2. Apple & Google being
announced as worlds
No. 1 and No. 2 most
valuable brands.
Apple replaced coca cola
from No. 1 position.
Strategies used by these
two companies.
3. Part 1: Apple and Google being No 1 and No 2 &
Technology Industry.
Part 2: Comparative Growth of Apple and Google
over the years.
Part 3: PESTEL for Apple & Google and
comparative SWOT and Porters for Apple & Google.
Part 4: Strategies used.
Part 5: Strategies currently being used and future
plans by the companies and our recommendations.
11. • 2.7 billion people – almost 40% of the world‟s population – are
online
• In the developing world, 31% of the population is online,
compared with 77% in the developed world.
• Europe is the region with the highest Internet penetration rate in
the world (75%), followed by the Americas (61%).
• In Africa, 16% of people are using the Internet –only half the
penetration rate of Asia and the Pacific.
16. The growth in the Americas segment net sales during 2013 was driven by increased sales of iPhone following the introduction of iPhone 5
in September 2012 and iPhone 5s and 5c in September 2013, increased sales from the iTunes Store, and increased sales of iPad,
particularly iPad mini
The growth in Asia was driven by the iphone and the ipad
Similar to the Americas segment, growth in net sales in the Europe segment during 2013 was primarily driven by increased sales of iPhone, iPad
and higher net sales from iTunes
Same as above . Major contributor is the Ipad and Iphone
17. Apple eyes Rs 1,000 crore from iPhone
5S sales in India in Q3
18. Samsung leads the market Share in phones world wide
Nokia is at number two
Apple is a Number 3
All these are android except Nokia and Apple.
Google earns Approx 3-4 dollars per android phone sold
24. VISION - Apple Inc
“Man is the creator of change in this world. As such
he should be above systems and structures, and
not subordinate to them.”
MISSION - Apple Inc
“Apple ignited the personal computer revolution in
the 1970s with the Apple II and reinvented the
personal computer in the 1980s with the
Macintosh. Apple is committed to bringing the best
personal computing experience to students,
educators, creative professionals and consumers
around the world through its innovative hardware,
software and Internet offerings.”
25. Google‟s vision is to deliver relevant results across all data sources – the
Internet, a user‟s local computer, and the corporate network.
The perfect search engine would understand exactly what you mean and give
back exactly what you want
Larry Page
Google co-founder
MISSION - Google Inc
"Google's mission is to organize the world's information and
make it universally accessible and useful."
26. Google Beliefs
Focus on the user and all else will follow. - Since the
beginning, we‟ve focused on providing the best user
experience possible....
It’s best to do one thing really, really well. - We do
search....
Fast is better than slow. - We know your time is
valuable, so when you‟re seeking an answer on the web
you want it right away–and we aim to please.
Democracy on the web works. - Google search works
because it relies on the millions of individuals posting links
on websites to help determine which other sites offer
content of value.
You don’t need to be at your desk to need an answer.
- The world is increasingly mobile: people want access to
27. Google beliefs..
There’s always more information out there. - Once
we‟d indexed more of the HTML pages on the Internet
than any other search service, our engineers turned their
attention to information that was not as readily
accessible...
The need for information crosses all borders. - Our
company was founded in California, but our mission is to
facilitate access to information for the entire world, and in
every language....
You can be serious without a suit. - Our founders built
Google around the idea that work should be challenging,
and the challenge should be fun...
Great just isn’t good enough. - We see being great at
35. Porters 5 Forces for Apple – New
Entrants
• Low cost of Forward/Horizontal Integration
• High cost of new hardware set-up
• Low cost to acquire part from foreign markets
• Moderate cost setup for new software services setup
Threat of New Entrants
Moderate to High
36. Porters 5 Forces for Apple –
Substitutes
• Online Music
• Pirated Music
• Freeware
• Alternate Entertainment sources
• Cheaper Hardware
Threat of Substitutes
High
37. Porters 5 Forces for Apple –
Suppliers
• Low number of Hardware suppliers
• Possibility of Exclusive tie-ups with Content
Providers
• Low cost of Switching
• Apple always keeps the suppliers guessing
Bargaining Power of Suppliers
Low to Moderate
38. Porters 5 Forces for Apple –
Buyers
• Niche Segment Operation
• Loyalists
• Low Cost of Switching
• Lots of options
Bargaining Power of Buyers
Moderate to High
39. Porters 5 Forces for Apple – Rivals
• Works in a Product differentiated niche segment
• Large number of competitors
• Loyalists
• In the Top 3 Mobile phone sellers in the world.
Competitive Rivalry
High
40. Porters 5 Forces for Apple – Industry
Attractiveness
• Threat of New Entrants – Moderate to High
• Threat of Substitutes – High
• Bargaining power of Suppliers – Low to Moderate
• Bargaining power of Buyers – Moderate to High
• Competitive Rivalry – High
• Deciding Factor – Large Untapped Mobile phone Market
Industry Attractiveness
High
42. Porters 5 Forces for Google – New
Entrants
• Moderate Initial Investment
• Large requirement of Skilled Manpower
• Huge Capacity requirements
Threat of New Entrants
Low
43. Porters 5 Forces for Google –
Substitutes
• Social Media is a big threat
• Peers poses a low threat
• Books poses a moderate threat
Threat of Substitutes
Moderate
44. Porters 5 Forces for Google –
Suppliers
• Moderate risk content providers switching away from
Google and signing exclusive contracts with other
content distributers
• Low risk of losing content creators for the Mobile
Market
• Low risk of losing innovators
Bargaining Power of Suppliers
Low to Moderate
45. Porters 5 Forces for Google – Buyers
•
•
•
•
•
Limited choices in Search Engines
Limited choices in online Advertisers
Limited choices in Mobile OS
Moderate choices for browsers
Limited choices in all-in-one packages
Bargaining Power of Buyers
Low
46. Porters 5 Forces for Google –
Rivals
• Microsoft & Yahoo have revamped their Search
engines. Facebook has launched a Search Engine.
• IBM‟s „Watson‟ shows potential.
• No Mobile OS show potential to dethrone Android
• Gmail is the largest email service in the world
Competitive Rivalry
Low
47. Porters 5 Forces for Google – Industry
Attractiveness
• Threat of New Entrants – Low
• Threat of Substitutes – Moderate
• Bargaining power of Suppliers – Low to Moderate
• Bargaining power of Buyers – Low
• Competitive Rivalry – Low
• Deciding Factor – Large Untapped Internet Market
Industry Attractiveness
High
49. SWOT Analysis for Apple - Strengths
•
•
•
•
•
•
•
No 1 brand in the world
iTunes
Loyal Customer base
Innovation
Impressive hardware
Strong R&D Team
Strong Execution Ability
50. SWOT Analysis for Apple Weaknesses
•
•
•
•
•
•
•
Limited Product/Service offering
Cost
Compatibility
Reliance on iTunes for everything
Less Market Penetration
Key technology features missing
Loss of a Visionary
51. SWOT Analysis for Apple Opportunities
• Large Gen X & Y population
• Tie-up and exclusive contracts with Content
Providers
• Untapped hardware markets over the world
• Untapped Internet Market all over the world
52. SWOT Analysis for Apple - Threats
•
•
•
•
Open Source OS
Security
Piracy
Low cost hardware
54. SWOT Analysis for Google - Strengths
•
•
•
•
•
•
No. 2 Brand in the world
Search Engine Leadership
Innovation
One of the best work environments
Strong Financial Situation
Android
55. SWOT Analysis for Google Weaknesses
• No major involvement in Hardware
• Only One Major source of Income
• Lots of non-profit products
56. SWOT Analysis for Google Opportunities
• Untapped Hardware market
• Social Media
• New Services
• Growing Mobile Advertising Market
• Strategic Acquisitions
• Untapped Internet Market all over the world (Fixed and
Mobile)
• Android
57. SWOT Analysis for Google Threats
• Partnership between big players
• Competitive Space
• Social Networks
• Privacy Laws
61. Strategic Groups – Apple
Sony
High
PRICE Medium
Low
Samsung
Blackberry
Spice Mobile
Samsung
Nokia
Low
Apple
Dell
Samsung
HTC
Nokia
Nokia
Samsung
Samsung
Medium
FEATURES
High
62. Strategic Group – Google
Generic
Search
Engines
Region
Focused
Search Engine
Bing
Yahoo
Baidu
Social Media
Makemytrip
Google
Industry Specific
Search Engine
Facebook
Junglee
Naukri
Linkedin
65. Ansoff Matrix - Apple
iPhone 5C
New iPad mini with Retina
display
iPAD Air
iWatch
PRODUCT
Current
Mac
iPhone 5
iPad
iPod
Apple TV(India)
Current
New
MARKET
66. Ansoff Matrix - Google
New
Google Debit Card
Google Glass
Google Search
Gmail
Google+
Google TV
PRODUCT
Current
Current
New
MARKET
67. Recommended Strategies for Apple
Product Differentiation – Core Competency (design and technology)
Lifestyle Branding
Horizontal Integration –
Acquire niche companies (50 acquisitions so far)
Strategic Alliance for content eg. could persue alliance with
Amazon. Apple TV
Alliances with Luxury Brands
Aggressive Technology Innovation 64 bit chip
3D chip
Aggressive Design innovation iPhone, iPad, iPod, MAC
Research user interface possibilities
68. Recommended Strategies for Apple
Expand Apple store locations 417 in 14 countries
$4.5 B revenue from Apple Retail Store (Q3 of 2013)
Develop close relationships with suppliers
Hon Hai Precision Industry Co., Ltd. (Foxconn)
Tailored Hardware/Software Systems
iPhone Hardware and iOS
Hire and Retain Exceptional Talent
Hired Burberry CEO for Apple Retail (fusion of fashion and
technology)
Exceptional Software development team
69. Recommended Strategies for Google
Develop on its core competency Search Engines – (60% untapped
market)
Enhance search experience.
Provide AI, native language search
Algorithm improvements (hummingbird)
Aggressive Innovation Culture.
Every employee has a research project
Define future (Google Glass, Google Fiber, Google
Balloons)
Partnership with universities and research institutions
Horizontal Integration –
Acquire niche companies (131 acquisitions so far. YouTube,
android, Picasa, Motorola etc)
Strategic alliance – AOL , Invested 1B in
AOL..Salesforce.com – CRM and Ad Words platform
Vertical Integration –
Entering into Device Space(Nexus), Chrome desktops
Aggressively enter mobile.
70. Recommended Strategies for Google
Hire and Retain Exceptional Talent
Best place to work . Rank #1
Strengthen Cloud Eco System (Monetize existing
infrastructure)
Develop PAAS, IAAS, SAAS
Rent Infrastructure
Long Lease on Infrastructure (2068)
Mitigate Privacy issues
Strengthen data encryption mechanism (Gmail)
Work with local government to address local laws
Enter Enterprise Computing and Domain computing (New
Revenue Streams)
Provide alternative to existing business computing
Study requirements on business domains (Mobile
banking, ecommerce)
Divest unprofitable products
Orkut
Editor's Notes
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