Apple, Inc.BA 361

Donald UlrichMatthew Vital

Maggie Wesolowski

Overview•History of Apple, Inc.•Apple, Inc. Products•The Industry

•Computers•Mp3 Competition•Media Players

•SWOT•Strategic Analysis

Brief History/Background

HQ: Cupertino, California

American multinational corporation Designs and markets consumer electronics, computer

software, and personal computers

August 2010: Operates 301 retail stores (10 countries) Online store

April 1976, Partnership: Steve Wozniak, Steve Jobs (CEO), (Ron Wayne), Mike Markkula

Internal Environment

Sustainability & Eco-friendly

Constant innovations & product re-inventions In relation to customer and economy shifts

Gain market share from competition to maintain profitability (esp. product expansion)

Mission & Opportunity Statements

Statements

Mission Statement

Committed to bringing the best personal computing experience Students, educators,

creative professionals and consumers

Around the world Hardware, software

and internet offerings

Opportunity Statement

Highly competitive & technological-driven consumer electronics-computer industries.

Further leverage the intellectual capital & brand image with new digital business strategies Create new sources of

sustainable competitive advantage

Apple Products

External Environment

The Personal Computer Industry

Apple Computers Over the Years

First Computer was the Apple I It was a kit sold as a

motherboard with a CPU, RAM, and basic textual video chips

The user was required to provide two different types of A/C input voltages, wire an ASCII keyboard to a DIP connector and to wire video output pins to a monitor or RF modulator if a TV set was used

Went on sale in July of 1976 at $666.66

Continued

The Apple II introduced April 16, 1977 for $1295

Differed from rivals TRS-80 and Commodore PET because it came with color graphics and an open architecture

Early models used cassette tapes for storage which switched to the 5 ¼ floppy disk drive and interface, disk II, after it was introduced

ContinuedThe Apple III

introduced in 1980Had no cooling fan as

per Jobs’ specifications

Thousands recalledApple III+ had the fan

and was updated but did not sell – wary buyers and bad press

Continued

The Apple Lisa introduced in 1983

First personal computer sold to public with a graphical user interface (GUI)

Was a failure due to high price ($9,995) and limited software

Continued

The Apple Macintosh introduced 1984

Initially sold well, follow up sales not so good until introduction of the Laserwriter (first reasonably priced laser printer) & Pagemaker (desktop publishing software)

The Apple Macintosh portable was a derivative of this in a portable version-sales were terrible

iMac & iMac Flat panel

iMac was an all in one pc introduced in 1998 Included cases in a variety of colors Was the start of Apple getting back ahead

and to a steady growth as before The flat panel is the same all in one pc but in

a flat screen version. Has evolved from the original G3 version to

the now G5* and Core 2*, Core i5*, & Core i7*.*The newer versions use Intel core duo

technology

iMac & iMac Flat Panel

Mac Mini

Takes the original desktop (where the monitor sits on a horizontal box which holds the components) and shrinks it to a mini size. (Uses Intel’s core duo chips)

PowerBook, iBook, and MacBook

Powerbook-original laptop from apple Evolved into many different versions Began to gain popularity along with the iMac

iBook- replaced the Powerbook and continued to help Apple gain popularity

MacBook- replaced the power book and iBook which sparked a boom on sales for apples “book” sector due to a much faster speed from using Intel’s chips

The MacBook Pro version was a huge hit in the professional sector

PowerBook, iBook, and MacBook

Chart of Apple Computers Over Time

The Personal Computer Competition

HP

One of the biggest computer providers

Make everything from computers to monitors, printers, scanners, and cell phones

Compete with Apple in many markets including computers and smart phones

Provide computers and service on an at home, small business, corp. business, and government level

Provide their computers a low price

Allows customizable options

Dell

A large provider of computers

Allows customers to build their computer packages

Offer many types of products from computers to monitors, printers, HDTVs, and cell phones

Provide a wide variety of computers a varying prices depending on the components added

Low cost

Acer

A large provider of laptop computers to conusmers

Provide many products such as laptops, desktops, servers, projectors, TVs

Provides their computers in a few configurations

Mp3 Player Competition Industry

Creative Sound Blaster sound cards The Zen, The Zen Stone Line

Reigncom Ltd. South Korea: iRiver iRiver Clix Lplayer

Microsoft Zune

SanDisk Sansa: View, Connect, Fuze,

Clip, Express

Personal Media Players

Sony: First Walkman 1979 in Japan Tape player w/out recording function 1995: more than 150 million sold, CD player

PDAs: Apple was the first Newton Best functionality, sync with PC software

Goodbye to the PDA

By fourth quarter 2007, PDA sales fell 53.2% from same quarter 2006

New convergence between PDAs and cell phones Continual demand for portable electronics,

better functionality

Apple’s Movement in MP3

+100 manufacturers offering digital music and person media players

2001: User-friendly iPod introduced “Thousands of songs in your pocket.” 5-10 GB

Innovation + Functionality

iTunes attributed to majority of iPod’s success 2001: Created to store CDs on computer hard

drives, burn CDs on Macs syncing between music software and new music

player 2003: Software released for Windows users

Impacts on iPod Sales

4th edition, April 2004 Introduced of

iTunes Music Store Large library Legitimate online

source for music, reduce piracy

October 2005: Videos for purchase Released in

conjunction with video iPod

iTunesOnline service

launched in April 2003Number one music

retailer in U.S.Catalog of 8 million

songsRecorded 5 billion

songs downloaded since 2001

Apple reports of 2003: .99 cents per song Net revenues $6.2 billion Net income $69 million

Apple iPhone

iPhone (cont’d)

SmartphoneMedia Player

EmailWeb browsing

Multi-touch and virtual keyboard

Apps

SWOT

Strengths

Design & innovation capabilities

Ease of Use Windows-friendly Online Presence Products/Services Brand

loyalty/Reliability Creative marketing

Ads & testimonials

Weaknesses

Expensive compared to competitors

Wi-Fi capabilities on products

Declining market shares

Weak presence in markets other than in education and publish

SWOT (con’t)

Opportunities

Social Trends Product evolution

Home entertainment & digital TV

International opportunities

Threats

Competition: MP3 industry Computer industry

Apple product substitutes

Strategic Analysis

3 Strategic Recommendati

ons:1. Integration of social

media2. Technological

advances and product expansion

3. Open service market providers

#1. Focus Integrationof Social Media

Pros

More consumer market approach

Trendy Showcase new

products or re-inventions exclusively

Marketing and advertising boost

Cons

Lose customer basis Failure with marketing

and advertising approaches

#2. Technological advances and product expansion

Pros

New product sector development Digital cameras and

camcorders Risk & Redefinition

Cons

Faulty Brand

Image/Reputation Troubleshooting

#3. Open service market providers

Pros

Readily available products

Trendy Aid in phone service

providers expansion (possible merger)

Cons

Monotonous Out-dated Competition increase

(i.e. AT&T vs. Verizon, etc.)

Our Best Strategic

Recommendation:

Technological Advances and

Product Expansion

References http://appleinnovation.blogs

pot.com/

http://forums.macrumors.com/showthread.php?t=420550

http://hubpages.com/hub/The-NEW-iPhone-4G-Coming-2010

http://www.apple.com

http://www.buzzbiznews.com/033796/verizon-iphone-release-date-4/

http://www.dvorak.org/blog/2006/06/23/mac-wishes-apple-dreams-ideas-for-new-apple-products-contest/

http://www.fool.com/investing/general/2010/06/07/apple-strengths-weaknesses-opportunities-threats.aspx

http://www.jimharrer.com/blog/archive/2010/08/10/apple-swot.aspx

http://www.mba-tutorials.com/marketing/273-apple-swot-analysis.html

http://www.my3cents.com/showReview.cgi?id=70301

Questions?

Thank you.