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Apple Computer s, Inc.
Who is Apple Computers, • Founded in 1976 by Steve Jobs and Inc.? Steve Wozniak
• Company was founded after IBM created the 4004 chip which allowed previously bulky computer components to be included on a small chip that is located in a computer system small enough to fit on a desktop.
The Evolution of a Brand
General Environment • 20021997- First
online store opened.
– Over 4.4 million hits and 500,000 orders in the first 24 hours of operation.
Initiated a Swith Advertising campaign.
– Geared to switch PC users to Mac users.
General Environment • i Series of • Constant
computer products brought $650 million in revenue for the 2003 fiscal year. • Company has begun innovations and product reinventions as the consumer base shifts as well as the
Industry Environment • Apple • Market
competes in the following industries:
• iBook • PowerBook • PowerMac
• Desktop6% • Portable10%
• Educationa l- 15.2%
Industry Environment 1. Substitute Porter’s 5
Forces: 2. Buyers
• Set Prices
• Reinventio n of supply chain
• Cut down
• Little/no direct substitute s but many competin g products. • Mac OS
Industry Environmentof • Marketing is • In light
Apple Computer, Inc.’s biggest survival factor.
– Ads featuring testimonial s from PC
slight decline in computer sales, Apple Computer, Inc. has put more emphasis on promotion
• Apple is planning to further enhance their switch advertising campaigns. • Awardwinning advertisemen ts has created
• Creation of peripheral products has created diversification . • eMac
– Educational products – Learning applications – Portable
Internal Environment • Apple’s has • Internal
resources that are:
– Organizatio nal – Innovative – Technologi cal
• Large budget
– Managemen t Leadership
• Apple logo is easily
• Core competenci
Internal Environment • Company • Outbound
logistics has made it possible for Apple Computer, Inc. to meet the orders and demands of
vision is to provide the best possible merchandis e at the most reasonable price possible.
Internal Environment • Apple works • Objectives:
hard to determine new ideas on how to gain market share in order to boost sales. • Strategies:
– Open new stores – Cooperative branding – Educational products
• Strong efforts in advertising,
Alternatives: • Tackle the low-end consumer market, focused segmentation. • Offer an affordable system with an innovative design. • Distinguished, Innovative. • Devise a strategy to convince competitors’ customers to switch to Apple and retain current customers.
•Successful company •Favorable Brand Perception •Brand-loyal customers •Recognizable logo •Creative advertisements/promos •MP3 Innovations •Well established product lines •Brick and mortar locations •Educational materials/ software •MP3 device expansions •Software designs •Declining market shares •Heavily saturated industry •Proprietary software system •Low popularity overseas •Increasing different operating system
•Competition in MP3 industry •Competition in computer industry •High substitution rate •New Entrants
T Sum It All Up… on gaining • Apple has to concentrate
market share from its competition if they want to maintain profitability in the industry. • The expansion into new product lines is an opportunity that they are exploring, and they are slowly starting to gain some of this market share from the competition. •