apple inc. “think different”. “change the world through technology ” on april 1, 1976 -...
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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
• 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.)
Products And FiguresProducts And FiguresHardware – Mac (personal computer series), Hardware – Mac (personal computer series),
Apple Remote Desktop. Apple Remote Desktop.
Software - Mac OS X, Mac OS X Server, Quick Time, i Life, Software - Mac OS X, Mac OS X Server, Quick Time, i Life, i Work, Logic pro, Cinema Display etc.i Work, Logic pro, Cinema Display etc.
Consumer Electronics - i pod, i pod hi-fi, i phone, Apple TV.Consumer Electronics - i pod, i pod hi-fi, i phone, Apple TV.
Employees - 19,787 full-time ; 3,399 temporary Employees - 19,787 full-time ; 3,399 temporary (March 31,2007)(March 31,2007)
Retail stores - 183Retail stores - 183
Porter’s 5 forcesPorter’s 5 forces
EXISTING RIVALRY – EXISTING RIVALRY – VERY HIGHVERY HIGH
Windows OS and media player for playing music and video Windows OS and media player for playing music and video (Microsoft)(Microsoft)
Competition to Mac OS X (Linux)Competition to Mac OS X (Linux)
Alternate sources of computer hardware (Dell, HP, Lenovo)Alternate sources of computer hardware (Dell, HP, Lenovo)
Small stylish MP3 players (Creative, Samsung)Small stylish MP3 players (Creative, Samsung)
Online music stores similar to itunes stores (Napster)Online music stores similar to itunes stores (Napster)
I-phone segment (I-phone segment (Nokia, Samsung , Motorola, HTC)Nokia, Samsung , Motorola, HTC)
THREAT OF NEW ENTRANTS - THREAT OF NEW ENTRANTS - LOWLOW
Streaming audio and video with v-cast (Verizon)Streaming audio and video with v-cast (Verizon)
On-demand online services (similar to i-tunes)On-demand online services (similar to i-tunes)
New entrants with disruptive technology (The New entrants with disruptive technology (The “next Google”)“next Google”)
BARGAINING POWER OF SUPPLIERS - BARGAINING POWER OF SUPPLIERS - MODERATEMODERATE
Suppliers of processors and computer memory Suppliers of processors and computer memory (IBM, Intel) - High(IBM, Intel) - High
Strategic alliance/supplier of Mac (Microsoft)Strategic alliance/supplier of Mac (Microsoft)
Supplier of TV and movies (Disney, ABC, Fox, Supplier of TV and movies (Disney, ABC, Fox, Sony)Sony)
Sources of music (BMG, Sony, Warner, Sources of music (BMG, Sony, Warner, Universal)Universal)
BARGAINING POWER OF CUSTOMERS - BARGAINING POWER OF CUSTOMERS - MODERATEMODERATE
Customers share music using peer-to-peer Customers share music using peer-to-peer networks without paying for music (Ares, Lime networks without paying for music (Ares, Lime wire)wire)
Retailers may pressure for lower prices or better Retailers may pressure for lower prices or better terms (Distributors)terms (Distributors)
Consumers/Businesses may reduce spending on Consumers/Businesses may reduce spending on computers if they fear economic downturns computers if they fear economic downturns (Consumer Attitudes & Behaviors) (Consumer Attitudes & Behaviors)
Consumer Refresh Cycles. But many Loyalists Consumer Refresh Cycles. But many Loyalists (Niche class).(Niche class).
THREAT FROM SUBSTITUTES - THREAT FROM SUBSTITUTES - MODERATEMODERATE
Satellite radio for music (XM, Sirius)Satellite radio for music (XM, Sirius)
Entertainment media and music (XBOX, PS2)Entertainment media and music (XBOX, PS2)
Alternative means to acquire music (Music CDs, Alternative means to acquire music (Music CDs, DVDs)DVDs)
Alternative sources for videos (Cable, Broadcast, Alternative sources for videos (Cable, Broadcast, Theatres)Theatres)
Competitor Environment
• High Competition• Share of Dell and HP• Microsoft and Intel-Leaders of Software, ardware• Phone Industry- Sony, Nokia, Samsung
Competitor Environment
• Differentiation Strategy
• Innovation
Core Competencies(In Current Scenario)
Differentiation Strategy
• Unique Features and characteristics
• Commands Premium Price
• High Customer Service
• Superior Quality
• Prestige
• Rapid Innovation
Sustainable Competitive Advantage
FF
Value Creation Process
Focus On Education
eMac
Adding Value
iMac
Lifestyle Strategy
Digital Hub
Music Strategy (iTunes)
Video Strategy (iMovie)
Internet Strategy (iTools)
Convergence
Apple I,II,III Mac
Sustained Competitive Advantage
Valuable : Innovators
Rare : Strong R & D
Costly to imitate : itunes, Mac OS
Non substitutable : applications, softwares
• Branding • Innovation• Differentiated Product• Superior Quality• Retail Strategy
Strengths
• Less Penetration
• Cannibalization
Weaknesses
Opportunities
• High growth potential.• Line Extension.• High Potential music phone market• Strategic Alliances
Threats
• Competition • Substitute Products• Threat of Suppliers
Ansoff Matrix Existing ProductsExisting Products New ProductsNew Products
ExistingExistingMarketsMarkets Macbooks, iStationMacbooks, iStation Macbook Wheel,Macbook Wheel,
Apple TVApple TV
NewNewMarketsMarkets
Ipod, iPhoneIpod, iPhone iTunes iTunes
BCG Matrix STARSTAR
I-PHONEI-PHONEAPPLE MAC BOOKAPPLE MAC BOOKIpodIpod
PROBLEM CHILDPROBLEM CHILD
CASHCOW CASHCOW DOGSDOGS
Apple TVApple TVMac MiniMac Mini
GE Matrix Smart Phone Market- I Smart Phone Market- I PhonePhone
Apple software'sApple software's
Music Player Industry Music Player Industry – I Pod– I Pod
Personal ComputerPersonal Computer
- Mac- Mac
High
Medium
Low
Strong Medium Weak
Market
Attractiveness
Business Strength
Corporate Level Strategy
Diversification: Iphone, Apple TV
Backward Integration: Manufacturing of Semiconductors
Forward Integration: Retail
Acquisitions
•Emagic in 2002-To acquire knowledge and skills about Music software
•PA Semi in 2008- Mac Hardware acceleration- Backward integration- Skilled Manpower
Strategic Alliances
1. Apple – Disney - To reduce losses of standalone istore
and Disney outlets - To improve the Disney store
“experience”
2. Apple – Microsoft
THANK YOU