April 1st,1976 -Founded

January 3rd,1977 Incorporated Headquarters -Cupertino, California Co-founders -Steve Jobs, Steve Wojniak ,Ronald Wayne CEO Tim D Cook Industry -Computer software, computer hardware, consumer electronics, Digital distribution Revenue -US$ 108.249 billion (FY 2011)

Man is the creator of change in this world. As such he should be above systems and structures, and not subordinate to them

Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hard ware, software and internet offerings.

 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

Apple stores

11 Effective Strategies Apple Uses to Create Loyal Customers

1. A store just for Apple 2. Complete Solutions 3. Are You a Mac? 4. Varied Products 5. Media Fodder 6. Education Sales 7. Products That Deliver 8. Outsourcing Unpleasantness 9. Consistency 10.Innovation 11.Attractiveness

 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 i-tunes 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)

Key External Factors Opportunities Increase in worms and virus on PCs. Downloadable music and MP3 players are highly marketable. Large population (Gen X & Y) which are extremely individualistic and name brand conscious. Increase in sales of laptops by 20 percent.

Weight

Rating

Weighted Score

0.15 0.6 0.15 0.04

4 3 4 3

0.60 0.18 0.60 0.12

Increasing sales of computers online by 25 percent.

Creating more ties with Microsoft products. Threats Increasing competition with music downloads. Intels future Pentium release. Dell and HP are major competitors. Dell does not invent but provides computers at a more cost effective rate for customers. Recessionprice of Apple computers are higher. Companies not seeing Apple as compatible with their software. TOTAL

0.05
0.10

3
4

0.15
0.40

0.07 0.03 0.10 0.06 0.04 0.15 1.00

2 3 4 3 2 2

0.14 0.09 0.40 0.18 0.08 0.30 3.24

Key Internal Factors

Weight

Rating

Weighted Score

Strengths iTunes Music Store is a good source of revenue, especially with the iPod and the availability on Windows platform. Apples niche audience provides the company with some insulation from the direct price competition. Revamping desktop and notebook lines. Low debtmore maneuverable. Developing own software and hardware. Good brand loyalty. Web technology can be used to improve product awareness and sales. Weaknesses Dependency on new product launches. Weak presence in business arena. Slow turn around on high demand products. Weak relationship with Intel and Microsoft. Weak presence in markets other than education and publishing. Total 0.06 0.07 0.03 0.10 0.04 1.00 1 1 2 1 2 0.06 0.07 0.06 0.10 0.08 2.78 0.15 4 0.60

0.10

0.30

0.10 0.06 0.14 0.05 0.10

3 4 3 3 4

0.30 0.24 0.42 0.15 0.40