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e a m M e m b e r se a m M e m b e r s -Apeksha Maniar 206 Tulsi Gajjar 246 Vaishali Gusani 248
Vineet Khatri 251 Vipul Raval 252 Vishal Thakkar 253 -Shakti Mistry 256
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D i f f e r e n t i a t i o ni f f e r e n t i a t i o n Creating value through
uniqueness
Customers must be willing
:to
Pay more for the differentiator sproducts
Buy more from thedifferentiator
(at same or
)similar price
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Tangible Differentiation Intangible Differentiation
y p e s o f D i f f e r e n t i a t i o ny p e s o f D i f f e r e n t i a t i o n
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a n g i b l e D i f f e r e n t i a t i o na n g i b l e D i f f e r e n t i a t i o n Components of tangible differentiation
Design Packaging
Style Quality
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n t a n g i b l en t a n g i b l eD i f f e r e n t i a t i o ni f f e r e n t i a t i o n Components of intangible differentiation
Brand loyalty Image
Company reputation Customer Preferences
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o u r c e s o fo u r c e s o fD i f f e r e n t i a t i o ni f f e r e n t i a t i o n Differences in quality Differences in functional features or design Buyer s preferences Sales promotion activities of sellers ( . . )Differences in availability e g timing and location
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o s t o f D i f f e r e n t i a t i o no s t o f D i f f e r e n t i a t i o n &High Cost of R D Increased advertising spend to promote the product Cost of hiring highly skilled staff Use of more expensive material to improve the quality of the
, .product etc Increased expenditure on training
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H I S T O R YI S T O R Y Formed in 1976 :Founders Steve Wozniak Steve Jobs
-1976 Apple I -1977 Apple II - ( )1978 Apple III Failure ( )1985 Macintosh Failure
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, .Steve Jobs resigned in Dec 1985 Job formed new company NeXT - ,Job re united Apple in Feb 1997 &1997 Introduced MAC Operating System
H I S T O R YI S T O R Y
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7S m
od e
l
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h a r e d V a l u e sh a r e d V a l u e s Think Differently /Aggressiveness Achievement /Innovation Vision /Quality Excellence
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h a r e d V a l u e sh a r e d V a l u e s
Empathy for Customers/Users
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S t r u c t u r et r u c t u r e
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S t r u c t u r et r u c t u r e
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Integration mechanisms and
control systems -Increases intra functional
coordination andcommunication
-Helps in problem solving andother strategic issues Reach both first time buyers
and Power users
S y s t e my s t e m
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S t y l et y l eDecision Maker
Charismatic leaderStrongly believes in quality andexcellenceConvincingSpends most of the time in product
development
Perfectionist
Our primary goal here is to make theworld's best PCs not to be the biggest
.or the richest
, Leave your neckties bring your ideas
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Managerial Skills
Engineering Skills Specialized engineering
Industrial design Quality assurance Software
development Battery Technology CPU Software
Engineering Display
Engineering Media Engineering -Multi Touch
Engineering
S k i l l sk i l l s
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S t r a t e g yt r a t e g y Product
Differentiation Premium Quality Exceptional Design Personalized Service Organizational
reputation and brandname
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l u e O c e a n S t r a t e g yl u e O c e a n S t r a t e g y Create Uncontested market spaceCreate and capture new demand
Make the competition irrelevant - -Break the value cost trade off Align the whole system of a company s activities in
pursuit of differentiation and low cost
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p p l e S t r a t e g i c G r o u pp p l e S t r a t e g i c G r o u p
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p p l e P r o d u c t sp p l e P r o d u c t s
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r o d u c t L i f e C y c l er o d u c t L i f e C y c l e
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Financial period Net sales (Mil USD) Net profits (Mil USD) Revenue growth Return on net sales
FY 1997 7,081 -1,045 -28% -15%
FY 1998 5,941 309 -16% 5%
FY 1999 6,134 601 3% 10%
FY 2000 7,983 786 30% 10%
FY 2001 5,363 -25 -33% 0%
FY 2002 5,247 65 -2% 1%
FY 2003 6,207 57 18% 1%
FY 2004 8,279 266 33% 3%
FY 2005 13,931 1,328 68% 10%
FY 2006 19,315 1,989 39% 10%
FY 2007 24,578 3,495 27% 14%
FY 2008 37,491 6,119 53% 16%
FY 2009 42,905 8,235 14% 19%
FY 2010 65,225 14,013 52% 21%
p p l e s G r o w t h T r e n dp p l e s G r o w t h T r e n d
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.p p l e V s C o m p e t i t o r s.p p l e V s C o m p e t i t o r s( . . )Y 2 0 1 0. . )Y 2 0 1 0
Net Sales Margin
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d v a n t a g e s o fd v a n t a g e s o fD i f f e r e n t i a t i o ni f f e r e n t i a t i o n Strong Brand Loyalty creates barrier to
entry as switching costs are considerablyhigh
Constant innovation resulting into Frontend& Backend Integration
-Eco friendly
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i s a d v a n t a g e s o fi s a d v a n t a g e s o fD i f f e r e n t i a t i o ni f f e r e n t i a t i o n Competitors being able to imitate the
products
Low Cost competitor such as Dell and
/HP Compaq gaining more market share Over Emphasize on Quality by Steve Jobs
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S t r a t e g yt r a t e g y
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o c u s S t r a t e g yo c u s S t r a t e g y Providing a product or service that caters to a particular
segment of the market Firms can focus on differentiation or low cost
Serving the needs of the chosen market segment better
than a broad range competitor :Risks changes in preferences of the narrow segment or
attack by a broad cost leader or differentiator
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o c u s S t r a t e g y @ A p p l eo c u s S t r a t e g y @ A p p l e Niche Market Creative users Media Companies
Youth Tech Savvy People
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h e F u t u r e o f A p p l eh e F u t u r e o f A p p l e