Apple Inc. - Economical Success Story
-
Upload
saurabhgupta -
Category
Documents
-
view
221 -
download
0
Transcript of Apple Inc. - Economical Success Story
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 1/59
Video to be added…
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 2/59
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 3/59
Apple: Strategic Management Case
Study
Imran Khan
Saurabh GuptaShreshtha Jaiswal
Subhash
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 4/59
Where is Apple Located?
• Apple’s main headquarters is located at 1Infinite Loop, Silicon Valley, California.
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 5/59
Where is Apple Located?
• Apple has also expanded internationallywith locations in Cork, Ireland andSilicon Valley, Singapore.
Cork, Ireland Silicon Valley, Singapore
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 6/59
Where is Apple Located?
• Apple has over 200 retail locations across theU.S. To find a store nearest you, Apple’s mainwebsite provides a search engine that canprovide that information.
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 7/59
Apple, Inc.
Now• Founded 1977
• HQ Cupertino, Ca. “The Mother ship”
• Largest U.S. company ever
• 72,000 Employees
• 34 Patent Applications in October
• 80% of revenue is from new products sold from
Mid Sept to M/E Oct
Competencies1. Simple, Well Designed, User friendly
2. Innovative Culture of Design
3. Loyal Customers
4. Technology iOS
5. Energy Efficient
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 8/59
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 9/59
Internal Assessment
1. Operational Focus - Willing to release incomplete products
2. Wall Street - Engaging to increase dividends
3. Shifting Values - MBA vs. Liberal Arts
4. Relaxed Atmosphere - Leadership quiet yet demanding
5. Highly Ethical ?- Some might question
• Procurement
• Vendors
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 10/59
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 11/59
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 12/59
Change is Inevitable?Release history
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 13/59
LEADING INDICATORS
&
DEMAND DRIVERS
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 14/59
Demand as a F(x) of leading
indicators
D = f(li1, li2, li3, …, lin)
Market Share: Stable
Search trends as an early indicator: Who has it?
Networking effect
Sharing
Social Nets Social Networking capabilities
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 15/59
Economic Leading Indicators
Demographics
World Progress Indicators
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 16/59
Leading Indicators: Product Drivers
Product Drivers:
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 17/59
Mobile browser counter as a
leading indicator ?
ANDROID
iPhone
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 18/59
EXTERNALITIES
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 19/59
Smart Phones: Competitors
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 20/59
iPhone, Android or Windows Phone ?
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 21/59
Mobile computing: Laptops &
Notebooks
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 22/59
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 23/59
Key Success Factors
• Design
• Miniaturization
• Security
• Ease of Use
• Reliability
•
Marketing
Open Systems
Improve + Innovate
“Closed” Systems
Cool! SecureReliable
Reduced Cost of production
Improved Sales & Margins
V AL
UE
+++
$$$
FreeBSD
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 24/59
Target Market
B2B Market B2C Market
Enterprise + Government
SMB$$$$$ Class
$$$$$$ Affluent
Premium PricingEducation
G
BOP $
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 25/59
Smart Phones : 71% CAGR for the next 4 yrs.Cloud computing : 20% CAGR
Mobile dev. in general: 25%
*nomic
02
*provisioning
Carrying
Capacity ???
Convergence
INDUSTRY GROWTH & MARKET SHARE
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 26/59
Smart Phone: Market share growth
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 27/59
The mobile worldwide market in 2010
Apple as a Mobile browser leader In
2010
iPhone Mobile market share
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 28/59
iPhone Mobile market share2012
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 29/59
What about the iPad ?
• Apple has 68% of the tablet market
• Cannibalization of iPad by the mini iPad?
• Google & Others TabletsOpen source to the rescue?
App store: Closed platform ?
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 30/59
The Apple Retail Store
• Employees:
• Apple Specialist: Knowssoftware, inside and out
• One-to-One PersonalTraining: Hour Long
• Free Workshop-Group:Training
• Genius Bar: Damaged
product assessment
• Concierge: Help you findanything is in the store
• Activities:
• Local Gathering Place
• Free Musical
Performances• Entertaining/Informative
Presentations
• Youth Workshops: Year-round
• Apple Camp: Summer• School Night: Students &
Teachers showcase ownwork done on Mac.
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 31/59
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 32/59
• “When you first start off trying to solve a
problem, the first solutions you come up with
are very complex, and most people stop there.
But if you keep going, […] you can often timesarrive at some very elegant and simple
solutions.” ---- Steve Jobs
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 33/59
Apple re-legitimize vertical integration
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 34/59
Competitive Advantages of Apple’s
vertical integration
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 35/59
Sell at a Premium
Apple’s profit comes from
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 36/59
Apple’s profit comes from margins in hardware (iPad/iPhone)
Big picture: hardware drives
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 37/59
Big picture: hardware drivesApple’s gross margin
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 38/59
Cross-sell your product line
Wh i h iC ?
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 39/59
Who is the iCustomer?
• Product line covers all markets, all price
ranges, all needs with an accurate
segmentation.
• Product lifecycle: each new product
implements appealing new features, stronglyinducing the loyal iCustomer to buy new
products (iPhone 4 to iPhone 5)
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 40/59
iP d d iPh d i M l
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 41/59
iPod and iPhone drives Mac sales
Integration reinforced by retail
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 42/59
Integration reinforced by retailstrategy
Apple Stores are a place where the company can:
• showcase a 100 % Apple environment (to appeal the iCustomer )
• have a trained sales force selling its products.
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 43/59
H did A l th h ?
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 44/59
How did Apple cross the chasm?
Lessons learned from its failure in 80’s
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 45/59
Lessons learned from its failure in 80’s
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 46/59
Think Different!!!
What was Apple’s vision of Computing?
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 47/59
To make it happen Apple is investing
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 48/59
pp pp gin cloud
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 49/59
Assessing Risks and Competition
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 50/59
Worst-case scenario:
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 51/59
How could Android kill iOS?
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 52/59
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 53/59
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 54/59
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 55/59
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 56/59
Conclusion
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 57/59
Conclusion
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 58/59
QUESTIONS???
8/10/2019 Apple Inc. - Economical Success Story
http://slidepdf.com/reader/full/apple-inc-economical-success-story 59/59
THANK YOU!!