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Apple Inc.
Outline
•   Introduction
•   Apple’s History
•   Mission and Vision Statements
•   Products and services
•   Internal Assessment
•   External Assessment
•   Strategy formulation
•   Strategy Implementation
•   Strategy Evaluation
•   Conclusion
•   Steve Jobs
1976–1980: The early years
Apple I
1981–1985: Lisa and Macintosh
1986–1993: Rise and Fall
1994–1997: Attempts at reinvention




   Apple Purchased NEXT and its NEXTSTEP operating system, bringing
                Steve Jobs back to Apple as an advisor
1998–2005: Return to profitability




                            First i mac

  Through this period, Apple purchased several companies to create a
  portfolio of professional and consumer-oriented digital production
  software
2005–2007: The Intel transition




June 6, 2005, Steve Jobs announced that Apple would begin producing Intel
                       based Mac computers in 2006
2007–2011: Three Heroes




On January 9, 2007, Jobs announced that Apple Computer, Inc. would from that point
on be known as Apple Inc., because computers were no longer the main focus of the
       company , which had shifted its emphasis to mobile electronic devices
2011–Present: Post- JOBS era




                            Siri

  Apple became the most valuable consumer-facing brand in the
                     world In June 2011
MISSION OF APPLE

    “ 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 with iPad. “
At Samsung Group and Samsung Electronics, our
products, our people and our approach to business are
held to only the highest standards so that we can more
effectively contribute to a better world.
MISSION OF APPLE(proposed)
At Apple, we will not only continue to provide revolutionary
and innovative products to the consumer electronics
industry like the iPod and the iPhone, but we will also make
every effort to give back to society while recognizing our
responsibility as a global citizen who strives to reduce the
environmental impact of the work we do and the products
we create
VISION OF APPLE

“ to make a contribution to the World by making
   tools for the mind that advance humankind “
“Samsung is dedicated to developing innovative
technologies and efficient processes that create new
markets, enrich people's lives and continue to make
Samsung a digital leader. ”
VISION OF APPLE (proposed)

“At least one Apple product in each pocket
            and on each table “
“We’re gambling
           on our
 vision, and we’d
    rather do that
 than make ‘me-
   too’ products”
iPad




“ it created its own product segment”
iPhone
iPod
MacBook Air
MacBook Pro
iMac
iOS Software
MagicMouse
AppleTV
itunes
Financial Ratios
Market Positioning Map
Whole Mobile Phone Industry Selling
• Product Differentiation
• Market segmentation (iPad)
• Acquisitions
  (e.g. Chomp,Siri,Pollar Rose,C3 tech)
• Product Development
STRENGTHS                                                       WEIGHTS    RATING   WEIGHT SCORE
Strong guarding (it protects the products of apple toward           0,10       4           0,40
worms and virus.

Diversifications in products                                        0,10       4           0,40


Highly innovative products                                          0,20       4           0,80


Having its own hardware and software                                0,09       3           0,27

Great ability for new investments                                   0,14       3           0,42



WEAKNESSES                                                      WEIGHTS    RATING   WEIGHT SCORE

High price                                                          0,15       2           0,30

Pattents war with the competitors                                   0,05       3           0,15

Shortage of consultant at operating level rather than partner       0,05       3           0,15
level.
Retailer and supplier                                               0,05       2           0,10

Steve jobs death                                                    0,07       2           0,14

TOTAL                                                               1,00                   3,13
• Economical forces
   – Uncertainty about global economic conditions poses a risk
     of negative effect on demand for the Company’s products
     and services
• Social, Cultural, Demographic and Geographic Forces
   –   Age, Popular culture and etc
   –   Word of mouth
   –   Emphaty for customers/users
   –   Positive social contribution
   –   Team spread
   –   Individual reward
   –   Recession,Depression,Crisis periods
• Political,Legal and Governmental Forces
  – Political events, war, terrorism, public health
    issues, natural disasters and other circumstances
    could materially adversely affect the Company.


• Technological forces
• Competitive forces
OPPORTUNITIES                                             WEIGHT   RATING   WEIGHT
                                                                            SCORE
Smart-phone market is currently flourishing                 0,20      4        0,80

Creating more ties with microsoft product                   0,10      3        0,30

Large population is brand concious                          0,10      4        0,40

Closer relationship with supplier and distributers          0,15      4        0,60

Young population increase in the worlwide                   0,10      3        0,30
Computer and cell phone software and hardware               0,05      4        0,20

THREATS
Competitor’s technology ( Samsung Galaxy)                   0,10      1        0,10

Intel’ s future pentium release                             0,05      2        0,10

Macro economic flactuations                                 0,05      2        0,10

Google’s android platform has been gaining market share     0,10      2        0,20



TOTAL                                                       1,00               3,10
Swot Analysis

                 Strengths                                     Weaknesses
• Brand Name                                     • Legal Proceedings
• Growing sale of iPod , iTunes and iPhone       • Market share in personal computer
• Low Debt                                       • High Pricing for products
• Wide rage of innovative products               • Hardware and Software programmes
• Increase in number of retail stores            • Weak relationship with Intel and Microsoft.
• Market Share and Global expansion              • Slow turn around on high demand products.




              Opportunities                                         Threats
• Competitors Offer Wider Product Line            • Competitors’ Technology and Pricing
• Expansion of Retail Stores for Customer         • the long lasting recession may impact the
  Convenience                                       sales of the company due to higher prices of
• Participate in Joint Ventures                     the products and services
• Increase in worms and viruses on PCs so the     • The switching in technology is very fast
  antivirus solution can be developed by Apple    • Substitution
External               Acquiring           Developing             Market
Forces                 Rival               New Products           Development
              Weight   Rate        Total   Rate           Total   Rate          Total

software -    0.20     2           0.40    4              0.80    3             0.60
hardware
Ties with     0.12     2           0.24    3              0.36    3             0.36
Microsoft
Smart         0.24     3           0.72    4              0.96    3             0.72
phone

Rival’s       0.19     4           0.76    3              0.57    4             0.76
tech.
Supplier-     0.15     2           0.30    2              0.30    3             0.45
distributer

Intel’s       0.10     2           0.20    3              0.30    2             0.20
release
Internal                   Acquiring           Developing           Market
forces                     rival               new goods            development
                  Weight   Rate        Total   Rate         Total   Rate          Total


Strong            0.10     3           0.30    3            0.30    3             0.30
protection

Diversification   0.15     3           0.45    4            0.60    3             0.45


Innovative        0.30     1           0.30    4            1.2     3             0.90
products

High pricing      0.18     2           0.36    3            0.54    2             0.36


Patents war       0.16     4           0.64    3            0.48    3             0.48


Retailer-         0.11     2           0.22    3            0.33    4             0.44
supplier
Total of external sources toward six concepts through three


Acquiring competitor        Developing new products      Market development

2.62                        3.29                         3.09




        Total of internal sources toward six concepts through three

Acquiring competitor         Developing new goods         Market development

2.27                         3.45                         2.93
• Apple has its own software and hardware programme and they use them in
  all apple products but when we look at the software market %92 of the
  market share is owned by Microsoft and Apples shares Is only %6 so to being
  more competitive in a global market Apple have to invest more on hardware
  and software in order to increase its reputation in this sector because
  hardware and software are the main tools for their product and they have a
  great opportunity to expand their shares in this area but currently other pc
  firms are using microsofts software and hardware because they think that it
  is more reliable than Apple’s OSX. So firm has to pay more attention on this
  sector in order to gain competitive advantage through new and unique
  programmes.

• Reduce the price in emerging markets. For example: China, Africa, even in
  Turkey their price is much higher than alternative products So this cause
  millions of lost customers even before they become potential. Because they
  cant afford those high prices. For example in Turkey to buy one Iphone is cost
  about 1800 TL which is more than twices high minimum wage.So their
  Secondry target has to reduce the cost in order to provide better prices.
Ex: FATIH project
Market Share of Iphone(IOS) in smart phone industry is %12
Target Group
30

20
Steve Jobs reduced complexity in the Smartphone category by eliminating the
keyboard.
The iPad is so simple a 2-year-old can use it.
Innovation takes confidence, boldness and the discipline to tune out negative
voices.
“We don’t need you. You haven’t
 gotten through college yet.”



“Get your feet off my desk. Get
 out of here. You stink and we’re
 not going to buy your product.”



“There’s no reason why anyone would
 want a computer in their home.”



  Imagine how one young man with big dreams must have felt when he heard the
 following. Of course, these statements were all directed at one time or another to
 Steve Jobs.
“Dream bigger.”




Perhaps the ultimate lesson that Jobs teaches us is that innovation requires risk-
taking and risk taking takes courage and a bit of craziness.
Apppleee (1)

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Apppleee (1)

  • 2. Outline • Introduction • Apple’s History • Mission and Vision Statements • Products and services • Internal Assessment • External Assessment • Strategy formulation • Strategy Implementation • Strategy Evaluation • Conclusion • Steve Jobs
  • 7. 1994–1997: Attempts at reinvention Apple Purchased NEXT and its NEXTSTEP operating system, bringing Steve Jobs back to Apple as an advisor
  • 8. 1998–2005: Return to profitability First i mac Through this period, Apple purchased several companies to create a portfolio of professional and consumer-oriented digital production software
  • 9. 2005–2007: The Intel transition June 6, 2005, Steve Jobs announced that Apple would begin producing Intel based Mac computers in 2006
  • 10. 2007–2011: Three Heroes On January 9, 2007, Jobs announced that Apple Computer, Inc. would from that point on be known as Apple Inc., because computers were no longer the main focus of the company , which had shifted its emphasis to mobile electronic devices
  • 11. 2011–Present: Post- JOBS era Siri Apple became the most valuable consumer-facing brand in the world In June 2011
  • 12. MISSION OF APPLE “ 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 with iPad. “
  • 13. At Samsung Group and Samsung Electronics, our products, our people and our approach to business are held to only the highest standards so that we can more effectively contribute to a better world.
  • 14. MISSION OF APPLE(proposed) At Apple, we will not only continue to provide revolutionary and innovative products to the consumer electronics industry like the iPod and the iPhone, but we will also make every effort to give back to society while recognizing our responsibility as a global citizen who strives to reduce the environmental impact of the work we do and the products we create
  • 15. VISION OF APPLE “ to make a contribution to the World by making tools for the mind that advance humankind “
  • 16. “Samsung is dedicated to developing innovative technologies and efficient processes that create new markets, enrich people's lives and continue to make Samsung a digital leader. ”
  • 17. VISION OF APPLE (proposed) “At least one Apple product in each pocket and on each table “
  • 18. “We’re gambling on our vision, and we’d rather do that than make ‘me- too’ products”
  • 19. iPad “ it created its own product segment”
  • 21. iPod
  • 23.
  • 25. iMac
  • 30.
  • 32.
  • 33.
  • 35. Whole Mobile Phone Industry Selling
  • 36.
  • 37.
  • 38. • Product Differentiation • Market segmentation (iPad) • Acquisitions (e.g. Chomp,Siri,Pollar Rose,C3 tech) • Product Development
  • 39.
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  • 44. STRENGTHS WEIGHTS RATING WEIGHT SCORE Strong guarding (it protects the products of apple toward 0,10 4 0,40 worms and virus. Diversifications in products 0,10 4 0,40 Highly innovative products 0,20 4 0,80 Having its own hardware and software 0,09 3 0,27 Great ability for new investments 0,14 3 0,42 WEAKNESSES WEIGHTS RATING WEIGHT SCORE High price 0,15 2 0,30 Pattents war with the competitors 0,05 3 0,15 Shortage of consultant at operating level rather than partner 0,05 3 0,15 level. Retailer and supplier 0,05 2 0,10 Steve jobs death 0,07 2 0,14 TOTAL 1,00 3,13
  • 45.
  • 46. • Economical forces – Uncertainty about global economic conditions poses a risk of negative effect on demand for the Company’s products and services • Social, Cultural, Demographic and Geographic Forces – Age, Popular culture and etc – Word of mouth – Emphaty for customers/users – Positive social contribution – Team spread – Individual reward – Recession,Depression,Crisis periods
  • 47. • Political,Legal and Governmental Forces – Political events, war, terrorism, public health issues, natural disasters and other circumstances could materially adversely affect the Company. • Technological forces • Competitive forces
  • 48. OPPORTUNITIES WEIGHT RATING WEIGHT SCORE Smart-phone market is currently flourishing 0,20 4 0,80 Creating more ties with microsoft product 0,10 3 0,30 Large population is brand concious 0,10 4 0,40 Closer relationship with supplier and distributers 0,15 4 0,60 Young population increase in the worlwide 0,10 3 0,30 Computer and cell phone software and hardware 0,05 4 0,20 THREATS Competitor’s technology ( Samsung Galaxy) 0,10 1 0,10 Intel’ s future pentium release 0,05 2 0,10 Macro economic flactuations 0,05 2 0,10 Google’s android platform has been gaining market share 0,10 2 0,20 TOTAL 1,00 3,10
  • 49.
  • 50.
  • 51. Swot Analysis Strengths Weaknesses • Brand Name • Legal Proceedings • Growing sale of iPod , iTunes and iPhone • Market share in personal computer • Low Debt • High Pricing for products • Wide rage of innovative products • Hardware and Software programmes • Increase in number of retail stores • Weak relationship with Intel and Microsoft. • Market Share and Global expansion • Slow turn around on high demand products. Opportunities Threats • Competitors Offer Wider Product Line • Competitors’ Technology and Pricing • Expansion of Retail Stores for Customer • the long lasting recession may impact the Convenience sales of the company due to higher prices of • Participate in Joint Ventures the products and services • Increase in worms and viruses on PCs so the • The switching in technology is very fast antivirus solution can be developed by Apple • Substitution
  • 52.
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  • 54.
  • 55. External Acquiring Developing Market Forces Rival New Products Development Weight Rate Total Rate Total Rate Total software - 0.20 2 0.40 4 0.80 3 0.60 hardware Ties with 0.12 2 0.24 3 0.36 3 0.36 Microsoft Smart 0.24 3 0.72 4 0.96 3 0.72 phone Rival’s 0.19 4 0.76 3 0.57 4 0.76 tech. Supplier- 0.15 2 0.30 2 0.30 3 0.45 distributer Intel’s 0.10 2 0.20 3 0.30 2 0.20 release
  • 56. Internal Acquiring Developing Market forces rival new goods development Weight Rate Total Rate Total Rate Total Strong 0.10 3 0.30 3 0.30 3 0.30 protection Diversification 0.15 3 0.45 4 0.60 3 0.45 Innovative 0.30 1 0.30 4 1.2 3 0.90 products High pricing 0.18 2 0.36 3 0.54 2 0.36 Patents war 0.16 4 0.64 3 0.48 3 0.48 Retailer- 0.11 2 0.22 3 0.33 4 0.44 supplier
  • 57. Total of external sources toward six concepts through three Acquiring competitor Developing new products Market development 2.62 3.29 3.09 Total of internal sources toward six concepts through three Acquiring competitor Developing new goods Market development 2.27 3.45 2.93
  • 58. • Apple has its own software and hardware programme and they use them in all apple products but when we look at the software market %92 of the market share is owned by Microsoft and Apples shares Is only %6 so to being more competitive in a global market Apple have to invest more on hardware and software in order to increase its reputation in this sector because hardware and software are the main tools for their product and they have a great opportunity to expand their shares in this area but currently other pc firms are using microsofts software and hardware because they think that it is more reliable than Apple’s OSX. So firm has to pay more attention on this sector in order to gain competitive advantage through new and unique programmes. • Reduce the price in emerging markets. For example: China, Africa, even in Turkey their price is much higher than alternative products So this cause millions of lost customers even before they become potential. Because they cant afford those high prices. For example in Turkey to buy one Iphone is cost about 1800 TL which is more than twices high minimum wage.So their Secondry target has to reduce the cost in order to provide better prices.
  • 59.
  • 60.
  • 61.
  • 63. Market Share of Iphone(IOS) in smart phone industry is %12
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  • 83. 30 20
  • 84.
  • 85.
  • 86. Steve Jobs reduced complexity in the Smartphone category by eliminating the keyboard.
  • 87. The iPad is so simple a 2-year-old can use it.
  • 88. Innovation takes confidence, boldness and the discipline to tune out negative voices.
  • 89. “We don’t need you. You haven’t gotten through college yet.” “Get your feet off my desk. Get out of here. You stink and we’re not going to buy your product.” “There’s no reason why anyone would want a computer in their home.” Imagine how one young man with big dreams must have felt when he heard the following. Of course, these statements were all directed at one time or another to Steve Jobs.
  • 90. “Dream bigger.” Perhaps the ultimate lesson that Jobs teaches us is that innovation requires risk- taking and risk taking takes courage and a bit of craziness.

Editor's Notes

  1.  The idea fell from a tree, literally. Steve Jobs had returned from visiting a commune-like place in Oregon located in an apple orchard. Apple co-founder and Jobs’ pal, Steve Wozniak, picked him up from the airport. On the drive home, Jobs simply said, “I came up with a name for our company—Apple.” Wozniak said they could have tried to come up with more technical sounding names but their vision was to make computers approachable. Apple fit perfectly.
  2. Steve Jobs reduced complexity in the Smartphone category by eliminating the keyboard. 
  3. The iPad is so simple a 2-year-old can use it.
  4. Innovation takes confidence, boldness and the discipline to tune out negative voices.  
  5.  Imagine how one young man with big dreams must have felt when he heard the following.  Of course, these statements were all directed at one time or another to Steve Jobs.
  6.  Perhaps the ultimate lesson that Jobs teaches us is that innovation requires risk-taking and risk taking takes courage and a bit of craziness. See genius in your craziness. Believe in yourself and your vision and be prepared to constantly defend those beliefs. Only then will innovation be allowed to flourish and only then will you be able to lead an “insanely great” life.