The case discusses the strategy of one of the most highly coveted companies of all time which is Apple Inc. The case discusses the strategy adopted by Apple Inc.'s when it came to launching of its products and mainly focussing on the iPhone's strategy. The presentation also discusses the dynamics of the PC industry, how Steve Jobs come back changed the company's fortune and others things as well

1. APPLE INC.
GROUP 11
INNOVATION DISTINGUISHES BETWEEN A LEADER
AND A FOLLOWER. – STEVE JOBS

2. P.E.S.T.L.E
• Political
• Laws and regulations of other countries
• Relations between US and other countries
• Economical
• Social/Cultural
• Apple products as “cool” status
• Luxurious product
• Technological
• Tech Savvy company
• Recently seen as sacrificing hardware capabilities
• Legal
• Price Fixing
• Patent on innovations
• Environmental/Ethical

3. ● ASSEMBLED COMPUTERS
● CHANGE IN BUYING PATTERNS
● WHITE BOX DISTRIBUTION CHANNEL
● TOP TIER PC VENDORS - HP, DELL, ACER, LENOVO
● SELECTIVE SUBSTITUTES
DYNAMICS OF THE PC INDUSTRY

4. PORTER'S 5 FORCES ANALYSIS
● Threat of new entrants: Moderate
● Bargaining power of suppliers: Low
● Bargaining power of buyers: High
● Threat of substitutes: Low
● Rivalry among competitors: High

5. COMPETITIVE ADVANTAGES OF APPLE INC.
• THEY OWN AND MANUFACTURE ALL PARTS OF THEIR COMPUTERS INCLUDING
HARDWARE , SOFTWARE AND PERIPHERALS.
• APPLE HAS A STRONG BRAND LOYALTY.
• APPLE HAS BEEN ABLE TO COME UP WITH PRODUCTS TO SUIT CUSTOMER CHOICE
AND CONVENIENCE SO THEY ARE ABLE TO SELL PRODUCTS AT A HIGHER PRICE.
• ADAPTABILITY TO CHANGING ENVIRONMENT.
• APPLE’S REPUTATION FOR INNOVATION AND COMMITMENT TO DEVELOPING NEW
PRODUCTS.
• AN ECOSYSTEM OF SUPPLIERS, DEVELOPERS AND BUSINESS PARTNERS PROVIDE
APPLE WITH A STRONG COMPETITIVE ADVANTAGE.

6. IPOD, ITUNES AS SUSTAINABLE COMPETITIVE
ADVANTAGE
• iPod as an icon of Digital Age
• Synergy between the iPod, iTunes, Macs, and the iPhone
• iTunes is the center link of Apple's synergy chain
• Better hardware design and better functionality than most of its competitors
• Sold at a comparable price
• Hard to imitate
• Fairplay Protection

7. IPOD, ITUNES AS SUSTAINABLE COMPETITIVE
ADVANTAGE
• Eliminated hassles and bulkiness of portable cassette and CD players.
• Purchase music for less than one dollar
• Innovative Products – Nano, Touch
• Microsoft's Zune was comparable with iPod in terms of hardware, but it did not have a good
music store to compete with iPod
• Mandatory iTunes

8. STEVE JOBS AND THE APPLE TURNAROUND:
• $150 million investment from Microsoft.
• Develop core products till August 2002.
• End of Macintosh licensing program.
• Launch of iMac in August 1998.
• Supported “Plug and Play” peripherals for the first time.
• Outsourced the manufacturing to Taiwanese assemblers.
• Launched Website to sell the products directly.
• Increased spending on R&D.
• Reenergize Apple’s image.

9. THE MACINTOSH BUSINESS IN THE 21ST CENTURY:
• Accounted for 43% of Apple’s total revenue.
• Offered a Cutting-edge tightly integrated user experience.
• It provided Attractive design, security, ease of use, High quality bundled software.
• It offered High end as well as low end products for a large customer base.
• It came up with the increased compatibility.
• Abandoned PowerPc Chips for Intel microprocessors.
• Launched the most successful OS X “Leopard” with sales of 4 million copies.
• Apple had a Retail chain of 215 Retail stores as of june 2008.
• Mac sales grew 3 times faster then a normal PC market.

10. • Blank Canvas
• Not Hardware but software oriented
• Apps and Services
• Combining three products
• revolutionary mobile phone
• widescreen iPod
• breakthrough Internet communications device with desktop-class email, Web
browsing, searching and maps
• Not three separate devices, this is one device. Known as ... iPhone
iPhone

11. OLD STRATEGY
• Partnered with AT&T
• Priced at $300 segment
• Service plan $59.99
• AT&T gave complete control
• No Subsidy
• Longer Battery not 3G service
• No sales via Radio Shack & Best buy

12. WHY DID IT CHANGE ITS STRATEGY
• Exclusivity limited its reach
• Expected sales less than actual sales
• Defeat blackberry, the market leader
• Customer dissatisfaction regarding network exclusivity

13. NEW STRATEGY
• Steve Jobs reinvented iPhone 3
• Changed it 3G with longer battery
• Cheaper iPhone starting from $199
• AT&T offered subsidy
• Service with $69.99 but no subscription revenue
• Instead $466 for every iPhone bought
• Including $100 bounty to Apple by AT&T
• Sales via Best buy
• Content revenue with Apple
• Launch of App Store (70% revenue to developers)
• But no selling in China same as before

14. THANK YOU