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AppleAppleComputers,Computers,Inc.Inc.
LaurenCarter
MonicaBridges
ElizabethKevin
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o s pp e
Computers, Inc.? Founded in 1976 by Steve Jobs and SteveWozniak
Company was founded after IBM created the4004 chip which allowed previously bulky
computer components to be included on asmall chip that is located in a computersystem small enough to fit on a desktop.
A les logo, now one o the most
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19
761981
2006
19
75
T e Evo u on o a
Brand
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1997- First online
store opened. Over 4.4
million hitsand 500,000
orders in thefirst 24 hoursof operation.
Genera
Environment 2002- Initiated aSwith Advertising
campaign. Geared to switchPC users to Macusers.
Currently Operates200 brick andmortar locationsworld-wide.
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i Series of computerproducts brought
$650 million inrevenue for the2003 fiscal year.
Company hasbegun to shiftproduct lines withthe aspiration tothink different.
Genera
Environment Constantinnovations and
product re-inventions as theconsumer baseshifts as well as theeconomy.
iPod (portablemusic)
iMac (gaming& power)
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Apple competes in thefollowing industries:
Computer
iBook
PowerBook
PowerMac
Multi-Media
iMac Entertainment
iPod
In us ry
Environment Market Share: Worldwide:
Desktop- 6%
Portable- 10% Domestic:
Educational-15.2%
Annual sales for 2002fiscal year were $1.5bil
Down 27% fromprevious year.
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Porters 5 Forces:
1. Buyers
Set Prices2. Suppliers
Reinvention of supply chain
Cut down
3. Current Rivals Dell, HP, Sony,
Toshiba
In us ry
Environment4. Substitute Products Little/no direct
substitutes but
many competingproducts.
Mac OS has noalternatives.
5. Threats of Entrants
High barriers inindustry
Apple isestablished
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Marketing is AppleComputer, Inc.sbiggest survival factor.
Ads featuringtestimonials fromPC users that haveswitched to Mac.
New advertising
ventures allowApple to gainmarket share.
In us ry
Environment In light of slight
decline in computersales, Apple Computer,
Inc. has put moreemphasis on promotionof the iPod.
Mixture of bothcomputer and
portable mp3 playersales allows Appleto remainprofitable.
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Apple is planning tofurther enhance theirswitch advertisingcampaigns.
Award-winningadvertisements hascreated competitiveedge.
In order to staycompetitive, AppleComputer, Inc. hascreated differentversions of their
operating system.
Compe or
Environment Creation of peripheral
products has createddiversification.
eMac Educational
products
Learningapplications
Portable computers
Apple has maintainedtheir ability todistinguish themselves
from their competition.
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Apples has
resources that are: Organizational
Innovative
Technological
Apple logo is easilyidentifiable tocustomers in thecomputer market.
In erna
Environment Internal Capabilities:
Marketing
Large budget
ManagementLeadership
Core competencies inhigh-quality hardware.
Inventory system hasgiven higher economiesof scale.
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Outbound logisticshas made itpossible for Apple
Computer, Inc. tomeet the orders anddemands of theircustomers.
Technologicaldevelopment is akey supportactivity.
In erna
Environment Company vision is toprovide the best possiblemerchandise at the mostreasonable price possible.
Strategic Mission-Provide unique productswhich allows them toenter into new markets.
iPod
eMac
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Apple works hard todetermine newideas on how to
gain market sharein order to boostsales.
Strategies:
Advertising New Products
TechnologyInnovation
In erna
Environment Objectives: Open new stores
Cooperativebranding
Educationalproducts
Strong efforts inadvertising, technologyinnovation and market
share growth makeApple Computer, Inc.successful!
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SynthesisAlternatives: Tackle the low-end consumer market,
focused segmentation.
Offer an affordable system with aninnovative design.
Distinguished, Innovative.
Devise a strategy to convince competitorscustomers to
switch to Apple and retain currentcustomers.
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Successful companyFavorable Brand PerceptionBrand-loyal customersRecognizable logoCreative advertisements/promos
MP3 InnovationsWell established product linesBrick and mortar locations
Declining market sharesHeavily saturated industryProprietary software systemLow popularity overseasIncreasing different operating system
Educational materials/ softwareMP3 device expansionsSoftware designs
Competition in MP3 industryCompetition in computer industryHigh substitution rateNew Entrants
SW
OT Analysis
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Q
uestions???
The End