Apple Computers


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Apple Computers

  1. 1. Apple Computers, Inc. Lauren Carter Monica Bridges Elizabeth Smith Kevin Boutwell
  2. 2. Who is Apple Computers, Inc.? <ul><li>Founded in 1976 by Steve Jobs and Steve Wozniak </li></ul><ul><li>Company was founded after IBM created the 4004 chip which allowed previously bulky computer components to be included on a small chip that is located in a computer system small enough to fit on a desktop. </li></ul><ul><li>Apple’s logo, now one of the most recognizable logos in the industry, was adapted a year after the company was founded. </li></ul>
  3. 3. 1976 1981 2006 1975 The Evolution of a Brand
  4. 4. <ul><li>1997- First online store opened. </li></ul><ul><ul><li>Over 4.4 million hits and 500,000 orders in the first 24 hours of operation. </li></ul></ul>General Environment <ul><li>2002- Initiated a Swith Advertising campaign. </li></ul><ul><ul><li>Geared to switch PC users to Mac users. </li></ul></ul><ul><li>Currently Operates 200 brick and mortar locations world-wide. </li></ul>
  5. 5. <ul><li>i Series of computer products brought $650 million in revenue for the 2003 fiscal year. </li></ul><ul><li>Company has begun to shift product lines with the aspiration to “think different.” </li></ul>General Environment <ul><li>Constant innovations and product re-inventions as the consumer base shifts as well as the economy. </li></ul><ul><ul><li>iPod (portable music) </li></ul></ul><ul><ul><li>iMac (gaming & power) </li></ul></ul>
  6. 6. <ul><li>Apple competes in the following industries: </li></ul><ul><ul><li>Computer </li></ul></ul><ul><ul><ul><li>iBook </li></ul></ul></ul><ul><ul><ul><li>PowerBook </li></ul></ul></ul><ul><ul><ul><li>PowerMac </li></ul></ul></ul><ul><ul><li>Multi-Media </li></ul></ul><ul><ul><ul><li>iMac </li></ul></ul></ul><ul><ul><li>Entertainment </li></ul></ul><ul><ul><ul><li>iPod </li></ul></ul></ul>Industry Environment <ul><li>Market Share: </li></ul><ul><ul><li>Worldwide: </li></ul></ul><ul><ul><ul><li>Desktop- 6% </li></ul></ul></ul><ul><ul><ul><li>Portable- 10% </li></ul></ul></ul><ul><ul><li>Domestic: </li></ul></ul><ul><ul><ul><li>Educational- 15.2% </li></ul></ul></ul><ul><li>Annual sales for 2002 fiscal year were $1.5 bil </li></ul><ul><ul><li>Down 27% from previous year. </li></ul></ul>
  7. 7. <ul><li>Porter’s 5 Forces: </li></ul><ul><li>Buyers </li></ul><ul><ul><li>Set Prices </li></ul></ul><ul><li>Suppliers </li></ul><ul><ul><li>Reinvention of supply chain </li></ul></ul><ul><ul><ul><li>Cut down </li></ul></ul></ul><ul><li>Current Rivals </li></ul><ul><ul><li>Dell, HP, Sony, Toshiba </li></ul></ul>Industry Environment <ul><li>Substitute Products </li></ul><ul><ul><li>Little/no direct substitutes but many competing products. </li></ul></ul><ul><ul><li>Mac OS has no alternatives. </li></ul></ul><ul><li>Threats of Entrants </li></ul><ul><ul><li>High barriers in industry </li></ul></ul><ul><ul><ul><li>Apple is established </li></ul></ul></ul>
  8. 8. <ul><li>Marketing is Apple Computer, Inc.’s biggest survival factor. </li></ul><ul><ul><li>Ads featuring testimonials from PC users that have switched to Mac. </li></ul></ul><ul><ul><li>New advertising ventures allow Apple to gain market share. </li></ul></ul>Industry Environment <ul><li>In light of slight decline in computer sales, Apple Computer, Inc. has put more emphasis on promotion of the iPod. </li></ul><ul><ul><li>Mixture of both computer and portable mp3 player sales allows Apple to remain profitable. </li></ul></ul>
  9. 9. <ul><li>Apple is planning to further enhance their switch advertising campaigns. </li></ul><ul><li>Award-winning advertisements has created competitive edge. </li></ul><ul><li>In order to stay competitive, Apple Computer, Inc. has created different versions of their operating system. </li></ul>Competitor Environment <ul><li>Creation of peripheral products has created diversification. </li></ul><ul><li>eMac </li></ul><ul><ul><li>Educational products </li></ul></ul><ul><ul><li>Learning applications </li></ul></ul><ul><ul><li>Portable computers </li></ul></ul><ul><li>Apple has maintained their ability to distinguish themselves from their competition. </li></ul>
  10. 10. <ul><li>Apple’s has resources that are: </li></ul><ul><ul><li>Organizational </li></ul></ul><ul><ul><li>Innovative </li></ul></ul><ul><ul><li>Technological </li></ul></ul><ul><li>Apple logo is easily identifiable to customers in the computer market. </li></ul>Internal Environment <ul><li>Internal Capabilities: </li></ul><ul><ul><li>Marketing </li></ul></ul><ul><ul><ul><li>Large budget </li></ul></ul></ul><ul><ul><li>Management Leadership </li></ul></ul><ul><li>Core competencies in high-quality hardware. </li></ul><ul><li>Inventory system has given higher economies of scale. </li></ul>
  11. 11. <ul><li>Outbound logistics has made it possible for Apple Computer, Inc. to meet the orders and demands of their customers. </li></ul><ul><li>Technological development is a key support activity. </li></ul>Internal Environment <ul><li>Company vision is to provide the best possible merchandise at the most reasonable price possible. </li></ul><ul><li>Strategic Mission- </li></ul><ul><li>Provide unique products which allows them to enter into new markets. </li></ul><ul><ul><li>iPod </li></ul></ul><ul><ul><li>eMac </li></ul></ul>
  12. 12. <ul><li>Apple works hard to determine new ideas on how to gain market share in order to boost sales. </li></ul><ul><li>Strategies: </li></ul><ul><ul><li>Advertising </li></ul></ul><ul><ul><li>New Products </li></ul></ul><ul><ul><li>Technology Innovation </li></ul></ul>Internal Environment <ul><li>Objectives: </li></ul><ul><ul><li>Open new stores </li></ul></ul><ul><ul><li>Cooperative branding </li></ul></ul><ul><ul><li>Educational products </li></ul></ul><ul><li>Strong efforts in advertising, technology innovation and market share growth make Apple Computer, Inc. successful! </li></ul>
  13. 13. Synthesis <ul><li>Alternatives: </li></ul><ul><li>Tackle the low-end consumer market, focused segmentation. </li></ul><ul><li>Offer an affordable system with an innovative design. </li></ul><ul><li>Distinguished, Innovative. </li></ul><ul><li>Devise a strategy to convince competitors’ customers to </li></ul><ul><li>switch to Apple and retain current customers. </li></ul>
  14. 14. <ul><li>Successful company </li></ul><ul><li>Favorable Brand Perception </li></ul><ul><li>Brand-loyal customers </li></ul><ul><li>Recognizable logo </li></ul><ul><li>Creative advertisements/promos </li></ul><ul><li>MP3 Innovations </li></ul><ul><li>Well established product lines </li></ul><ul><li>Brick and mortar locations </li></ul><ul><li>Declining market shares </li></ul><ul><li>Heavily saturated industry </li></ul><ul><li>Proprietary software system </li></ul><ul><li>Low popularity overseas </li></ul><ul><li>Increasing different operating system </li></ul><ul><li>Educational materials/ software </li></ul><ul><li>MP3 device expansions </li></ul><ul><li>Software designs </li></ul><ul><li>Competition in MP3 industry </li></ul><ul><li>Competition in computer industry </li></ul><ul><li>High substitution rate </li></ul><ul><li>New Entrants </li></ul>SWOT Analysis
  15. 15. <ul><li>Apple has to concentrate on gaining market share from its competition if they want to maintain profitability in the industry. </li></ul><ul><li>The expansion into new product lines is an opportunity that they are exploring, and they are slowly starting to gain some of this market share from the competition. </li></ul><ul><li>They should use their cash assets that they have in excess to sponsor this growth in order to continue to keep this sales growth going. </li></ul>T Sum It All Up…
  16. 16. Questions??? The End…