APPLE COMPANY

PRESENTED BY : PRATEEK VERMA

CASE ANALYSIS CONTENT
• Situation analysis
• Financial analysis
• Key success factors
• Swot analysis
• Recommendations
• Implementation
• Evaluation and control
 COMPANY OVERVIEW

• Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on
April 1, 1976 to develop and sell personal computers.
• It was incorporated as Apple
Computer, Inc. on January 3, 1977, and was renamed as Apple Inc. on
January 9, 2007 to reflect its shifted focus towards consumer electronic.
• Apple Inc. headquarter in California.
• Apple Inc. has 9 products, 7 services and 378 retail stores world wide
 NAME HISTORY
According to Steve Jobs, Apple was so named
because Jobs was coming back from an apple
farm, and he was on a fruitarian diet. He
thought the name was "fun, spirited and not
intimidating“.
• Apple Inc. is an American multinational corporation headquartered in
California, that designs, develops, and sells consumer electronics,
computer software and personal computers.
• Its best-known hardware products are the Mac line of computers, the
iPod media player, the iPhone smartphone, and the iPad tablet
computer.
• Its consumer software includes the OS X and iOS operating systems,
the iTunes media browser and the Safari web browser
evaluation of apple logos
SITUATION ANALYSIS

INDUSTRY OVERVIEW:
The Consumer Electronics industry includes electronic appliances
that are used everyday, mostly for communication, entertainment,
and office purposes.
MISSION STATEMENT

"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."
FROM WHERE APPLE IS MAKING MONEY
APPLE INC. COMPETITORS

Apple has many competitors in the personal computers industry

• IBM
• DELL
• MICROSOFT
• TOSHIBA
• ACER
• HP
APPLE INC. COMPETITORS

IN SMART PHONE INDUSTRY:

• NOKIA
• SONY
• HTC
• BLACKBERRY
• SAMSUNG
 APPLE INC. COMPETITORS

IN IPADS INDUSTRY:
• SONY
• SAMSUNG
• HP
• DELL
STRATEGIC GROUP MAP
STRATEGIC GROUP MAP FOR SOFTWARE
 ISSUES

• PRODUCT DIFFERENTIATION
In today's age there is a thirst for hot new products, and keeping a
high end product on the shelves can be a challenge.
• PRODUCT DIVERSIFICATION
Apple has continuously expanded its product depth to extract all
of its value. The question is how long can they keep doing this
until consumers lose interest?
• MAINTAINING CUSTOMER LOYALTY
Apple needs to maintain their high level of customer service to
maintain their customer loyalty. This a big differentiating factor for
their business.
• MARKET SATURATION
A saturated market leads to less profits and decreased demand.
 KEY SUCCESS FACTORS

• TECHNOLOGY
Apple is an expert in the computer technology and the electronics
industry becoming a global leader in the computer industry and its R&D.
They have expanded computer technology into phones, laptops, tablets,
music players, and recently into watches.
• MANUFACTURING
Apple has achieved both internal and external economies of scale by
becoming the number one firm in their industry which lowered their
production costs given extremely high demand
• DISTRIBUTION
Strong Direct Sales Capabilities
Apple's brick and mortar stores has provided them with strong direct sales capabilities by
dealing directly with the customers themselves
This allows them to personally up sale their products, handle customer complaints, and
gauge the overall demand for their goods.
• MARKETING
A well-known and well-respected brand name
Currently Apple's brand name is ranked number one in the world according to Inter brands
study of worlds most popular brands.
This title increases their brand awareness and also proves they are at the top of their game in
the electronics industry
• SKILLS AND CAPABILITY
DESIGN EXPERTISE
Apple has prided itself on its design teams efforts in crafting unique designs that grab
consumers and command their attention
They are lightweight, colour full , and ever changing with different cases
SWOT ANALYSIS
 STRENGTHS

• 1 Globally recognised brand

• Research and Development
• Innovation
• Healthy Financial Performance
• Economies of Scale
• Loyal Consumers
 WEAKNESSES

• Skills and Capability

Design expertise
Apple has prided itself on its design teams efforts in crafting
unique designs that grab consumers and command their attention
They are light-weight , colourful and ever changing with different
cases
 OPPORTUNITIES

• Sales growth in emerging economies

• I-Watch and Mac Pro
• Demonstrating continued Apple innovation.
 THREATS

Stiff competition:
• Competition is high and intense in the technology sector.
Product Imitations:
• These product imitations could serve as a low cost substitute.
Potential saturation of mobile market:
• If markets become saturated profits decrease for the industry and
Apple.
 RECOMMENDATIONS
Options for a leading company:
• Focus on differentiated lifestyle branding: Apple has successfully developed a
differentiated lifestyle brand and must continue to build on this foundation while resisting
pressure to move to the middle to directly compete with Dell and HP.
Options for competing in international markets:
• Continue the expansion of Apple stores: The stores represent an important source of
revenue for Apple and serve as an interactive advertisement for the Apple brand.
Their success has been unmatched by any other industry player.
• Value the integrated system in advertisements: Apple's integrated system holds a
significant advantage over other industry systems relying on Microsoft Windows, yet some
customers have not experienced the seamless interoperability of all Apple products. This
marketing angle will result in cross selling of more products to new and existing customers.
• Apple should continue to support the educational and creative professional markets.
• Generic strategies
• Design innovation: Put additional emphasis on design development
with internal resource allocation to continue to lead the industry in
design.
• Research user interface possibilities: As a mode of setting Mac
computers apart from other PCs Apple must continue to innovate in
user interface focusing on easy-of-use and intuitive menu functions
Consumer electronics diversification: While the PC market has grown
increasingly crowded with competitors and customers saturated other
areas of consumer electronics continue to grow. Developing
complementary products in other categories provides broader sources
of revenue by accessing more customers in markets with less intense
competition.
Apple should consider all work related to its operations in the Pod,
iTunes, iSync, and iChat sectors.
 SHORT MENU
• Option One: Franchising of stores
• Option Two: Growth Strategy through new products and new
market opportunities
• Option Three: Vertical Integration.
EXPECTED OUTCOMES OF SELECTED
STRATEGIES
 IMPLEMENTATION
The recommended strategies are implemented as follows:
• Build long term organisational strength by implementing a clearly thought out
leadership development and selection programmer that will be able to develop
the special leadership required for Apple.
• Future leaders should be technically brilliant, innovative pioneers with strong
team working skills and high levels of ethics.
Build specific products of high quality, but lesser prices, for the huge
populations of India and China that are passionate about computers, mobile
phones and music.
Continue and intensify the search for innovative, stylish and useful products
in its existing area of operations.
• Make productive use of strong cash reserves.
RECOMMENDED STRATEGY SUPPORTIVE
POLICIES:

• Human Resources structured training programs

• Rewarding plan for innovative ideas
• Reward scheme for staff to increase their loyalty
• Effective performance Management
• Career planning and development.
 ACTION PLANS:

• Producing an action plan can be beneficial not only for individual basis but
also for businesses. For example, it allows project managers or any member
of a group to monitor their progress and take each task step-by-step, therefore
allowing them to handle the project efficiently. The advantage of doing this is,
it allows you to execute a structured plan for the end goal you intend to
achieve. Furthermore, it provides the team with appropriate foundations,
therefore prioritising the amount of time you spend on each task.
• This will then prevent any sidetracking that may occur. Lastly it creates a bond
within a team, as each member is aware of their individual role, as well as
providing necessary information to ensure success of the project.
THANK YOU