Professional Documents
Culture Documents
Expertise in particular technology/research Proven ability to improve production processes Customer-need satisfaction Continued innovation
Recommended Strategy
Spread out consumer confidence in Steve Jobs to the Apple team and stakeholders Develop and launch the stakeholders. MacBook Air Mini by 2nd quarter 2010 to encourage said consumer confidence in Apple.
5/14/2009
Environmental Analysis
Internal Positive
Brand Recognition Customer Loyalty Sterling Reputation
External Positive
Highly technological society BRIC countries continued growth Internal Positive
Internal Negative
Steve Jobs health concerns Stagnant Desktop line Lack of netbook product line
External Negative
Global recession Poor IP protection in emerging markets
Competitive Rivalry-High
Rapid and frequent product innovation by large firms Product technology copying Large firms with disparate unique strategies
5/14/2009
Sales
NetBooks
Diffusion curve: Percentage of total adoptions by category. Product life cycle curve: Time
Constraints
Industrial World Economic Slowdown Apples dependency on Steve Jobs health Technological Limitations h l i l i i i MP3 Market is shrinking rapidly iPod Market is saturated iPhone Cannibalizes part of iPod Sales
Alternatives
Do Nothing
Pro: No increased risk Con: Continue being stagnant
5/14/2009
Alternatives
Renovate the Mac desktop line
Pro: More competitive with other desktops Con: Repositioning into a Market that is decreasing due to a global economic slowdown
Alternatives Matrix
Alternatives 1
Key Success Factors
Expertise in particular technology/research Proven ability to improve production processes Customer-need satisfaction Continued innovation
2 .8 .2 .5 .25 2 3 2 2 2.1 .8 .3 .5 .5 1 2 2 3
3 .4 .2 .5 .75 1.85 3 2 3 3
.4 .1 .25 .25
2 2 2 1 1.75
Totals
1.0
Alternatives 1) Do nothing 2) Reposition iPod 3) Renovate Mac desktop 4) Create netbook based on MacBook
5/14/2009
?
How?
Marketed-to Customers: Commuters College Students Educational Partnerships Obamas desire for more computers in school
$139
Component costs are based on current market costs with supplier bulk discount
5/14/2009
Break-Even Analysis
$16,000,000.00 $14,000,000.00 $12,000,000.00 $10,000,000.00 $8,000,000.00 $6,000,000.00 $4,000,000.00 $2,000,000.00 $0.00 50000 100000 150000 200000
Units Sold
162,163
135,136
Profit
108,109
Research & Development Negotiate with AT&T to allow for constant broadband access @ $34.99.
Testing Ensure the unique specifications of the proposed mini will work, i.e. broadband access.
Advertising
Launch
Announce the Hit the market in creation of the the end of MacBook Air second quarter Mini at 2010 MacWorld 2010. This will also allow for hype to build before the launch.
Implementation Timeline
Now June 09 MacWorld 10 June 10
Advertising
Launch
5/14/2009
Steve Jobs
Publish a letter to employees and consumers commending comprehensive Apple team. p pp Post letter in Apple stores, Apple Web site, and the e-mail newsletter. At MacWorld 2010: Have Tim Cook or other appropriate corporate leader reveal MacBook Air Mini not Steve Jobs.
Questions?
References
Brigham, E.F., Daves, P.R. (2007). Intermediate financial management. Mason, Ohio: Thompson South-Western. Chase, R.B., Jacobs, R.F., Aquilano, N.J. (2006). Operations management for competitive advantage. New York: McGraw-Hill Irwin. McGraw Hill Lamb, C.W. Jr., Hair, J.F., McDaniel, C. (2006). Essentials of marketing. Mason, Ohio: Thompson SouthWestern. Thompson, A.A. Jr., Strickland, A.J. III, Gamble, J.E. (2008). Crafting and executing strategy: The quest for competitive advantage. New York: McGraw-Hill Irwin.