A presentation on Apple Business strategy.

1. Apple Inc.
Shivani Saini
Vijay Chandran Bala
Jehaangir Basha
Vikash kr verma

2. “It’s is better to be pirate than to join navy.”
Steve jobs, Apple inc

3. Evolving PC Industry: Snapshot
• Computer industry started experiencing growth from mid 70s
• Guess, which company bought PCs into mainstream: Yes, that was IBM, that captured almost 70% of the PCs
market share till 80s, when other companies started entering PC industry,
• The Lisa is a personal computer designed by Apple Computer, Inc. during the early 1980s. It was the first
personal computer to offer a graphical user interface in an inexpensive machine aimed at individual business
users
• By 1990s, ‘Wintel’ (Windows OS + Intel processor), replaced “IBM compatible” as the industry standard. Other
entrants: Dell, Compaq etc
• By 2008, PCs in use around the world: 1 billion!
• Target market of PC manufacturers comprise of 42% Home buyers, 32% SMB, Large corporation 12%,
Education 8% and Government 6%.
• Major PC manufacturer that hold 50% of market share HP, Dell, Acer & Lenovo.

4. 1983
Apple Lisa was the first computer with a GUI.

5. We are in uncharted territory. We have never sold this many of anything before.
- Apple keynote address, 12 sept 06 -

7. “Innovation distinguish between a leader and follower.”

8. APPLE’ S DNA
Here’s to the crazy ones. The misfits . The rebels. The troublemakers.
The round page in the square holes. The one who see thing differently.
They are not found of rule. And they have no respect for the status quo.
You can quote them, disagree with them glorify and vilify them.
About the only thing you cant do is ignore them. Because they change things.
They push human race forward. And some see them as crazy one we see them as
Genius. Because the people who are crazy enough to think they can change the world, are
the one who do.

10. Apple .Inc
• Fortune magazine named Apple the most admired company in the United States in 2008, and in
the world from 2008 to 2012.
• Apple was established on April 1, 1976, by Steve Jobs, Steve Wozniak and Ronald Wayne
to sell
the Apple I personal computer kit
• Apple II sparked a computing revolution that drove PC industry to $1 billion in annual sales in
less than 3 years.
• In 1984, Apple next launched the Macintosh. Its debut was announced by the now famous $1.5
million television commercial "1984". It was directed by Ridley Scott and was aired during the
third quarter of Super Bowl XVIII on January 22, 1984. It is now hailed as a watershed event for
Apple's success and a "masterpiece".
• In 1985 a power struggle developed between Jobs and CEO John Sculley, who had been hired
two years earlier.The Apple board of directors instructed Sculley to "contain" Jobs and limit his
ability to launch expensive forays into untested products. Jobs resigned from Apple and
founded NeXT Inc. the same year.
• Apple was introducing fresh new products and generating increasing profits in the process. The
magazine Mac Addict named the period between 1989 and 1991 as the "first golden age" of the
Macintosh.

11. • During Amelio's tenure Apple's stock continued to slump and hit a 12-year low in Q2 1997
• The Apple Board forced Amelio out and in September 1997 Steve Jobs became the companys
interim CEO
• At the 2000 Macworld Expo, Jobs officially dropped the "interim" modifier from his title at Apple
and became permanent CEO.
• The company subsequently branched out, introducing and improving upon other digital
appliances
• Apple entered the cellular phone business with the introduction of the iPhone, a multi-
touch display cell phone, which also included the features of an iPod and, with its own mobile
browser, revolutionized the mobile browsing scene

12. Mission statement
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 reinvented the mobile phone with its revolutionary iPhone and App
Store, and has recently introduced its magical iPad which is defining the future of mobile media
and computing devices.
‖

13. Vision
"Man is the creator of change in this world. As such he should be above systems and structures, and
not subordinate to them."
Core values
Design and innovation
Ease & Simplicity
Quality

16. Strength Weakness
Design and innovation capabilities Expensive comp aredto other competitive eg Dell
Distinctive graphical user interface Repair and serviceissues such as : iPod Battery
Easeof use Product features such asWi-Fi capabilities
Own operating system
Window parallel reliability.
Opportunity Threats/Competition
Mobile phone business Linux, Microsoft
Home entertainment, Digital tv Objection from music and labels
Creative Sony ,Samsung & micromax
DRM Free copies Amazon

17. Competitive advantages
Design and innovation oriented
Greater Horizontal and vertical integration
Designing from scratch to finish bundled with applications and peripherals
Plug and play solution
R & D Oriented
An everything ready device

18. Firm infrastructure
HRM
Technology Development
Procurement
Inbound
Logistics
Operations Outbond
Logistics
Marketing/
sales
Service
Alliances withmajor
suppliers
Designand innovation Horizontal & vertical
integration
Plug and play solutions i-tunes gives amajor
edge
Linkagewith
independentsoftware
vendors
Technology driven Complete bundleof
application
Operating system more
secure, and less prone
to virus
Collaborating with
other leaders
i-pod & i- tunes combo
gives brand awareness
apush
Apple’s retail
experience, new Mac
customers bought
more.

19. Product Development
New product
:ideation
Designing &
Funding
Product creation
Beta testing
Improvement&
launch

20. Low
High
High
Analysis of the industry based on Porter’s 5 forces
Threat of new
entrant
Threat of new
entrant
Bargaining power of
customer
Bargaining power of
customer
Bargaining power of
supplier
Bargaining power of
supplier
Threat of substitute
product
Threat of substitute
product
Current
Competition :Very
intensive
Current
Competition :Very
intensive
Low

21. BCG Analysis of apple products

22. Challenges in front of apple.inc
• Frequent changes of strategies and leadership at the helm
• Closed system of the apple Mac, application system not easily available
• Niche market operator, less penetration
• Premium segment, research oriented hence costly

23. Design is not what it looks like and feels like. Its
like how it works.