Apple communicates its core values of simplicity, elegance, exclusivity and innovation through its products. It has been successful in creating strong brand loyalty through consistent messaging and focusing on user experience above all else. Apple aims to own the primary technologies behind its products and participate in markets where it can make a significant contribution through innovation. Its business strategies include becoming known for iconic products, locking customers into its ecosystem, selling at a premium based on perceived value, keeping products and branding uniquely simple, and continually updating hardware and software. Apple has a competitive advantage through communicating effectively to its audience, strategic partnerships, product quality and being a leader in innovation.

2. Apple Products

3. Apple communicates (Brand Promise) its core values clearly and is able to
satisfy the consumers which leads to Brand bonding. The Brand Bonding
among Apple users are very strong.
Apple products have the following attributes:
- Simple
-Elegant
- Exclusivity
- Innovative
- Extraordinary
3

4. Apple has been consistent and has kept everything simple. The consumer has a
great bonding with the brand because of this simplicity. But it is not just the
simplicity that catches the attention, it is exclusivity and innovation.
The logo was changed to a simpler version – staying in tune with it core values.
The tag line “ Think different”
-People want to be unique and feel special and Apple has been very successful in
being innovative and making the consumer feel special.
- The name Apple – shows a connect with Steve Jobs younger days and his
experience. The same has be done with all apple products it is an experience
which lingers with all the Apple users.
4

5. Vision
"To make a contribution to the world by making
tools for the mind that advance humankind"

6. Mission
“We believe that we need to own and control
the primary technologies behind the products
we make, and participate only in markets
where we can make a significant
contribution.”

7. Business Strategies
• Become “The Name”
iPod, iTunes, iPhone, iCloud and iPad
by Apple gave new directions to
electronics, music and software market
• Lock the customer in
125 m iTunes accounts linked with
credit card. For iTunes it alliance
with Sony BMG, EMI, Universal
and Warner Bros., partnered with
Google and YouTube for iPhone.

8. Business Strategies
• Sell at Premium
They set their pricing strategically to a
market that can bear the cost. They
justify their price with features and
benefits that can’t be matched
• Product Positioning
Hype in the surrounding for Apple
products was created due to unique
advertisements, word of mouth , look
and designs

9. Business Strategies
• Think different
Usage of innovative technology
and design. Updating it every 4
months of the products software
and hardware
• Simplicity of choice
Simplified Apple’s product mix in terms of
4 lines of desktops and portable computers
designed for both professional and
consumer markets

10. Competitive Advantage
 Communicate in the Language of Your
Audience
 Series of strategic alliances
 Simplicity and user friendly
 Quality of Apple products
 Innovations
 Launch of iTune & iCloud

11. STORES AND DISTRIBUTION
It has 274 stores which give high visibility.
 It has 3000 resellers which have high service level and more
capillary distribution
 It has 320 large distributions which drive huge volumes of traffic
and its absence of differentiation avoided through corners.
It has on-line stores in 36 countries which has visibility web and
worldwide, and give mass atomization for customers.

12. Integration
 Forward Integration
The company increased its retailer stores from 0 to 300 over a
decade.
iTunes is in alliance with Sony BMG,EMI,Universal and Warner
Bros., partnered with Google and Youtube for iPhone.
 Backward Integration
The company had developed a strong supplier chain for easy
availability of the input material for production process.
Acquired microprocessor company PA semi known for highly
sophisticated and low price chips.

13. Mobile Market Share
MARKET SHARE
21%
34%
NOKIA
SAMSUNG
LG
APPLE
22%
ZTE
RESEARCH IN MOTION
HTC
4%
2%
8%
3%
MOTOROLA
SONY
OTHERS
2%
2%
2%

14. Computer Market Share
Market Share
Others
26%
Acer
5%
Dell
28%
HP
24%
Toshiba
5% Apple
6% Gateway
6%

15. Smartphone Market Share
Market Share
3% 2%
Android OS
10%
36%
RIM Blackberry OS
Apple OS
27%
Microsoft Windows
Palm/ Web OS
22%
Symbian OS

16. Apple’s Market Share In
Developed countries

17. BCG MATRIX

18. High
Market
share
Cash Cow
Low
High
Market Growth
Low

19. PESTEL

20. SWOT ANALYSIS

21. SWOT ANALYSIS
Strength
•
•
•
•
•
•
High quality and attractive products
Leadership in electronic industry and high technology
Leading the product design,
Creative employees,
Good relationship with customers.
Diversity products

22. SWOT ANALYSIS
Weakness
• Limited compatibility
• Limited market
• Limited distribution channels
• Suppliers pollution issue

23. SWOT ANALYSIS
Opportunity
• New retail stores
• Smart phone

24. SWOT ANALYSIS
Threats
•
•
•
•
Hard to maintain leadership in the industry
Serious competition
Serious piracy in China
Chinese government is pressuring to oversea companies

25. PORTERS 5 FORCE

26. PESTEL

27. POLITICAL
• It is reported that in 2007, 52% of sales of Apple
were from outside America. Bad
internationalrelations, wars and terrorism might
influence Apple in a huge manner; moreover
these are all factorsApple has no ability to
control.Apple Inc. produces many of its parts and
products outside the U.S., like Ireland, Czech
Republic,Korea, China, and Cork. Political
Conflicts between the U.S. and any of these
states may have awful outcomes for Apple Inc.

28. ECONOMIC
The global economic depression might have immense
impact on Apple Inc. The inflation rate is high, while
consumer’s incomes didn’t have significant
changes, moreover the unemployment rate has
increased, leading consumers to spend less, especially
on ‘luxury products’, as Apple products might be
viewed. Even though the U.S. dollar has lost
value, Apple Inc. is not as endangered economically.
The corporation has purchased itself foreign
currency, to minimize the economic effects of inflation
on Apple Inc. It needs to be said that the U.S. dollar’s
depreciation has in fact increased Apple’s revenue in
the international market.

29. SOCIAL
• Globalization includes the interaction of people
worldwide, for which technology plays the main role.
Today’s World cannot be imagined without technological
devices as Computers, mobile phones etc. Apple is the
globally seen as the King of technology, not because of
most usage, but quality and design.
• Another big social influence is the music industry, which
over the last decade has become virtual and set its market
to the cyberspace. Apple having developed the biggest
virtual media store, iTunes, is well ahead any other
competition of this direction. Web piracy might be a
threat, but most governments punish those behaviors.

30. TECHNOLOGICAL
• The technology market for computers and mobile
phones has become huge, adding more competition in
the market. Also technology innovations and changes
are almost as fast as light, therefore the products
lifecycle is very short.
• Investing largely in Research and Product
Development, Apple is on top of the market, regarding
innovative products. This includes making the work for
the competition to follow, but it’s still better because
innovation is a big part of the brand and has shown to
pay out.

31. ENVIRONMENTAL
• The list, which is compiled by Greenpeace and
released in San Francisco on Thursday, shows
that the company relies heavily on highly
polluting coal power at the sites that house its
banks of servers

32. PORTERS 5 FORCE

33. EXISTING RIVALRY
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, Sony)
Online music stores similar to itunes stores (Napster)
1/7/2014
33

34. THREAT OF NEW ENTRANTS
Streaming audio and video with v-cast (Verizon)
On demand online services (similar to i-tunes)
New entrants with disruptive technology (The “next
google”)
1/7/2014
34

35. BARGAINING POWER OF
SUPPLIERS
Suppliers of processors and computer memory
(Motorola, IBM, Intel)
Strategic alliance/supplier of Mac (Microsoft)
Supplier of tv and movies (Disney, ABC, Fox, Sony)
Sources of music (BMG, Sony, Warner, Universal)
1/7/2014
35
Magazine :outlook (April-2009)

36. BARGAINING POWER OF
CUSTOMERS
Customers share music using peer-to-peer networks
without paying for music (Ares, Limewire)
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
1/7/2014
36
Sources: Harvard Business review -09

37. THREAT FROM SUBSTITUTES
Satellite radio for music (XM, Sirius)
Entertainment media, media and music (XBOX, PS2)
Alternative means to acquire music (Music
CDs, DVDs)
Alternative sources for videos
(Cable, Broadcast, Theatres)
1/7/2014
Magazine :PC-1 (April-2009) 37

38. Financial Analysis

39. Profit
Year
Profit
2008
6119
2009
8235
2010
14013

40. LIQUIDITY RATIO
Current Ratio (C.A /C.L)
COMPANY
2009
2010
2011
APPLE
2.74
2.01
1.608
SAMSUNG
1.59
1.45
1.46
Quick Ratio ((C.A – Inventory) / C.L)
COMPANY
2009
2010
2011
APPLE
2.7
1.96
1.6
SAMSUNG
0.59
0.67
0.72

41. Leverage Ratios
Debt to equity ratio (T.Debt / S.H Equity)
COMPANY
2009
2010
2011
APPLE
0.5
0.57
0.52
SAMSUNG

42. Activity Ratios
Inventory turnover ratio (Sales / Inventory )
COMPANY
2009
APPLE
94.29
SAMSUNG
18.36
2010
62.06
18.60
2011
139.49
17.72

43. Profitability Ratios
Gross profit margin
COMPANY
2009
2010
2011
APPLE
40%
39.38%
40.48%
SAMSUNG
23.80%
30.53%
25.17%
Operating profit margin
COMPANY
APPLE
SAMSUNG
2009
27.36%
7.07%
2010
2011
28.19%
31.22%
13.30%
9.69%

44. Earnings Per Share
COMPANY
APPLE
SAMSUNG
2009
$ 9.22
65194.00
2010
$ 18.41
88531.00
2011
$ 28.05
66806.00

45. Coming This December 2012 in India
Ipad Mini