APPLE INC . ( MBA 660 USM) Presented By: Jennifer Cao Mercy Antony Tejal Sinora Lashunda Price Logan Tisdale

( MBA 660 USM)

Presented By:

Jennifer Cao

Mercy Antony

Tejal Sinora

Lashunda Price

Logan Tisdale

“ Change the World through Technology ” April 1976, Apple Computer, Founder Steve Jobs Industry: Computer Hardware and Software, Consumer Electronics 1984, Macintosh Sculley- Mac with new features Amelio- Return to “Premium Price” Jobs back-Apple Turnaround

April 1976, Apple Computer, Founder Steve Jobs

Industry: Computer Hardware and Software, Consumer Electronics

1984, Macintosh

Sculley- Mac with new features

Amelio- Return to “Premium Price”

Jobs back-Apple Turnaround

Current Scenario Sales

Sales

Current Issues Steve Jobs

Steve Jobs

Current Issues Low Market Share 6.6%

Low Market Share

6.6%

Opportunities Fast growing Industry (Customer Electronics Industry) Technological Innovations Extend new products to loyal customers High Potential music phone market Strategic Alliances

Fast growing Industry (Customer Electronics Industry)

Technological Innovations

Extend new products to loyal customers

High Potential music phone market

Strategic Alliances

Big Move Jan 2007- Apple Inc. CE Industry

Jan 2007- Apple Inc.

CE Industry

Competitor Environment High Competition Share of Dell and HP Microsoft and Intel-Leaders of Software CE Industry- Sony, Nokia, Samsung, Cisco, Motorola

High Competition

Share of Dell and HP

Microsoft and Intel-Leaders of Software

CE Industry- Sony, Nokia, Samsung, Cisco, Motorola

Competitor Environment

Threats Extensive Competition Substitute Products Low prices of Competitors Technical Advancements Economy downfall

Extensive Competition

Substitute Products

Low prices of Competitors

Technical Advancements

Economy downfall

Five Forces Model

Branding Innovation Differentiated Product Ease of Use Superior Quality Retail Strategy Strengths

Branding

Innovation

Differentiated Product

Ease of Use

Superior Quality

Retail Strategy

Marketing and Sales Customer Loyalty Online Sales Strengths

Marketing and Sales

Customer Loyalty

Online Sales

High Price Proprietary System Niche Market, Less Penetration Cannibalization Weaknesses

High Price Proprietary System

Niche Market, Less Penetration

Cannibalization

Differentiation Strategy Value Creation Core Competencies

Differentiation Strategy

Value Creation

Differentiation Strategy Unique Features and characteristics Commands Premium Price High Customer Service Superior Quality Prestige Rapid Innovation Sustainable Competitive Advantage

Unique Features and characteristics

Commands Premium Price

High Customer Service

Superior Quality

Prestige

Rapid Innovation

FF Value Creation Process Focus On Education eMac Adding Value iMac Lifestyle Strategy Digital Hub Music Strategy (iTunes) Video Strategy (iMovie) Internet Strategy (iTools) Convergence Apple I,II,III Mac

FF

Technology Development New Product Ideation Designing/ Funding Product Creation Diffusing products across company

Value Chain Inbound Logistics Operations Distribution Sales and Marketing Service

Apple employs a Product Differentiation Drawbacks as a result of their strategy include: Not appealing to Price Conscious Consumers Risk of Imitation by Competitors Risk of Change in Customer Taste Apple’s Strategy

Apple employs a Product Differentiation

Drawbacks as a result of their strategy include:

Not appealing to Price Conscious Consumers

Risk of Imitation by Competitors

Risk of Change in Customer Taste

Apple’s Problems

Strategic Alternatives Problem Strategy Alternative Low Market-Share Price Differentiation Extend their current product line to include some products with a lower price point. Ex. Re-launch “Mac Mini”

Two Fold Agenda Continue to focus on niche market Set up for Job’s replacement The Strategy

Two Fold Agenda

Continue to focus on niche market

Set up for Job’s replacement

Consistently low share High success in niche market Brand differentiation Market Share

Consistently low share

High success in niche market

Brand differentiation

Ups and Downs of their own Established Identity of Apple Jobs’ success rate Previous CEOs

Ups and Downs of their own

Established Identity of Apple

Jobs’ success rate

Concentrate on current customers Expand niche market Use iPod as gateway Focus

Concentrate on current customers

Expand niche market

Use iPod as gateway

One year planning phase Jobs appoints successor Two year mentoring phase Chief advisor position Replacement Plan

One year planning phase

Jobs appoints successor

Two year mentoring phase

Chief advisor position

Questions????