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APPLE Inc.
“THINK DIFFERENT”
MATHIVANAN K.
MBA 2014
SOURASHTRA COLLEGE,
MADURAI
“Change the World through Technology”
• On April 1, 1976 - Apple Computer Inc.
STEVE JOBS & STEVE WOZNIAK &
RONALD WAYNE (Co- founder)
• Industry: Computer Hardware and
Software, Consumer Electronics
• In 1978, Apple – II (color graphics & open
architecture). Introduction of a 5 1/4 inch
floppy disk drive.
• In 1979, Development of VisiCalc
(spreadsheet program).
• In 1980, launched an IPO (record
breaking after 1956 IPO of Ford Motor
Co.)
Products And Figures
Hardware – Mac (personal computer series),
Apple Remote Desktop.
Software - Mac OS X, Mac OS X Server, Quick Time, i Life, i
Work, Logic pro, Cinema Display etc.
Consumer Electronics - i pod, i pod hi-fi, i phone, Apple TV.
Employees - 19,787 full-time ; 3,399 temporary
(March 31,2007)
Retail stores - 183
Porter’s 5 forces
EXISTING RIVALRY – VERY HIGH
 Windows OS and media player for playing music and video
(Microsoft)
 Competition to Mac OS X (Linux)
 Alternate sources of computer hardware (Dell, HP, Lenovo)
 Small stylish MP3 players (Creative, Samsung)
 Online music stores similar to itunes stores (Napster)
 I-phone segment (Nokia, Samsung , Motorola, HTC)
THREAT OF NEW ENTRANTS - LOW
 Streaming audio and video with v-cast (Verizon)
 On-demand online services (similar to i-tunes)
 New entrants with disruptive technology (The
“next Google”)
BARGAINING POWER OF SUPPLIERS -
MODERATE
 Suppliers of processors and computer memory
(IBM, Intel) - High
 Strategic alliance/supplier of Mac (Microsoft)
 Supplier of TV and movies (Disney, ABC, Fox,
Sony)
 Sources of music (BMG, Sony, Warner,
Universal)
BARGAINING POWER OF CUSTOMERS -
MODERATE
 Customers share music using peer-to-peer
networks without paying for music (Ares, Lime
wire)
 Retailers may pressure for lower prices or better
terms (Distributors)
 Consumers/Businesses may reduce spending on
computers if they fear economic downturns
(Consumer Attitudes & Behaviors)
 Consumer Refresh Cycles. But many Loyalists
(Niche class).
THREAT FROM SUBSTITUTES -
MODERATE
 Satellite radio for music (XM, Sirius)
 Entertainment media and music (XBOX, PS2)
 Alternative means to acquire music (Music CDs,
DVDs)
 Alternative sources for videos (Cable, Broadcast,
Theatres)
Competitor Environment
• High Competition
• Share of Dell and HP
• Microsoft and Intel-Leaders of Software, ardware
• Phone Industry- Sony, Nokia, Samsung
Competitor Environment
• Differentiation Strategy
• Innovation
Core Competencies
(In Current Scenario)
Differentiation Strategy
• Unique Features and characteristics
• Commands Premium Price
• High Customer Service
• Superior Quality
• Prestige
• Rapid Innovation
Sustainable Competitive
Advantage
FF
Value Creation Process
Focus On Education
eMac
Adding Value
iMac
Lifestyle Strategy
Digital Hub
Music Strategy (iTunes)
Video Strategy (iMovie)
Internet Strategy (iTools)
C
o
n
v
e
r
g
e
n
c
e
Apple I,II,III
Mac
Sustained Competitive Advantage
Valuable : Innovators
Rare : Strong R & D
Costly to imitate : itunes, Mac OS
Non substitutable : applications,
softwares
• Branding
• Innovation
• Differentiated Product
• Superior Quality
• Retail Strategy
Strengths
• Less Penetration
• Cannibalization
Weaknesses
Opportunities
• High growth potential.
• Line Extension.
• High Potential music phone market
• Strategic Alliances
Threats
• Competition
• Substitute Products
• Threat of Suppliers
Ansoff Matrix
Existing Products New Products
Existing
Markets
Macbooks, iStation
Macbook Wheel,
Apple TV
New
Markets
Ipod, iPhone iTunes
BCG Matrix
STAR
I-PHONE
APPLE MAC BOOK
Ipod
PROBLEM CHILD
CASHCOW DOGS
Apple TV
Mac Mini
GE Matrix
Smart Phone Market- I
Phone
Apple software's
Music Player Industry –
I Pod
Personal Computer
- Mac
High
Medium
Low
Strong Medium Weak
Market
Attractivene
Business Strength
Corporate Level Strategy
Diversification: Iphone, Apple TV
Backward Integration: Manufacturing of
Semiconductors
Forward Integration: Retail
Acquisitions
•Emagic in 2002
-To acquire knowledge and skills
about Music software
•PA Semi in 2008
- Mac Hardware acceleration
- Backward integration
- Skilled Manpower
Strategic Alliances
1. Apple – Disney
- To reduce losses of standalone istore
and Disney outlets
- To improve the Disney store
“experience”
2. Apple – Microsoft
THANK
YOU

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Apple company strategies by Mathivanan

  • 1. APPLE Inc. “THINK DIFFERENT” MATHIVANAN K. MBA 2014 SOURASHTRA COLLEGE, MADURAI
  • 2. “Change the World through Technology” • On April 1, 1976 - Apple Computer Inc. STEVE JOBS & STEVE WOZNIAK & RONALD WAYNE (Co- founder) • Industry: Computer Hardware and Software, Consumer Electronics • In 1978, Apple – II (color graphics & open architecture). Introduction of a 5 1/4 inch floppy disk drive. • In 1979, Development of VisiCalc (spreadsheet program). • In 1980, launched an IPO (record breaking after 1956 IPO of Ford Motor Co.)
  • 3. Products And Figures Hardware – Mac (personal computer series), Apple Remote Desktop. Software - Mac OS X, Mac OS X Server, Quick Time, i Life, i Work, Logic pro, Cinema Display etc. Consumer Electronics - i pod, i pod hi-fi, i phone, Apple TV. Employees - 19,787 full-time ; 3,399 temporary (March 31,2007) Retail stores - 183
  • 5. EXISTING RIVALRY – VERY HIGH  Windows OS and media player for playing music and video (Microsoft)  Competition to Mac OS X (Linux)  Alternate sources of computer hardware (Dell, HP, Lenovo)  Small stylish MP3 players (Creative, Samsung)  Online music stores similar to itunes stores (Napster)  I-phone segment (Nokia, Samsung , Motorola, HTC)
  • 6. THREAT OF NEW ENTRANTS - LOW  Streaming audio and video with v-cast (Verizon)  On-demand online services (similar to i-tunes)  New entrants with disruptive technology (The “next Google”)
  • 7. BARGAINING POWER OF SUPPLIERS - MODERATE  Suppliers of processors and computer memory (IBM, Intel) - High  Strategic alliance/supplier of Mac (Microsoft)  Supplier of TV and movies (Disney, ABC, Fox, Sony)  Sources of music (BMG, Sony, Warner, Universal)
  • 8. BARGAINING POWER OF CUSTOMERS - MODERATE  Customers share music using peer-to-peer networks without paying for music (Ares, Lime wire)  Retailers may pressure for lower prices or better terms (Distributors)  Consumers/Businesses may reduce spending on computers if they fear economic downturns (Consumer Attitudes & Behaviors)  Consumer Refresh Cycles. But many Loyalists (Niche class).
  • 9. THREAT FROM SUBSTITUTES - MODERATE  Satellite radio for music (XM, Sirius)  Entertainment media and music (XBOX, PS2)  Alternative means to acquire music (Music CDs, DVDs)  Alternative sources for videos (Cable, Broadcast, Theatres)
  • 10. Competitor Environment • High Competition • Share of Dell and HP • Microsoft and Intel-Leaders of Software, ardware • Phone Industry- Sony, Nokia, Samsung
  • 12. • Differentiation Strategy • Innovation Core Competencies (In Current Scenario)
  • 13. Differentiation Strategy • Unique Features and characteristics • Commands Premium Price • High Customer Service • Superior Quality • Prestige • Rapid Innovation Sustainable Competitive Advantage
  • 14. FF Value Creation Process Focus On Education eMac Adding Value iMac Lifestyle Strategy Digital Hub Music Strategy (iTunes) Video Strategy (iMovie) Internet Strategy (iTools) C o n v e r g e n c e Apple I,II,III Mac
  • 15. Sustained Competitive Advantage Valuable : Innovators Rare : Strong R & D Costly to imitate : itunes, Mac OS Non substitutable : applications, softwares
  • 16. • Branding • Innovation • Differentiated Product • Superior Quality • Retail Strategy Strengths
  • 17. • Less Penetration • Cannibalization Weaknesses
  • 18. Opportunities • High growth potential. • Line Extension. • High Potential music phone market • Strategic Alliances
  • 19. Threats • Competition • Substitute Products • Threat of Suppliers
  • 20. Ansoff Matrix Existing Products New Products Existing Markets Macbooks, iStation Macbook Wheel, Apple TV New Markets Ipod, iPhone iTunes
  • 21. BCG Matrix STAR I-PHONE APPLE MAC BOOK Ipod PROBLEM CHILD CASHCOW DOGS Apple TV Mac Mini
  • 22. GE Matrix Smart Phone Market- I Phone Apple software's Music Player Industry – I Pod Personal Computer - Mac High Medium Low Strong Medium Weak Market Attractivene Business Strength
  • 23. Corporate Level Strategy Diversification: Iphone, Apple TV Backward Integration: Manufacturing of Semiconductors Forward Integration: Retail
  • 24. Acquisitions •Emagic in 2002 -To acquire knowledge and skills about Music software •PA Semi in 2008 - Mac Hardware acceleration - Backward integration - Skilled Manpower
  • 25. Strategic Alliances 1. Apple – Disney - To reduce losses of standalone istore and Disney outlets - To improve the Disney store “experience” 2. Apple – Microsoft
  • 26.