Apple Inc. 2008 Case Study

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This is a presentation done on 15th April 2009 as per the requisite of MBA Strategy class in USM, Mississippi, USA

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Apple Inc. 2008 Case Study

  1. 1. APPLE INC . <ul><li>( MBA 660 USM) </li></ul><ul><li>Presented By: </li></ul><ul><li>Jennifer Cao </li></ul><ul><li>Mercy Antony </li></ul><ul><li>Tejal Sinora </li></ul><ul><li>Lashunda Price </li></ul><ul><li>Logan Tisdale </li></ul>
  2. 2. “ Change the World through Technology ” <ul><li>April 1976, Apple Computer, Founder Steve Jobs </li></ul><ul><li>Industry: Computer Hardware and Software, Consumer Electronics </li></ul><ul><li>1984, Macintosh </li></ul><ul><li>Sculley- Mac with new features </li></ul><ul><li>Amelio- Return to “Premium Price” </li></ul><ul><li>Jobs back-Apple Turnaround </li></ul>
  3. 3. Current Scenario <ul><li>Sales </li></ul>
  4. 4. Current Issues <ul><li>Steve Jobs </li></ul>
  5. 5. Current Issues <ul><li>Low Market Share </li></ul><ul><li>6.6% </li></ul>
  6. 6. Opportunities <ul><li>Fast growing Industry (Customer Electronics Industry) </li></ul><ul><li>Technological Innovations </li></ul><ul><li>Extend new products to loyal customers </li></ul><ul><li>High Potential music phone market </li></ul><ul><li>Strategic Alliances </li></ul><ul><li>  </li></ul>
  7. 7. Big Move <ul><li>Jan 2007- Apple Inc. </li></ul><ul><li>CE Industry </li></ul>
  8. 8. Competitor Environment <ul><li>High Competition </li></ul><ul><li>Share of Dell and HP </li></ul><ul><li>Microsoft and Intel-Leaders of Software </li></ul><ul><li>CE Industry- Sony, Nokia, Samsung, Cisco, Motorola </li></ul>
  9. 9. Competitor Environment
  10. 10. Threats <ul><li>Extensive Competition </li></ul><ul><li>Substitute Products </li></ul><ul><li>Low prices of Competitors </li></ul><ul><li>Technical Advancements </li></ul><ul><li>Economy downfall </li></ul>
  11. 11. Five Forces Model
  12. 12. <ul><li>Branding </li></ul><ul><li>Innovation </li></ul><ul><li>Differentiated Product </li></ul><ul><li>Ease of Use </li></ul><ul><li>Superior Quality </li></ul><ul><li>Retail Strategy </li></ul>Strengths
  13. 13. <ul><li>Marketing and Sales </li></ul><ul><li>Customer Loyalty </li></ul><ul><li>Online Sales </li></ul>Strengths
  14. 14. <ul><li>High Price Proprietary System </li></ul><ul><li>Niche Market, Less Penetration </li></ul><ul><li>Cannibalization </li></ul>Weaknesses
  15. 15. <ul><li>Differentiation Strategy </li></ul><ul><li>Value Creation </li></ul>Core Competencies
  16. 16. Differentiation Strategy <ul><li>Unique Features and characteristics </li></ul><ul><li>Commands Premium Price </li></ul><ul><li>High Customer Service </li></ul><ul><li>Superior Quality </li></ul><ul><li>Prestige </li></ul><ul><li>Rapid Innovation </li></ul>Sustainable Competitive Advantage
  17. 17. <ul><li>FF </li></ul>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
  18. 18. Technology Development New Product Ideation Designing/ Funding Product Creation Diffusing products across company
  19. 19. Value Chain Inbound Logistics Operations Distribution Sales and Marketing Service
  20. 20. <ul><li>Apple employs a Product Differentiation </li></ul><ul><li>Drawbacks as a result of their strategy include: </li></ul><ul><ul><li>Not appealing to Price Conscious Consumers </li></ul></ul><ul><ul><li>Risk of Imitation by Competitors </li></ul></ul><ul><ul><li>Risk of Change in Customer Taste </li></ul></ul>Apple’s Strategy
  21. 21. Apple’s Problems
  22. 22. 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”
  23. 23. <ul><li>Two Fold Agenda </li></ul><ul><li>Continue to focus on niche market </li></ul><ul><li>Set up for Job’s replacement </li></ul>The Strategy
  24. 24. <ul><li>Consistently low share </li></ul><ul><li>High success in niche market </li></ul><ul><li>Brand differentiation </li></ul>Market Share
  25. 25. <ul><li>Ups and Downs of their own </li></ul><ul><li>Established Identity of Apple </li></ul><ul><li>Jobs’ success rate </li></ul>Previous CEOs
  26. 26. <ul><li>Concentrate on current customers </li></ul><ul><li>Expand niche market </li></ul><ul><li>Use iPod as gateway </li></ul>Focus
  27. 27. <ul><li>One year planning phase </li></ul><ul><li>Jobs appoints successor </li></ul><ul><li>Two year mentoring phase </li></ul><ul><li>Chief advisor position </li></ul>Replacement Plan
  28. 28. Questions????

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