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Apple Inc.

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About company
April 1st,1976 - Founded January 3rd,1977 - Incorporated Headquarters - Cupertino, California Co-founders - Steve Jobs, Steve Wojniak


3. i Life. Cinema Display etc. Consumer Electronics . i phone. i Work.399 temporary (March 31. i pod hi-fi.19.Quick Time.Mac OS X.787 full-time . IBM.HP.Mac(personal computer series). New York) Competitors .2007) Retail stores . Apple TV Employees .i pod. Logic pro.183( 1st in Manhattan.Apple Remote Desktop Software . Mac OS X Server . DELL 9/12/12 .PRODUCTS AND FIGURES Hardware .

through the years it focused on the PC business and developed applications for their own Macintosh computers. . to only controlling a small share of the industry after several circumstances which left the company in crisis. Apple started making computer circuit boards and followed that with an easy to use computer in 1978.Introduction In 1976 Steve Jobs and Steve Wozniak founded Apple Computer Inc. still Apple is a successful business due to its other products and 9/12/12 its Macintosh computers are still profitable. They created laptops called the MacBook in 1994 and even entered the MP3 player industry with the iPod brand in 2001 and more recently the mobile phone industry with the iPhone in 2008. Through the years Apple has changed from being the world’s largest producer of PC’s controlling almost the entire market at the beginning of the 1980’s. together with a group of 20 other people and started out in Steve Jobs garage. Its market share had declined significantly to a current 3% market share.

Industry characteristic 9/12/12 .

Everyday new and innovative products flood the markets. HP. Acer and Lenovo. The major players of the industry are Dell. There is a high entry barrier due to the standardization of the PC components. Apple. 9/12/12 If any new players wish to come into .External environment The industry has a fast growth. From mobile phones to laptops there is a new product advertised almost every week.

These suppliers are hard to switch due to dominant production of such 9/12/12 .External environment Suppliers They are powerful. There are only a handful of companies like Intel and Microsoft which manufactures microprocessor and operating systems (OS).

Companies like Acer and HP acquired Compaq are already competing with Apple and other companies with notebooks on the basis of cost.External environment Substitutes Substitutes for most of the products are easily available at a lower price. 9/12/12 . There is high competition due to high industry growth.

small and medium sized business. corporate.External environment Consumers Categorized as home. education and government. Buyers are mostly not concentrated they have less bargaining power for prices and models. Buyers do have a high switching cost which discourages them from buying a 9/12/12 .

External environment Exit barriers Exit barriers for this industry are high. There is a lot of capital requirement to establish a firm inside the electronics and PC industry. very . There is a chance of exit becoming almost impossible due to strategic interrelationships between these firms. Technological changes in the industry are 9/12/12 fast.

The innovative products like iPod and iPhone have been very successful in potential music market.Internal environment Apple Inc. makes a difference in the PC industry through its innovative product design and high standard applications. 9/12/12 . Apple keeps it Price strategy different from its competitors which give computers and other entertainment devices at low cost. The “integrated system” of computer was its differentiated strategy which presented the Macintosh along with its own Operating System (OS).

The Apple has been giving “Plug and Play” solutions.Internal environment Core competencies The Core competencies responsible behind the success are mainly the “Unique resources” and “Differentiation strategy”. Apple has a “Think Different” motivation and it believes in “Value 9/12/12 .

Value chain analysis 9/12/12 .

Horizontal & Plug and play i-tunes gives vertical solution a major edge integration Complete bundle of application OS more secure. and less prone to virus attacks Apple's retail experience . .Value chain analysis Alliances with Design & major innovation suppliers Linkages with Technology independent driven software vendors Collaboration with other leaders. 9/12/12 i-pod i-tunes combo gives brand awareness a push. new mac consumers bought more.

other MP3 players.). Apple created a virtual love affair with their customer base by delivering technically superior products (iPods vs. etc. Macs vs. PCs. .Value chain analysis Customer Service: Apple believes in keeping a place in customer’s heart. and aggressively pursuing hardware 9/12/12 and software updates. the customer loyalty is a great strength to the company.

Porter’s 5 Forces Model 9/12/12 .

provided Apple with the opportunity to improve their IPhone’s technology. Apple’s premium-price or product differentiation strategy as well as their retail strategy have proven to be essential to Apple’s past and will continue to play a vital role in Apple’s future. Apple’s successful alliance with AT&T. as well as. Apple was able to the lower the IPhone’s price to consumers.ASSESSMENT OF APPLE’S STRATEGY First. up-grade the iphone’s network coverage Apple entered into partnerships with YouTube and 9/12/12 Google in order to provide their iPhone .


What Apple found was that the sales of the Mac Mini were 9/12/12 .ASSESSMENT OF APPLE’S STRATEGY In regards to Apple’s low market issues. this strategy has been tested before with the Mac Mini. However. an alternative would be to add a product with a lower price point to Apple’s current product line.

SWOT Analysis Strengths: Brand awareness/halo effect from iPod to the PC Innovation Differentiated product Integrated Product (Computers + OS) Ease of Use 9/12/12 Technically Elegant Products .

SWOT Analysis Weaknesses:  High Priced Proprietary system No Customization Lack of Compatibility Cannibalization 9/12/12 .

SWOT Analysis Opportunities: Fast growing Industry (Customer Electronics Industry) Technological Innovations Extend new products to loyal customers High Potential music phone market 9/12/12 Strategic Alliances .

SWOT Analysis Threats: Extensive Competition Substitute Products Low prices of Competitors Technical Advancements Economy downfall 9/12/12 .

Strategic advice Licensing of Mac software to other PC makers Have long term contracts with corporate to increase market share by selling them bulk PCs at discounted prices. Another option to regain market share would be to lower the prices of the PC’s and at the same time try and retain the 9/12/12 quality of the products as this is .

Thank you 9/12/12 .