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  • Apple google

    1. 1. Those who changed the world … with BREAKTHROUGH TECHNOLOGIES!
    2. 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. 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.
    4. 4. Interbrand, a brand consulting firm ranks:
    5. 5.  Constantly improving products.  Constantly new products.  Products worth fetching high margins.  Best spokesman.  Distribution.  Marketing.  Product Design.
    6. 6. Category 2012 Spending Devices 627 Data Centre Systems 141 2013 spending 666 147 Enterprise software 278 296 IT Services Telecom services 881 1161 927 1701 Worldwide IT spending forecast (billions of U.S. dollars)
    7. 7. • 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.
    8. 8. Apple Inc- Financial Data
    9. 9. Apple Inc- Net Sales
    10. 10. 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
    11. 11. Apple eyes Rs 1,000 crore from iPhone 5S sales in India in Q3
    12. 12. 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
    13. 13. Google Inc- Financial Data
    14. 14. Google Advertisement Revenue Share – Geographic Spread Motorola Mobility Revenue Share – Geographic Spread R&D Spend
    15. 15. 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.”
    16. 16. 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."
    17. 17. 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
    18. 18. 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
    19. 19. Political Economic PESTEL Analysis Social Technological Environmental Legal
    20. 20. PESTEL Analysis – Political & Legal • • • • • Different Countries, Different Laws Patents, Trademarks and Copyrights Ethical Business Practices Consumer Protection Censorship
    21. 21. PESTEL Analysis - Economical • • • • Income/Wages Inflation Young Spenders GDP
    22. 22. PESTEL Analysis – Socio-Cultural • • • • • Age demographic Culture Spending Preferences Lifestyle changes Gender Demographic
    23. 23. PESTEL Analysis - Technological • • • • • Innovation Product/Service Differentiation Cloud Services Technological Competition Technological Capability
    24. 24. PESTEL Analysis - Environmental • • • • Emissions and Pollution Norms Carbon Footprint Greenhouse Gases Energy Efficiency
    25. 25. Porters 5 Forces
    26. 26. 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
    27. 27. Porters 5 Forces for Apple – Substitutes • Online Music • Pirated Music • Freeware • Alternate Entertainment sources • Cheaper Hardware Threat of Substitutes High
    28. 28. 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
    29. 29. Porters 5 Forces for Apple – Buyers • Niche Segment Operation • Loyalists • Low Cost of Switching • Lots of options Bargaining Power of Buyers Moderate to High
    30. 30. 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
    31. 31. 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
    32. 32. Porters 5 Forces
    33. 33. Porters 5 Forces for Google – New Entrants • Moderate Initial Investment • Large requirement of Skilled Manpower • Huge Capacity requirements Threat of New Entrants Low
    34. 34. 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
    35. 35. 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
    36. 36. 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
    37. 37. 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
    38. 38. 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
    39. 39. SWOT Analysis Apple
    40. 40. 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
    41. 41. 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
    42. 42. 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
    43. 43. SWOT Analysis for Apple - Threats • • • • Open Source OS Security Piracy Low cost hardware
    44. 44. SWOT Analysis
    45. 45. 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
    46. 46. SWOT Analysis for Google Weaknesses • No major involvement in Hardware • Only One Major source of Income • Lots of non-profit products
    47. 47. 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
    48. 48. SWOT Analysis for Google Threats • Partnership between big players • Competitive Space • Social Networks • Privacy Laws
    49. 49. BCG Matrix
    50. 50. BCG Matrix - Apple
    51. 51. BCG Matrix - Google
    52. 52. 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
    53. 53. 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
    54. 54. 5 Competitive Strategies – Google Google
    55. 55. 5 Competitive Strategies – Apple Apple
    56. 56. 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
    57. 57. Ansoff Matrix - Google New Google Debit Card Google Glass Google Search Gmail Google+ Google TV PRODUCT Current Current New MARKET
    58. 58. 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
    59. 59. 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
    60. 60. 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 – CRM and Ad Words platform Vertical Integration –  Entering into Device Space(Nexus), Chrome desktops  Aggressively enter mobile.
    61. 61. 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