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APPLE Inc. “THINK DIFFERENT”

APPLE Inc. “THINK DIFFERENT”. “ Change the World through Technology ”. On April 1, 1976 - Apple Computer Inc. STEVE JOBS & STEVE WOZNIAK & RONALD WAYNE (Co- founder) Industry: Computer Hardware and Software, Consumer Electronics

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APPLE Inc. “THINK DIFFERENT”

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  1. APPLE Inc.“THINK DIFFERENT”

  2. “Change the World through Technology” • On April 1, 1976 - Apple Computer Inc. STEVE JOBS & STEVE WOZNIAK & RONALD WAYNE (Co- founder) • Industry: Computer Hardware and Software, Consumer Electronics • In 1978, Apple – II (color graphics & open architecture). Introduction of a 5 1/4 inch floppy disk drive. • In 1979, Development of VisiCalc (spreadsheet program). • In 1980, launched an IPO (record breaking after 1956 IPO of Ford Motor Co.)

  3. 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

  4. Porter’s 5 forces

  5. EXISTING RIVALRY – VERY HIGH 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) I-phone segment (Nokia, Samsung , Motorola, HTC)

  6. THREAT OF NEW ENTRANTS - LOW Streaming audio and video with v-cast (Verizon) On-demand online services (similar to i-tunes) New entrants with disruptive technology (The “next Google”)

  7. BARGAINING POWER OF SUPPLIERS - MODERATE Suppliers of processors and computer memory (IBM, Intel) - High Strategic alliance/supplier of Mac (Microsoft) Supplier of TV and movies (Disney, ABC, Fox, Sony) Sources of music (BMG, Sony, Warner, Universal)

  8. BARGAINING POWER OF CUSTOMERS - MODERATE Customers share music using peer-to-peer networks without paying for music (Ares, Lime wire) 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. But many Loyalists (Niche class).

  9. THREAT FROM SUBSTITUTES - MODERATE Satellite radio for music (XM, Sirius) Entertainment media and music (XBOX, PS2) Alternative means to acquire music (Music CDs, DVDs) Alternative sources for videos (Cable, Broadcast, Theatres)

  10. Competitor Environment • High Competition • Share of Dell and HP • Microsoft and Intel-Leaders of Software, ardware • Phone Industry- Sony, Nokia, Samsung

  11. Competitor Environment

  12. Core Competencies(In Current Scenario) • Differentiation Strategy • Innovation

  13. Differentiation Strategy Sustainable Competitive Advantage • Unique Features and characteristics • Commands Premium Price • High Customer Service • Superior Quality • Prestige • Rapid Innovation

  14. Value Creation Process Apple I,II,III FF Mac Focus On Education Convergence eMac Music Strategy (iTunes) Lifestyle Strategy Video Strategy (iMovie) Adding Value Digital Hub Internet Strategy (iTools) iMac

  15. Sustained Competitive Advantage Valuable : Innovators Rare : Strong R & D Costly to imitate : itunes, Mac OS Non substitutable : applications, softwares

  16. Strengths • Branding • Innovation • Differentiated Product • Superior Quality • Retail Strategy

  17. Weaknesses • Less Penetration • Cannibalization

  18. Opportunities • High growth potential. • Line Extension. • High Potential music phone market • Strategic Alliances

  19. Threats • Competition • Substitute Products • Threat of Suppliers

  20. Ansoff Matrix

  21. BCG Matrix

  22. GE Matrix Strong Medium Weak High Market Attractiveness Medium Low Business Strength

  23. Corporate Level Strategy Diversification: Iphone, Apple TV Backward Integration: Manufacturing of Semiconductors Forward Integration: Retail

  24. Acquisitions • Emagic in 2002 • -To acquire knowledge and skills about Music software • PA Semi in 2008 • - Mac Hardware acceleration • - Backward integration • - Skilled Manpower

  25. Strategic Alliances Apple – Disney - To reduce losses of standalone istore and Disney outlets - To improve the Disney store “experience” 2. Apple – Microsoft

  26. THANK YOU

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