2. Introduction
• Apple Inc., formerly Apple Computer, Inc., is
multinational corporation that creates
consumer, and electronics commercial servers.
• Founder: Steve Jobs on April 1, 1976, with
the release of the Apple I, and incorporated
the company on January 3, 1977, in Cupertino,
California.
3. Brief History
• Predominantly a manufacturer of personal computers
• Steve Jobs – Outcasted in 1985
• Apple's CEO in 1996 – Apple Inc.
• 2001: leader in the consumer electronics industry,
dropping "Computer" from its name.
• largest technology firm in the world with its stock
market value reaching $500 billion in March of 2012
• Revenue for the year 2011 was $127.8 billion in sales
5. Innovation and Strategy
Business Success
Focus Pricing
Strategy Drivers
Outsourced Differentiation
Idea Innovation
manufacturing Pricing
Technology
Design Innovation Secrecy
Leader
Focus on owning
Marketing Intellectual Work Culture
property rights
Strategic sourcing
with Partners
6. Business and Costs
Loss of 1billion USD
in 1997, Inventory at
90 days stock.
Apple Owned
High cost devices – Manufacturing
Was affordable only units in California,
by the cream Ireland and
Singapore
Designed and
Manufactured own Focus on building
chips and Computers
processors
7. Cost reduction and Quality
Focused on strategic sourcing
Closed Apple Manufacturing Focused on pushing Apple and entered long term
units – focused key partners suppliers to assembly plants contracts.
Moved manufacturing units of Apple – reduction in $1.25 billion for flash
to Asia to save costs inventory 90 days to 2 days memory development
technology.
Apple website launched –
Apple owned own stores – selling products online – JIT Delivery. Long term
reached out to customers saving much of cost. contract with FEDEX for
with sales and service Apple App store – Revenue priority distribution network
mucher
8. Conclusion
• Apple’s USP is Innovation.
• The organization believes in thinking different.
• It’s work culture is unlike any other company –
focusing on quality and not quantity.
• Apple revamped it’s supply chain and
manufacturing base to reduce cost.
• It is a customer centric company.
