APPLE Inc.
“THINK DIFFERENT”
“Change the World through Technology”
• On April 1, 1976 - Apple Computer Inc.
STEVE JOBS & STEVE WOZNIAK &
RONALD WAYNE (Co- founder)
• Industry: Computer Hardware and
Software, Consumer Electronics
• In 1978, Apple – II (color graphics & open
architecture). Introduction of a 5 1/4 inch
floppy disk drive.
• In 1979, Development of VisiCalc
(spreadsheet program).
• In 1980, launched an IPO (record
breaking after 1956 IPO of Ford Motor
Co.)
Products And Figures
Hardware
– Mac (personal computer series),
Apple Remote Desktop.
Software
- Mac OS X, Mac OS X Server, Quick Time, i Life, i
Work, Logic pro, Cinema Display etc.
Consumer
Electronics - i pod, i pod hi-fi, i phone, Apple TV.
Employees
- 19,787 full-time ; 3,399 temporary
(March 31,2007)
Retail
stores - 183
Porter’s 5 forces
EXISTING RIVALRY – VERY HIGH

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)

Online music stores similar to itunes stores (Napster)

I-phone segment (Nokia, Samsung , Motorola, HTC)
THREAT OF NEW ENTRANTS - LOW

Streaming audio and video with v-cast (Verizon)

On-demand online services (similar to i-tunes)

New entrants with disruptive technology (The
“next Google”)
BARGAINING POWER OF SUPPLIERS MODERATE

Suppliers of processors and computer memory
(IBM, Intel) - High

Strategic alliance/supplier of Mac (Microsoft)

Supplier of TV and movies (Disney, ABC, Fox,
Sony)

Sources of music (BMG, Sony, Warner,
Universal)
BARGAINING POWER OF CUSTOMERS MODERATE

Customers share music using peer-to-peer
networks without paying for music (Ares, Lime
wire)

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. But many Loyalists
(Niche class).
THREAT FROM SUBSTITUTES MODERATE

Satellite radio for music (XM, Sirius)

Entertainment media and music (XBOX, PS2)

Alternative means to acquire music (Music CDs,
DVDs)

Alternative sources for videos (Cable, Broadcast,
Theatres)
Competitor Environment
•
•
•
•
High Competition
Share of Dell and HP
Microsoft and Intel-Leaders of Software, ardware
Phone Industry- Sony, Nokia, Samsung
Competitor Environment
Core Competencies
(In Current Scenario)
• Differentiation Strategy
• Innovation
Differentiation Strategy
•
•
•
•
•
•
Unique Features and characteristics
Commands Premium Price
High Customer Service
Superior Quality
Prestige
Rapid Innovation
Sustainable Competitive
Advantage
Value Creation Process
Apple I,II,III
Mac
FF
Focus On Education
C
o
n
v
e
r
g
e
n
c
e
eMac
Music Strategy (iTunes)
Video Strategy (iMovie)
Lifestyle Strategy
Adding Value
Internet Strategy (iTools) Digital Hub
iMac
Sustained Competitive Advantage
Valuable : Innovators
Rare : Strong R & D
Costly to imitate : itunes, Mac OS
Non substitutable : applications,
softwares
Strengths
•
•
•
•
•
Branding
Innovation
Differentiated Product
Superior Quality
Retail Strategy
Weaknesses
• Less Penetration
• Cannibalization
Opportunities
•
•
•
•
High growth potential.
Line Extension.
High Potential music phone market
Strategic Alliances
Threats
• Competition
• Substitute Products
• Threat of Suppliers
Ansoff Matrix
Existing Products
Existing
Markets
New
Markets
New Products
Macbooks, iStation
Macbook Wheel,
Apple TV
Ipod, iPhone
iTunes
BCG Matrix
STAR
PROBLEM CHILD
I-PHONE
APPLE MAC BOOK
Ipod
CASHCOW
DOGS
Apple TV
Mac Mini
GE Matrix
Strong
Medium
Smart Phone Market- I
Phone
Weak
Apple software's
High
Music Player Industry –
I Pod
Personal Computer
- Mac
Medium
Low
Business Strength
Market
Attractivene
Corporate Level Strategy
Diversification: Iphone, Apple TV
Backward Integration: Manufacturing of
Semiconductors
Forward Integration: Retail
Acquisitions
•Emagic in 2002
-To acquire knowledge and skills
about Music software
•PA Semi in 2008
- Mac Hardware acceleration
- Backward integration
- Skilled Manpower
Strategic Alliances
1. Apple – Disney
- To reduce losses of standalone istore
and Disney outlets
- To improve the Disney store
“experience”
2. Apple – Microsoft
THANK
YOU