Post on 21-Oct-2014
description
transcript
NCRD Sterling Institute of Management studies
Strategic Management report on
APPLE INC.
A
Presentation
on
Presented to:
Prof. Seema Laddha
Deepak R Gorad
Girish Suvarna
Sachin Thete
Ganesh Shirsat
Sandeep Ramraje
THREAT OF
SUBSTITUTE
PRODUCTS &
SERVICES
BARGAINING
POWER OF
SUPPLIERS
BARGAINING
POWER OF BUYERS
Porter’s Five Force Model
THREAT OF NEW
ENTRANTS
Medium• PCs are available in multiple
configurations, performances and
price ranges
• PCs represent about 90% of the
market
• Huge network externalities for PCs
• No Mac clone available No
competing product in the Mac
market
Low• Suppliers compete among
themselves to obtain exclusive
contracts with Apple and therefore
have no bargaining power.
Medium• End-users are mostly loyal.
• Cost of switching to PC is high.
• PCs have dominance in the
marketplace, and huge network
externalities.
• Threat of switching to Wintel
platform always present.
Low• High capital investmentCommoditized
market makes it difficult to differentiate
• Substantial dominance of low-cost large-
scale players (Dell, HP, IBM)
Value Chain
FIRM INFRASTRUCTURE
HUMAN RESOURCE MANAGEMENT
PROCUREMENT
OU
TB
OU
ND
LO
GIS
TIC
S
OP
ER
AT
ION
S
INB
OU
ND
LO
GIS
TIC
S
SE
RV
ICEPRIMARY
ACTIVITIES
SUPPORT
ACTIVITIES
MA
RK
ET
ING
& S
ALE
S
TECHNOLOGY DEVELOPMENT
COMPETITIVE
ADVANTAGE
PRIMARY ACTIVITIES
INBOUND LOGISTICS• Procurement of raw materials is supervised by apple but
carried out by Chinese manufacturers.
OPERATIONS• Production is Completely outsourced to various chinese
manufacturers.
• Apple supervises production to ensure it adheres to their
strict quality control policy
OUTBOUND LOGISTICS• Finished goods are delivered directly to apple retail stores
around the world.
MARKETING & SALES• Apple advertises online, on TV and through print ads.
• Apple stores have various programmes to promote their
products.
• Apple is also endorsed by their fiercely loyal customers.
• Products are sold by Apple resellers, through the Apple
website and at 194 retail stores around the world.
SERVICE• Applecare provides extensive customer support around
the world
• Updates of software are regularly released.
FIRM INFRASTRUCTURE• Apple infrastructure consists of a single campus in
California, USA.
• Apple has 194 Retail Stores around the World.
• Manufacturing is completely outsourced.
HUMAN RESOURCE MANAGEMENT• Apple employs approximately 20,000 employees around
the world.
TECHNOLOGY DEVELOPMENT• Apple spent 712 million in research and development in
2006.
• Apple has one of the most admired design and
engineering departments in the world.
PROCUREMENT•Apple chooses its suppliers based on its stringent
standards of technology and quality.
SUPPORT ACTIVITIES
GLOBAL SMARTPHONE SALES Sales growth in mln
04. COMPANY
MAJOR PLAYERS WITH THEIR STRATEGIC OPTION
PORTER’S FIVE FORCES OF APPLE ( VALUE RATING)
COMPANY 8
WHAT OUR COMPANY DOES
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MAP SLIDE
COMPANY 9
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Liquidity RatiosCurrent Ratio
0
0.5
1
1.5
2
2.5
3
2009 2010 2011 2012
Current Ratio for Apple
Current Ratio for HP
Current Ratio for Dell
0
0.5
1
1.5
2
2.5
3
2009 2010 2011 2012
Quick Ratio for Apple
Quick Ratio for HP
Quick Ratio for Dell
Liquidity RatiosQuick Ratio
0
5
10
15
20
25
30
35
2009 2010 2011 2012
Fixed Assets Turnover for Apple
Fixed Assets Turnover for HP
Fixed Assets Turnover for Dell
Activity RatiosFixed Assets Turnover
0
0.5
1
1.5
2
2.5
2009 2010 2011 2012
Total assets turnover for Apple
Total assets Turnover for HP
Total Assets Turnover for Dell
Activity RatiosTotal Assets Turnover
-15
-10
-5
0
5
10
15
20
25
30
2009 2010 2011 2012
Net Profit Margin for Apple
Net Profit Margin for HP
Net Profit Margin for Dell
Profitability RatiosNet Profit Margin
-15
-10
-5
0
5
10
15
20
25
30
35
2009 2010 2011 2012
Return on Total Assets for Apple
Return on Total Assets for HP
Return on Total Assets for Dell
Profitability RatiosReturn on Total Assets
THANK YOU FOR YOUR ATTENTION
Questions?