APPLE

STEVE JOB,
(as an
entrepreneur)

EDUCATION CAREER OF STEVE JOBS

Steve job attended Cupertino Middle School and Homestead Hi gh Sch ool , b oth in Cup er t ino, C ali forni a,USA . He attended after school lectures at the Hewlett-Packard Company, where he was later hired. He worked there with Steve Wozniak as a summer employee After high school, he attended Reed College in Portland, for one semester, and then dropped out Two years later, in 1974, he started going to meetings for the Homebrew Computer Club with Steve Wozniak in California

Jobs took a job at Atari, a popular video game company, as a technician, hoping to save enough money for a spiritual retreat to India
He came back from the trip, head shaved, wearing traditional Indian clothing, and ready to go back to Atari.

Steve job and wozniak

He was given the job of creating the circuit board for the game Breakout, and $100 for each chip he could reduce. He gave the job to Wozniak, who created a design so tight, the assembly line couldnt do it, and reduced the design by 50 chips.
After he saw wozniak cretivity and talented work and his passionate towards electronic theories he realised to start computer company (and ready to take risk in those days).

History 1976-1978

Steve Wozniak and Steve Jobs form the Apple Computer Company on April Fool's Day on 1976 in GARAGE.
Wozniak and Jobs finish work on a preassembled computer circuit board. It has no keyboard, case, sound or graphics. They call it the Apple I.The Apple I board is released for sale to hobbyists and electronics enthusiasts at the price of $666.66. Apple's first formal business plan sets a goal for sales to grow to $500 million in ten years. As it turns out, the company will pass that mark in half the time. Apple I computer boards are sold through 10 retail stores in the U.S. Apple moves from Jobs' garage to a building on Stevens Creek in Cupertino, California. The new Apple II is unveiled at the first West Coast Computer Fair. It is the first personal computer able to generate color graphics and includes a keyboard, power supply and attractive case . Regis McKenna Advertising launches its first ad campaign for Apple. Although advertising is initially aimed at electronics enthusiasts, Apple will soon become the first company to advertise personal computers in consumer magazines.

STEVE JoB n WOZNIAK

Monthly orders reach a $1 million annual sales rate.

Jobs has been giving inspiring presentations for decades. In 1984, Jobs unveiled the first Macintosh. The launch remains one of the most dramatic presentations in corporate history.

1976

1977

Present apple logo The idea fell from a tree, literally. Steve Jobs had returned from visiting a communelike place in Oregon located in an apple orchard. Apple co-founder and Jobs pal, Steve Wozniak, picked him up from the airport. On the drive home, Jobs simply said, I came up with a name for our companyApple. Wozniak said they could have tried to come up with more technical sounding names but their vision was to make computers approachable. Apple fit perfectly.

Steve Jobs was the founder and inspiration for the Apple Company, but he was slowly pushed out for aggressive and underhanded tactics Employees said he had a temper, and was usually stubborn After an internal power struggle, he was eventually kicked off the board of directors Jobs protested and resigned, even though he stayed the chairmen for some time. He was so upset, he sold all but one of his Apple shares During this time, Jobs bought what became Pixar from Lucasfilm for $5 million He also started the computer company NeXT Computer Though it never went very mainstream, due to high costs, it was responsible for many important innovations, including NeXTMail, Jobs email program that supported embedded graphics and sounds and the original World Wide Web system(www)

Steve is in the Guinness Book of World Records as the "Lowest Paid Chief Executive Officer, with a salary of just $1. However, gifts like a $46 million jet and just under 30 million shares of restricted stock make him very well off to say the least Pixar, which Jobs bought in 1986, has been responsible for films such as Toy Story, Finding Nemo, the Walie and The Incredibles etc. Relations with Disney were getting tough, though, and Jobs announced that they would find a new partner in 2004. But, when Eisner was replaced by Bob Iger in 2005, he improved relations, and Disney bought Pixar for $7.4 billion. This made Steve Jobs the largest single shareholder of the Walt Disney Company, with 7% of the stock By this we can say that Steve JOBs is not only a Innovator..but he is also good ENTERPRENEUR. He all together started three companies which redefines the world thinking process and Revolutionised the IT industry as well as ANIMATION field.

JOBs RETURN TO APPLE

Apple bought NeXT in 1996, bringing Jobs back to Apple When the CEO in 1997, Gil Amelio, was thrown out, Jobs took his place To show how profitable he could make Apple again, he released a number of new items like the Newton, Cyberdog, and OpenDoc. He invented the i-pod and world thinnest notebook MAC BOOK AIR.(now this is called CREATIVITY) The coming years brought many new products, including Mac OS X, the iMac, the iTunens,i-tv...

Creativity is just connecting things.

-Steve jobs

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 pad hi-fi, i phone, Apple TV

Employees - 40,787 full-time ; 3,399 temporary (March 30,2010)

Retail stores 230( 1st in Manhattan, New York)

Competitors MICROSOFT,HP, IBM, DELL, nokia, sony ericsson ,phillips etc.

Apple II, 1977)

It had 1st floppy disk drive

Apple III, 1980

Lisa,1983

MAC,19 84
Apple I(april 1st 1976)

C o n v e r g e n c e

VARIOUS PRODUCT CYCLE

Apple tv, 2007 i-phone, 2007

Power Book (1st laptop 1991)

Focus On Education

iMac, 1998
iPods (2001)

i-pad,2010
Lifestyle Strategy Digital Hub

Music Strategy (iTunes) Video Strategy (iMovie) Internet Strategy (iTools)

Adding
Mac book Air-worlds 1st slimmest notebook,2006

values Mac pro, 2004

VISION AND MISSION

VISION Man is the creator of change in this world. As such he should be above systems and structures, and not subordinate to them. MISSION Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and internet offerings.
Steve Jobs has never underestimated the power of vision to move a brand forward. In 1976, Steve Wozniak was captivated by Jobs vision to put a computer in the hands of everyday people.

LEADERSHIP ROLES IN DEVELOPING APPLE

Opportunity Statement
Apple Inc.currently operates in highly competitive and highly technological driven consumer electronics / computer industries. There exists opportunities to further leverage the intellectual capital and brand image along with new digital business strategies to create new sources of sustainable competitive advantage within Apple Inc.
Significance to Leadership Expected Outcomes

Discovery of untapped resources -More dedicated and loyal customer base -Higher profit margins -New sources of Sustainable Competitive Advantage

Greater customer share Increase in profit margins Sustainable competitive advantage It should give more stress to follow SIX SIGMA method.

SWOT ANALYSIS
internal factors
STRENGTHS One of the oldest hardware manufacturers. Control over the product. High price

WEAKNESSES Focusing on internal engg. more than marketing

High quality product.

It doesn't give franchises. Easy to carry products Lack of succession planning Not issued dividends Product diversification

Huge consumer base loyal to apple

SWOT ANALYSIS
External factors
OPPORTUNITIES Less expensive new product lines with quality. Product line is functional and attractive. Flexibility to its users. ipods are able to communicate. New car models with ipod connectivity. THREATS Pressure from competitors.

Substitution effect
Technology changes at a rapid rate. Forced to develop new products.

PORTERS FIVE FORCES MODEL

New Entrants
Threat of new entrants

Bargaining power of the suppliers

Supplier

Existing rivalry in the industry

Customer Bargaining power of buyers

Substitute products & services

Substitutes

EXISTING RIVALRY
Windows OS and media player for playing music and video ( Microsoft is t h e b i g g e s t R I VA L ) Competition to Mac OS X (Linux)

THREAT OF NEW ENTRANTS

Streaming audio and video with v-cast (Verizon) On demand online services (similar to itunes)

Alternate sources of computer hardware (Dell, HP, Lenovo)

Small stylish MP3 players (Creative, Samsung,sony etc.) Online music stores similar to that of itunes stores(lime wire.etc are free of cost)

New entrants with disruptive technology (The next google)

BARGAINING POWER OF SUPPLIERS

Suppliers of processors and computer memory (Motorola, IBM, Intel) Strategic alliance/supplier of Mac (Microsoft) Supplier of tv and movies (Disney, ABC, Fox, Sony) Sources of music (BMG, Sony, Warner, Universal)

BARGAINING POWER OF CUSTOMERS

Customers share music using peerto-peer networks without paying money for music (Ares, Limewire) Retailers may pressure for lower prices or better terms (Distributors) Consumers/Businesses may reduce spending on computers if they fear economic downturns (Consumer Attitudes & Behaviors) Consumer Refresh Cycles Satellite radio for music (XM, Sirius) Entertainment media, media and music (XBOX, PS2) Alternative means to acquire music (Music CDs, DVDs) Alternative sources for videos (Cable, Broadcast, Theatres)

THREAT FROM SUBSTITUTES

Situation Analysis
Organizational Structure

(Internal Factors)

Non-traditional(unlike IBM) - Team and department divisions - Very informal and non-hierarchical Jobs still very much in control

Corporate headquarters in Cupertino, CA Most manufacturing in China Supplier code of conduct More than 200 stores directly under apple

Source: The Wall Street Journal; ICMRIndia; Apple Insider

Marketing
Apple adopts Four Ps ; 1. Product 2. Price 3. Place 4. Promotion
Apple Incs product strategy is: Supply superior ease-to-use

Seamless integration
Innovative industrial design

Two main types of products: Hardware oPersonal computers oPortable devices(ipods,ipads..etc) Software oiTunes oFinal Cut Pro oLogic Studio(and lot more software concerned in every aspects of work)

Marketing - Price
oDistribution: oSales Force oThird party wholesale Distribution Channels: Resellers Large distribution On line stores No Franchises (in INDIA reliance digital store sells APPLE products)

Marketing - Price
Value based pricing model Variable pricing for iTunes Fixed pricing over all

We dont know how to make a $500 computer thats not a piece of junk
- STEVE

JOBS

Marketing - Promotion
Promotional techniques Test drive a Mac

iPod as contemporary art

Celebrity involvement ADVERTISMENT

 April 20, 2010: Apple announced its annual report (2009 report):
- Revenue of $13.5 billion - Quarterly profits of $3.07 billion Stock price $252.36/share Holds over $40 billion of cash reserves

Financial News

Source: Apple Inc.

in the graph: the success of iPod supported the sales of Macs Hence we can say that i-Pods , i-phones and I-pads are the main source of income than Apple Mac Computers. Even though Apple was 1st to innovate the computers it still lags behind Microsoft n some other leading brands of computers(like dell) due to the lack of financial Tactic's and marketing. Apple i-phone is the second largest leading brand in cellular communication and i-pods are 1st largest leading brand in music devices in the world.

APPLE V/S WINDOWS

Apple: control and decide Tight control on all aspects of UX

Microsoft & Google: dominate and divide

Focus on one strategic layer (Windows, Search) They create competition to let others innovate in all remaining layers (hardware, web) microsoft realsed new windows 7.

The firm cannot support all development cost and must focus on a few products.
Microsoft Office (at the beginning only available for the Macintosh platform) was instrumental in fostering its sales.

1985: Bill Gates was software n gaming developer for apple mac. he begs Apple to consider licensing the Macintosh: Apple must make Macintosh a standard.but steve job never took serious about keeping trade secret and trade rights of MAC. So there is rumor's tat Bill gates actually copied the interface and some programs of mac and adopted in WINDOWS (in 1985) which was better and user friendly than APPLE MAC. IN 1995 Bill gates realsed windows-95 and he was richest person and

Barriers Overcome by Apple

Apple faced many problem during absence of its great leader Steve Job and in this period Microsoft Windows started growing like anything. Apple had lost market grip in tat periods. But after return of JOBs to apple it picked up in market and competes with Gigantic grown Microsoft. Apple joined hands with windows in 1997 mac boston meeting where both companies agreed to share legally Microsoft Office , JAVA packages and some other applications in mac. Now apple allows to use windows on it( called parallel desktop) so that a person can use both operating system Mac and winnows in one computer at time (this facility made, actually increased Apple customers. Apple claims tat windows vista is copy of Mac OSX 8 leopard. ..but legally it did not fight against them.

THANK YOU

CHANDAN.NAGARAJ RVCE, BLURU.

Stay hungry, stay foolish