Ellen Suprun
Julie O’Halloran
Wojciech Jagiello
Finbarr Kearney
Kingsley Egwim

1. External Analysis
2. Internal Analysis
3. Strategy
4. Assessment and Recommendations

Threat of
Entry
Low
• High capital investment
• Commoditized market makes it difficult to differentiate
• Substantial dominance of Wintel platform and low-cost large-scale players (Dell, Gateway, HP, IBM)
•Oligopoly market
Suppliers
High (components suppliers)
• Most components are commoditized, however
Intel, Motorola, IBM become dominant, that increases power of supplier
Substitutes
High
• PCs are available in multiple configurations, performances and price ranges
•Other firms offer as good products
•Rivalry is very high
Buyers
Low
•PC and new applications High Endusers are mostly loyal
•Imperfect knowledge about price forming

Information
Systems
Support Activities
Company Infrastructure
Materials
Management
• Leadership
• Culture
Human Resources
• Jobs and Wozniak
• John Sculley
• Mike Spindler
• Gilbert Amelio
• Return of Steve Jobs
R&D Production
• Apple have always added value through
R&D
• Failed R&D project with
IBM
• Vertical
Integration to outsourcing
1998 to reduced costs
Marketing and Sales Customer Service
• Premium
Pricing
• Brand Loyalty
• Retail Outlets
• Low market share in the corporate market place

• Technology and R&D team
• Investors
• Organizational culture
• Brand Loyalty
• Marketing
• Partnerships

• Lack of compatible software 1984
• Strategy change inconsistent with the business model – cutting costs
• Failed investments
• Leadership – changes and succession planning

• iCloud
• New markets- expansion into mobile phones, tablets, BRIC countries
• Large corporate market segment

• Open architecture
• Economic downturn
• Competitors
• Suppliers
• Legal issues

• Differentiation Strategy
• Core competencies
– Innovative Culture
– Team spirit (people)
• Marketing
– Consumer Loyalty
– Distribution network

• Mac Clones
• Niche market
• Strategy change & Leadership problem
• Partnership with IBM

• Leadership of Steve Jobs
• Marketing and design
• Innovation and new product development

The role of vertical integration in strategy
Simplicity and quality
Complete user experience
Benefits
Capturing values on every step
Higher costs of production and development
Not dependent on innovation
Importance of strong leader
Dangers
Apple being relatively fragile
Preventing others from innovating

• Launched November 2001
• Buy – Listen - Manage
• Sold 42 million iPods by 2005
• 75% market share
• iTunes: a justified loss leader
• 2005 -39% Apple revenue

• Apple Computer-> Apple
• 2007, iPhone, Apple TV
• 2010, iPad
• Ongoing Software Innovation (iCloud)

• Vision and leadership
• Learn from mistakes
• Corporate Social Responsibility
• Stick to Core competencies
– Design
– Innovation and R&D