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Apple Computer

Apple Computer






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    Apple Computer Apple Computer Presentation Transcript

    • Apple Computers, Inc. Lauren Carter Monica Bridges Elizabeth Smith Kevin Boutwell
    • Who is Apple Computers, Inc.?
      • Founded in 1976 by Steve Jobs and Steve Wozniak
      • Company was founded after IBM created the 4004 chip which allowed previously bulky computer components to be included on a small chip that is located in a computer system small enough to fit on a desktop.
      • Apple’s logo, now one of the most recognizable logos in the industry, was adapted a year after the company was founded.
    • 1976 1981 2006 1975 The Evolution of a Brand
      • 1997- First online store opened.
        • Over 4.4 million hits and 500,000 orders in the first 24 hours of operation.
      General Environment
      • 2002- Initiated a Swith Advertising campaign.
        • Geared to switch PC users to Mac users.
      • Currently Operates 200 brick and mortar locations world-wide.
      • i Series of computer products brought $650 million in revenue for the 2003 fiscal year.
      • Company has begun to shift product lines with the aspiration to “think different.”
      General Environment
      • Constant innovations and product re-inventions as the consumer base shifts as well as the economy.
        • iPod (portable music)
        • iMac (gaming & power)
      • Apple competes in the following industries:
        • Computer
          • iBook
          • PowerBook
          • PowerMac
        • Multi-Media
          • iMac
        • Entertainment
          • iPod
      Industry Environment
      • Market Share:
        • Worldwide:
          • Desktop- 6%
          • Portable- 10%
        • Domestic:
          • Educational- 15.2%
      • Annual sales for 2002 fiscal year were $1.5 bil
        • Down 27% from previous year.
      • Porter’s 5 Forces:
      • Buyers
        • Set Prices
      • Suppliers
        • Reinvention of supply chain
          • Cut down
      • Current Rivals
        • Dell, HP, Sony, Toshiba
      Industry Environment
      • Substitute Products
        • Little/no direct substitutes but many competing products.
        • Mac OS has no alternatives.
      • Threats of Entrants
        • High barriers in industry
          • Apple is established
      • Marketing is Apple Computer, Inc.’s biggest survival factor.
        • Ads featuring testimonials from PC users that have switched to Mac.
        • New advertising ventures allow Apple to gain market share.
      Industry Environment
      • In light of slight decline in computer sales, Apple Computer, Inc. has put more emphasis on promotion of the iPod.
        • Mixture of both computer and portable mp3 player sales allows Apple to remain profitable.
      • Apple is planning to further enhance their switch advertising campaigns.
      • Award-winning advertisements has created competitive edge.
      • In order to stay competitive, Apple Computer, Inc. has created different versions of their operating system.
      Competitor Environment
      • Creation of peripheral products has created diversification.
      • eMac
        • Educational products
        • Learning applications
        • Portable computers
      • Apple has maintained their ability to distinguish themselves from their competition.
      • Apple’s has resources that are:
        • Organizational
        • Innovative
        • Technological
      • Apple logo is easily identifiable to customers in the computer market.
      Internal Environment
      • Internal Capabilities:
        • Marketing
          • Large budget
        • Management Leadership
      • Core competencies in high-quality hardware.
      • Inventory system has given higher economies of scale.
      • Outbound logistics has made it possible for Apple Computer, Inc. to meet the orders and demands of their customers.
      • Technological development is a key support activity.
      Internal Environment
      • Company vision is to provide the best possible merchandise at the most reasonable price possible.
      • Strategic Mission-
      • Provide unique products which allows them to enter into new markets.
        • iPod
        • eMac
      • Apple works hard to determine new ideas on how to gain market share in order to boost sales.
      • Strategies:
        • Advertising
        • New Products
        • Technology Innovation
      Internal Environment
      • Objectives:
        • Open new stores
        • Cooperative branding
        • Educational products
      • Strong efforts in advertising, technology innovation and market share growth make Apple Computer, Inc. successful!
    • Synthesis
      • Alternatives:
      • Tackle the low-end consumer market, focused segmentation.
      • Offer an affordable system with an innovative design.
      • Distinguished, Innovative.
      • Devise a strategy to convince competitors’ customers to
      • switch to Apple and retain current customers.
      • Successful company
      • Favorable Brand Perception
      • Brand-loyal customers
      • Recognizable logo
      • Creative advertisements/promos
      • MP3 Innovations
      • Well established product lines
      • Brick and mortar locations
      • Declining market shares
      • Heavily saturated industry
      • Proprietary software system
      • Low popularity overseas
      • Increasing different operating system
      • Educational materials/ software
      • MP3 device expansions
      • Software designs
      • Competition in MP3 industry
      • Competition in computer industry
      • High substitution rate
      • New Entrants
      SWOT Analysis
      • Apple has to concentrate on gaining market share from its competition if they want to maintain profitability in the industry.
      • The expansion into new product lines is an opportunity that they are exploring, and they are slowly starting to gain some of this market share from the competition.
      • They should use their cash assets that they have in excess to sponsor this growth in order to continue to keep this sales growth going.
      T Sum It All Up…
    • Questions??? The End…