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Think different

Type: Public Traded as: NASDAQ: AAPL; NASDAQ100 component; S&P 500 component Industry: Computer hardware: Computer software; Consumer electronics; Digital distribution Founded: April 1, 1976 (37 years ago) (incorporated January 3, 1977)Founder(s)Steve Jobs , Steve Wozniak, Ronald Wayne Headquarters: Apple Campus, 1 Infinite Loop, Cupertino, California, U.S. Number of locations406 retail stores (as of May 2013) Area served Worldwide Key people: Arthur D. Levinson (Chairman), Tim Cook (CEO), Steve Jobs (Founder, former CEO)

Products : Mac, iPod, iPhone, iPad, iPad Mini, Apple TV, OS X, iLife, iWork, iOS, Services: Apple Store, Apple Store online, Mac App Store, iOS App Store, iTunes Store, iBooks, iCloud Revenue US$ 170.910 billion (2013) Operating income US$ 48.999 billion (2013) Net income US$ 37.037 billion (2013) Total assets US$ 207.000 billion (2013) Total equity US$ 123.549 billion (2013) Employees80,000 (2013) Subsidiaries: FileMaker Inc., Anobit, Braeburn CapitalWebsiteApple.com

Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad. (Investor Relation: Apple.com) Apple vision statement: Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings.

Criteria

Outward perspective at foreign market

Type of trade Licensing operation

Exporting Licensor to foreign company

Joint venture with foreign firm

Outside home country

Wholly owned operations

Establishing or acquiring a business outside the country

Multinational Technology Corporation - Apple inc. nowadays is on the last stage of business internationalization of multinational company. This stage of autonomic subsidiarymultinational companies has shares possessed by company subsidiary between the range of 50% to 100%.

Exporting:

Apple is selling and shipping raw materials ,products or services to other nations: best-known hardware products are the Mac line of computers, the iPod music player, the iPhone smartphone, and the iPad tablet computer. Apple is purchasing raw materials,producs or services through his own bringing the into ones own country: software, browsers, intelectual import of labor etc. Apple commercializes his goods through his own commercial structures and agents Apple has numerous channels of distribution. All of them are certified and very reliable. Apple relies on exclusive distribution- it establishes only one reseller in each country to carry the product and the brand

Importing:

Direct export/import:

PROHIBITED DESTINATIONS The U.S. holds complete embargoes against Cuba, North Korea, Sudan, and Syria.

Global Headquarters

Apple Products

Apple U.S.A.
Sales, Service, and Marketing to Regions

Apple Europe
France Europe West Europe North Europe South

Apple Pacific
Canada Australia Japan Latin America Far East

Apple Inc. manages its business predominantly on a geographic basis. Their five operating segments consist of the Americas, Europe, Japan, Asian-Pacific and Retail. In order to better understand each of these segments, it is important to know what countries are included within them.

. Corporate strategies:Corporate level strategies deals with identifying the business in which a company should invest its resources and possible opportunities for expanding or contracting.

a.

b.
c.

d.

Superior efficiency Superior quality Superior innovation Superior customer responsiveness

Company resources

Business strategy can gain a competitive advantage over its competitors in the industry.

Customer need Customer groups Distinctive competencies Differentiation strategies

Apple unique history made the company known as the typical example for the American dream stereotype. Apple is more than a domestically operation enterprise. Over the year its has become a pure multinational, resourcing raw materials and selling products globally.

Apples foreign operation


Apples transnational strategy Apples methods of entering new markets Pressures for cost reduction and local responsiveness

Sales

Sales

Asia pacific 22% Japan 7% Europe 28%

Americ as 43% Japan 8%

Asia pacific 29%

America s 38%

Europe 25%

The analysis of commercial situation of the market Apple is a big company with several products and services that provide along with products. Each product has its own market. It is possible to use multiple factors and combine related statistics for analyzing a company with different product.

Major Competitors
Products PC iPod series iPhone series iPad competitors IBM, Dell, Acer, HP, Lenovo Samsung , SanDisk , Creative, Microsoft Zune, Napster Amazon.com, Napster Samsung, Google, Motorola Amazons kindle, Dell, HP, Samsung

Operating system

Microsoft windows, Android OS, Linux

Setting objectives of promotional campaign

Launching a new product Awareness of a brand To eliminate some prejudices

Making key decisions-to whom direct communication What choices should be present To potential customers To general public To middle man How to reach the audience (communication strategic tools) Who will control the communication effort Identification of communication strategies and tools Push strategy (personal selling)

Product Unlike other brands, iPhone was not released in many versions. During 6 six years it just has 3G, 3GS, 4, 4s and now iPhone 5. It is a clever strategy somehow. Building few phones with splendid features, instead focusing on quality and fundamental parts. In my opinion Apple should continue this strategy. Apple provides its own operating system software and applications. I OS is the Apple mobile operating system. The company released the latest version, I OS 6 in September 2010. And Apple App Store which is currently has 400 million accounts with registered credit cards provides more than 650,000 software applications for customers. Price In an industry of low profit margins and cost cutting, Apple takes a different approach to the design of its products. While competitors are doing everything they can to keep costs down, Apple does what it can to make its product different. (Chapman & Haskisson) Promotion Smart Advertising, user's training and customer's instructions are apple tools for promoting its iPhone more and more. Apple do regards relationship with its customer. However, it might be effective to offer more discounts and other options like free shipping, accessories gift and so on. It will definitely keep current customers close and attracts more.

Place Marketers develop distribution strategies to ensure that their products are available in the proper quantities at the right time and place. I think Apple do this very well. But in some third-world countries Apple does not service like us and Europe. Maybe it is because of low demand but markets are growing so fast and Apple have to concentrate on those place that even has low demand currently. Provision of customer service Customer service lies at the heart of modern service industries. Customers are likely to be loyal to organizations that serve them well - from the way in which a telephone query is handled, to direct face-to-face interactions. Although the 'have a nice day' approach is a bit corny, it is certainly better than a couldn't care less approach to customer relations. Call center staff and customer interfacing personnel are the front line troops of any organization and therefore need to be thoroughly familiar with good customer relation's practice. (Business Case Studies, 2012).Steve jobs offer 100$ credit for iTunes to customers who already purchased iPhone at higher price and they were upset about iPhone price cutting. Which company do this to its customers?! Processes associated with customer service are a number of processes involved in making marketing effective in an organization e.g. processes for handling customer complaints, processes for identifying customer needs and requirements, processes for handling order etc. (Business Case Studies, 2012). Apple 1 year limited warranty and AppleCare Protection Plan benefits are in addition to rights provided by consumer law (Apple Support)

* percentage of sales (uniform approach)- as certain percentage of sales is fixed for promotional campaign. The advantages - convenience Justifies the budget melting Guarantees equalities among markets at which the company is selling Allow centralization of control over international advertising Limitations Reversed determinations-the purpose of advertising is to the sales this method makes the volume of sales, determine the amount of advertising direct dependence- on advertising is undesirable: during the firms first years of the market. When producing new product it doesnt relate to market situation

Programming activity Uniform-managers in communication appear in a regular basis and in the some dimension Variable appearance -forms dimension, frequency of managers vary Monitoring - evaluation of its effectiveness-analysis of sales result, organizing a feedback with distributors and customers, mathematical methods.

License Information Your use of Apple software or hardware products is based on the software license and other terms and conditions in effect for the product at the time of purchase. Your agreement to these terms is required to install or use the product. Please be aware that the software license that accompanies the product at the time of purchase may differ from the version of the license you can review here. Be certain to read the applicable terms carefully before you install the software or use the product.

SWOT ANALYSIS
Strengths
Well recognized ,product differentiation unique design, easy to use products

Weaknesses
Patent infringement lawsuit may affect financial condition and operating results

4th largest player in the global mobile phone market -January 2010, Nokia filed law suit Strong brand image, Brand stability ,High for patent infringement with US brand loyalty ITC Robust financial performance Focused R&D driving innovation Holds 5% market share in mobile phone market 18.5% market share of global smartphone market Complete hardware/software package Product recalls, defects may harm reputation and as significant warranty and other expenses - 2010, antennae problems in iPhone 4- replacements free of charge

SWOT ANALYSIS
Opportunities
Strong growth in smartphone and tablet markets to boost Apples revenues Robust outlook for mobile advertising market provides growth opportunity Shipment of smartphones expected to be 850 million by the end of 2013 iPhone business continues to increases

Threats
Rising popularity of Google Android may affect its market share

- 350,000 Android smartphones are activated daily, 150,000 iPhone activated daily
- Steve Jobs was innovative and a visionary for Apple. His death may affect further developments in Apple Very reliant on specific suppliers and component providers Intense competition Highly dependent on consumer purchases

Strongest player in mobile apps market (350,000 apps) Mobile advertising market is forecast to reach approximately $25 billion by 2015 Increasing demand of online music and other like cloud based services.

IPod family

Elaborated by: Postica Carolina Ravenskii Xenia Stetchi Eugenia EMREI-125