Apple Computers, Inc. was founded in 1976 by Steve Jobs and Steve Wozniak. It started with a goal of creating small, affordable computers and is now a global technology company known for its Mac computers, iPhones, iPads, and other devices. Apple has expanded into new product lines like the iPod and maintains a recognizable logo and brand identity through innovative advertising campaigns. While it faces competition from other tech companies and declining computer sales, Apple continues to focus on new product development, technology innovation, and gaining market share.

1. Apple Computers, Inc. Lauren Carter Monica Bridges Elizabeth Smith Kevin Boutwell

2. Who is Apple Computers, Inc.? Founded in 1976 by Steve Jobs and Steve Wozniak 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. Apple’s logo, now one of the most recognizable logos in the industry, was adapted a year after the company was founded.

3. 1976 1981 2006 1975 The Evolution of a Brand

4. 1997- First online store opened. Over 4.4 million hits and 500,000 orders in the first 24 hours of operation. General Environment 2002- Initiated a Swith Advertising campaign. Geared to switch PC users to Mac users. Currently Operates 200 brick and mortar locations world-wide.

5. i Series of computer products brought $650 million in revenue for the 2003 fiscal year. Company has begun to shift product lines with the aspiration to “think different.” General Environment Constant innovations and product re-inventions as the consumer base shifts as well as the economy. iPod (portable music) iMac (gaming & power)

6. Apple competes in the following industries: Computer iBook PowerBook PowerMac Multi-Media iMac Entertainment iPod Industry Environment Market Share: Worldwide: Desktop- 6% Portable- 10% Domestic: Educational- 15.2% Annual sales for 2002 fiscal year were $1.5 bil Down 27% from previous year.

7. Porter’s 5 Forces: Buyers Set Prices Suppliers Reinvention of supply chain Cut down Current Rivals Dell, HP, Sony, Toshiba Industry Environment Substitute Products Little/no direct substitutes but many competing products. Mac OS has no alternatives. Threats of Entrants High barriers in industry Apple is established

8. Marketing is Apple Computer, Inc.’s biggest survival factor. Ads featuring testimonials from PC users that have switched to Mac. New advertising ventures allow Apple to gain market share. Industry Environment In light of slight decline in computer sales, Apple Computer, Inc. has put more emphasis on promotion of the iPod. Mixture of both computer and portable mp3 player sales allows Apple to remain profitable.

9. Apple is planning to further enhance their switch advertising campaigns. Award-winning advertisements has created competitive edge. In order to stay competitive, Apple Computer, Inc. has created different versions of their operating system. Competitor Environment Creation of peripheral products has created diversification. eMac Educational products Learning applications Portable computers Apple has maintained their ability to distinguish themselves from their competition.

10. Apple’s has resources that are: Organizational Innovative Technological Apple logo is easily identifiable to customers in the computer market. Internal Environment Internal Capabilities: Marketing Large budget Management Leadership Core competencies in high-quality hardware. Inventory system has given higher economies of scale.

11. Outbound logistics has made it possible for Apple Computer, Inc. to meet the orders and demands of their customers. Technological development is a key support activity. Internal Environment Company vision is to provide the best possible merchandise at the most reasonable price possible. Strategic Mission- Provide unique products which allows them to enter into new markets. iPod eMac

12. Apple works hard to determine new ideas on how to gain market share in order to boost sales. Strategies: Advertising New Products Technology Innovation Internal Environment Objectives: Open new stores Cooperative branding Educational products Strong efforts in advertising, technology innovation and market share growth make Apple Computer, Inc. successful!

13. Synthesis Alternatives: Tackle the low-end consumer market, focused segmentation. Offer an affordable system with an innovative design. Distinguished, Innovative. Devise a strategy to convince competitors’ customers to switch to Apple and retain current customers.

14. Successful company Favorable Brand Perception Brand-loyal customers Recognizable logo Creative advertisements/promos MP3 Innovations Well established product lines Brick and mortar locations Declining market shares Heavily saturated industry Proprietary software system Low popularity overseas Increasing different operating system Educational materials/ software MP3 device expansions Software designs Competition in MP3 industry Competition in computer industry High substitution rate New Entrants SWOT Analysis

15. Apple has to concentrate on gaining market share from its competition if they want to maintain profitability in the industry. 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. 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. T Sum It All Up…

16. Questions??? The End…