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Yascarli Luengo

Ghadah Tursun
Yu-Wen Hung
Luisa Castillo Mantilla
● Khalid Alkathiri
● Manuela Rangel

Barry University

Apple Inc. timeline
Apple Company background
Problems Apple is facing now
1. Apple's China problem
2. Competitors

3.Target market What Apple should do next What Apple should not do 1.Replace IPod 4.Closed system Stakeholders Customers Employees Investors /Owners Suppliers Competitors Community Environmental analysis SWOT Analysis Strengths Disruptive innovation Sustaining Innovation Brand name Company image Customers loyalty High profit Safe information Weaknesses High Price Short Storage Distribution network 1 . High price 2.

Steve Jobs introduces the iPad on January 27. Product Segments.Following years of speculation. 1985 Steve Jobs leaves Apple after being forced out by the board 1989 Macintosh portable released 1994 First power Macintosh introduced 1997 Steve Jobs returns to Apple as an adviser and eventually takes the CEO once again 2001 First IPod introduced 2003 ITunes Store goes live heralding online services 2006 MacBook Pro and new IMac becomes first Apple computers to use Intel chips 2007 First IPhone launch 2010 The IPad touch screen tablet media device launch 2010 .7-inch multi-touch screen. diversification. timeline 1976 April 1: Apple Computer Company is founded by Steve Wozniak.000. and iPod touch. Steve Jobs. and thin bezels. Inc. 2010.Opportunities New product line Acquisitions Threats High competitive market Fast technology change Formulation: Product Market Positioning.000 in Apple. 2 . and international Implementation: Recommendations lessons that other organization can learn from Apple. aluminum anybody. and Ron Wayne. Apple's iOS device lineup hereafter consists of the iPhone. The device resembles a larger-sized iPhone with a 9. 1977 January 3: Apple Computer. iPad. strategies. is officially created after the company is incorporated. with intent to invest $250. ● ● ● ● ● ● ● ● ● ● ● ● Apple Inc. Mike Markkula invests $92.

Competitors Other companies in the same industries.Tim Cook introduces the Apple Watch on September 9. iPad. and many software applications and technologies. in order to build loyal customers. Apple TV. Tidal. 2011 . and Android. PC. Apple remains the world's most valuable company today. 2016 Sep Apple announced IPhone 7 Apple Company background Apple started in 1976 as a computer company.Apple Music. 2014. Apple's China problem China government has announced that they are building their own Linux-based processor to reduce reliance on Apple's computers. The company's business strategy used its unique ability. 2012 . as the company's first wearable device. through the design and development of its own operating system. the company's first subscription-based streaming music service. iPod touch. one day after Apple introduced the iPhone 4S and Siri. 2. 2014 . software. hardware. In 2001.Apple Maps launches on iOS 6 too much criticism. Apple launched the iPod. with a market cap exceeding $337 billion. Apple Music is compatible with iPhone. 2014 . Google Play Music. despite briefly trading places with Google parent company Alphabet in early February. Apple is a consumer friendly company. Apple also provides consumers an ease-of-use seamless integration and innovative experience by using their products Problems Apple is facing now 1. leading to a public apology from Tim Cook.Apple Pay launches in the United States on October 20. Samsung is the only companies are able to crack the code of beating Apple's products and design. Apple joined the phone industry in 2007 with the iPhone. 2011. 2014. For example. the company's core value in to understand customers. Mac.. The Chinese markets are going to shrink. The company is giving the best personal computing and music experience to consumers through its innovative hardware. and other streaming music platforms. The service competes directly with Spotify.● ● ● ● ● ● ● 2011 . becoming the dominant market leader in music players. In the last ten years. which has also been widely successful in all over the world. As well. nearly five years later. 3 . and services.Apple become the world's most valuable publicly traded company. Apple has expanded into a big organization. 2015 .Steve Jobs passes away on October 5.

Alliance One of Apple's philosophy is to acquire small companies in order to integrate their products. Help the environment Apple's recycling system allowed the company to reuse the components from discarded phones.Replace IPod Apple is letting the iPhone cannibalize iPod sales. it might drive away the loyal Pro users What Apple should do next 1. What Apple should not do 1. Stakeholders 4 .3. the Apple search engine can help with the map and Siri will have more data to help the consumers. High price Apple's products are setting the high price. and otherwise. Android. if there is no update for Pro. more and more people are able to buy products from them. IPhone and MacBook Pro. Apple also should get an ally to compete with the competitors in the industry so that Apple can still making a good profit in such intensive industry. In order to maximize the user for Apple and build a more convenient platform for all the users. they left out the Pro user. People are using IPhone to listen and download music now. Apple should go into search Apple should build their own search engine. although it is going to take a long time to catch up with Google. 3. however. 2. the IPod sales will not generate enough revenue. which is not compatible with other systems. not anyone can afford it. it will burst the sales as well. 2.Closed system Apple is using IOS system.Target market Apple has been focus on updated IPad. they should develop the system. If they can reduce the price. which is compatible with other systems. For example. Apple has to come out with other products to replace IPod. 4.

Employees Apple considers employees sound on the list of stakeholders after the customers. Apple created and supported around 1. Customers higher priority is the quality which Apple always provide. All of these factors will satisfy the investors as a stakeholder.9 million jobs worldwide. The main objective to the employee is career development. suppliers mostly obey all Apple standards and regulations to ensure a high-quality product and a safe investment to supplier’s workers. AS of December 2015 Apple employee more than 76.8 billion dollars. Suppliers Apple relays highly on suppliers and demand from their high standard for all goods and services.Customers Apple considers customers a high-value stakeholder reflecting on apple corporate social responsibility. Also. Apple avoided debt and have a large amount of liquidity on hand. Investors /Owners Apple successfully satisfied the investors as a stakeholder by maximizing the return on the investment and keep a strong financial stand as we all know Apple is the most profitable companies in the world with a Total revenue of $182. Also. Additionally. customers accepting the high price giving the quality Apple provide. Apple 5 . Customers can be individual or organizational using apple products. Apple has a high price comparing to its competitors.000 people in the US alone. Employees at Apple are very important stakeholder because of the company strategy and focus on innovation and product development. However.

such as tablets. the oil spill by BP affected the entire industry not only BP and that could happen to any industry. The efficacy in presenting these external factors guarantees that Apple stays strong despite different competitors in the global market. dollar has lost in quality. Nonetheless. in an inflation period in the U. Cork China. Community Apple has a good relationship with the local community and always trying to get the locals support and approval. Competitors Apple compete in a highly competitive market with many players and any action from any of the players can affect the whole industry. Czech Republic.S. will likewise diminish. the power of purchasing products of the customers will decrease and sales of Apple's products in U. Korea and other states where Apple locate their company. Apple's achievement is connected to the company's adequacy intending to external factors in its macro-environment. inflation and recession. As U. watches. For instance.suppliers understand the business environment and the fast-paced competitive market. if any of these countries struggle with political issues or any other problems which affect the manufacturing in delaying with operations. The company's success is a consequence of different strategies made to invest in the opportunities and preserves business from threats. will impact the company's reputation. television sets and music players. instable international relation like wars. Apple can’t operate in that area. Environmental analysis Apple is one of the world's most noticeable and recognizable consumer electronic brands.. terrorism and health issues will also impact the company image and business process. Apple couldn’t hold the political factors.S. Apple for a long time has been an investor most favorite due to its high revenue and return on the venture. Political factor gives a strong impact on Apple making decisions and process as they have built up numerous companies everywhere throughout the world. These factors show opportunities or threats that impact the business. a business deferral could happen and thus the reputation of Apple could turn out to be awful to its clients and retailers. After all the community is a very important stakeholder to Apple since they are Apple employees and customers and without them. For instance. For example. when there are political issues between the US to states where Apple operates their business. Apple now manufactures and designs a wide diversity of electronic devices. The three integral economic factors that Apple noticed which are currency.S. Despite the fact that it began as a traditional computer company. Moreover. Since 2007 until 2009 it is accounted for that more than a half of sales of their products originates from nations other than America. to minimize the impact of 6 . The global economic condition is additionally getting to be one of the factors that impact Apple business process as this company is perceived internationally. To minimize their operating cost Apple likewise spread their products manufacturing to various companies outside of America countries like Ireland.

That is the reason outside technological factor will likewise help Apple to arrange their new objectives to compete their competitors. There is a reaction against costly and stylish items among a few clients in the United States and Europe. Customers in those business sectors and more youthful individuals in Apple's built up business sectors. North America. Apple is profoundly helpless against increments in electricity costs in view of its reliance on data centers and another Internet infrastructure. Apple's music promoting system has made hatred and prompted open feedback from real recording stars that could discolor the brand's reputation. all of the technology has a short lifetime. One of the cases is that Apple introduces its own brand operating framework. Apple's nearby relationship with China could affront some potential customers in different districts. Environmental change made by global warming temperature could disturb transoceanic delivery and Apple's store network. do not have the compelling enthusiastic connection to Apple products that drive sales. The greatest environmental issue confronting Apple is the disposal of utilized or non-working electronic gadgets. One of the main factors is the environmental. This could prompt have expanded regulation and higher manufacturing costs sooner or later. The cost of disposing devices. The greatest development in customer spending in coming decades will be in places of the world. Apple as already goes global the U. Africa where individuals are new to Apple products. Contamination and other environmental reactions from assembling offices and manufacturing in China are a developing concern. which takes an extended time to recover contrast with another country won't be an issue any longer. This could expand the level of regulation and government oversight it faces. Legal factor also has an integral Impact on Apple.S. Subsequently. That is the reason Apple needs to overhaul their products all the more regularly so they will exceed their competitors effectively. For this situation. the United States. could be high. for example. bad economy condition. Apple could be compelled to expect that cost on account of worries about such devices in landfills. Moral worries about Apple's manufacturing in China could confine its products' allure among socially-cognizant consumers. which has a potential Impact on Apple. and Europe. China's endeavors to cut greenhouse gasses and limit fossil fuel use could build electricity rates and manufacturing costs for Apple in that nation. for example. The competition additionally gets harder as the innovation of the technology developed and changed much quicker. and otherwise Dell as its competitor uses Microsoft's operating framework in all of its products. Worry about vitality use and opposite impacts from data centers could prompt expanded regulation and expenses. especially those containing lithium batteries. By offering financial services. along these lines meaning the contenders of Apple will likewise rise. for example. Apple will contribute a considerable measure of their money to the Research and Product Development. News reports show that Apple is planning to enter another exceptionally regulated division: car 7 . Apple has as of late entered the profoundly directed financial services division by means of Apple Pay. These days’ technology's business sector gets to be more extensive. Apple could confront expanded levels of litigation.inflation Apple Corporation has obtained itself a foreign currency. which expands its production cost. By doing as such the income of their products in the worldwide business sector will increment. especially if strains with China rise.

The combination is their key ability that has set up a manageable and progressing upper hand or more normal execution inside the business. and who is the supplier of the organization and what is the quality of supplier and changing to the various supplier will cost more. Competitive Rivalry: Tt depicts the opposition between the current organizations in same industry high rivalry result in the margin. PCs. Apple's political issues are not simply restricted to abroad infect. the resources just represent competitive parties. Apple has numerous contenders they offer their items less in cost than apple. Apple is confronting legitimate stress locally too. it reestablished imports of some of its parts utilized as a part of iPhone whichever prior banned by US government. The five elements in this model are: Supplier Power: it suits all the supply of inputs that are required to give products or services. Apple produces music players. the purchaser danger for Apple is high. as Apple's fundamental supplier of chips are Intel.manufacturing. protection and litigation costs at Apple. the CEO. weight on offering cost. Apple is electronic association it as of now has numerous contenders around so the risk of the new contestant is high for Apple. Entering the auto business could expand regulatory. This leaves the organization exceedingly powerless against both robbery and litigation. music and software. The threat of Substitute: It concentrates on the option items accessible in the business sector with low cost and better execution. America's toughing work and environmental laws are additionally making it hard to contend in profoundly aggressive environment. for quite a bit of its income. Internal analysis of the firm (VRIO) 8 . At the point when there are numerous suppliers and one purchaser then the purchaser set the cost. and specialists each represent to key assets the capacity of the firm to exploit their capacities to make their whole hardware and software environment is the company's key capacity. Purchase Power: It is the effect the buyers have on an organization when purchaser force is solid the relationship of the organization is called monopsony in the financial specialist term. and the coordinated system of software and hardware that the firm has created and effectively marketed to determine value. Steve Jobs took Apple back to many achievement taking after a decrease in pertinence and heads the proceeded with making of billions of dollars of significant value. The threat of new Entrant: Competition is high and each association needs too various it business so it is less demanding for organizations to enter a new market. Taken each separately. it shows how many. Earlier year. While Apple's designer. for example. Apple relies on upon a diversity of products secured by protected intellectual laws. Apple most critical resources and capabilities are Steve Jobs. developers. cell phone and iPad there are numerous different organizations which are creating same items with lower cost. Apple's items are higher in cost than its rivals so danger level is high for Apple.

After this. Apple iPad development additionally eased back to only 13% when contrasted with contenders 79%.Value: The value of Apple electronics is numerous. so they figure out how to make sales out of it when contrasted with the contender's one where enough decision is authorized. apart for 1996 when they were close to bankrupt since they had many years of working without making any kind of profit. there are some products available in the market which provides similar features. However. one of the funders of the Company. and software. its product offering is less. Financial performance According to the exhibit MC6. Additionally. The effect of an exceptionally competitive business sector can be seen in lesser deals development half to 9% in America. in any case. straightforward and easy to understand. Organization: Apple has attempted its best to keep up its image name and reputation and furthermore. Moreover. which the customer can carry all in one product.1 of the Case. Apple holds a large and stable market and it continually needs to redesign on its strategies and technologies to develop later on. Like the fast and flexibility in the usages with the high technology. Apple products had high separation with contender's products. as with ITunes which were the best and simplest music application. Apple's purchase responsibilities normally cover its necessities for periods up to 150 days. helps Apple to deliberately position their products. has been fruitful in doing so and in this way is it the greatest competitive advantage. Since then the Net Income of Apple has shown considerately improve. it offers equipment and software which makes an intense circumstance for Apple to contend universally. However. Macintosh is likewise losing it advanced mobile phone market share. Until these day Apple has shown to be a profitable Company that has an effective financial performance. especially right after they released iTunes which in combination with the iPod were a Business-model-innovation since there was nothing like this in the market what has finally give Apple competitive advantage over other companies of electronics consumers. returned to operations and Apple gets Microsoft archival what represented an investment of 150$ million. mobile. They strived to keep Apple into the Market and finally started to see some profits after the creation of the iPod in 2001. Apple dispersion channel by means of Amazon and direct outlets is exceptionally solid. Positive purpose of Apple is. Steve Jobs. Rivalry among competing sellers: Apple had an all-around broadened portfolio of tech-based products. 31% to 4% in Europe.14% decrease in late organization's quarterly report. Present to confound customers. Furthermore. it ought to build its investment more in PC. its faultless designs and quality are still replicable in the future and along these Apple ought to exploit applications markets. They have kept a notable Competitive Advantage over similar Companies by applying a good strategy based on innovations that cover 9 . Investigating the exceptional competitive environment. Imitability: Apple devices hardly to be imitable. Thus. Apple never shows signals of loss. some methodology would not work with iPhone. 94% to 27% in Japan. Apple works with many suppliers around the world and keeps up a profoundly refined supply-chain management.

Brand name They created a brand and became on one of the most recognizable companies around the world in the technology industry. apple pay. This means that the competency such as Microsoft. and upper leveled versions of iphones. and ipods. Sustaining Innovation Because they evaluate the market niche in order to identify what is being neglected by the current market offerings. Samsung. In fact. Apple with 55% of the market share in the smartphones industry makes over 90% the profits of this industry. for instance: They have frequent updates into the iOS software and apps in order to reduce defects faster and satisfy current customer’s needs. Nokia. SWOT Analysis Strengths Disruptive innovation Because they improve product’s performance based on the feedback from the customer. 10 . among others just produces the remaining 10% of the profits for this industry. They plan and create strategies to satisfy future needs such as iwatch. ipads.most of the consumer needs.

which offers very well elaborated products and good customer service. that apple has drastic price changes in short period of times which were not against the law but that did not mean that it is ok for them to do it. videos. ipad or laptop you are able to remotely delete the information contented into one of your devices or even track them (in case of iphone) with the Find my Iphone app. Safe information Apple has very secure software that will maintain your information safe. pictures. Besides that.Up to these days. Weaknesses High Price Not everyone can afford it Putting $200 in Perspective: A History of iPod Prices article states. in order to keep saving new data into their product. everybody will recognize the brand by just watch the logo that represents them. the noticed variability in the prices when you will acquire a product with a high storage capability. Customers loyalty The fact of being one of the most recognizable companies in the technology industry. makes the clients wanting to come back and always having the expectations of what new product is Apple going launch. which states that their products are very well designed. data. So. Because of these. even when the information will not be as safe. etc. High profit By manufacturing such unique and high-class products Apple has keeping going the cash flow what gives them the opportunity to create new projects to deliver in order to satisfy future customer’s needs. Short Storage Many customers complain about a low storage for iphone or ipod and how they have to get rid of information. 11 . people might like to change to a product that you can expand the memory if it is necessary. Company image Apple has created an image of being one of the most prestigious technology companies by offering high-quality products that not just look nice but work almost flawless. the information will be backed up into iCloud and in case of a robbery or loss of your iphone. they recommend to give a special mention or give a special application for those who bought the product prior the price drop.

even though you may purchase Apple products in some other stores. Besides that. directed to an exclusive target market. it is probably that Apple will release now an iRing which will be a wearable computer with camera. Apple has acquired up to 70 companies either to develop new projects or enhance already existing products. App Store. This event opens a big opportunity to Apple since the consumers that have Samsung will lose confidence in the product and is very likely that they will switch to a more trusted company like Apple. In the State of Florida. Opportunities New product line By applying disruptive innovation. has been known that they might design and release a new electric car and according to with some interviews they mention that it was possible for them to create an electric car because an electrical car was a computer with wheels but right now that was not under the scope of Apple’s production. These will be an opportunity for them to develop a new product. the news have delivered several reports regarding battery issues with the new Samsung Note 7 which have blown up and cause several damages to owner’s properties. gesture sensor. among others. Also. US there are only 8 apple stores which minimize the access to customers. Apple has developed a very changeable and evolving line of production.Distribution network A short number of stores and authorized customer service. the customer service regarding technical difficulties or failures that those products could present have to be handled by the Genius Bar located only in the Apple Stores in order to have validated warranty for the service. These acquisitions helped to developed software and apps such as iOS.” Samsung has invited Samsung Note 7’s owners to turn off their cellphones and change them in any Samsung store. Siri. Touch ID. touch screen. Besides that. voice recognition software among other characteristics which might bring them an opportunity to be the first company that manufactures this kind of product and therefore maintain their competitive advantage in the market. Market share growth These last days. Acquisitions Part of the philosophy of Apple is acquiring small companies to integrate them into new projects. 12 . For instance: “A Florida father has been left devastated after his brand new Samsung Galaxy Note 7 burst into flames and torched his family car.

managers have focus their attention on adding value to the product through its unique features that respond to customer preferences.These represent a big opportunity because by acquiring these companies Apple will get the exclusivity of the services. 13 . Apple will require tradeoffs. In this case. or effective marketing that communicates the value of the product’s features. So. Business People. teenagers and even young children and kids. Steve Jobs wanted to “put a ding in the universe”— making a difference by delivering products and services people love. Increasing alternative on the market Implementations Business-level (product market positioning) The target market of Apple is directed to College and University Students. business quality. so. Adults. Even Though Apple is identified as being a manufacturer of high quality and exclusive products the competitors are always looking for a way to go past them. we think that managers have to add value to the product through its unique features since is what makes apple’s products superior to others. customer service during and after the sale. but gives them new products that will satisfy future needs. In order to this continues happening the designers and developers have to keep applying sustaining and disruptive innovations so they will keep not only fulfilling actual needs of the consumers. ideas and products that those companies were previously offering to all the market. and they also made a laptop with a detachable screen that can flip and you will be able to use it as a tablet. Apple have to lead its product market positioning towards all of those characteristics that make apple’s products unique and efficient. Fast technology change Technology evolves daily what makes the Companies developers and designers to always keep analyzing what is going to be the next step that they have to take in order to maintain the brand in the market. Characteristics that are not found in any apple products what might lead consumer towards Microsoft products. Whom use their products because of light wait. Threats High competitive market As the market has growth all the technology companies are always looking forward to enhancing all the products that will meet the consumer needs and wants. for instance: In 2015 Microsoft built a tablet with unique characteristics such as a magnetic pen with an eraser and detachable and very light keyboard. communication skills and documents sharing.

14 . International Strategies We think that Apple implemented effective international strategies. MacBook. Executives engage in such a new business opportunity only when they can leverage their existing competencies and resources. We consider that the diversification in Apple has been effectively applied because by this they are motivated to grow and reduces risk because if the sales of one of the products that the company manufactures drops it might be compensated by higher performance in another product. I Watch. Products Segments Apple has several products that make part of the product line such as: iPod. They have increase their business by opening several shops around the world what have allows Apple to extend their product and services and permitting to more consumer to live an Apple experience. that have allow the company leverages its home-based core competency by moving into foreign markets. and several software’s. tablets and desktops. iPods.Corporate-level Diversification and International strategies Apple applies product-market diversification corporate strategy since they are active in several different product markets and several different countries. Being the iPhone the most valuable company’s stock with a 53% market share. Also they work under related-constrained diversification since they derived less than 70 percent of its revenues from a single business activity. which is the iPhone and obtains revenues from other lines of business related to the primary business activity. They have shops in 120 countries around the world and sell products such as: smartphones. iPad. Apple TV. iPhone.

Differentiation strategy has help Apple to distinguish their products from those of their competitors. Apple should inject new products to be ahead of the competitors. is the core of their business. organization can Apple is clearly the most valuable company of all time and has been successful because it’s powerful competitive strategy with the constant innovation in their products. as well as making processes easier. the company has always successfully 15 .Recommendations ● ● ● ● Apple now has $147 billion in cash and they should invest and make more wisely usage of the cash. services. always thinking on what customers want to find on their products. and business models. Targeting new demographic market by introducing low cost devices. With the pass of the years. Lessons that other learn from Apple. Apple has been adopting a differentiation strategy in which marketing and innovation are the principal steps the company has to follow. Franchising stores to serve customers more efficiently and reduce the cost. Releasing new products and making changing to the old ones.

Even though the elements state on the case are indubitably useful. That’s why it has to be a constant process. Being innovative in products it’s a competitive advantage most of the companies should take. it’s going to disrupt the market and that’s what all the companies should seek. a good strategy is more than a good logo or slogan of a company. The company has to look and analyze what is the core and competitive advantage of the business and focus on that. then focusing on fewer things and having excellent results. it has to be implemented. a good strategy defines the competitive challenges and how to deal with them and furthermore implementing them through the actions. in which the company has to find and identify the competitive challenge being streamlining. A guiding policy to address the competitive challenge: This element is necessary for the company in order to know what it has to do to gain the competitive challenge. When a company sees what is happening in the market and what the other companies are offering and came out with something totally innovative. organizations have to have in mind that a strategy doesn't work and last forever. because. There are many aspects and lessons that other organizations can learn from Apple and from the case specifically. 16 . but something that companies have to have constantly in their mind is that “Past performance it’s no guarantee of future performance” this means that if a company today has an innovative product and is really successful. that’s why the diagnosis is really important.used product differentiation to separate its products from those of other electronics manufacturers. it’s not just being recognized as a big brand. this doesn’t mean that in the future this product is going to have the same results. that’s why if companies follow the three elements of a good strategy they would have excellent results. This coherent actions have to be well performed day by day. As it says in the Apple case. but a good strategy it’s always going to be one of the keys to a successful business. through it. but this has to be set out in addition to the business model innovations. that way the result would be better helping to create a string of competitive advantages. That’s why organizations can learn a lot about Apple’s case because this company is an example of a really successful development due to its good strategy that needs to have three principal elements: A diagnosis of the competitive challenge: This element of a good strategy consists of making a diagnosis (as the name says). A good strategy doesn’t work when it’s just on the paper. A set of coherent actions to implement the firm’s guiding policy: This is the third element that has to be developed by all the companies when they already have their competitive challenge and now how to apply it. It’s better not to focus on many things and have good results in all of them. All the companies when having an excellent competitive advantage could disrupt other business industries just by being innovative and using differentiation. the companies find out what is their strategic focus. that’s why they have to be in constant development and innovation in order to be valuable thru the years.

com/mobile/apple-faces-10-threats-to-future-growth-prosperity 17 .Sources