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.
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.”
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:
Annual sales for 2002 fiscal year were $1.5 bil
Down 27% from previous year.
Porter’s 5 Forces:
Reinvention of supply chain
Dell, HP, Sony, Toshiba
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.
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.
Creation of peripheral products has created diversification.
Apple has maintained their ability to distinguish themselves from their competition.
Apple’s has resources that are:
Apple logo is easily identifiable to customers in the computer market.
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.
Company vision is to provide the best possible merchandise at the most reasonable price possible.
Provide unique products which allows them to enter into new markets.
Apple works hard to determine new ideas on how to gain market share in order to boost sales.
Open new stores
Strong efforts in advertising, technology innovation and market share growth make Apple Computer, Inc. successful!
Tackle the low-end consumer market, focused segmentation.
Offer an affordable system with an innovative design.
Devise a strategy to convince competitors’ customers to
switch to Apple and retain current customers.
Favorable Brand Perception
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
Competition in MP3 industry
Competition in computer industry
High substitution rate
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.