Professional Documents
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i-ntroduction
Steve Jobs and Steve
Wozniak founded Apple
on April 1, 1976.
The two Steves, Jobs and
Woz (woz.org), have
personalities that persist
throughout Apples
products, even today.
Jobs was the
consummate salesperson
and visionary while Woz
was the inquisitive
technical genius.
Revenue$42.91billion
Operating income$11.74 billion
Profit$8.24 billion
AUM$26.83 billion
Total assets$47.50 billion
Total equity$31.64 billion
Employees 34,300+
PC industry
We can glean
Insight into the
history and
composition of the
PC Industry from
its eponymous
title.
In the late 1970s,
as Wozniak and
Jobs were starting
Apple computer,
personal
computers were an
emerging product.
Products
Mac(Pro,MiniiMacM
acBook,Air,ProXserve
)
iPhone,iPad,iPod(Shuf
e,Nano,Classic,Touch)
Apple TV,Cinema
Display, AirPort
Time CapsuleMac OS
X(ServeriPhone
OS),iLife,iWork
Services
Stores(retail,online
,iTunes,App,iBooks
)
Mobile Me
Mission 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.
Vision Statement
-> "Man is the creator of
change in this world. As such
he should be above systems
and structures, and not
subordinate to them."
KEY SUCCESS
FACTORS
1. Establish
mobile
manufacture:
Nokia,LG,Sam
sung
2. Software
giants:
1. Carriers
AT&T
2. OS
providers
like Linux
3.
Hardware
makers
Intel
1. More
companies
entering into
smartphones
market
2. Strong
SWOT ANALYSIS
Work Ethics
Labour Standards
Working and living environments
Compensation
Overtime
Worker treatment
Apple has a zero tolerance policy for any
instance, isolated or not, of any treatment
of workers that could be interpreted as
harsh
Process Analysis
Inputs
Raw
material,
Customers,
etc.
Transformation
Process
Outputs
Goods,
Services
Resources:
Labor &
Capital
Benefits:
No physical inventory, no warehouse, low production
costs
Always meet demand
1.
2.
3.
4.
5.
Determine
Determine
Determine
Determine
Determine
process
Orders Review
Order
Finished
Order
WIP
WIP
Validate
Credit
Card
Download
WIP
WIP
Send
Confirmation
Example
Validate Order
WIP
Download
Finished
orders
Individual stages
Capacity rate:
Cycle time:
40 units / hr
30 units / hr
1.5 min
2 min
goods
Download
Individual stages
Capacity rate:
Cycle time:
40 units / hr
60 units / hr
1.5 min
1 min
Constraints
Industrial World Economic Slowdown
Apples dependency on Steve Jobs
health
Technological Limitations
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
Reposition the iPod
-> Pro: Increase the profit capability
of a Cash Cow
-> Con: Placing advertising money
into a lost cause
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
Create a netbook based on the MacBook Air
platform
-> Pro: Great for the psychology of the
company and shareholders, and stakeholders
-> Con: Expensive development in a
recession
JIT-Lean
Apple Computers implemented the just-in-time
global economy (JITGE) to streamline the
unnecessary steps and waiting time in the
delivery of its tailor-made iPod from 90 days to
90 hours
JITGE methodology, a combination of lean
manufacturing, just-in-time-delivery and supply
chain management had helped Apple
computers to minimise the cost of production
by manufacturing its products in low cost
economies. Apple manufactured the customised
iPods to meet the needs of individual customers
by following the lean manufacturing
methodology
Vertical Integration of
competitors
Sony is an example of a competitor with a unique
position against Apple. Sony Music supplies Apple
with many of the songs for iTunes. Sony also
creates a version of the Walkman portable music
player that is a direct competitor to the iPod. Sony
is attempting to vertically integrate forward
directly to the music buyer. Sony integrated their
music system into the Sony Walkman. Sony is
exclusively distributing certain songs on Mora.
Mora currently targets Japanese consumers. If
Sony can gain additional momentum (such as
collaborating with other record labels), their
service could present a formidable challenge to
iTunes in additional markets.
Production
Because Apple had long refused to
license its operating system to external
entities, the bundled packages of
Apple-developed hardware and
software became the cornerstone of
Apples production process..
While every product introduction has
not been a success ,Apple treats
component production as a natural
extension of the design process.
Consumer
Customers
Wholesaler
Micro
Retailer
Best Buy
Consumer
Customers
Customer Service
How has Apple retained substantial cash
reserves during the explosive growth and
dominance of PCs worldwide? Apple created a
virtual love affair with their customer base by
delivering technically superior and aggressively
pursuing hardware and software updates.
Apple integrated their primary activities so well
that it is transparent to the consumer where
one activity begins and the other ends.
Although Apple employs many resources and
capabilities to support their primary activities
the most strategically relevant would be Legal
Services.
Awards
Business week
awards Apple A+
for quality of staff
and efficiency of
service
Apple won eight
product design
awards at CeBIT
conference.
Legal Services
In a market climate of constant change and
innovation, it is inevitable that the drive to
expand product and service offerings will subject
Apple to patent and copyright infringement
claims. The dispute over the Apple logo on its
iTunes Music Store, for example, continues
despite a previously reached settlement with
Beatles Apple Corps Ltd. in 1991.
There was a recent attempt to uncover the
identities of internal sources who leaked
confidential information about an unreleased
product to online media outlets in 2004.
Think Twice