2. 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 are
exposed to new computer technologies including the
mouse and the GUI.
3. 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 Lisa
computer (Cost: $9995).
1984
* Apple debuts the first Macintosh computer (Cost : $1995 to $2395 depending on
configuration). Macintosh was a success.
1985
John Sculley (the then CEO) with the approval of the Apple board of directors
relieves Steve Jobs of his role as the head of the Mac division.
* Steve jobs creates his own company NeXT.
4. 1986
* Steve Jobs buys The Graphics Group (later named Pixar Animation studios) for $10
million.
1991
* Pixar and Walt Disney Studios team upto develop , produce and distribute up to
three feature-length animated movies.
John Sculley acts as CEO from 1985 to 1993. Apple becomes the most profitable PC
company in the world. Mike Spindler reigns as the next CEO from 1993-1995
followed by Gilbert Amelio from 1995-1997. Apple tries it difficult to sustain itself.
5. 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
6. 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
7. 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.”
8. 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
12. 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
13. 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 it's 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
14. 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
15. 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
16. 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 world
HIGH (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
17. 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 difficult
Bargaining 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)
