Electronic Communication
Topic: E- Commerce Company and Online vs Traditional Shopping
Submitted By:
Name: Sana Riaz
Registration # 0185
Section: 1A
Submitted By :
Sir Muhammad Arif
Submission Date:
29th March, 2014
APPLE INC.
Apple Inc. is engaged in designing, manufacturing and marketing mobile communication and
media devices, personal computers, and portable digital music players. The Company's products
and services include iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and
professional software applications, the iOS and Mac OS X operating systems, iCloud, and a
range of accessory, service and support offerings. It sells its products worldwide through its
online stores, its retail stores, its direct sales force, third-party wholesalers, and resellers. Apple
Inc. is headquartered in Cupertino, California.
Apple Inc. Website:
http://store.apple.com/us
APPLE’S MANAGEMENT TEAM
1) CEO : Tim Cook
2) Senior Vice President (Internet Software and Services ) : Eddy Cue
3) Senior Vice President (Software Engineering) : Craig Federighi
4) Senior Vice President (Design): Jonathan Ive
5) Senior Vice President and Chief Financial Officer: Peter Oppenheimer
6)
Senior Vice President (Hardware Engineering): Dan Riccio
7) Senior Vice President (Worldwide Marketing): Philip W. Schiller
8) Senior Vice President and General Counsel: Bruce Sewell
9)
Senior Vice President (Operations): Jeff Williams
ORGANIZATIONAL STRUCTURE
CEO
Timothy Cook
Chairman of
Boras
Arthur Levinson
Director
Director
Andrea Jung
Robert Iger
Director
Ronald Sugar
Director
Director
Albert Gore
William Campbell
APPLE’S MARKETING STRATEGY
Sell On Value, Not Price
It means that they focus more on providing values to its customers so that they will be satisfied
enough to use their products again, whatever the price they are charging it should give necessary
benefits the customers is expecting from it. That’s why they that “Sell on Value, Not Price”.
APPLE INC. COMPETETORS
1. HP Company
Hewlett-Packard Company or HP is an American multinational information technology
corporation. It provides hardware, software and services to consumers, small- and
medium-sized businesses (SMBs) and large enterprises, including customers in the
government, health and education sectors.
2. BlackBerry Limited
BlackBerry Limited, formerly known as Research In Motion Limited (RIM),[3][4] is a
Canadian telecommunication and wireless equipment company best known as the
developer of the BlackBerry brand of smartphones and tablets
3. Google Inc.
Google is an American multinational corporation specializing in Internet-related services
and products. These include search, cloud computing, software, and online advertising
technologies.
APPLE INC COMPETITIVE ADVANTAGE
Following are the main competitive advantages of Apple Inc.

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It is using Differentiating Strategy that provides products their customers perceive as
being unique.
It is providing user friendly interface.
Its products provide more innovating features
Its control over software and hardware, marketing, digital assessment, retail strategy all
are its competitive advantages.
BUSINESS MODEL
Apple Inc. is using B2C E - COMMERCE Model because they are online selling their
products to the customers. As there is an option of
1. Viewing & Changing Orders
In this option , customers can give order online and may do the following things:



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

Online Order Status,
Check Order Status
Track Shipments
Edit Your Order
Cancel Order
View or Print Invoice
2. Payment methods
The Apple Online Store accepts a variety of payment methods. Click on a payment
method below to find out more:




Credit Cards or Debit Cards
Barclaycard Visa Cards
Apple Business Lease (AFS Commercial Credit)
Apple Store Gift Card
So, it means that Apple is using B2C Model to facilitate the customer to give online order
anywhere in the world.Definately, it is saves time and cost of customer and they ger their product
at desired cost on time.
CUSTOMER VALUE PROPOSITION
Apple is giving many facilities to its customers apart from its products
1. Customize Your Mac
Models that can be customized:

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MacBook Air
MacBook Pro
Mac mini (hardware only)
iMac
Mac Pro
2. Free Engraving
Add a free laser-engraved message to any new iPod or iPad. And choose signature
gift wrapping to make it even more special.
3. Financing
New card members get special financing on any purchase made at Apple within
30 days of account opening.
4. Gift Cards

Apple Store Gift Cards (For Apple hardware and other online and retail products)
 iTunes Gift Cards
5. Personal Pickup
(For music, movies, apps, and more)
Place your order and Pick up at any Apple Store.
6. Reuse & Recycling
With the iPhone Reuse and Recycling Program you can get an Apple Store Gift Card for
your iPhone.
REVENUE MODEL
It is using a Sales Revenue Model because it is generating revenues through online sales to its
customers. The description of prices with products is displayed on their site. Customers can order
according to their choice and against that order Apple charge some amount as already displayed
and earn revenue through it.
SECOND PHASE OF ASSIGNMENT
ONLINE SHOPPING
I wanted to purchase Laptop online. For this purpose I follow the following steps.
o First of all we go the desired website where we can check all the details of giving
order. Then we click all the items I wanted to purchase and make a shopping
cart. Then I save it.
o Then I got log in through my personal account on this website.
o Then I enter my detail as a customer from that website like phone no. etc.
o Then they ask me of payment method, I prefer to make payment by credit card.
o After completing my order, I could also check my order status, delivery status
and even tracking of my product.
o At last, I got my product at my home.
While doing online shopping, I felt there are many advantages and disadvantages of online
shopping :
Advantages of online shopping
1) It was Easy to find the product that I was looking for. I just go to its website and
place my order. No need to search the markets for that specific product.
2) It saved my time and energy to go into a special store and buying traditionally.
Because if buy traditionally I will have o extract some time for it to go to a
specific place for shopping but at here this limitation overcame.
3) My satisfaction percentage was high than buying from somewhere else because I
got my order on time. I can even amend my order and even cancel my order.
4) It gives more protection because highly trusted websites will give your money
back if any seller do not deliver the item or deliver an item which does not match
with the description.
Disadvantages of online shopping
The main disadvantage of online shopping is, you cannot receive the product
1) The description of the product might be different than the actual product. As a
result you might end up with inferior quality product.
2) Items are generally cheaper in online web store. But sometime the addition of
shipping charge makes the price similar or more expensive than your nearby local
store.
3) Delivery risk occurs when the seller fails to deliver the original product or
delivers a damaged (inferior/duplicate) product due to shipping problems.
4) Returning an item is difficult in case of online shopping. Although seller accepts
sells return, they usually want the item within a short period of time and you also
have to pay for the shipping charges.
5) Many electronic items are sold without international warranty. So make sure you
contact with the seller to verify whether the item has international warranty or not.
TRADITIONAL SHOPPING
If I will purchase the same the Laptop from a particular shop, then I may follow the following
steps:
1)
2)
3)
4)
5)
6)
Simply select the shop form where I want to purchase.
Then I go to that particular place.
Select my desired item of interest after seeing its its catalog and other things.
It may take many hours to complete this step.
Then I final my order.
Make payment and got it.
Advantages of traditional shopping
1)
2)
3)
4)
It enables one to see the actual product before paying the money.
One could get the actual product that he or she likes with the money.
It makes sure one could get the product immediately the money is paid.
This is very useful in shopping the urgently-need items.
Disadvantages of traditional shopping
1) One has to spare much time to do the shopping.
2) One has to leave home and go to the store.
3) In case the store does not have what one needs, one has to march on to another
one to get the product.
4) Traditional shopping is expansive. If one turns the time spent into cash, it makes
the product shopped very expansive. Second, one has to pay for the gas fee which
is very high nowadays to do the traditional shopping.
My Opinion
In today’s world, where time is money for the people, I think
Online shopping is a better option because it not only saves time
but expense too. On e should go for online shopping because we
can do shopping anywhere in the world on just one click
according to our desire and preferences.