APPLE INC.BUSINESS &

REMOTE ENVIRONMENT

PRESENTED BY

Vinay D.N

Aravind

Bindu

Daniel Vinay

George

ABOUT COMPANY

April 1st,1976 - Founded

January 3rd,1977 - Incorporated

Headquarters - Cupertino, California

Co-founders - Steve Jobs, Steve Wojniak

CEO - Steve jobs

Industry - Computer software, computer hardware, consumer electronics.

Revenue - US$ 19.3 Billion

ANALYSIS

Business Environment

PORTER’S FIVE FORCES MODEL

Substitutes

Supplier

New Entrants

CustomerExisting

rivalry in the industry

Threat of new entrants

Bargaining power of buyers

Substitute products & services

Bargaining power of the suppliers

EXISTING RIVALRY

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)

THREAT OF NEW ENTRANTS

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

Suppliers of processors and computer memory (Motorola, IBM, Intel)

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

Customers share music using peer-to-peer networks without paying for music (Ares, Limewire)

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

THREAT FROM SUBSTITUTES

Satellite radio for music (XM, Sirius)

Entertainment media, media and music (XBOX, PS2)

Alternative means to acquire music (Music CDs, DVDs)

Alternative sources for videos (Cable, Broadcast, Theatres)

REMOTE ENVIRONMENT

PEST Analysis

Political Electronic computer industry has been struggling

since early 2000 In Late 90’s sales was Low. US goes War with Iraq which is affecting lot of its

computer purchases revenues from other states.High import duties in india when compared to US so

probably less purchases.Terrorist attack in pentagon and Newyork also added

to reduce its sales Distribution of its products are limited to each and

every country due to Exim policy

REMOTE ENVIRONMENT

Economic Cheap CostingLate 90’s company’s profit was reducedExport fell from $9.6 billion in 2000 to $8.8

billion in 2001Imports fell from $13.6 billion in 2000 to

$12.2 billion in 2001 almost 15% drop

Technological Provided New Technology Products like

iPod,iPhone,Thin Laptop etc.Apple spends huge amount on R&D and it

always innovates new product before its competitors eg – 3G Apple iphone

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( 1st in Manhattan, New York)

Competitors - HP, IBM, DELL

VISION AND MISSION

VISION

“Man is the creator of change in this world.

As such he should be above systems and

structures, and not subordinate to them.”

 MISSION

“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.”

ACHIEVEMENTSApple Revenue Growth

0

2000

4000

6000

8000

10000

12000

14000

16000

1998 1999 2000 2001 2002 2003 2004 2005

Ne

t S

ale

s

2002 Product Sales

Desktops

Notebooks

iPod

Peripherals

2005 Product Sales

Desktops

Notebooks

iPod

Peripherals

SWOT ANALYSIS

STRENGTHSOne of the oldest hardware manufacturers.

Control over the product.

High quality product.

Easy to carry products

Huge consumer base loyal to apple

Product diversification

WEAKNESSESFocusing on internal engg. more than marketing

High price

Consumer faced problems with faulty batteries

Had difficulties on some of its products’ quality control

Not issued dividends

SWOT ANALYSIS

OPPORTUNITIESLess expensive new product lines with quality.

Product line is functional and attractive.

Flexibility to its users.

ipods are able to communicate.

New car models with ipod connectivity.

THREATSPressure from competitors.

Substitution effect

Technology changes at a rapid rate.

Forced to develop new products.

RECOMMENDATIONS

FOR COMPANY:Lowering the cost of products and maintaining the same quality standards

Can form joint – ventures

Knowledge Management

More number of retail stores for easy access

Continuous innovation to expand

RECOMMENDATIONS

FOR OTHERS:Do not compromise on price for quality

Choose the products based on individual needs

Be unique and different

THANK YOU