Apple complete

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Apple complete

  1. 1. LEADING UNIVERSITY Report On Case study of Apple Inc. in 2008 Problem identification and Internal & External analysis
  2. 2. <ul><li>Submitted by: </li></ul><ul><li>1. Bishwajit chowdhury (0901010196) </li></ul><ul><li>2. Shamsher Ali Liton (0901010207) </li></ul><ul><li>3. Mahdi Iqbal Quraishi (0901010219) </li></ul><ul><li>4. Nazimul Islam (0901010222) </li></ul><ul><li>5. AKM Sadiqur Rahman (0901010200) </li></ul><ul><li>6. Mizanur Rahman (0901010188) </li></ul><ul><li>Section- D, 9 th Semester, Dept of BuA. </li></ul><ul><li>Submitted to: </li></ul><ul><li>Md. Ridwan Reza </li></ul><ul><li>Senior Lecturer, </li></ul><ul><li>Dept. of Bu.A </li></ul>
  3. 3. History: <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>
  4. 4. Current Scenario - Sales Current Scenario – Low market share 6.6%
  5. 5. 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>Jan 2007- Apple Inc. </li></ul><ul><li>CE Industry </li></ul>Big move
  6. 6. 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>
  7. 7. 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><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><ul><li>Marketing and Sales </li></ul><ul><li>Customer Loyalty </li></ul><ul><li>Online Sales </li></ul>Strengths
  8. 8. Five forces Model
  9. 9. Weakness <ul><li>High Price Proprietary System </li></ul><ul><li>Niche Market, Less Penetration </li></ul><ul><li>Cannibalization </li></ul><ul><li>Differentiation Strategy </li></ul><ul><li>Value Creation </li></ul>Core competencies
  10. 10. 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><ul><li>Sustainable </li></ul><ul><li>Competitive </li></ul><ul><li>Advantage </li></ul>Apple’s Strategy <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>
  11. 11. 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”
  12. 12. Financial performance <ul><li>With their fiscal year ending on September 26, 2009, Apple reported total net sales of </li></ul><ul><li>$36.537 billion dollars among each of their five operating segments in 2009. This figure </li></ul><ul><li>is up from $32.479 billion dollars in 2008 and $24.006 billion dollars in 2007.40 </li></ul><ul><li>The Americas account for most of the company’s net sales, with $16.142 billion </li></ul><ul><li>dollars in 2009. Europe accounts for the second-largest operating segment net sales, with </li></ul><ul><li>the Retail segment not far behind. Figure 4 illustrates how these figures are attained </li></ul><ul><li>through contributions from each operating segment. </li></ul>Apple’s Net Sales of Operating Segments (in millions)
  13. 13. Table shows that from 2007-2009, Apple experienced a 266% sales increase within the iPhone product line—the largest product sales increase between 2007 and 2009. Apple’s music-related and software products also experienced significant increases in sales during this three-year span. <ul><li>Apple’s Net Sales by Product (in millions) </li></ul>
  14. 14. Problems <ul><li>Stock price down due to the absence of the CEO. </li></ul><ul><li>Apple has lost the exclusive right to use its own GUI. </li></ul><ul><li>The cost of Apple’s product are high. </li></ul>
  15. 15. Conclusion <ul><li>Apple’s future operations depend largely on the company’s ability to continue developing </li></ul><ul><li>high-quality components of mobile communication devices, such as: microprocessors, </li></ul><ul><li>nonvolatile (NAND) flash memory, dynamic random access memory (DRAM), liquid </li></ul><ul><li>crystal displays (LCDs), and many more—all in sufficient quantities made available to </li></ul><ul><li>consumers at competitive prices. </li></ul><ul><li>The company plans to continually stimulate demand for certain products by </li></ul><ul><li>implementing new design, operability, and user-friendly features. Apple also plans to </li></ul><ul><li>continue lowering product prices, despite the fact that doing so would affect the </li></ul><ul><li>company’s gross margins unfavorably. Due to their significant international operating </li></ul><ul><li>locations, fluctuations with resources, exchange rates, and taxes can also affect their </li></ul><ul><li>future financial results and operational strategies. </li></ul><ul><li>Apple’s future also depends on third-party developers and their ability to continue </li></ul><ul><li>creating software applications that are both powerful and useful for Apple’s products. </li></ul><ul><li>Companies like Microsoft, Dell, Sony, Hewlett-Packard, and other manufacturers of </li></ul><ul><li>electronic communication devices could pose a major threat if third-party Apple software </li></ul><ul><li>development should decrease or cease in production. </li></ul>

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