Apple from the iPod to the iPad 
A Case Study in Corporate Strategy 
http://www.dharamhk.com/
I-Pod 
I-Pad
CONTENTS 
 Introduction 
 Timeline of Apple Product 
 iPod - iPad 
 Distribution channels & strategy 
 Steve Job’s Best quote 
 S.W.O.T Analysis
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
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
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
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
Distribution Channels & strategy 
Apple’s distribution structure
Apple corner at Best Buy
Apple Premium Reseller
Apple On-line Store
Apple Store
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
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
25 of 
Steve Jobs’s 
Best Quotes
“I’ve always wanted to own and 
control the primary technology in 
everything we do.”
“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.”
“Every once in a while a 
revolutionary product comes 
along that changes 
everything.”
“Innovation distinguishes between 
a leader and a follower.”
“Sometimes 
when you 
innovate, you 
make mistakes. 
It is best to 
admit them 
quickly, and get 
on with 
improving your 
other 
innovations.”
“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
“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.”
How I pod success to make market against 
Sony, walkman 
 Memory Capacity 
 Size 
 Ease to use 
 Design 
 Music on the move
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
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.
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.
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.
Conclusion 
 Success of iPod and iPad 
 Continuous Innovation – iPhone 
 Strategic Management
Apple from the iPod to the iPad

Apple from the iPod to the iPad

  • 1.
    Apple from theiPod to the iPad A Case Study in Corporate Strategy http://www.dharamhk.com/
  • 2.
  • 3.
    CONTENTS  Introduction  Timeline of Apple Product  iPod - iPad  Distribution channels & strategy  Steve Job’s Best quote  S.W.O.T Analysis
  • 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.
    Introduction  AppleInc. 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
  • 7.
    iPod  TheiPod 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
  • 10.
    iPad  Aline 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
  • 12.
    Distribution Channels &strategy Apple’s distribution structure
  • 13.
  • 14.
  • 15.
  • 16.
  • 17.
    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
  • 19.
    Apple Products SoldTotal 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
  • 20.
    25 of SteveJobs’s Best Quotes
  • 22.
    “I’ve always wantedto own and control the primary technology in everything we do.”
  • 23.
    “Innovation has nothingto 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.”
  • 24.
    “Every once ina while a revolutionary product comes along that changes everything.”
  • 25.
    “Innovation distinguishes between a leader and a follower.”
  • 26.
    “Sometimes when you innovate, you make mistakes. It is best to admit them quickly, and get on with improving your other innovations.”
  • 27.
    “Being the richestman 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
  • 28.
    “I mean, somepeople 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.”
  • 29.
    How I podsuccess to make market against Sony, walkman  Memory Capacity  Size  Ease to use  Design  Music on the move
  • 31.
    Strength  Pioneerin 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
  • 32.
    Weakness  Appleis 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.
  • 33.
    Opportunities  Applehas 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.
  • 34.
    Threats  Thebiggest 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.
  • 35.
    Conclusion  Successof iPod and iPad  Continuous Innovation – iPhone  Strategic Management