Apple Shahbaz

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    APPLE INC.Presented To

    Dr.SarwarPresented By:

    Shahbaz Idrees

    Khubaib BelalUmair Shafeeq

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    Industry Scope

    Growth in technology industry is high in

    emerging market(china,india,Middle East).

    By 2010 more than one billion PCs wereused around the world.

    Industry is growing with 6.6%(2009)(www.news.cnet.com/8301-1001_3-20002117-92.html)

    Pcs shipment increase by 57% and were

    expected to reach 70% in 2012.

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    Trends

    Increased demand for portability.

    People used App store for downloading

    application. Rapid change of technology almost in 9

    months.

    Appliance are used for education,cooperate, entertainment, data transfer.

    Decrease in MP3 player sales.

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    DEEP List Analysis

    Demographic

    Emerging markets China and India

    Use and experience apple software on retail store

    280 store in 10 countries Preference shifted towards features phone attractive

    hardware design and user friendly interface.

    Developers App sales.

    Next generation mobile devices.

    Encroach on functionality.

    Education marked focused.

    Home consumer life style.

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    Economic Factors

    Premium price of Apple s products

    Price sensitive buyers loved the prices.

    Large enterprises bought directly from buyer.

    CPU prices dropped since 1970 30% per year.

    Price competition in emerging market

    Grey markets (unauthorized use of I Phone)

    Subsidized and unsubsidized I Phone

    Low cost I phone

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    Social Factors

    Online music stores discounted prices

    Social networking services.

    User friendly. Download applications on to the mobile

    phone.

    New consumer behavior.

    1997 launched website for direct sales.

    White box channel.

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    Technological factors

    Advance micro devices, VIA Technology

    Key application software

    (word processing,graphic,desktoppublishing,internetbrowsing)

    3G network in iphone

    A4 link Intel Atom (ipad) low power ,fastprocessing speed

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    Ecological

    Worlds greenest line up of note books that

    were energy efficient and used recyclable

    materials.

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    Porters Five Force Model

    Bargaining power of buyers

    Bargaining power of supplier (Process chips, graphic card software,pherpheral equipment)

    Threat of substitute

    Intensity of rivalry (Dell,HP,IBM,Tosheba,Sony)

    Threat of new entrant

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    Strategic Issue

    Apple is facing a projected decline in

    earnings per share in 2009 and must

    assess the future leadership of the

    organization

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    KSF

    Research and development

    Innovation in features and design

    Advertisement Distribution network

    Brand image

    Sales and marketing Ability to effectivelysell products

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    SWOT ANALYSIS

    Strengths

    Brand Loyalty

    Steve Jobs strong leader Corporate culture innovation

    Research and Development(9%)

    Strong distribution network(280stores in 10countries)

    Successful advertising campaign

    Slogan (The ultimate all in one design)

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    Weakness

    Apple depends on software of Microsoft.

    High price

    Mac speed was low as compared toMicrosoft.

    Mac Mini had limited memory and few

    expansion option. Steve Jobs dependency

    Niche Market, Less Penetration

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    OPPORTUNITIES

    Less expensive new product lines with quality.

    New car models with ipod connectivity.

    Emerging market(China ,India ,Middle East)

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    Threats

    Pressure from competitors.

    Substitution effect

    Technology changes at a rapid rate.

    Forced to develop new products.

    Short product life cycle.

    Economy downfall

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    Current Scenario

    Sales

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    Competitors of PCs

    Hewlett Packard (HP)

    Acer

    DellLenvo

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    Competitor Analysis

    HP World largest technology company diversifying into services

    servers and storage

    Strong retail presence through 110000 world wide outlets

    Acer & Lenvo Active in emerging market

    Use Taiwan based gateway

    Acer strength innote books &netbooks

    Worldwide PC shipment grew 22% in 2009

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    Lenvo

    Dominant position in china where it

    commanded a 3rd

    position of the marketDell

    Devoted 1% of revenue to R&D

    Contract with Taiwan and china foedesign and testing

    Consumer friendly and low cost

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    Products of Apple

    I pod Sleek design,simpler user interfae,large storage

    1000 songs can store

    70%market share MP3 market

    40% Gross Margin in 2007 I pod touch 3.5inch screen , multi touch graphic interface

    I-Tunes Music down load per pay song

    I-tune store is the No.1 music store in the world Feb 2010 sold 10 billion songs

    8000 moves can be rented or download from Ipod

    113000 IPod sold per quarter (August)

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    I Phone Development cost 150m

    3.5 inch touch screen

    In 1st generation sold 6m unit in 5 quarter

    3GB,8GB,16GB model

    30% of apple total revenue

    Capturing 14%market shares

    I Pad Use Apple own branded chip A4 like Intel's A tom

    450000 IPad sold on its 1st week

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    Competitor Environment

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    FF

    Value Creation Process

    Focus On Education

    eMac

    AddingValue

    iMac

    Lifestyle Strategy

    Digital Hub

    Music Strategy (iTunes)

    Video Strategy (iMovie)

    Internet Strategy (iTools)

    C

    o

    n

    v

    e

    r

    g

    e

    n

    c

    e

    Apple I,II,III

    Mac

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    Apples Problems

    Low

    MarketShare

    Prices TooHigh

    LowCustomization

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    Differentiation Strategy

    Unique Features and characteristics

    Commands Premium Price

    High Customer Service

    Superior Quality Prestige

    Rapid Innovation

    Sustainable Competitive

    Advantage

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    Strategic Alternatives

    Problem Strategy Alternative

    Low Market-Share Price

    Differentiation

    Extend their

    current product

    line to includesome products

    with a lower price

    point.

    Ex. Re-launch

    Mac Mini

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    RECOMMENDATIONS

    FOR COMPANY:

    Lowering the cost of products and maintainingthe same quality standards

    Can form joint ventures

    Knowledge Management

    More number of retail stores for easy access

    Continuous innovation to expand

    Be unique and different

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    Questions????