Apple Inc.

Outline

• Introduction• Apple’s History• Mission and Vision Statements• Products and services• Internal Assessment• External Assessment• Strategy formulation• Strategy Implementation• Strategy Evaluation• Conclusion• Steve Jobs

1976–1980: The early years

Apple I

1981–1985: Lisa and Macintosh

1986–1993: Rise and Fall

1994–1997: Attempts at reinvention

Apple Purchased NEXT and its NEXTSTEP operating system, bringing Steve Jobs back to Apple as an advisor

1998–2005: Return to profitability

Through this period, Apple purchased several companies to create a portfolio of professional and consumer-oriented digital production software

First i mac

2005–2007: The Intel transition

June 6, 2005, Steve Jobs announced that Apple would begin producing Intel based Mac computers in 2006

2007–2011: Three Heroes

On January 9, 2007, Jobs announced that Apple Computer, Inc. would from that point on be known as Apple Inc., because computers were no longer the main focus of the

company , which had shifted its emphasis to mobile electronic devices

2011–Present: Post- JOBS era

Apple became the most valuable consumer-facing brand in the world In June 2011

Siri

MISSION OF APPLE

“ the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music

revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App

Store, and is defining the future of mobile media and computing devices with iPad. “

At Samsung Group and Samsung Electronics, our products, our people and our approach to business are held to only the highest standards so that we can more effectively contribute to a better world.

MISSION OF APPLE(proposed)

At Apple, we will not only continue to provide revolutionary and innovative products to the consumer electronics industry like the iPod and the iPhone, but we will also make every effort to give back to society while recognizing our responsibility as a global citizen who strives to reduce the environmental impact of the work we do and the products we create

VISION OF APPLE

“ to make a contribution to the World by making tools for the mind that advance humankind “

“Samsung is dedicated to developing innovative technologies and efficient processes that create new markets, enrich people's lives and continue to make Samsung a digital leader. ”

“At least one Apple product in each pocket and on each table “

VISION OF APPLE (proposed)

“We’re gambling on our vision,

and we’d rather do that than

make ‘me-too’ products”

iPad

“ it created its own product segment”

iPhone

iPod

MacBook Air

MacBook Pro

iMac

iOS Software

MagicMouse

AppleTV

itunes

Financial Ratios

Market Positioning Map

Whole Mobile Phone Industry Selling

Marketing Strategies

• Product Differentiation• Market segmentation (iPad)• Acquisitions (e.g. Chomp,Siri,Pollar Rose,C3 tech)• Product Development

IFE MatrixSTRENGTHS WEIGHTS RATING WEIGHT SCORE

Strong guarding (it protects the products of apple toward worms and virus.

0,10 4 0,40

Diversifications in products 0,10 4 0,40

Highly innovative products 0,20 4 0,80

Having its own hardware and software 0,09 3 0,27

Great ability for new investments 0,14 3 0,42

WEAKNESSES WEIGHTS RATING WEIGHT SCORE

High price 0,15 2 0,30

Pattents war with the competitors 0,05 3 0,15

Shortage of consultant at operating level rather than partner level.

0,05 3 0,15

Retailer and supplier 0,05 2 0,10

Steve jobs death 0,07 2 0,14

TOTAL 1,00 3,13

CPM

Key External Forces

• Economical forces– Uncertainty about global economic conditions poses a risk of

negative effect on demand for the Company’s products and services

• Social, Cultural, Demographic and Geographic Forces – Age, Popular culture and etc– Word of mouth– Emphaty for customers/users– Positive social contribution– Team spread– Individual reward– Recession,Depression,Crisis periods

• Political,Legal and Governmental Forces– Political events, war, terrorism, public health

issues, natural disasters and other circumstances could materially adversely affect the Company.

• Technological forces • Competitive forces

Key External Forces (cont.)

Efe MatrixOPPORTUNITIES WEIGHT RATING WEIGHT

SCORE

Smart-phone market is currently flourishing 0,20 4 0,80

Creating more ties with microsoft product 0,10 3 0,30

Large population is brand concious 0,10 4 0,40

Closer relationship with supplier and distributers 0,15 4 0,60

Young population increase in the worlwide 0,10 3 0,30

Computer and cell phone software and hardware 0,05 4 0,20

THREATS

Competitor’s technology ( Samsung Galaxy) 0,10 1 0,10

Intel’ s future pentium release 0,05 2 0,10

Macro economic flactuations 0,05 2 0,10

Google’s android platform has been gaining market share 0,10 2 0,20

TOTAL 1,00 3,10

STRATEGIES AND FORMULATIONS

Space Matrix

Swot Analysis

Strengths• Brand Name• Growing sale of iPod , iTunes and iPhone• Low Debt• Wide rage of innovative products• Increase in number of retail stores• Market Share and Global expansion

Weaknesses• Legal Proceedings• Market share in personal computer• High Pricing for products • Hardware and Software programmes• Weak relationship with Intel and Microsoft.• Slow turn around on high demand products.

Opportunities• Competitors Offer Wider Product Line• Expansion of Retail Stores for Customer

Convenience• Participate in Joint Ventures• Increase in worms and viruses on PCs so the

antivirus solution can be developed by Apple

Threats• Competitors’ Technology and Pricing• the long lasting recession may impact the sales of

the company due to higher prices of the products and services

• The switching in technology is very fast• Substitution

Bcg Matrix

Grand Strategy Matrix

QSPM MatrixExternal Forces

Acquiring Rival

Developing New Products

Market Development

Weight Rate Total Rate Total Rate Total

software -hardware

0.20 2 0.40 4 0.80 3 0.60

Ties with Microsoft

0.12 2 0.24 3 0.36 3 0.36

Smart phone

0.24 3 0.72 4 0.96 3 0.72

Rival’s tech.

0.19 4 0.76 3 0.57 4 0.76

Supplier-distributer

0.15 2 0.30 2 0.30 3 0.45

Intel’s release

0.10 2 0.20 3 0.30 2 0.20

Internal forces

Acquiring rival

Developing new goods

Market development

Weight Rate Total Rate Total Rate Total

Strong protection

0.10 3 0.30 3 0.30 3 0.30

Diversification 0.15 3 0.45 4 0.60 3 0.45

Innovative products

0.30 1 0.30 4 1.2 3 0.90

High pricing 0.18 2 0.36 3 0.54 2 0.36

Patents war 0.16 4 0.64 3 0.48 3 0.48

Retailer-supplier

0.11 2 0.22 3 0.33 4 0.44

Acquiring competitor Developing new products Market development

2.62 3.29 3.09

Total of external sources toward six concepts through three

Acquiring competitor Developing new goods Market development

2.27 3.45 2.93

Total of internal sources toward six concepts through three

RECOMMEDATIONS

Strategy 1)• Apple has its own software and hardware programme and they use them in all apple

products but when we look at the software market %92 of the market share is owned by Microsoft and Apples shares Is only %6 so to being more competitive in a global market Apple have to invest more on hardware and software in order to increase its reputation in this sector because hardware and software are the main tools for their product and they have a great opportunity to expand their shares in this area but currently other pc firms are using microsofts software and hardware because they think that it is more reliable than Apple’s OSX. So firm has to pay more attention on this sector in order to gain competitive advantage through new and unique programmes.

Strategy 2)• Reduce the price in emerging markets. For example: China, Africa, even in Turkey

their price is much higher than alternative products So this cause millions of lost customers even before they become potential. Because they cant afford those high prices. For example in Turkey to buy one Iphone is cost about 1800 TL which is more than twices high minimum wage.So their Secondry target has to reduce the cost in order to provide better prices.

Strategy Implementation

Earning Per Share

US Treasury: $74 billionApple: $93 billion

To remain competitive: Aggressive price strategy

Ex: FATIH project

To remain competitive: Aggressive price strategy

Market Share of Iphone(IOS) in smart phone industry is %12

To remain competitive: R&D expenses

To remain competitive: Innovation

To remain competitive: Market Penetration

Target Group

To remain competitive: Creative Designs

To remain competitive: More Apple Stores Premium Sellers

To remain competitive: Effective Supply Chain

To remain competitive: Effective Inventory

To remain competitive: Supply Chain Problems

To remain competitive: Word of Mouth

To remain competitive: Product Cannibalization

To remain competitive:

Supporting Component Suppliers

To remain competitive: International Patent Issues Digital Rights Management

To remain competitive: Imitation

To remain competitive: Sales Agreements

To remain competitive : Strategic Alliances

To remain competitive: Knowledgeable salespersons

To remain competitive: Jailbreaking

Strategy Evaluation

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Steve Jobs reduced complexity in the Smartphone category by eliminating the keyboard.

The iPad is so simple a 2-year-old can use it.

Innovation takes confidence, boldness and the discipline to tune out negative voices.

“We don’t need you. You haven’t gotten through college yet.”

“Get your feet off my desk. Get out of here. You stink and we’re not going to buy your product.”

“There’s no reason why anyone would want a computer in their home.”

 Imagine how one young man with big dreams must have felt when he heard the following.  Of course, these statements were all directed at one time or another to Steve Jobs.

“Dream bigger.”

Perhaps the ultimate lesson that Jobs teaches us is that innovation requires risk-taking and risk taking takes courage and a bit of craziness.