Apple

Bryce MooneyNikki SulvettaAlfred Tsang

Strengths

• Sharp, innovative positioning

• Creative and simplified design

• “Halo effect”—utilizing the iPod to slowly convert Windows users to Macs

• Loyal customer base

Weaknesses

• iPod is falling into the decline stage of product life cycle

• PC software may not be compatible with Mac

• Recent product releases are not innovative enough to be true blockbusters

Opportunities

• International expansion

• Still relatively low percent of market share in the personal computer world

• Other segments of the electronics market

Threats

• New viruses

• High expectations

• iPhone competitors

Designing Their Retail Space• In 2000, Steve Jobs hired Gap retail executive Mickey

Drexler and Target merchandising chief Ron Johnson– Drexler suggested building a store prototype

• “… design it as you would a product”

• Jobs and Johnson realized that computers were no longer simple productivity tools– Johnson decided to place “Genius Bars” in stores, mimicking

hotel concierge desks dispensing advice to customers– Focus on fixing customer problems quickly

• “We’re trying to get as fast as the dry cleaner.”

Apple’s Store Layout• Minimalist design

– Use only glass, stainless steel and wood materials

– No clutter

• Large eye-catching window displays in front

• Most popular items located nearest to entrance

• “Genius Bar” situated near the back of the store

• No purchasing counter– Developed EasyPay, letting

salespeople wander the floor with wireless credit card readers

Standardized International Expansion

• Apple has over 200 retail stores worldwide, including:U.S., U.K., Japan, Canada, Italy, Australia, China, Switzerland, France, Germany

• Standardized products

• Standardized store layouts of display tables and shelving, each configured with products in standard locations

“Significant Stores”

• 40-50 new stores next year

• Eye-catching architecture on significant, high traffic stores

Questions

• Who likes the“standard” lay-out of all of the Apple Stores?

• Halo effect: Who falls under this category?

References

• http://blogs.wsj.com/digits/2009/11/12/apples-significant-store-strategy/

• http://blogs.wsj.com/digits/2009/10/15/microsoft-retail-fail-they-laughed-at-apple-too/

• http://money.cnn.com/magazines/fortune/fortune_archive/2007/03/19/8402321/index.htm