Innovation distinguishes between a leader and a follower.Steve Jobs

Saad Munir

Zamara Amjad

Ayesha Shaukat

APPLE COMPUTER, Inc.

Something for you…‘’Apple Glimpse’’

Company Mission Statement

Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and internet offerings.

Proposed Mission Statement

Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. “Think Differently” is a concept Apple executes with perfection, Innovation being the core competency of the company. The company is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and internet offerings. A challenge for the company is to shift towards environment friendly production of differentiated goods. As differentiation will ensure that the current profitability of the company is sustained. Apple will also strive to provide added opportunities for growth and enrichment of company personnel.

Proposed Vision Statement

Become the World Leader of innovation in the computer market

Porter’s Five Force Model

Potential entry of new competitors

Potential development of substitute products

Bargaining Power of Suppliers

Bargaining power of Customers

Rivalry among existing firms

APPLE inc. Value Chain

Enterprise Architecture and Portfolio Management

Finance

Sourcing, Staff and Vendors

Facilities and Operations

Procurement

Hardware Engineering

Dem

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Managem

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Inbound

Logis

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Pro

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Outb

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Mark

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Sale

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Serv

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IT EnablementMARGIN

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Internal Factor Evaluation

Strengths Weight Rate Score

user-friendly GUI 0.1 4 0.4

Highly Innovative products 0.07 4 0.28

Brand Loyal Customers 0.09 3 0.27

Financial Strength 0.05 3 0.15

Steve Jobs Return to APPLE 0.05 3 0.15ITunes and music store is a great source of revenue 0.1 4 0.4

Diversifications in Products 0.05 3 0.15

Internal Factor Evaluation

Weaknesses Weight Rate Score

Weak Corporate structure 0.05 2 0.1

Low e-trade 0.14 1 0.14

Business marketing strategy 0.08 1 0.08

Market Share 0.15 2 0.3

Product sales performance 0.07 2 0.14

Weak Corporate structure 0.05 2 0.1

Low e-trade 0.14 1 0.14

Total Score 2.56

External Factor Evaluation

Opportunities Weight Rate Score

Increase viruses and worms on Microsoft based systems. 0.05 2 0.1

Large population is Brand Conscious 0.05 3 0.15Ties with windows can make huge user shift to Mac 0.06 2 0.12Increasing market of downloaded music and Mp3 Players 0.15 4 0.6Expanding use of the Internet to sell products and services. 0.1 2 0.2

increase in popularity of internet 0.1 2 0.2

External Factor Evaluation

Threats Weight Rate Score

Weak foreign economies and us economies0.04 2 0.08

High Competition between Firms0.1 2 0.2

Risk of product Piracy, copyright infringements0.03 2 0.06

Risk of product obsolescence0.05 2 0.1

Substitute product development0.07 2 0.14

Competitors charge lower prices on similar products

0.1 1 0.1

Total Score 2.21

Porter’s Five Force Model

Apple Dell HP MICROSOFT IBM

Critical Success Factors Weight Rating Score Rating Score Rating Score Rating Score Rating Score

Innovation(Product Design)

0.13 4 0.52 3 0.39 1 0.13 3 0.39 2 0.26

Market Share 0.12 1 0.12 4 0.48 3 0.36 4 0.48 2 0.24

Brand Loyalty 0.09 4 0.34 3 0.26 3 0.26 4 0.34 3 0.26

Customer Service/Support 0.05 3 0.15 3 0.15 3 0.15 4 0.20 3 0.15

Diversification(Product Range)

0.10 3 0.29 3 0.29 3 0.29 2 0.19 3 0.29

Business Structure Efficiency

0.08 2 0.15 4 0.30 2 0.15 4 0.30 2 0.15

Pricing 0.08 2 0.15 3 0.23 3 0.23 3 0.23 3 0.23

History of Name 0.05 3 0.15 3 0.15 3 0.15 4 0.20 4 0.20

e-Store 0.05 4 0.20 3 0.15 4 0.20 3 0.15 2 0.10

Financial Position 0.09 3 0.27 3 0.27 3 0.27 3 0.27 3 0.27

Product Quality 0.13 3 0.39 4 0.52 3 0.39 3 0.39 3 0.39

Concern for Environment 0.05 1 0.05 1 0.05 1 0.05 2 0.10 1 0.05

1 2.78 3.23 2.62 3.24 2.58

Boston Consulting Matrix

World growth Rate = 14.1%

Market Share Dell = 15.3%

Market Share Apple= 5% 

Relative Market Share = 5/15.3= 0.326

Boston Consulting Matrix

SWOT

The External-Internal Matrix

Grand Strategy

Quadrant 1Quadrant 2

Quadrant 3 Quadrant 4

Strong Competitive

PositionWeak

Competitive Position

Rapid Market Growth

Slow Market Growth

APPLE Inc.

SPACE Matrix

QSPM Alternative STRATEGIES

Market Penetration

Product Development

Weight AS TAS AS TAS

Increase viruses and worms on Microsoft based systems

0.05 4 0.2 3 0.15

Large population is Brand Conscious

0.05 3 0.2 3 0.15

Ties with windows can make huge user shift to Mac

0.06 3 0.2 2 0.12

Increasing market of downloaded music and Mp3 Players

0.15 4 0.6 3 0.45

Expanding use of the Internet to sell products and services

0.1 3 0.3 2 0.2

increase in popularity of internet 0.1 3 0.3 2 0.2

Opportunities

QSPM Alternative STRATEGIES

Market Penetration

Product Development

Weight AS TAS AS TAS

Weak foreign and US economies

0.04 1 0 3 0.12

High Competition between Firms

0.1 3 0.3 4 0.4

Risk of product Piracy, copyright infringements

0.03 1 0 3 0.09

Risk of product obsolescence

0.05 1 0.1 4 0.2

Substitute product development

0.07 1 0.1 4 0.28

Competitors lower prices 0.1 1 0.1 3 0.3

Threats

QSPM

Opportunities

Threats +

Market Penetration

ProductDevelopment

2.4 2.87

QSPM Alternative STRATEGIES

Market Penetration

Product Development

Weight AS TAS AS TAS

user-friendly GUI 0.1 3 0.3 3 0.3

Highly Innovative products 0.073 0.2 3 0.21

Brand Loyal Customers 0.08-2 0.2 3 0.24

Steve Jobs Return to APPLE 0.04-3 0.1 3 0.12

ITunes and music store is a great source of revenue 0.1

4 0.4 3 0.3

Diversifications in Products 0.053 0.2 4 0.2

Financing option 0.063 0.2 3 0.18

Strengths

QSPM Alternative STRATEGIES

Market Penetration

Product Development

Weight AS TAS AS TAS

1. Weak Corporate structure 0.05 1 0.1 3 0.15

2. Low e-trade0.15 2 0.3 3 0.45

3. Weak Business-to -

Business marketing strategy 0.08 3 0.2 1 0.08

4. Market Share0.15 3 0.3 2 0.3

5. Product sales performance

0.07 1 0.1 4 0.28

Weaknesses

QSPM

WeaknessesStrengths +

Market Penetration

ProductDevelopment

4.9 5.68

NET SALES/ CASH from SALES

ASSET TURNOVER

Inventory Turnover

Gross Profit Margin

Operating Expense Ratio

Net Profit Margin