"Man is the creator of change in this world. As such he should be above systems and structures, and not subordinate to them." Apple Inc. Chantavia Knight Shantel Taylor Ree’Noshia Taylor Jennifer Mosha History / background Mission, Vision, Strategy "Apple designs Macs, 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 has recently introduced iPad 2 which is defining the future of mobile media and computing devices." "Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings." Competition and Customers Competition and Customers “There is no other company that plays the same game as Apple!” Future Competition ???? Operating Systems competitors… Hardware competitors… PC competitors… Competition and Customers • • • • 10% of users that visit Apple’s site older PC vs. Mac Older customers hesitant Younger customers more flexible to adapt Mac vs. PC Commercial http://www.metacafe.com/watch/133028/mac_vs_pc_ad_ mac_is_better/ Marketing Mix 4 Ps Product: Apple should continue with its innovative products internationally. Mobile technology is a fast growing technology in Asian countries like India and China. So focus on mobile devices in Asian countries would be a smart step. Price: Apple should focus on the buying power of international market. It can go for medium pricing for the price sensitive Asian market and may be medium-high pricing for European and similar market. Promotion: Apple should continue promotion of its products on the ground innovation, style and technical elegance, internationally. Place: Superstores like Wal- mart and Best Buy in European market and online sale, shopping malls and education sectors in Asian market. Ansoff’s Product Market Expansion Grid Perceptual Mapping - Positioning “A consumer's evaluation of a product typically is the result of what it means, rather than what it does.” Example: A consumer may think that Apple’s products are more appealing to the eye and more efficient than a Samsung product because of the appearance, the color, how others may portray the owner of an Apple product. BCG Matrix for Apple Inc. Porter Strategies and Value Chain Power of Customers Threat of New Entrants Competitive Rivalry in the PC Industry SWOT Analysis and suggestions Strengths 1. Pioneer of innovative and high-tech quality products like iPods, iPads, iPhone and Mac. 2. Globally recognized brand name 3. Large segment of loyal customers of apple “ Apple” culture. 4. Study research and development. 5. Retail stores providing the eye-catching products and experience of Apple’s software 6. Strong presence in education segment. 7. Visionary and charismatic CEO, Steve Jobs Weakness 1. Failure of two notable products namely Mac Mini and Apple TV 2. Lower market share and higher price compared to Microsoft and other competitors. 3. Decision to resist I Phone to a single operator was unpopular in several markets around the world. 4. Steve Jobs dependency, a risky tactic Opportunities 1. Good relationships through joint venture with other big companies coupled to bring out new “hits” 2. Constant growth of PC and Mobile industry industry. 3. More international expansion like Asian countries 4. Increasing demand of online music and others applications like cloud based services. 5. Growing market of “Green” and energy efficient product. Threats 1. Competition in technology with other Pc industry giants like Dell, HP, Lenovo and mobile industry giants like Nokia 2. Expensive products as compared to other competitors such as Dell, Nokia, Microsoft 3. Poor health Steve Jobs 4. High product substitution effect in the innovative and competitive technology market 5. Incompatibility with the windows platform. Creative Strategies • • • • • • • Equivalence of customer and professional applications Expand creative market for MAC Expand iLife suite Focus on next generation business practices Market to youth… Remaking itself as a mobile company Core compentantcies Refereneces http://www.informationweek.com/news/security/appsecurity/224400602