APPLE.

INC
Presentation to:
Sir Idrees

Presentation by:
Ahmad Waqas Shakir (05)
Nida Mahmood (16)

Naila Yousaf (17)

Qurat-Ul-Ain (20)

Sheraz Hashmi (28)

 Outline
Ahmad Waqas Shehraz Hashmi
Shakir
• Mission, Vision &
• Introduction Objectives, Upcoming
products.
• History And Company
Profile • ProductsOf Apple

• Products And Figure

 Qurat-Ul-Ain  Naila Yousaf

• Core Competencies • Apple Marketing

Strategies
• Matrix's
• Apple Marketing Mix &
• Five Force Model Promotion Strategies

• Apple Distribution Policy • Apple Branding Strategies

 Nida Mahmood

• Innovation Strategies

• SWOT Analysis • Conclusion

• Problems

• Recommendations
Ahmad Waqas Shakir
 ABOUT COMPANY
April 1st,1976 - Founded

January 3rd,1977 - Incorporated

Headquarters - Cupertino, California

Share Price – 254.24$ (New York Stock Exchange).

Co-founders - Steve Jobs, Steve Wojniak

CEO - Steve jobs

Industry - Computer software, computer hardware, consumer electronics.

Revenue - US$ 19.3 Billion

Apple Inc.
Logos of Apple:
Apple’s Current Information

1976 1977-1998 Present Logo

 CEO: Steve Jobs:

 He worked first for HP company where he met Steve

Wozniak.

 After Jobs saw a computer Wozniak had designed, he

decided to turn it into business on 1st April 1976.

 After internal power struggle, he was eventually kicked off

by board of directors.

 During this time, Jobs bought what became “Pixar” from

Lucas film for $5 million.

 Steve is in the Guinness Book of World Records as the

"Lowest Paid Chief Executive Officer” for Pixar.
 Steve Returns

Apple bought NeXT in 1996, bringing Jobs back to Apple

The coming years brought many new products, including
Mac OS X, the iMac, the iPod, iphones, and ipad .

Steve Makes the Apple with huge profits in 2002 by

discovering iPod and iPhone in 2005.

2008- Job got suffered from Pancreatic cancer.

2009- He was back after Transplantation of his liver .

In his Presence iPad and Apple Tv has been launched

recently in 2010 which made Apple $50 billion company.
 History 1976-1978
• Wozniak and Jobs form the Apple Computer Company on April Fool's
Day.
• Wozniak and Jobs finish work on a preassembled computer circuit board.
It has no keyboard, case, sound or graphics. They call it the Apple® I.
• The Apple I board is released for sale to hobbyists and electronics
enthusiasts at the price of $666.66.
• Apple's first formal business plan sets a goal for sales to grow to $500
million in ten years. As it turns out, the company will pass that mark in
half the time.
• Apple I computer boards are sold through 10 retail stores in the U.S.
• Apple moves from Jobs' garage to a building on Stevens Creek Boulevard
in Cupertino, California.
• The new Apple® II is unveiled at the first West Coast Computer Fair. It is
the first personal computer able to generate color graphics and includes
a keyboard, power supply and attractive case.
• The Apple logo as seen today is designed by Rob Janoff, art director for
Regis McKenna Advertising.
• Regis McKenna Advertising launches its first ad campaign for Apple.
Although advertising is initially aimed at electronics enthusiasts, Apple
will soon become the first company to advertise personal computers in
consumer magazines.
 History 1978
• Apple introduces various interface cards for connecting to
most printers.
• Apple's Disk II® is introduced at the Consumer Electronics
Show. It is the easiest to use, lowest priced, and fastest mini-
floppy disk drive ever offered by a computer manufacturer.
It will make possible the development of serious software.
Production at first is handled by just two employees, turning
out 30 drives a day.
• In only its second year, Apple is one of the fastest growing
companies in America. Sales have increased, and its dealer
network has grown to over 300.
 History 1979-1981
• Apple's first printer, the Silentype®, is introduced.
• Apple opens a manufacturing plant in Carrollton, TX. Apple
facilities now occupy more than half a million square feet of
floor space in the U.S. and Europe.
• Apple goes public. Morgan Stanley and Co. and Hambrecht &
Quist underwrite an initial public offering of 4.6 million
shares of Apple common stock at a price of $22 per share.
Every share is bought within minutes of the offering, making
this the largest public offering since Ford went public in
1956.
• Apple's employee count breaks 1,000.
• Apple's distribution network is the largest in the industry-
800 independent retailers in the U.S. and Canada, plus 1,000
outlets abroad.
• Apple's first mass storage system, the 5MB ProFile(tm) hard
disk is introduced, priced at $3,499.
• Apple becomes a household name. Surveys show that public
awareness rose from 10 percent to 80 percent in 1981.
 History 1982-1985
• Apple Dot Matrix printer introduced for $2,195.
• Apple becomes the first personal computer company to reach $1
billion annual sales rate. It throws a "Billion Dollar Party" for
employees.
• Apple University founded to provide employee training programs.
• Apple enters the Fortune 500 at number 411 in under five years.
• EVA (Employee Volunteer Action) is created to match the skills of
Apple employees with community needs.
• Apple is elected to the Consumers Digest Hall of Fame for
responsiveness to consumer needs.
• Apple II receives the 1984 Industrial Design Excellence Award
(IDEA) sponsored by the Product Industrial Designers Society of
America.
• Apple announces a computer training scholarship program for
elementary and secondary school educators.
 History 1986-1990
• Apple announces plans to create an independent software company, to
be known later as Claris.
• For the first time, Apple uses its HyperCard technology to distribute a
1987 HyperCard supplement on diskette for Macintosh personal
computers.
• Apple files suit against Microsoft and Hewlett-Packard to protect its
Macintosh audio visual display. The lawsuit is seen as having industry
wide implications regarding copyright laws.
• Apple reports first billion dollar quarter in its history as net income rises
108 percent.
• Apple reports net sales of $4.07 billion and net income of $400.3 million
for fiscal year 1988.
• Apple acquires Coral Software Corp., which markets programming
languages and artificial intelligence tools for Macintosh computers.
• Apple introduces 32-Bit QuickDraw(tm) that allows Macintosh personal
computers to process and display photo-quality documents, images and
visualizations with exceptional color clarity.
• Apple donates $2 million in computers to 23 schools to help at-risk
students.
• Fiscal 1990 revenues surpass $5.5 billion.
 History 1991-1995
• Apple announces it will restructure the company over the
next 12 months to reduce operating expenses. Apple's
workforce is reduced approximately 10 percent.
• Apple and IBM sign a letter of intent to cooperate on major
technology initiatives for the 1990s.
• Apple, IBM, and Motorola finalize milestone technology
alliance.
• Apple announces a new Token Ring 4/16 NB Card, for the
Macintosh product line. It is the first product to emerge from
Apple and IBM alliance.
• Apple and Kodak announce that they are working together
to integrate support for Photo CD images into future
versions of QuickTime.
• The U.S. Environmental Protection Agency officially releases
the Energy Star emblem for display with energy-efficient
computers and peripherals. Apple has more than 20
products that meet the EPA's the technical requirements.
• Apple's Macintosh celebrates 10th birthday!
 Apple in 2005

As of January 2005 Apple has introduced the

Mini Mac and the iPod Shuffle.
 Mini Mac
The Apple Mini Mac is a compact desktop
computer. It is 2 inches tall and weights 2.9lbs. The
Mini Mac starts at $499 and comes standard with
iChat AV desktop video conferencing, Mail, Address
Book, QuickTime®, iSync, and a DVD Player.
 Mac OS X Tiger
On April 29, 2005, the Mac
OS X Tiger will be released.
This is an advanced
operating system that
requires a Macintosh
computer with a PowerPC
G3, G4 or G5 processor,
Built-in FireWire, 256MB of
RAM, and 3GB of available
hard disk space. It cost
$129 for a single user and
$199 for a 5 license family
pack
 iPod Shuffle
The iPod shuffle is a smaller version of the original iPod. It is
much smaller and lighter and can double as a portable USB
flash drive with up to 1GB of storage space to back up
personal files and exchange them between computers. For
$99 you can purchase the 512MB holding up to 120 songs or
the 1GB holding up to 240 songs for just $149.
Sheraz Hashmi
 VISION AND MISSION
VISION
“Man is the creator of change in this world.
As such he should be above systems and
structures, and not subordinate to them.”
MISSION
“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.”
 Objectives and Goals
• Over the next 3-4 years Apple would like to increase their product
accessibility (new stores).
• Increase their market share by 30%
• Eliminate the need for new products in order to raise sales.
• To be the leading supplier of MP3 players in all markets in which
the company operates
• Increase in sales by 20%
• Increase in revenue by 20%
• Progressively increase market share by at least 15% within the
year.
• Expanding distribution to department stores by 10%
• Increasing brand awareness to 60% of potential customers
• To expand existing markets by 10% in the next quarter. A
promotion campaign will be introduced to encourage present
buyer to increase the use of the product.
 PRODUCTS AND FIGURES
Hardware - Mac(personal computer series),Apple Remote
Desktop

Software - Mac OS X, Mac OS X Server ,Quick Time, i Life, i Work,

Logic pro, Cinema Display etc.

Consumer Electronics - i pod, i pod hi-fi, i phone, Apple TV

Employees - 19,787 full-time ; 3,399 temporary (March 31,2007)

Retail stores - 183( 1st in Manhattan, New York)

Competitors - HP, IBM, DELL

PRODUCTS
Products of Apple:

iPod

iPhone
iMac(Personal
Computer)
Apple TV iPad
Brands of Apple ipod:

Ipod Nano

Ipod shuffle

Ipod classic
iPhone 4
ADVANTAGES & DISADVANTAGES
 Mac

iPhone

iPod

iPad
 APPLE’S FUTURE PLANS AND
PRODUCTS.

• Apple reveals future plans at the Macworld Conference

2009. Apple revealed that after the success of i phone in
2008 it is planning to launch iPad in 2010,followed by i
board in 2012 and i Mat in 2014.
 ACHIEVEMENTS
Apple Revenue Growth
16000

14000

12000
Net Sales

10000

8000

6000

4000

2000

0
1998 1999 2000 2001 2002 2003 2004 2005

2002 Product Sales 2005 Product Sales

Desktops Desktops

Notebooks Notebooks

iPod iPod

Peripherals Peripherals
Qurat-Ul-Ain
 Core Competence of Apple:
I would say Apple's greatest core competency is knowing
how to implement elegant but functional design. The
consumer benefit is getting a product that works intuitively,
while making everyone else envious. Other companies have
been trying to imitate, but not quite successfully. And Apple
has copied that design success from computers, to music
players, to cellphones, and to its stores.
 DIRECT COMPETITOR COMPARISON
Company Symbol Price Change Market Cap P/E
International
Business 128.25 0.00% 166.60B 12.81
Machines IBM
Corp.
Hewlett-
Packard HPQ 53.24 0.17% 124.85B 16.05
Company
Dell Inc. DELL 15.05 0.20% 29.46B 20.62
Cisco Systems, 25.83 -0.77% 147.89B 24.86
Inc. CSCO
Xerox Corp. XRX 9.99 2.46% 8.69B 18.07
Sun
Microsystems, Private - View Profile
Inc.
Seagate 18.11 -0.82% 9.04B 23.04
Technology STX
Apple Inc. AAPL 235.97 0.41% 213.98B 22.99
NCR Corp. NCR 14.08 2.03% 2.25B N/A
EMC 18.18 0.78% 37.32B 34.43
Corporation EMC
Apple in the Market (as of 4/22/05)

52 Week Low: 12.75

Apple had a 2:1 Stock split on 52 Week High: 45.44
02/28/05
Last Trade: 35.50
Boston Consulting Group (BCG) Matrix
High 1.0 Medium .50 Low 0.0
High Question Marks
+20 Cash need High vs.
Stars Domestic cash flow low

Market Penetration
International Market Development
Mediu Product
m0 Development
Cash Cows Dogs
Sell

Low -20

Segments Revenu Profit Growth Rate Relative Market

e Share
Domestic 54% 52% 17 0.3
International 46% 48% 5 0.2
 PORTER’S FIVE
FORCES MODEL
 New Entrants
Threat of new entrants

Bargaining power of the suppliers

Existing
Supplier rivalry in the Customer
industry Bargaining power of buyers

Substitute products & services

Substitutes
 EXISTING RIVALRY
Windows OS and media player for playing music and
video ( Microsoft)

Competition to Mac OS X (Linux)

Alternate sources of computer hardware (Dell, HP,

Lenovo)

Small stylish MP3 players (Creative, Samsung)

Online music stores similar to itunes stores (Napster)

 THREAT OF NEW ENTRANTS
Streaming audio and video with v-cast (Verizon)

On demand online services (similar to i-tunes)

New entrants with disruptive technology (The “next

google”)
BARGAINING POWER OF SUPPLIERS
Suppliers of processors and computer memory
(Motorola, IBM, Intel)

Strategic alliance/supplier of Mac (Microsoft)

Supplier of TV and movies (Disney, ABC, Fox, Sony)

Sources of music (BMG, Sony, Warner, Universal)

 BARGAINING POWER OF
CUSTOMERS
Customers share music using peer-to-peer networks
without paying for music (Ares, Limewire)

Retailers may pressure for lower prices or better terms

(Distributors)

Consumers/Businesses may reduce spending on

computers if they fear economic downturns (Consumer
Attitudes & Behaviors)

Consumer Refresh Cycles

THREAT FROM SUBSTITUTES
Satellite radio for music (XM, Sirius)

Entertainment media, media and music (XBOX, PS2)

Alternative means to acquire music (Music CDs,

DVDs)

Alternative sources for videos (Cable, Broadcast,

Theatres)
APPLE’S DISTRIBUTION
STRUCTURE
APPLE’S DISTRIBUTION
STRUCTURE
APPLE’S DISTRIBUTION
STRUCTURE
Naila
Yousaf
 Apple Marketing Mix
Product
• Portable Computers – including Mac products such as Mac Book Pro,
iMac, MacBook Air, Mac Mini, Xserve
• Servers – including Xserve, Xsan, MacOS X Ser, MobleMe.
• Accessories – including MagicMouse, Keyboard, Led Cinema Display.
• Wi-fi Based Stations - including Airport Express, Airport Extreme, Time
Capsule.
• Developer – including Developer Connection, Mac Program, iPhone
Program.
• iPod – including iPod Shuffle, iPod Nano, ipod Classic.
• iPhone – including iPhone3GS, iPhone3G, iPad.
• iTunes – including movies, TV shows, audio books, games.
• Periphal products – including Printers, Storage devices, digital videos and
cameras
Price
• Apple is a premium brand computer that does not attempt to compete
on price. The company has reduced prices after some initial product
launches. It uses skimming and preimuim pricing strategies.
• The Apple iPad is priced at a minimum of $499.
• The Apple iPhone costs begin at $99.
• The Apple iPod Classic is priced starting at $249.
• The Apple iPod Nano costs $149.
• The Apple Mac Book costs $999.
• The Apple MacBook Pro is priced at $1199.
• The Apple Quicktime Pro for Windows costs $29.99
• Apples iPad pricing strategy includes the flexibility to lower the prices if
consumer response dictates such action. This would be consistent with a
similar $200 price cut on the iPhone in 2007.
Place
• Apple, Inc Headquarters are located at is located at 1 Infinite Loop,
Cupertino, California.
• The Apple Consultants Network includes independent professional
service providers and technology consulting firms that specialize in
Apple and third-party solutions. Certified on Apple technologies, these
providers deliver on-site technology services and support to home users
and businesses of all sizes.
• Apple service providers are certified technicians, who complete regular
Apple training and assessments, and offer repair services, and exclusive
access to genuine Apple parts.
• They are located in Asia/Pacific, Africa, the Middle East Europe and Latin
America.
• Apple has over 200 retail stores worldwide including the US, UK and
Canada. Apple recently opened a new retail store in Shanghai China.
Promotion
• Apple, Inc offers special discounts on refurbished MacIntosh computers,
iPod Nanos, and the 8GB iPod Touch. In each case a 1 year warranty is
included on the all products.
• Apple, Inc authorized Training Centers are located throughout the U.S.
each provides instruction in Mac systems, Mac OS X, and Apple’s
professional applications. A wide range of certification exams and
courses offer innovative learning opportunities for IT and creative
professionals, educators, and service technicians—delivered exclusively
by Apple Certified Trainers.
• The Apple Consultants Network website provides a search tool allowing
visitors to locate nearby certified Mac product consultants in the U.S,
Canada, and a number of international locations.
• Apple provides a $100 rebate when you purchase a Mac or specific
printers from the online store.
People
• Stephen P. Jobs is the Chief Executive Officer of the Executive Board
at Apple, Inc
• Non Executive Board Directors include William V. Campbell, Millard
S. Drexler, Albert Gore, Andrea Jung and Author D. Levinson.
• Some certified Apple service providers offer additional services
beyond repairs and parts such as such as data transfer, data recovery,
upgrade services, and onsite deployment and installation.
• Every Mac, iPod, iPhone, and display comes with complimentary
telephone technical support for 90 days after your purchase and a
one-year limited warranty. The AppleCare Protection Plan extends
your service coverage and gives you one-stop service and support
from Apple experts.
Physical Evidence
• Apple Inc’s main website is located at http://www.apple.com
• The Apple logo has evolved from its original depiction of Sir Isaac
Newton under a tree to the memorable rainbow apple to the
present blue Apple with a bite taken out.

Process
• Apple converts new customers and secures their loyalty through a
corporate emphasis on customer service.
• Apple seeks to attract its target market through bold public relations
events (such as the MacWorld Expo) as well as advertising imagery
which borrows from contemporary modern art.
• Apple has expanded its distribution channels in recent years
including the addition of Wall Mart.
 APPLE’S MARKETING STRATEGY
iPad Marketing Strategy.
o iPad Features
o iPad Pricing

iPod Marketing Strategy.

o The iPod Launch in 2001. An Absolute Flop.
o Who Invented the iPod?
o The iPod. The Merits of Apple.
o Apple iPod Construction and Outsourcing
iPhone Marketing strategy
o Mistake #1 - The iPhone Pricing at market launch.
o Mistake #2 - Forcing costumers in signing with AT&T as
exclusive carrier and the revenue sharing business model.
o Mistake #3 - the Apple iPhone and the Europe markets
o The iPhone 3G Price in Europe
o The iPhone 3GS.
o iPhone Sales Data.
 Apple Inc. advertising
1980–1985

 "1984" television commercial: launching the

Macintosh
• "1984" (created by Ridley Scott) is the title of
the television commercial that launched the
Macintosh personal computer in the United States,
in January 1984.
1995–2000
o "Think Different"
o Television commercials
o Print advertisements

2001–present
o "Switch"
o iPod
o “Get a Mac"
 Advertising Agency

TBWA\Chiat\Day is the American division of the advertising

agency TBWA Worldwide created in 1993.

TBWA Chiat/Day is an Advertising Agency of Apple.

Apple Computer win caps off more than $400 million in new
billings for TBWA Chiat/Day .

TBWA Chiat/Day clients include Nissan, Taco Bell,

Polygram/Gramercy, ABC Television, Infiniti, Seagram,
Absolut, Energizer, Champion, Sony PlayStation and New
York Life.
It gives the market solutions and they help to promote their
product globally.
Apple's Branding Strategy

• Apple Inc. uses the Apple brand to compete across several

highly competitive markets, including the personal computer
industry with its Macintosh line of computers and related
software, the consumer electronics industry with products
such as the iPod, digital music distribution through its iTunes
Music Store, and more recently in the smart phone market
with the Apple iPhone.
The Apple Brand Personality

Apple Brand Equity and Apple's Customer

Franchise

The Apple Customer Experience

Apple Brand Architecture

 The iPod Halo Effect

 Apple Brand Strength Now Creating Financial

Success

 Apple Re-entering the Corporate Market via the

iPhone Halo

 Apple's Original Apple Macintosh Marketing

Strategy
 The original Mac graphical
user interface was revolutionary in its
day. It introduced the use of the
mouse and features such as icons,
The first Mac (above) had
fonts, folders, and audio to
just 128KB of RAM and a 400KB 3.5-
mainstream computers.
inch floppy disk drive, and a 9-inch,
512x342 pixel monochrome display.
Nida
Mahmood
 INNOVATION STRATEGY
 Business Strategy and IT Strategy to Reproduce
Apple Innovation
• December 2nd, 2009
 What are the Apple Innovation Secrets of Steve
Jobs’?

 The Direction of Apple’s Innovative Recovery and

Company Turnaround

 Steve Jobs Innate Understanding of Marketing and

Economics
 What Does All of this Have to do with ERP and SAP?
• A properly implemented ERP system, such as SAP, requires a solid
corporate strategy that addresses competitive pressures. To achieve that
elusive business benefit from the technology spend it is crucial to have
business drivers, business strategy, and the future state direction built
into the application.
• The underlying ERP and SAP business case for ROI, business benefit, and
success must be focused on the intersection IT and business
strategy. The most successful business strategy is always looking
carefully for upcoming market opportunities, and for enhancing the
value proposition. In that business strategy there are revenue,
profitability, customer retention, and customer acquisition opportunities
while focusing on the competitive drivers in the marketplace. At the
intersection of that business strategy is where IT, ERP, and SAP strategy
intersect to enable the business strategy. In the end, like any capital
investment it’s all about how the asset is used, or not used, which
determines payback and success with its deployment.
 SWOT ANALYSIS
Strengths Weakness
Sensors
Unsafe for High price
corporate use?
Style/Brand
High quality
Not issued dividends
Easy to carry First mover Limited distribution channels

Pressure from competitors

Migrate people to Apple

Similar devices
New social device
Highly developed market

Ipod connectivity
Threats
Opportunities
PROBLEMS FACED BY APPLE.INC.
 Steve Jobs

 AT&T

 Computers

 The App Store

 Security
 Mobile Me

 Back Ups

 Apple TV

 Arch Rivals

 About Box Credits

 RECOMMENDATIONS
FOR COMPANY:
Lowering the cost of products and maintaining the
same quality standards

Can form joint – ventures

Knowledge Management

More number of retail stores for easy access

Continuous innovation to expand

 RECOMMENDATIONS
FOR OTHERS:
Do not compromise on price for quality

Choose the products based on individual needs

Be unique and different

 Recommendations
Strategy 1
•Open six computer retail stores (not just peripheral and accessories). Apple currently has stores
opened throughout the United States with only peripheral and accessories for their computers.
Adding the hardware should generate more hands-on awareness and use already established
locations.
•This will increase product accessibility for those who wish to view items other than just
accessories and increase awareness of the originality of Apple’s products.
•2 percent increase over the next 2 years in sales representatives for the computer
hardware.
Strategy 2
•Contract music spokesperson to attract the upcoming generation who are attending high school
and college. This will invoke a sense of style and linking apple with a distinctive and memorable
top 10 hit. This will stay in the customer’s awareness and influence future purchase decisions.
•Contracting one music spokesperson estimated $6 million.
Strategy 3
•Add more features to current products for greater Wintel compatibility. Features such as iTune
software compatible with windows based computers, Office programs loadable from PC
installation disk (This would require a software agreement with Microsoft). In late October 2003
Apple released an iTune software package that is PC ready.
•It will increase the United States market share at least 30 percent for the next 2-3 years.
•$50 million is the estimated cost for Research and Development.
Cost of Recommendations
• Open 6 computer retail stores (not just
peripheral and accessories)
100M
• Contract music spokes person (Sarah
McLachlan | 50 cent) for a cost of
6M
• Start production of Wintel compatible
software for a cost of
50M

Total expected cost =

156M
 Conclusion:
Apple and Steve Jobs sometimes become one, but
there’s no clear guess about Apple’s future
without Jobs.
Apple Products are more advanced, easier to use
and designed better than Windows.
8/3/2018 78