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

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 .Target market What Apple should do next What Apple should not do 1.3.Replace IPod 4. High price 2.

and international Implementation: Recommendations lessons that other organization can learn from Apple. strategies. timeline 1976 April 1: Apple Computer Company is founded by Steve Wozniak. Steve Jobs. and thin bezels. Inc. aluminum anybody. Product Segments. 2 . Apple's iOS device lineup hereafter consists of the iPhone. 2010.000. 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 . iPad. and iPod touch.000 in Apple. 1977 January 3: Apple Computer. Steve Jobs introduces the iPad on January 27.Opportunities New product line Acquisitions Threats High competitive market Fast technology change Formulation: Product Market Positioning. with intent to invest $250.7-inch multi-touch screen. and Ron Wayne. The device resembles a larger-sized iPhone with a 9. diversification. Mike Markkula invests $92.Following years of speculation. is officially created after the company is incorporated. ● ● ● ● ● ● ● ● ● ● ● ● Apple Inc.

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

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

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. Apple 5 . suppliers mostly obey all Apple standards and regulations to ensure a high-quality product and a safe investment to supplier’s workers. Also.9 million jobs worldwide.Customers Apple considers customers a high-value stakeholder reflecting on apple corporate social responsibility. Additionally. However. Suppliers Apple relays highly on suppliers and demand from their high standard for all goods and services.000 people in the US alone. Employees Apple considers employees sound on the list of stakeholders after the customers. Apple has a high price comparing to its competitors. Customers can be individual or organizational using apple products. Apple avoided debt and have a large amount of liquidity on hand. Apple created and supported around 1. Customers higher priority is the quality which Apple always provide. The main objective to the employee is career development. Employees at Apple are very important stakeholder because of the company strategy and focus on innovation and product development. All of these factors will satisfy the investors as a stakeholder.8 billion dollars. customers accepting the high price giving the quality Apple provide. AS of December 2015 Apple employee more than 76. Also.

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

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

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

so they figure out how to make sales out of it when contrasted with the contender's one where enough decision is authorized. helps Apple to deliberately position their products. some methodology would not work with iPhone. Imitability: Apple devices hardly to be imitable. Present to confound customers. Apple holds a large and stable market and it continually needs to redesign on its strategies and technologies to develop later on. there are some products available in the market which provides similar features. They strived to keep Apple into the Market and finally started to see some profits after the creation of the iPod in 2001. which the customer can carry all in one product. Organization: Apple has attempted its best to keep up its image name and reputation and furthermore. However. apart for 1996 when they were close to bankrupt since they had many years of working without making any kind of profit. The effect of an exceptionally competitive business sector can be seen in lesser deals development half to 9% in America. However. Apple's purchase responsibilities normally cover its necessities for periods up to 150 days. Positive purpose of Apple is. Macintosh is likewise losing it advanced mobile phone market share.14% decrease in late organization's quarterly report. Steve Jobs. 31% to 4% in Europe. Furthermore. Apple dispersion channel by means of Amazon and direct outlets is exceptionally solid. Thus. 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. Rivalry among competing sellers: Apple had an all-around broadened portfolio of tech-based products. it offers equipment and software which makes an intense circumstance for Apple to contend universally. Since then the Net Income of Apple has shown considerately improve. it ought to build its investment more in PC. Like the fast and flexibility in the usages with the high technology. its faultless designs and quality are still replicable in the future and along these Apple ought to exploit applications markets. its product offering is less. Apple works with many suppliers around the world and keeps up a profoundly refined supply-chain management. Apple never shows signals of loss. as with ITunes which were the best and simplest music application.Value: The value of Apple electronics is numerous. and software. returned to operations and Apple gets Microsoft archival what represented an investment of 150$ million. Financial performance According to the exhibit MC6. straightforward and easy to understand. Additionally. has been fruitful in doing so and in this way is it the greatest competitive advantage.1 of the Case. 94% to 27% in Japan. Apple products had high separation with contender's products. Investigating the exceptional competitive environment. They have kept a notable Competitive Advantage over similar Companies by applying a good strategy based on innovations that cover 9 . Until these day Apple has shown to be a profitable Company that has an effective financial performance. mobile. Moreover. one of the funders of the Company. After this. Apple iPad development additionally eased back to only 13% when contrasted with contenders 79%. in any case.

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

in order to keep saving new data into their product. 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. which offers very well elaborated products and good customer service.Up to these days. even when the information will not be as safe. etc. Besides that. 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. 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. Short Storage Many customers complain about a low storage for iphone or ipod and how they have to get rid of information. the information will be backed up into iCloud and in case of a robbery or loss of your iphone. makes the clients wanting to come back and always having the expectations of what new product is Apple going launch. people might like to change to a product that you can expand the memory if it is necessary. Weaknesses High Price Not everyone can afford it Putting $200 in Perspective: A History of iPod Prices article states. Customers loyalty The fact of being one of the most recognizable companies in the technology industry. which states that their products are very well designed. videos. the noticed variability in the prices when you will acquire a product with a high storage capability. everybody will recognize the brand by just watch the logo that represents them. pictures. they recommend to give a special mention or give a special application for those who bought the product prior the price drop. 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. 11 . data. Safe information Apple has very secure software that will maintain your information safe. So. Because of these.

it is probably that Apple will release now an iRing which will be a wearable computer with camera. among others. Besides that. Apple has acquired up to 70 companies either to develop new projects or enhance already existing products. 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. Apple has developed a very changeable and evolving line of production. Opportunities New product line By applying disruptive innovation. 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. Also. gesture sensor. 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. even though you may purchase Apple products in some other stores. Acquisitions Part of the philosophy of Apple is acquiring small companies to integrate them into new projects. directed to an exclusive target market.” Samsung has invited Samsung Note 7’s owners to turn off their cellphones and change them in any Samsung store. Besides that. Siri. Touch ID. 12 . 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. These acquisitions helped to developed software and apps such as iOS. 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. US there are only 8 apple stores which minimize the access to customers.Distribution network A short number of stores and authorized customer service. App Store. These will be an opportunity for them to develop a new product. touch screen. 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. Market share growth These last days. In the State of Florida.

So. In this case. 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. and they also made a laptop with a detachable screen that can flip and you will be able to use it as a tablet. 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. or effective marketing that communicates the value of the product’s features. Characteristics that are not found in any apple products what might lead consumer towards Microsoft products. Apple have to lead its product market positioning towards all of those characteristics that make apple’s products unique and efficient. ideas and products that those companies were previously offering to all the market. but gives them new products that will satisfy future needs. Business People. 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. 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. so.These represent a big opportunity because by acquiring these companies Apple will get the exclusivity of the services. 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. Whom use their products because of light wait. communication skills and documents sharing. Apple will require tradeoffs. managers have focus their attention on adding value to the product through its unique features that respond to customer preferences. 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. customer service during and after the sale. 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. 13 . business quality. Increasing alternative on the market Implementations Business-level (product market positioning) The target market of Apple is directed to College and University Students.

Also they work under related-constrained diversification since they derived less than 70 percent of its revenues from a single business activity. iPhone. 14 . International Strategies We think that Apple implemented effective international strategies. and several software’s. Apple TV.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. Executives engage in such a new business opportunity only when they can leverage their existing competencies and resources. iPad. MacBook. 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. iPods. which is the iPhone and obtains revenues from other lines of business related to the primary business activity. that have allow the company leverages its home-based core competency by moving into foreign markets. 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. Products Segments Apple has several products that make part of the product line such as: iPod. Being the iPhone the most valuable company’s stock with a 53% market share. tablets and desktops. They have shops in 120 countries around the world and sell products such as: smartphones. I Watch.

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

this doesn’t mean that in the future this product is going to have the same results. When a company sees what is happening in the market and what the other companies are offering and came out with something totally innovative. it has to be implemented. a good strategy is more than a good logo or slogan of a company. organizations have to have in mind that a strategy doesn't work and last forever.used product differentiation to separate its products from those of other electronics manufacturers. 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. It’s better not to focus on many things and have good results in all of them. in which the company has to find and identify the competitive challenge being streamlining. through it. that’s why they have to be in constant development and innovation in order to be valuable thru the years. because. it’s not just being recognized as a big brand. The company has to look and analyze what is the core and competitive advantage of the business and focus on that. There are many aspects and lessons that other organizations can learn from Apple and from the case specifically. A good strategy doesn’t work when it’s just on the paper. the companies find out what is their strategic focus. 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 if companies follow the three elements of a good strategy they would have excellent results. 16 . This coherent actions have to be well performed day by day. that’s why the diagnosis is really important. a good strategy defines the competitive challenges and how to deal with them and furthermore implementing them through the actions. 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 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. That’s why it has to be a constant process. then focusing on fewer things and having excellent results. Even though the elements state on the case are indubitably useful. Being innovative in products it’s a competitive advantage most of the companies should take. but this has to be set out in addition to the business model innovations. All the companies when having an excellent competitive advantage could disrupt other business industries just by being innovative and using differentiation. it’s going to disrupt the market and that’s what all the companies should seek. 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. that way the result would be better helping to create a string of competitive advantages.

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