Apple Case Study


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Apple Case Study

  1. 1. PriyankaTrivedi 1 ERP Case study to APPLE 1. Introduction Apple Inc., formerly Apple Computer, Inc., is an American multinational corporation headquartered in Cupertino, California that designs, develops, and sells consumer electronics, computer software and personal computers. Its best-known hardware products are the Mac line of computers, the iPod music player, the iPhone smart phone, and the iPad tablet computer. Its software includes the OS X and iOS operating systems, the iTunes media browser, the Safari web browser, and the iLife and iWork creativity and production suites. The company was founded on April 1, 1976, and incorporated as Apple Computer, Inc. on January 3, 1977.The word "Computer" was removed from its name on January 9, 2007 Apple is the world's second-largest information technology company by revenue after Samsung Electronics and the world's third-largest mobile phone maker after Samsung and Nokia. Fortune magazine named Apple the most admired company in the United States in 2008, and in the world from 2008 to 2012.However, the company has received criticism for its contractors' labor practices, and for Apple's own environmental and business practices As of May 2013, Apple maintains 406 retail stores in fourteen countriesas well as the online Apple Store and iTunes Store. It is the second-largest publicly traded corporation in the world by market capitalization, with an estimated value of US$414 billion as of January 2013. As of September 29, 2012, the company had 72,800 permanent full-time
  2. 2. PriyankaTrivedi 2 employees and 3,300 temporary full-time employees worldwide. Its worldwide annual revenue in 2012 totaled $156 billion. In May 2013, Apple entered the top ten of the Fortune 500 list of companies for the first time, rising 11 places above its 2012 ranking to take the sixth position. Apple was established on April 1, 1976, by Steve Jobs, Steve Wozniak and Ronald Wayne to sell the Apple I personal computer kit. The kits were hand-built by Wozniakand first shown to the public at the Homebrew Computer Club. The Apple I was sold as a motherboard ,The Apple I went on sale in July 1976 and was market-priced at $666.66 On August 24, 2011, Jobs resigned his position as CEO of Apple. He was replaced by Tim Cook and Jobs became Apple's chairman On October 4, 2011, Apple announced the iPhone 4S, which included an improved camera with 1080p video recording, a dual core A5 chip capable of 7 times faster graphics than the A4, an "intelligent software assistant" named Siri, and cloud-sourced data with iCloud. The following day, on October 5, 2011, Apple announced that Jobs had died, marking the end of an era for Apple Inc. The iPhone 4S was officially released on October 14, 2011. APPLICATIONS: 1. MAC 2. ipad 3. ipod 4. iphone 5. icomputer 6. itv 2. Mission Statement Of Apple Inc. Apple Inc. is determined and committed to deliver the best personal computing experience by offering technologically ingenious products and services to students, educators, creative professionals and consumers around the world through it's unique modern hardware and software. Apple is able to enhance resources for future generations and for continuous improvements. 3. Customer Profile Households with at least one Apple device now comprise 50% of all households across the US and Europe, and 36% of people claim to be regular users of Apple devices. More
  3. 3. PriyankaTrivedi 3 than half of the student population are now regular Apple users, compared to fewer than one in five retired people. While Apple is the favoured technology brand with Apple users, Samsung, Sony, HP and LG are also preferred brands with this group. This Bulletin presents selected survey findings related to users of Apple devices such as iPods, iPhones, iPads, Apple TV and Apple computers. 4.Business Situation Apple Computer Inc. is an American multinational corporation focused on designing and manufacturing personal computers, closely related software products, and other consumer electronic products such as MP3 players. Since its foundation in 1976, Apple has been a pioneer in innovation with multiple ups and downs. In 1976, Apple introduced what was to become the first highly successful mass-produced personal computer. Traditionally, Apple has done extremely well at being the first company to introduce a new product or concept but has struggled to maintain its market share in that product line. Recently, Apple has undergone a transformation from an innovative computer manufacturer to a state of-the-art consumer electronics company. In 2005, the company had $13.93 billion in sales. For the same year, they only controlled 4.2 percent of the U.S. market share in the PC industry. However, Apple’s iPod models accounted for well over 70 percent of the hard-drive MP3 player market and more than 40 percent of the flash based player market.
  4. 4. PriyankaTrivedi 4 5.Problem Solution Step#1: Believe in the Simple Apple: The arrogance of simplicity Apple’s design process When you first start off trying to solve a problem, the first solution you come up with are very complex, and most people stop there. But you keep going, you can often times arrive at some very elegent and simple solutions.
  5. 5. PriyankaTrivedi 5 Simplicity & Choices Fig1. Simplicity & Choices Step#2: Design a full experience Apple adopts a comprehensive approach Apple re-legitimize vertical integration Apple;s vertical integration offers three competitive advantages
  6. 6. PriyankaTrivedi 6 The digital music revolution Fig.2 The digital music revolution Apple’s vertical integration in h/w for consumer electronics
  7. 7. PriyankaTrivedi 7 Fig.3 Apple’s vertical integration in h/w for consumer electronics Step#3: Look customers in iTunes’ goal is to lock the consumer in iTunes revenues are insignificant Fig.4 iTunes revenues are insignificant App store revenues are a drop in the bucket
  8. 8. PriyankaTrivedi 8 Fig.5 App store revenues are a drop in the bucket Step#4: Sell at a premium Apple’s revenues come from high margin h/w products Apple’s profit comes from margins in h/w(iPad) Fig.6 Apple’s profit comes from margins in h/w(iPad) H/w drives Apple’s gross margin
  9. 9. PriyankaTrivedi 9 Fig.7 H/w drives Apple’s gross margin Step#5: Cross-sell your product line Apple brand appeal drives its product line Who is the iCustomer? Fig.8 Who is the iCustomer? iPod and iPhone drive Mac sales
  10. 10. PriyankaTrivedi 10 Fig.9 iPod and iPhone drive Mac sales Integration reinforced by retail strategy Fig.10 Integration reinforced by retail strategy iCustomers will drive Apple’s sales
  11. 11. PriyankaTrivedi 11 Fig.11 iCustomers will drive Apple’s sales How did apple cross the chasm? Fig.12 How did apple cross the chasm? 6.Future expectations Three upcoming features to build an Apple cloud
  12. 12. PriyankaTrivedi 12