APPLE Inc.

THINK DIFFERENT

Change the World through Technology

On April 1, 1976 - Apple Computer Inc. STEVE JOBS & STEVE WOZNIAK & RONALD WAYNE (Co- founder) Industry: Computer Hardware and Software, Consumer Electronics In 1978, Apple II (color graphics & open architecture). Introduction of a 5 1/4 inch floppy disk drive. In 1979, Development of VisiCalc (spreadsheet program). In 1980, launched an IPO (record breaking after 1956 IPO of Ford Motor Co.)

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 Employees

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

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

Retail

stores - 183

Porters 5 forces

EXISTING RIVALRY VERY HIGH

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)

I-phone segment (Nokia, Samsung , Motorola, HTC)

THREAT OF NEW ENTRANTS - LOW

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 MODERATE

Suppliers of processors and computer memory (IBM, Intel) - High 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 MODERATE

Customers share music using peer-to-peer networks without paying for music (Ares, Lime wire) 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. But many Loyalists (Niche class).

THREAT FROM SUBSTITUTES MODERATE

Satellite radio for music (XM, Sirius) Entertainment media and music (XBOX, PS2)

Alternative means to acquire music (Music CDs, DVDs)

Alternative sources for videos (Cable, Broadcast, Theatres)

Competitor Environment
High Competition Share of Dell and HP Microsoft and Intel-Leaders of Software, ardware Phone Industry- Sony, Nokia, Samsung

Competitor Environment

Core Competencies (In Current Scenario)

Differentiation Strategy
Innovation

Differentiation Strategy
Unique Features and characteristics Commands Premium Price High Customer Service Superior Quality Prestige Rapid Innovation
Sustainable Competitive Advantage

Value Creation Process

Apple I,II,III

Mac

FF
Focus On Education

C o n v e r g e n c e

eMac
Music Strategy (iTunes)

Video Strategy (iMovie)

Lifestyle Strategy

Adding Value

Internet Strategy (iTools) Digital Hub

iMac

Sustained Competitive Advantage

Valuable : Innovators Rare : Strong R & D Costly to imitate : itunes, Mac OS

Non substitutable : applications, softwares

Strengths
Branding Innovation Differentiated Product Superior Quality Retail Strategy

Weaknesses
Less Penetration
Cannibalization

Opportunities
High growth potential. Line Extension. High Potential music phone market Strategic Alliances

Threats
Competition Substitute Products Threat of Suppliers

Ansoff Matrix
Existing Products New Products

Existing Markets

Macbooks, iStation

Macbook Wheel, Apple TV

New Markets

Ipod, iPhone

iTunes

BCG Matrix
STAR PROBLEM CHILD

I-PHONE APPLE MAC BOOK Ipod CASHCOW DOGS Apple TV Mac Mini

GE Matrix
Strong
Smart Phone Market- I Phone

Medium

Weak
Apple software's

High

Music Player Industry I Pod

Personal Computer - Mac

Medium

Market Attractivene

Low

Business Strength

Corporate Level Strategy

Diversification: Iphone, Apple TV
Backward Integration: Manufacturing of Semiconductors Forward Integration: Retail

Acquisitions
Emagic in 2002 -To acquire knowledge and skills about Music software

PA Semi in 2008 - Mac Hardware acceleration - Backward integration - Skilled Manpower

Strategic Alliances
1. Apple Disney - To reduce losses of standalone istore and Disney outlets - To improve the Disney store experience 2. Apple Microsoft

THANK YOU