Apple Inc.

Get a Mac

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OUTLINE OF PRESENTATION

HISTORY OF APPLE.ENIRONMENT SACNNING.CHANGE TRIGGER.CHANGE LEVERS.TYPES OF CHANGE.

Change ManagementPresentation by

Jayanta Thakuria BPT 09026& Mufidul Islam BPT 09027

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One quotation often attributed to Albert Einstein of

“there is only one constant in thisuniverse, and that constant is . . . Change” Certainly we live in a fast changing world and organizational survival is dependant upon the anticipation and management of change.

ABOUT APPLEApril 1st,1976 - Founded

January 3rd,1977 - Incorporated

Headquarters - Cupertino, California

Co-founders - Steve Jobs, Steve Wojniak

CEO - Steve jobs

Industry - Computer software, computer hardware, consumer electronics.

Revenue - US$ 19.3 Billion

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PRODUCTS AND FIGURESHardware – Mac (personal computer series), Apple Remote Desktop

Software - Mac OS X, Mac OS X Server ,Quick Time, i Life, i Work, Logic pro, Cinema Display etc.

Consumer Electronics - i pod, i pod hi-fi, i phone, Apple TV

Employees - 34,300 (2009)

Retail stores – 183 (1st in Manhattan, New York)

Competitors - HP, IBM, DELL

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VISION AND MISSIONVISION “Man is the creator of change in this world. As such he should be above systems and structures, and not subordinate to them.”  MISSION “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.”

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Scanning of Environment

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SWOT ANALYSISSTRENGTHS

Brand name

Knowledge of customer

High quality product.

Control over the product by producing both h/w & s/w

Product Diversification

The best in Biz in Audio Visual Technology

WEAKNESSESFocusing on internal engg. more than marketing

High price

Consumer faces problems with batteries

Had difficulties on some of its products’ quality control

Not issued dividends

OS is a bit complicated.

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SWOT ANALYSIS

OPPORTUNITIES

Less expensive new product lines with quality.

The use of Intel chips.The Intel chip allows

the new machines to run the Windows Operating System

Developing iTune to mobile phone format

THREATS

Pressure from competitors.

Substitution effect

Technology changes at a rapid rate.

High product substitution effects

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PORTER’S FIVE FORCES MODEL

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Substitutes

Supplier

New Entrants

CustomerExisting

rivalry in the industry

Threat of new entrants

Bargaining power of buyers

Substitute products & services

Bargaining power of the suppliers

EXISTING RIVALRY

Windows OS and Media Player for playing music and video ( Microsoft)

Competition to Mac OS X (Linux)

Alternate sources of computer hardware (Dell, HP, Lenovo)

Small stylish MP3 players (Creative, Samsung)

Online music stores similar to iTunes stores (Napster)

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THREAT OF NEW ENTRANTS

Streaming audio and video with v-cast (Verizon)

On demand online services (similar to i-tunes)

New entrants with disruptive technology (The “next google”)

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BARGAINING POWER OF SUPPLIERS

Suppliers of processors and computer memory (Motorola, IBM, Intel)

Strategic alliance/supplier of Mac (Microsoft)

Supplier of TV and movies (ABC, Fox, Sony)

Sources of music (BMG, Sony, Warner, Universal)

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BARGAINING POWER OF CUSTOMERS

Customers share music using peer-to-peer networks without paying for music (Ares, Limewire)

Retailers may pressure for lower prices or better terms (Distributors)

Consumers/Businesses may reduce spending on computers if they fear economic downturns (Consumer Attitudes & Behaviors)

Consumer Refresh Cycles

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THREAT FROM SUBSTITUTES

Satellite radio for music (XM, Sirius)

Entertainment media, media and music (XBOX, PS2)

Alternative means to acquire music (Music CDs, DVDs)

Alternative sources for videos (Cable, Broadcast, Theatres)

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Change triggerTo be profitable

To face the competitions

To have better s/w compatibility

Strategic Alliance

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Change LeverLeadership

Steve Jobs- Apple’s nightmare began with Jobs’ departure and ended with his return. Its capacity to focus may be significantly impeded without him.

Strategy

Apple’s strategy is a limited number of high quality products. Apple’s strategy is in terms of product differentiation and strategic alliances. In each of these strategies, we examine what Apple did historically and then discuss alternatives for Apple’s future.

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Change Lever

TehnologyApple does not depend on its suppliers’

technical breakthroughs. It can innovate on hardware and software at its own pace.

Marketing Product Differentiation, Effective

Advertisement.Apple’s main focus is the consumer market

where “every person votes for themselves”21

Type of change

Forced and Planned eg. Shifting of basic h/w components, launching of various new gadgets

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Change in Apple Inc.Launch of Macintosh in 1984Apple switched from

Motorola's 68K series of chips to IBM/Motorola PowerPC processors in 1995

Return of Steve Jobs in 1997 (NeXT Inc.)

Apple-Microsoft tie up in 1997.

On Aug 15, 1998, Apple introduced  iMac. This featured modern technology and a unique design & sold close to 800,000 units in its first 5 months.

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Change in Apple Inc.Apple purchased several companies to create a

portfolio of professional and consumer-oriented digital production software since 1998 e.g.  iMovie,  Final Cut Pro,GarageBand, iPhoto

On May 19, 2001, Apple opened the first official ’Apple Retail Stores’ & same year ‘iPod’ launched

In 2003, Apple's ’iTunes Store’ was introduced.June 6, 2005: Apple announces its plans to switch

to Intel processors.

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From 2007: Era of mobile electronic devices

January 9, 2007, Jobs announced that Apple Computer, Inc. would from that point on be known as Apple Inc.

In 2007, Jobs revealed the long anticipated ’iPhone’, ‘Apple TV’

On April 3, 2010, Apple introduced their much-anticipated media tablet, the ’iPad’ & sold 3,00,000 units on 1st day

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The effect of change…

Apple's success was evident in its stock price. Between early 2003 and 2006, the price of Apple's stock increased more than tenfold, from around $6 per share to over $80.

In January 2006, Apple's market cap surpassed that of Dell.

New Intel Mac systems can run four classes of software at near native speeds: Mac OS X binaries, Java/.NET applications, Unix applications, and Win32/x86 applications.

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The effect of change…

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Revenue Growth

-40%

-20%

0%

20%

40%

60%

80%

100%

1980 1985 1990 1995 2000 2005 2010

Revenue Growth

RECOMMENDATIONS

FOR COMPANY:Lowering the cost of products and maintaining the same quality standards

Can form joint – ventures

More number of retail stores for easy access

Continuous innovation to expand

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CONLUSION

Continue a commitment stable to licensing, push for economies of scope between media and computers, and become a learning organization.

Apple should continue pushing the new line of media-centric products along with changes that takes place. One persistent element of both competitive advantage and risk is Steve Jobs. He is both synonymous with Apple’s success and has a large equity interest in Apple. If he were to divest his leadership position, the reaction of both the market and consumers would be uncertain

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INPUTS…

& SUGGESTIONS

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