Professional Documents
Culture Documents
Lust
Knowledge
Hope
Anarchy
Forbidden
Genesis
In the beginning
Men
Computers
Big Blue
And men were taught about
computers
there was light
on one sunny day
A few crazy engineers
Think Different
Let’s teach computers about
people
Macintosh
The Computer for rest of us
Crazy
misfits
troublemakers
rebels
Round pegs in square holes
One’s who see things
differently
Not fond of rules
No respect for the Status quo
Praise them
Disagree with them
Quote them
disbelieve them
glorify them
Vilify them
The only thing you can’t do
Ignore them
They change things
They push the human race
forward
Crazy ones
Genius
the people who are crazy
enough
to think that they can
Are the ones who do
Think Different
Where is think different taking
Apple today?
Consumer Electronics
a risk worth taking
Another crazy gamble?
Distinctive Capabilities
Software
Hardware
Desktop Publishing
Education
Marketing
User Interface
insanely great
Core Competencies
27%
0.6%
Where did all the money go?
1. Innovation
10 years
1300
2. Branding
The Cult
of
The Cool
Microsoft
“Where do you want to go
today?”
Apple’s Mantra
“We know where do you want
to go today !!”
ultimate
Simplicity
3. Industrial Design
But
Smart
Small
A dollar in 1992
Worth $0.79 in 2002
What went wrong?
Who killed Apple Computers?
Apple
In the PC Industry
PC Industry Evolution
Before 1981
Proprietary
1981 - 1997
Open Structure
Attack of the clones
1997
Apple launched
Produced Microcomputers
$0.7 m to $76 m
IBM turns PC into
open structure
1984
Macintosh is born
The computer
“for the rest of us”
Apple misreads the trend
Macintosh peaks
Apple keeps losing
market share
IBM, Dell,
Hewlett-Packard, & Others
high priced proprietary system
not compatible with IBM PC
adopted Motorola CPU
instead of Intel
focused on education &
printing niches
Perception Map during 1998
1998: Defender
2007
Apple Computers becomes Apple
Inc.
1998 2007
has built a massive appeal
2007
Category
1998
Presence
How Big is Apple
Market Share ?
Income Statement
Share Price
“Apple should shut down for the
sake of its shareholders.”
Dell - 1997
A successful turn-around
After slugging it out in the PC
Wars
How did it happen?
Consumer Electronics
Industry
Cell-phone
Makers Portable AV
PDA &
handhelds
Analogue
Manufacturers
Trends
1. Convergence
2. Global Supply Chain
3. DRM
4. Short Life Cycles
Consumer Electronics
Competitive Landscape
Oldies
Sony
Samsung
Thomson
LG
Creative
Matsushita
Convergence - PC
manufacturers
Microsoft
Dell
HP
Apple
Convergence -
Telecom/Broadband Players
Nokia
Cisco
Motorola
Sony Ericsson
Samsung
Convergence - PDA Makers
RIM
Palm
HP
Porters 5 Forces Analysis
Threat of Entry
Low
Capital Intensive Industry
Economies of scale
Market power is needed
Lower Net Margin
Threat of Suppliers
Low
Large Number of suppliers
High Substitutability
Forward Integration is Difficult
Threat of Buyers
Moderate to High
High elasticity of demand
Illegal peer to peer file sharing is
possible
Big dealers can pressurize to
reduce cost
Threat of Substitutes
Moderate
Alternative means to acquire
music are available
Threat of Rivalry
High
Highly competitive market
Both price and feature based
competition is there
Various online music sources are
available
Small stylish MP3 players are
available
Profitability
7%
What made Apple to move to the
CE Industry
1990s
Losing Internal Culture
Losing customer base
Diversification
1993: Newton (PDA)
1994: Quick Take
1996: Pippin
Could not handle 4 businesses
simultaneously
Don’t Diversify when things are
not going your way
1997
Revive Old Culture
Enter new markets
Non First mover advantage
But Still….
Digital Players Market
AAPL DELL HPQ MSFT Industry
Market Cap: 82.15B 52.87B 107.73B 273.11B 1.85B
Employees: 17,787 65,200 156,000 71,000 1.70K
Qtrly Rev Growth 23.80% -5.10% 10.70% 6.00% 24.30%
(yoy):
Revenue (ttm): 20.68B 57.88B 94.08B 46.06B 3.98B
Targeting
Focus on
iTV Education
Value
iPhone Creation
Music Strategy
(iTunes, iPod)
Lifestyle
Convergence
Strategy Adding
Video Strategy (iDVD,
Value
iMovie, IPhoto)
Digital
Internet Strategy Hub
(iTools, iDisk)
what does Ansoff’s matrix say?
what does BCG matrix say?
lessons
Strategies Adopted
Thinking Out-of-the-Box
recommendations
1. at the tipping point
fast in managing change
initiating it
understanding it
explaining & justifying it
planning & organizing it
driving & forcing it
timing & pacing it
containing it
financing it
selling it
the law of the few
stickiness
the power of context
2. be adept in change
implementation
3. transform technology into cash
major problem
successful choice,
bundling,
transformation
of new technologies
into
great new product
&
marketing strategies
answer lies in
Apple’s competence
re-conceptualize market focus
integrated management process
perspective
entered the highly competitive
mobile market
where nokia dominates all
encashing value contribution in a
mobile
Encashing Value Contribution in a Mobile
iCar
iGuitar
iPottie
iGod iWatch
iPuff
iWash
finally
An Apple a day
Keeps Doctor away
Thank you
Chintan
Jasmer
Jyotsna
Qasim
Shalabh