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Apple from the iPod to the iPad

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Apple from the iPod to the iPad

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Apple from the iPod to the iPad

  1. 1. Apple from the iPod to the iPad A Case Study in Corporate Strategy http://www.dharamhk.com/
  2. 2. I-Pod I-Pad
  3. 3. CONTENTS  Introduction  Timeline of Apple Product  iPod - iPad  Distribution channels & strategy  Steve Job’s Best quote  S.W.O.T Analysis
  4. 4. Company Profile  Founded April 1, 1976  Founder(s) - Steve Jobs, Steve Wozniak, Ronald Wayne  Number of locations : 406 retail stores  Key people :- Arthur D.Levinson (Chairman) Tim Cook (CEO)  Revenue : US$156.508 billion  Employees : 72,800
  5. 5. Introduction  Apple Inc. is an American multinational corporation that designs and markets consumer electronics, computer software, and personal computers  Apple is the largest company in the world by market capitalization and also the most valuable technology company in the world, ahead of Microsoft  Apple Inc.'s world corporate headquarters are located in the middle of Silicon Valley
  6. 6. iPod  The iPod is a line of portable media players designed and marketed by Apple Inc  The first line was released on November 10, 2001, its most recent redesigns announced on September 12, 2012  There are four current versions of the iPod: the ultra-compact iPod Shuffle, the compact iPod Nano, the touch screen iPod Touch and the hard drive-based iPod Classic  Storage capacity varies by model, ranging from 2 GB for the iPod Shuffle to 160 GB for the iPod Classic
  7. 7. iPad  A line of tablet computers designed and marketed by Apple Inc.which runs Apple's iOS operating system  The first iPad was released on April 3, 2010  The most recent iPad models, the fourth generation iPad and iPad Mini, were released on November 2, 2012  the App Store offered more than 800,000 apps by Apple and third parties
  8. 8. Distribution Channels & strategy Apple’s distribution structure
  9. 9. Apple corner at Best Buy
  10. 10. Apple Premium Reseller
  11. 11. Apple On-line Store
  12. 12. Apple Store
  13. 13. Apple Store vs. Luxury Retailers 7000 6000 5000 4000 3000 2000 1000 0 Annual Sales per Square Foot (2012) Apple Store Tiffany & Co. Lululemon Athletica Coach Michael Kors Select Comfort True Religion 6050 3017 1936 1871 1431 1314 1227
  14. 14. Apple Products Sold Total Units Sold iPod 350,000,000 iPhone 192,600,000 iPad 84,000,000 Apple TV 2,400,000 Macintosh Computers (Both Desktop and Laptop) 212,000,000 Total number of Apple Stores 361 iTunes songs downloaded 16.5 Billion Total number of iPhone App Store downloads 2 Billion
  15. 15. 25 of Steve Jobs’s Best Quotes
  16. 16. “I’ve always wanted to own and control the primary technology in everything we do.”
  17. 17. “Innovation has nothing to do with how many R&D dollars you have. When Apple came up with the Mac, IBM was spending at least 100 times more on R&D. It's not about money. It's about the people you have, how you're led, and how much you get it.”
  18. 18. “Every once in a while a revolutionary product comes along that changes everything.”
  19. 19. “Innovation distinguishes between a leader and a follower.”
  20. 20. “Sometimes when you innovate, you make mistakes. It is best to admit them quickly, and get on with improving your other innovations.”
  21. 21. “Being the richest man in the cemetery doesn’t matter to me…Going to bed at night saying we’ve done something wonderful…that’s what matters to me.” -1993
  22. 22. “I mean, some people say, ‘Oh, God, if [Jobs] got run over by a bus, Apple would be in trouble.’ And, you know, I think it wouldn’t be a party, but there are really capable people at Apple. My job is to make the whole executive team good enough to be successors, so that’s what I try to do.”
  23. 23. How I pod success to make market against Sony, walkman  Memory Capacity  Size  Ease to use  Design  Music on the move
  24. 24. Strength  Pioneer in the personal computer industry  Self-sufficient and creates its own internal components for the core of its computers  Dedicated to research and development in order to create new products, which are expected to make Apple’s products more efficient and feasible to use  Apple is known for its loyal consumers who purchase its products for quality, regardless of price
  25. 25. Weakness  Apple is faced with the difficult task of ensuring consistency and quality within its products. For example, the iPod, which is a global success, had many glitches and technological flaws including battery life and screen faults that plagued iPods when they were first released  Its lack of debt is a potential weakness for the infrastructure because it creates potential risk for stock acquisition by other corporations.
  26. 26. Opportunities  Apple has the opportunity to develop its iTunes and music player technology into a mobile phone format.  Downloads are available via a USB cable, and software on the handset pauses music if a phone call comes in.  The laptop market growth is high; Apple Computers should focus to develop new models to cater the need of customers.
  27. 27. Threats  The biggest threat to IT companies such as Apple is the very high level of competition in the technology markets.  Increased competition on mobile products  Companies not seeing Apple as compatible with their software.  Apple facing strong competition from Dell, HP, Sony and Toshiba in laptop segment.  Apple software, Cell phone and hardware are expensive as compared to other competitors such as Dell.  Microsoft launched Microsoft Vista, Windows 7 which is gaining market share.  The switching in technology is very fast.
  28. 28. Conclusion  Success of iPod and iPad  Continuous Innovation – iPhone  Strategic Management

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