APPLE INC.
( MBA 660 USM)
Presented By:
Jennifer Cao
Mercy Antony
Tejal Sinora
Lashunda Price
Logan Tisdale
“Change the World through Technology”
• April 1976, Apple Computer, Founder Steve Jobs • Industry: Computer Hardware and Software,
Consumer Electronics• 1984, Macintosh• Sculley- Mac with new features• Amelio- Return to “Premium Price”• Jobs back-Apple Turnaround
Current Scenario• Sales
Current Issues
Steve Jobs
Current Issues
Low Market Share
6.6%
1Q Market Share08
Dell
HP
Acer
Apple
Toshiba
Others
Opportunities
• Fast growing Industry (Customer Electronics Industry)
• Technological Innovations• Extend new products to loyal customers• High Potential music phone market• Strategic Alliances
Big Move
• Jan 2007- Apple Inc.• CE Industry
Competitor Environment
• High Competition• Share of Dell and HP• Microsoft and Intel-Leaders of Software• CE Industry- Sony, Nokia, Samsung, Cisco,
Motorola
Competitor Environment
Threats
• Extensive Competition • Substitute Products• Low prices of Competitors• Technical Advancements• Economy downfall
Five Forces Model
• Branding • Innovation• Differentiated Product• Ease of Use• Superior Quality• Retail Strategy
Strengths
• Marketing and Sales• Customer Loyalty• Online Sales
Strengths
• High Price Proprietary System
• Niche Market, Less Penetration
• Cannibalization
Weaknesses
• Differentiation Strategy
• Value Creation
Core Competencies
Differentiation Strategy
• Unique Features and characteristics
• Commands Premium Price
• High Customer Service
• Superior Quality
• Prestige
• Rapid Innovation
Sustainable Competitive Advantage
FF
Value Creation Process
Focus On Education
eMac
Adding Value
iMac
Lifestyle Strategy
Digital Hub
Music Strategy (iTunes)
Video Strategy (iMovie)
Internet Strategy (iTools)
Convergence
Apple I,II,III Mac
Technology Development
New Product Ideation Designing/ Funding Product Creation Diffusing products across company
Value Chain
Inbound LogisticsOperations Distribution Sales and Marketing
Service
• Apple employs a Product Differentiation
• Drawbacks as a result of their strategy include:– Not appealing to Price Conscious Consumers – Risk of Imitation by Competitors– Risk of Change in Customer Taste
Apple’s Strategy
Apple’s Problems
Strategic Alternatives
Problem Strategy AlternativeLow Market-Share Price
DifferentiationExtend their current product line to include some products with a lower price point. Ex. Re-launch “Mac Mini”
Two Fold Agenda
• Continue to focus on niche market• Set up for Job’s replacement
The Strategy
• Consistently low share• High success in niche market• Brand differentiation
Market Share
• Ups and Downs of their own• Established Identity of Apple• Jobs’ success rate
Previous CEOs
• Concentrate on current customers• Expand niche market• Use iPod as gateway
Focus
• One year planning phase• Jobs appoints successor • Two year mentoring phase• Chief advisor position
Replacement Plan
Questions????
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