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Prepared By:

Ankit Malhotra
Wozniak and Jobs form the Apple Computer Company on
April Fool's Day.

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.

Apple I computer boards are sold through 10 retail stores


in the U.S.

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.

The Apple logo as seen today is designed by Rob Janoff,


art director for Regis McKenna Advertising.
 Over the next 3-4 years Apple would like to
increase their product accessibility (new
stores).

 Increase their market share by 30%

 Eliminate the need for new products in order to


raise sales.
Apple has introduced the Mini-Mac and the
iPod Shuffle .
 The Apple Mini Mac is a
compact desktop
computer. It is 2 inches
tall and weights 2.9lbs.
The Mini Mac starts at
$499 and comes
standard with iChat AV
desktop video
conferencing, Mail,
Address Book,
QuickTime®, iSync, and
a DVD Player.
 The iPod shuffle is a
smaller version of the
original iPod. It is much
smaller and lighter and
can double as a portable
USB flash drive with up
to 1GB of storage space to
back up personal files
and exchange them
between computers. For
$99 you can purchase the
512MB holding up to 120
songs or the 1GB holding
up to 240 songs for just
$149.
Opportunities Threats
 Increase in worms and  Companies not seeing
viruses on PCs. Apple as compatible with
 Large population (Gen their software.
X&Y) which are extremely  Dell and HP are major
individualistic and name competitors.
brand conscious.  Increasing competition with
 Weak ties with Microsoft music downloads.
products.  Dell does not invent but
 Downloadable music and provides computers at a
MP3 players are highly more cost effective rate for
marketable. customers.
 Increase sales of  Recession—price of Apple
computers online by 25 computers are higher.
percent.  Intel’s future Pentium
 Increase sales of laptops release.
by 20 percent.
Strengths Weaknesses
 iTunes Music Store is a good  Weak relationship with Intel and
source of revenue, especially Microsoft.
with the iPod and the  Weak presence in business
availability on Windows arena.
platform. 
 Dependency on new product
Developing own software and launches.
hardware. 
 Weak presence in markets other
Apple’s niche audience than education and publishing.
provides the company with 
some insulation from the Slow turn around on high
direct price competition. demand products.
 Revamping desktop and
notebook lines.
 Web technology can be used
to improve product awareness
and sales.
 Low debt—more
maneuverable.
 Good brand loyalty.
S-O Strategies W-O Strategies
 Increase awareness through the  Increase ties with Microsoft
web of the immunity of Mac and Intel and their products.
products to worms and viruses. (W1, W2, W4 O2, O3)
(S5, O1)

 Promote to business the safety
Advertise using individuals that
will link Generation X & Y to the of having a worm and virus
iTunes and other related products. free computer by using Mac.
(S1, O2, O4, O5, O6) (W2, W4, O1, O5, O6)
 Using movies and music groups W-T Strategies
that are geared towards Gen X and  Improve relationship with
Y to promote computers and
laptops. (S3, S5, O2, O5, O6) Microsoft and Intel so that
companies will see them as
S-T Strategies compatible. (W1, W2 T1)
 Increase and promote the 
compatibility to Window Increase productivity and turn
operating system. (S5,T1) around of high demand
 Promote the originality of Apple
products to compete with Dell
computers and the different style and HP (W5, T2)
and stable system that is slightly
more but worth the price
difference in style, stability and
speed. (S2, S5, T2, T4, T5)
High 1.0 Medium .50 Low 0.0
High +20 Stars Question Marks
Domestic Cash need High
vs. cash flow low

Market Penetration
International Market
Medium Cash Cows Dogs Development
0
Product
Development
Sell
Low -20

Segments Revenue Profit EFE IFE Growth Rate Relative Market


Share
Domestic 54% 52% 3.5 2.6 17 0.3
Internationa 46% 48% 3.0 3.0 5 0.2
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