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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

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PRODUCTS AND FIGURES


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

Introduction
In 1976 Steve Jobs and Steve Wozniak founded Apple Computer Inc. together with a group of 20 other people and started out in Steve Jobs garage. Apple started making computer circuit boards and followed that with an easy to use computer in 1978, through the years it focused on the PC business and developed applications for their own Macintosh computers. 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 worlds largest producer of PCs controlling almost the entire market at the beginning of the 1980s, to only controlling a small share of the industry after several circumstances which left the company in crisis. Its market share had declined significantly to a current 3% market share, still Apple is a successful business due to its other products and 9/12/12 its Macintosh computers are still profitable.

Industry characteristic

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

External environment

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

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

External environment
Consumers
Categorized as home, small and medium sized business, corporate, 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. 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. very

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

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

Value chain analysis

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Value chain analysis

Alliances with Design & major innovation suppliers Linkages with Technology independent driven software vendors Collaboration with other leaders.

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 , new mac consumers bought more.

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i-pod i-tunes combo gives brand awareness a push.

Value chain analysis


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

Porters 5 Forces Model

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ASSESSMENT OF APPLES STRATEGY


First, Apples premium-price or product differentiation strategy as well as their retail strategy have proven to be essential to Apples past and will continue to play a vital role in Apples future. Apples successful alliance with AT&T, provided Apple with the opportunity to improve their IPhones technology. Apple was able to the lower the IPhones price to consumers, as well as, up-grade the iphones network coverage Apple entered into partnerships with YouTube and 9/12/12 Google in order to provide their iPhone

ASSESSMENT OF APPLES STRATEGY

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ASSESSMENT OF APPLES STRATEGY


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

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

SWOT Analysis
Weaknesses:
High Priced Proprietary system No Customization Lack of Compatibility Cannibalization

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

SWOT Analysis
Threats:
Extensive Competition Substitute Products Low prices of Competitors Technical Advancements Economy downfall
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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 PCs and at the same time try and retain the 9/12/12 quality of the products as this is

Thank you

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