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Strategic Management (Presentation on Apple Inc.)

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Strategic Management (Presentation on Apple Inc.)

  1. 1. Presentation on: APPLE INC.THINK DIFFERENT We are here:  Shiblu Barua  Imtiaz Uddin Chowdhury  Mohammed Saiful Islam  Mohammed Ariful Islam  Mohammed Faizullah
  2. 2. Story Behind Apple Inc. • Established: on April 1, 1976. • Headquarters: Cupertino California in America. • Founders: Steve Jobs, Steve Wozniak, and Ronald Wayne. • Industry: Computer Hardware Computer Software Consumer Electronics • World’s second largest information technology company by revenue after Samsung electronics.
  3. 3. Famous Quotes of Steve Jobs • “If you keep your eye on the profit, you’re going to skimp on the product. But if you focus on making really great products, then the profits will follow.” - Steve Jobs • “You have to be burning with an idea, or a problem, or a wrong that you want to right. If you're not passionate enough from the start, you'll never stick it out.” - Steve Jobs • “Everything is important- that success is in the details.” -Steve Jobs
  4. 4. Battle With Microsoft  Apple’s approach to innovation which was part of Apple’s corporate DNA as well as the challenges they have to face to hold their position via dynamic strategy.  The Macintosh was launched in 1984.  However, Apple did not sell to, or share the software with, rival companies. Over the next few years, this non-co-operation strategy turned out to be a major weakness for Apple. As Microsoft rival its software Windows 1.0.  Microsoft strategy was to make this software widely available to other computer manufacturers for a license fee – quite unlike Apple.  Apple Strategy of keeping its software exclusive was a major strategic mistake.
  5. 5. Competitive Analysis of Apple Inc. Apple Strength:  Strong Brand Name  Market leader in music delivery  User friendly products  Design skills  Quality  Exclusive contracts  Profitable  Strong Vision Weakness:  High price  Limited distribution  Small share of large phone market  Features can be replicated over time Nokia Strength:  Brand Name  Dominant position in mobile phone market  Good products  Profitable  Strong ability to deliver new strategy Weakness:  Mature phone market  Little involvement in music market to the present  Its music market has no clear sustainable advantage
  6. 6. Is Apple Stronger Than The Nokia? • In the short term, arguably the answer is that they both have their strengths. • Given Apple’s previous profit record, there is no doubt that it has benefited significantly from its move into record music & iPod. The extension into Apple Smartphone remained to be proven at the time of writing. It suddenly faced some very large companies like Nokia with both the resources & desire to take advantage of the market opportunities. However Nokia is just moving into the recorded music market & it has already produced its own version of the touch phone. This it is worth clarifying the question of who is stronger with respect to the time frame.
  7. 7. Strategies of Apple Inc. • Turn the Ordinary into Something Beautiful Apple have the gorgeous iMac, the beautiful new Macbook Air and the amazing iPhone. • Justification of price 1) Apple built beautiful products for an audience they loves them passionately. 2) Apple justify their price with features and benefits that can’t be matched.
  8. 8. Strategies of Apple Inc.(cont’d)  No other computer can match the display of 27 iMac it simply can’t be done  No other software can match with iTunes brings to the table  No laptop is as their as the Mac book Air  No Software is more intuitive, no product more valuable than the Apple product.  Apple is the Rolls Royce of the technology and design world, and their customers will gladly pay a premium because of it.
  9. 9. How Apple is best? • Flexibility towards innovation • Focusing on superior technology & software • More user friendly than NOKIA
  10. 10. Lessons from apple strategies • The benefits of being an innovator and the risks attached with that strategic route • Distinguished brand name and designing user friendly software • Understanding customers need & their importance • Value of taking market based opportunities in order to launch new products
  11. 11. SWOT Analysis of Apple Strategies Strength: Brand images  Loyal user Cash reserves Partnership with Intel computers Highly refined supply chain Weakness: Relatively high prices compared with smart phones Small Product life cycle Lack of advertisement Apple Maps defects Death of Steve Jobs Opportunities : Antivirus solution developed by Apple Downloadable music & MP3 players are highly marketable Rapid speed with online sales Threats: Apple software, cell phone & hardware are expensive as compared to other competitors Dependence on specific supplier Tax increases Raising pay levels for employees
  12. 12. Porters Five Forces Model & Apple Inc. Threat of New Entry The threat of entry is relatively low, due to the fact that Apple has found a way to continuous differentiate its product form its rivals. Threat of Substitute It is evident that a simple smart phone could be viewed as a substitute to the iPhone, a simple mp3 Player to the iPod & a Samsung tablet to the iPod.
  13. 13. Porters Five Forces Model & Apple Inc. Threat of Rivals • Apple also does not have to worry too much about the threat or rivals. Threat of Suppliers • It also not so severe, the fact that the suppliers are supplying unique & highly differentiated materials in what gives them such power.
  14. 14. Porters Five Forces Model & Apple Inc. Threat of Buyers • Is really no threat to Apple. For starters Apple has millions of buyers, some of which are large corporations. Secondly, Apple’s products are unique & differentiated; illustrating the buyer power is lower.
  15. 15. Market Analysis of Apple Inc. 25% 22% 15% 14% 5% 19% Market Share of Companies in the Computer Manufacturing Industry Hewlett-Packard Dell IBM Apple Oracle Other
  16. 16. Market Analysis of Apple Inc.(cont’d) 25% 12% 7% 5%5% 5% 41% Market Share of Companies in the Smartphone Manufacturing Industry samsung Apple Huawei lenovo xiaomi LG Others

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