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Apple Computers

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  • 1. Apple Computers, Inc. Lauren Carter Monica Bridges Elizabeth Smith Kevin Boutwell
  • 2. 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.
  • 3. 1976 1981 2006 1975 The Evolution of a Brand
  • 4.
    • 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.
  • 5.
    • 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)
  • 6.
    • 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.
  • 7.
    • 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
  • 8.
    • 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.
  • 9.
    • 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.
  • 10.
    • 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.
  • 11.
    • 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
  • 12.
    • 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!
  • 13. 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.
  • 14.
    • 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
  • 15.
    • 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…
  • 16. Questions??? The End…