1976* Apple is co-founded by Steve Jobs (45% share) ,Steve Woznaik (45% share) and Ronald Wayne (10%share ).* ‘Woz’ creates Apple I.1977* Apple is Incorporated on Jan 3 1977.* Apple debuts the Apple II (Cost: $1298).1979* Apple earns $47 million in revenues.* Steve visits Xerox PARC in Palo Alto where they areexposed to new computer technologies including themouse and the GUI.
1980* Apple’s public IPO sells 4.6 million shares. Apple’s valuation touches $1.778 billion.1983* Apple releases the first personal computer with a Graphical User Interface the Lisacomputer (Cost: $9995).1984* Apple debuts the first Macintosh computer (Cost : $1995 to $2395 depending onconfiguration). Macintosh was a success.1985John Sculley (the then CEO) with the approval of the Apple board of directorsrelieves Steve Jobs of his role as the head of the Mac division.* Steve jobs creates his own company NeXT.
1986* Steve Jobs buys The Graphics Group (later named Pixar Animation studios) for $10million. 1991* Pixar and Walt Disney Studios team upto develop , produce and distribute up tothree feature-length animated movies. John Sculley acts as CEO from 1985 to 1993. Apple becomes the most profitable PCcompany in the world. Mike Spindler reigns as the next CEO from 1993-1995followed by Gilbert Amelio from 1995-1997. Apple tries it difficult to sustain itself.
1997* Apple buys NeXT for $427 million. Steve Jobs and Woz, after a prolonged absence return to help re-energize Apple , making it the No.1 technology company in the world today with a market capitalization of more than $ 550 billion …… 1998 : Apple launches iMac G3 1999 : Apple launches iBook G3 2001 : Apple introduces iPod 2003 : Apple debuts iTunes Music store 2006 : Apple launches MacBook Pro . Intel chips Transition. 2007 : Apple debuts iPhone . Apple Computers renamed as Apple Inc. 2008 : Apple debuts MacBook Air 2010 : Apple debuts iPad 2011 : iCloud
Time and again Apple invented and reinvented its strategies with Horizontal and vertical integration to Sub contracting its manufacturing and outsourcing. It moved focus from Very high end computers in the price range of $10,000to affordable simple computers. Entered into joint – Ventures with IBM and parting ways. Launching new line of products. Acquisitions, reorganizations, down-sizing. Online sales to retail stores. Continued loss making business of ITunes to Support profitable business of IPods. Thus Strategies have to be modified and changed to suit the situation
Vision and Mission“ 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.”“ Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices.”
Mission and Vision statement Evaluation Matrix Customers - Yes (A section wise mention) Product and services - yes Markets - Yes ( world) Survival - Yes Technology - Yes Organization – Yes (Innovative) Philosophy, Self concept and concern for public image – Yes (Best and committed) Concern for Employees - No
Strengths Weaknesses• Design & Innovation : Technology Trend Setter • Closed System• Differentiated Products • Expensive products.• Ease and Simplicity of products * Switching cost is comparatively low• Superior Quality/High Reliability * Proprietary Peripherals leading to compatibility issues• Retail Store Strategy : Excellent Customer Service @ Apple Stores and plans like AppleCare * Not all Microsoft products are compatible with• Customer Loyalty Mac OS• Apple community * Adobe Flash player not supported ( Many internet videos use the flash format )• Largest no of apps available for iPhones & iPad • Low market Share : Mac OS• Financial Vitality• Green Products
Opportunities Threats• Advent of the Internet & 3G : Increase in sales of • Apple relies heavily on China for spare parts and iPhones and iPads. manufacturing/assembly of its products.• Work towards resolving compatibility issues for • Android usage picking up pace peripherals and software. • Patent Infringement issues• Home Entertainment and Digital TV • Internal : iPhone vs iPod• Expanding Apple stores in emerging markets like • US largest market : Recession can bring down sales India. • Technology Obsolescence* Business to Business ( B2B) • Recent Apple Supplier Chain Issue : Fox Conn • Switching in technology is very fast • External Competitors : • Samsung - Galaxy series of smart phones and tablets • HTC - multiple smart phone models • Google - Nexus-7 Tablet • Microsoft - Surface Tablet • Amazon- Kindle • Dell/HP/Lenovo - Multiple laptop models with attractive prices • Sony/Microsoft – Mp3 Devices like Zune etc
Political Economic• Attitude towards foreign companies • Higher Disposable income• Have to deal with foreign trade, customs and labour • Current generation with higher propensity to laws due to outsourcing consume• Have to deal with outsourcing companies Tax laws • Constant devaluation of the outsourcing countries (China) currency• Government support • Huge competition among suppliers with latest• High dependence on US relations with other countries. technologies • High GDP • Price sensitive market (India) • Business analytics and market research firms (India) • Growing Education sector in India • Economic crisis in Europe
Social and cultural Technological• Life Style changes • Ever growing market for Computers and Mobile phones• Population growth rate • Technologically advanced• High population getting tech savvy • Product life cycle very small• Style, status and brand conscious population • Huge sending on R & D by company and industry• Many people, students and professionals encouraged to use high quality products • Availability of certain technologies to improve overall R & D , productivity and innovations• Globalization • Telecom infrastructure• Music - The international language • Company know for innovations • Huge competition among suppliers with latest technologies • Patent protection on innovations
Threat of New Competitors :LOW (From Startups)•Capital Intensive Industry•Economies of scale•Need for strong Intellectual-Property base•Strong Brand identity and Brand loyalty all over the worldHIGH (From already established/big companies)•Intel recently launched XOLO.•Samsung Galaxy smartphones/Tab series.•Microsoft recently released SURFACE Tab.•Google recently launched Nexus-7 Tab.•HTC is giving tough competition in the smart phone business.Threat of Substitutes : HIGH•Various online music sources are available that compete against iTunes store.•Availability of many versions of smartphones and Tabs from a variety of manufacturers.•Microsoft and Sony have their versions of MP3 players like the ZUNE and the Walkman series.•Switching costs in certain range of products is relatively low•More expensive than its competitors
Bargaining Power of Suppliers : LOW to MODERATE• Larger No of suppliers.• Samsung a major supplier of parts is also a major competitor.• Forward Integration is difficultBargaining Power of Customers : MODERATE to HIGH• Price Elasticity of demand is high.• Consumers have much more choice today due to the availability of many substitute products which reduces the switching costs.Threat of Rivalry : HIGH• Consumer Electronics Market is Highly Competitive. [ Microsoft, HTC, Samsung, Dell, LG, Google-Android, Lenovo, Sony ]• Both Price and Feature based competition exist.• Profitability• Microsoft Windows (huge market share) vs Apple MAC OS-X(moderate market share)