/content/08_32/b4095000656875. Peter Burrows (2008.wired.com/business/2008/04/the-smartphone.16). Business Week. 2008.businessweek. from http://technomix.30).10. 8.htm?chan= magazine+channel_news Olga Kharif (2008.4. from http://arstechnica. 3 more ways Apple will take over the world. 2008.com/the_thread/techbeat/archives/2008/08/that_iphon e_nan. Vibgior Technomix. from http://www. Retrieved August 11. The Apple iPhone Supply Chain. Retrieved August 11. How to spend Apple’s cash. That iPhone Nano rumor.html Santhosh Paramesh (2007. Retrieved August 11.18). Ars Technica. Shmula.4).1).com/304/the-apple-iphone-supply-chain Charles Jade (2008.1. 2008.4.23). The smartphone smackdown: who satisfies customers best? Wired. from http://www. from http://www. 2008.businessweek.