BUSINESS

MODEL

SUBMITTED BY:-

RISHABH JAIN
140901046

INTRODUCTION
Apple Inc. is an
American multinational technology
company headquartered in Cupertino, California,
that designs, develops, and sells consumer
electronics, computer software, and online
services. Its hardware products include
the iPhonesmartphone, the iPad tablet computer,
the Mac personal computer, the iPod portable
media player, and the Apple Watchsmartwatch.
Apple's consumer software includes the OS
X and iOS operating systems, the iTunes media
player, the Safariweb browser, and
the iLife and iWork creativity and productivity
suites. Its online services include the iTunes
Store, the iOS App Store and Mac App Store,
and iCloud.

Apple was founded by Steve Jobs, Steve Wozniak,

and Ronald Wayne on April 1, 1976, to develop
and sell personal computers. It was incorporated

as Apple Computer, Inc. on January 3, 1977,

and was renamed as Apple Inc. on January 9,
2007, to reflect its shifted focus toward consumer
electronics. Apple (NASDAQ: AAPL) joined
the Dow Jones Industrial Average on March 19,
2015.

SWOT ANALYSIS

APPLES LINE OF
BUSINESS

Computing Hardware & Software Apple's longest running line of business is that of
computer hardware and software. The company
has always believed that hardware is only as
useful as its software, and the importance of full
software and hardware integration cannot be
underestimated. This dedication to owning the
full integrated product has allowed Apple to focus
on quality and usability, at the cost of market
share with its Mac line of products.

Mobile Devices The company's signature in the post-1996 era is

its development of mobile devices and its
dominance of the cell phone and tablet
industries. Beginning with the iPod music player,
Apple has steadily focused on ease of use,
quality construction, and customer experience to
develop its hardware, software, and cloud service
integration into a powerful mobile platform. The
iPod evolved into the iPhone by incorporating
cellular technology and the app store, which
evolved into the iPad product line.
iTunes Store Originally launched in support of the iPod, the

iTunes store has become the primary ecommerce engine for media consumption on
Apple devices. As the company's products have
expanded beyond music, so has the iTunes store,
moving from music to video to apps, and books.

APPLES PROFIT POOLS

The impact that the mobile device line of

business has had on Apple cannot be
understated. The graphic below maps out Apple's
profit pools by product, showing that the iPhone
and iPad make up a huge share of the company's
revenue and profit margin. Consider how small
Apple would be today if this chart did not include
the iPod, iPhone, and iPad products.

DISRUPTION AND
DESIGN
As everyone knows by now, Apple pioneered the
graphical user interface on personal computers,
revolutionizing how humans interact with their
machines. While the company ultimately lost the PC
war to Microsoft, its intuitive and revolutionary user
interface design disrupted the micro-computer industry.
Unfortunately, Apple became just another computer
and software maker, struggling to gain market share in
a crowded marketplace. When Steve Jobs returned to
the company, he reestablished the design focus by
introducing the popular iMac. But Jobs had much more
up his sleeve.
At the turn of the century, the music industry was
struggling with new digital formats and illegal file
sharing over the internet. It became possible to store
hundreds of songs on digital music players -- something
the record industry wasn't prepared for. While the iPod
wasn't the first music player on the scene, its simple
design, large storage capacity, and logical user
interface quickly made it a must-have product. Once
again, Jobs demonstrated Apple's ability to disrupt an
industry through better design.

MARKET ANALYSIS
SUSTAINING BRAND LOYALTY
The extensive but controlled product portfolio of Apple creates
a uniform and unique product usability and consumer
experience. An iPod or an iPhone would be incomplete if not
paired with an iTunes or the App Store. The sleek metal-based
aesthetics of a MacBook also signals a sense of uniformity when
used alongside the iPhone. The user interface of these
consumer electronic devices also employs the same functional
and design principles centred on simplicity thereby creating a
strong sense of familiarity.
Apple products create a halo effect. Because each product
complements another product, consumers would usually
choose to stick with the Apple brand rather than buying
different products from different manufacturers and create a
hodgepodge of varying product and consumer experience.
Considering the fact that the company has a large pool of loyal
consumers, they tend to buy all products under the Apple
brand. This halo effect coupled with deep brand loyalty
complements the sales performance of each Apple product.

MAINTAINING BRAND IMAGE

Premium pricing is also part of the marketing strategy of Apple.

This high price point or premium pricing strategy has helped
the company promote and maintain a favourable perception
among its loyal buyers. After all, there are consumers who
believe that expensive products enjoy an exceptional
reputation or represent exceptional quality and distinction.
Thereby, Apple products are positioned as superior over their
competitors through this pricing strategy.

ADVERTISING
Apple's first slogan, "Byte into an Apple", was coined in the late
1970s. From 1997 to 2002, the slogan "Think Different" was
used in advertising campaigns, and is still closely associated
with Apple. Apple also has slogans for specific product lines
for example, "iThink, therefore iMac" was used in 1998 to
promote the iMac, and "Say hello to iPhone" has been used in
iPhone advertisements. "Hello" was also used to introduce the
original Macintosh, Newton, iMac ("hello (again)"), and iPod.
From the introduction of the Macintosh in 1984 with the 1984
Super Bowl commercial to the more modern 'Get a Mac'
adverts, Apple has been recognized in for its efforts towards
effective advertising and marketing for its products. However,
claims made by later campaigns were criticized, particularly the
2005 Power Mac ads. Apple's product commercials gained a lot
of attention as a result of their eye-popping graphics and
catchy tunes. Musicians who benefited from an improved profile
as a result of their songs being included on Apple commercials
include Canadian singer Feist with the song "1234" and Yael
Nam with the song "New Soul".

FINANCIAL ANALYSIS
With the release of iPhone 5 and strong ties with Verizon (US market
share of 31.9%) and AT&T (US market share of 35.4%), Apple's share in
the smartphone market has shown remarkable rise in the recent quarter.
As per astudy conducted by Kantar Worldpanel ComTech:
"The iPhone accounted for 53.3 percent of smartphone purchases during
the twelve week period ended November 25. That's up from just 35.8
percent a year ago. Android, on the other hand, is down to 41.9 percent
from 52.8 percent a year ago.
In Europe, it's not as great for Apple. It's getting pummeled by Android
which has 61 percent of the market to the iPhone's 25.3 percent."
Apart from the US market, Apple is not doing so badly globally either.
61% of the total revenue (MRQ) was derived from international sales, as
per the latest quarterly report. Apple's iPhone reportedly hold 5.5% share
of all mobile phones in Q3FY2012. Total 428 million units were sold during
that period, while smartphone sales increased by 47%.

PEST ANALYSIS
POLITICAL FACTORS :There are many problems which cannot be controlled by the
company such as: geaopolitical uncertainties , war against
terrorism , authority to work and health issues which can affect
the sales of Apples product worldwide. As to reduce operating
cost Apple has outsourced in diff countries like Ireland , China ,
Korea , Czech Republic and Cork. If these countries face any
political instability or any problem which causes to delay in
manufacturing operations will lead to spoil the Apple likeness in
the eye of consumers.

ECONOMIC FACTORS :Purchasing power depends on worlds economic conditions.

According to past few years unemployment rate is very high in
many countries which cause to decrease in sale of Apple
products. Another reason was increase in oil prices. Due to this
purchasing power of people decreased which negatively
affected the sales of Apple products.

SOCIAL FACTORS :Two factors always have been on forefront of Apple product
throughout the history, the design and thequality. The
purchasing of luxury products have gone up because the
purchasing power of consumers hasrisen in different market
across the world and people prefer to buy iPod, iPhones and
latest technologyiPad. As music industry growth has increased
which is the biggest social influence on Apple because themain
essential music store is iTunes.

TECHNOLOGICAL FACTORS :Apple always takes advantage because of its innovative and
high technologies products. The large amount has invested in R
& D field by Apple , thats the reason Apple comes in top of new
innovative products.

BUSINESS MODEL
CANVAS
Alexander Osterwalder and Yves Pigneur, authors of Business
Model Generation, have developed the popular business model
canvas. The canvas is described as a shared language for
describing, visualizing, assessing, and changing business
models. It's made up of nine building blocks that help focus
attention on key attributes of a business. What follows is an
attempt at a business model canvas for Apple, Inc.

CORPORATE CULTURE
Apple was one of several highly successful companies founded
in the 1970s that bucked the traditional notions of corporate
culture. Jobs often walked around the office barefoot even after
Apple became a Fortune 500 company. By the time of the
"1984" television commercial, Apple's informal culture had
become a key trait that differentiated it from its
competitors.According to a 2011 report in Fortune, this has
resulted in a corporate culture more akin to a startup rather
than a multinational corporation.

As the company has grown and been led by a series of

differently opinionated chief executives, it has arguably lost
some of its original character. Nonetheless, it has maintained a
reputation for fostering individuality and excellence that
reliably attracts talented workers, particularly after Jobs
returned to the company. Numerous Apple employees have
stated that projects without Jobs's involvement often take
longer than projects with it.To recognize the best of its
employees, Apple created the Apple Fellows program which
awards individuals who make extraordinary technical or
leadership contributions to personal computing while at the
company.
At Apple, employees are specialists who are not exposed to
functions outside their area of expertise. Jobs saw this as a
means of having "best-in-class" employees in every role. For
instance, Ron JohnsonSenior Vice President of Retail
Operations until November 1, 2011was responsible for site
selection, in-store service, and store layout, yet had no control
of the inventory in his stores (this was done by Cook, who had a
background in supply-chain management). Apple is also known
for strictly enforcing accountability. Each project has a "directly
responsible individual," or "DRI" in Apple jargon. As an
example, when iOS senior vice president Scott Forstall refused
to sign Apple's official apology for numerous errors in the
redesigned Maps app, he was forced to resign. Unlike other
major U.S. companies Apple provides a relatively simple
compensation policy for executives that does not include perks
enjoyed by other CEOs like country club fees or private use of
company aircraft.

ENVIRONMENTAL
PRACTICES
Energy :Following a Greenpeace protest, Apple released a statement on
April 17, 2012, committing to ending its use of coal and shifting
to 100% renewable clean energy. By 2013 Apple was using
100% renewable energy to power their data centers. Overall,
75% of the company's power came from clean renewable
sources.
In 2010, Climate Counts, a nonprofit organization dedicated to
directing consumers toward the greenest companies, gave
Apple a score of 52 points out of a possible 100, which puts
Apple in their top category "Striding".This was an increase from
May 2008, when Climate Counts only gave Apple 11 points out
of 100, which placed the company last among electronics
companies, at which time Climate Counts also labeled Apple
with a "stuck icon", adding that Apple at the time was "a choice
to avoid for the climate conscious consumer".
As of 2014, 100% of Apple's U.S. operations run on renewable
energy, 100% of Apple's data centers run on renewable energy
and 87% of Apple's global operations run on renewable energy.
The Electronic Product Environmental Assessment Tool (EPEAT)
allows consumers to see the effect a product has on the
environment. Each product receives a Gold, Silver, or Bronze
rank depending on its efficiency and sustainability. Every
Apple tablet, notebook, desktop computer, and display that
EPEAT ranks achieves a Gold rating, the highest possible.
Toxins :Following further campaigns by Greenpeace, in 2008, Apple
became the first electronics manufacturer to fully eliminate
all polyvinyl chloride (PVC) and brominated flame
retardants (BFRs) in its complete product line. In June 2007,
Apple began replacing the cold cathode fluorescent lamp
(CCFL) backlit LCD displays in its computers withmercury-

free LED-backlit LCD displays and arsenic-free glass, starting

with the upgraded MacBook Pro. Apple offers comprehensive
and transparent information about the CO2e, emissions,
materials, and electrical usage concerning every product they
currently produce or have sold in the past (and which they have
enough data needed to produce the report), in their portfolio on
their homepage. Allowing consumers to make informed
purchasing decisions on the products they offer for sale. In June
2009, Apple's iPhone 3GS was free of PVC, arsenic, and BFRs.
All Apple products now have mercury-free LED-backlit LCD
displays, arsenic-free glass, and non-PVC cables. All Apple
products have EPEAT Gold status and beat the latest Energy
Star guidelines in each product's respective regulatory
category.