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Submitted to: Sir ShahnawazTue 6:009:00

2012

Strategic Marketing Management

Analysis on Apple Computers Inc

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Submitted By:

Sheena Isabella Lobo (12823) Sara Ahmed (12303) Tehmina (14447) Nisa Zehra (12793) Owais (8806) Shariq Mahmood (13058)

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APPLE COMPUTERS INC, 2008

Apple Computer In was founded in 1976 by STEVE JOB. It started by making computer

circuit and then later on decided to build computers, it then paid attention on building its

own personal Macintosh computers.

They created laptops called "MAC BOOK" and later also entered into MP3 player and

mobile phone industry with I Phone in 2008.

Its market share had declined significantly to a current 3% market share, still Apple is a

successful business due to its other products and its Macintosh computers are still

profitable. Currently Apples PC Business is on the rise again. Apple also provides

software for Mac OS.

Competitorsproducts became cheaper over time while Apple didnt have the benefits of

growing economies of scale. Cheaper prices for competing products could be a reason

why consumers chose other PCs over Apples Macintosh.

Despite Apples superior products, the new IBM-standard, with its standardized

components that made components cheaper through economies of scale, higher

industry competitors forces, easier distribution of computers, better information about

computers andtheir prices etc. are reasons for Apples declining market share over time.

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SWOT CONVERGENCE MODEL

CORE COMPETENCY MAC BOOK

DISTINCTIVE COMPETENCY iPAD, iPHONE

SUSTAINED COMPETETIVE

ADVANTAGE

iPOD

STRATEGIC IMITATION MAC (OPERATING SOFTWARES)

Introduction

MAC Books

Growth

iPad, iPhone

Maturity

iPod

Decline

MAC OS

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Loyalty Status

Hardcore Loyal Mac OS

Split Loyal iPod

Switcher Mac Books

Shift loyal I POD and I Phone

Introduction

Mac Books

Early Maturity

iPad, iPhone

Late Maturity

iPod

Decline

Mac OS

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Brand Personality

Excited I PAD, I PHONE

Competence I POD

Sophisticated MAC BOOK

Sincere MAC (OPERATING SOFTWARES)

Introduction

MAC Books

Growth

iPad, iPhone

Maturity

iPod

Decline

MAC OS

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PORTERs FIVE FORCES MODEL

THREAT OF NEW

ENTRANTS

E business

Unruly technology

BARGAINI NG POWER

OF SUPPLI ER

Suppliers force higher cost

Suppliers of tv

Strategic allaiance of suppliers

with competitors

BARGAINI NG POWER

OF BUYER

Consumer lower spending on

computers

Retailer can force low price

THREAT OF

SUBSTITUTE

Entertainment media movies

and music

Mp3 players

COMPETITIVE

RIVALRY

Mac competition onx

Dell and HP

Innovative MP3 players

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BCG Matrix

Stars: Profitable and growing product. Usually companies pour more money in it topush them further. In Apples case, the star products are the iPhone and iPad

Cash cows: extremely profitable product, no extra effort or investment is needed tomaintain them. Here one finds the iPod, where Apple enjoys a huge market share in

a stable market.

Question marks: These products have an uncertain future. No apple product fits inthis category.

Dogs: These products should be stopped if unprofitable. If profitable, no investmentshould be made. This may mean selling the product operations. In Apples case, the

MAC operations.

High

Growth

Low

High Market Share Low

Star*

iPad, iPhone

?

Mac Books

Cash Cow

iPod

Dog

Mac OS

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Product Market Growth Matrix & Apple

Present Market

New market

present product new product

Market penetration

i TUNES

APP STORE

Product development

I PAD, I CLOUD , MAC OS

Market development

WHITE BOX PC, IPHONES

Diversification

MACINTOSH PERSONAL COMPUTER

Market

Development

Diversification

Market

Penetration

Product

Development

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GE Matrix & APPLE

http://wiki.telfer.uottawa.ca/ci-wiki/index.php/Image:GE-McKinsey_Apple_Example.jpg

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Miles & Snows Typology & Apple

Prospector 3M

Reactor INTERNATIONAL HARVESTER DURING 1960FOLLOW THIS APPROACH

Defender IBM

Analyzer BIC

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Building blocks & Apple

Efficiency

iphone

Customer Responsiveness

ipod

Innovation

mac book

Quality Mac

OS

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Adopter categories

Introduction MAC BOOK

Early Adopter I PAD

Early maturity I PHONE

Late maturity MAC OS

Laggards I POD