Apple Inc. in 2010

King Abdul Aziz UniversityFaculty of Economics and AdministrationExecutive Master of Business Administration

Contemporary Marketing BUSE603Prof. Moahmmed Al Habib

Project TeamAbdulwahab Y. Al Qahtani 1200999Nasser A. Al Shehri 1200977Attieh B. Al Matrafi 1200976Safar M. Al Shahrani 1201793Abdullah H. AlNahdi 1200939

April 2012

• History of Apple • Apple Inc.• SWOT Analysis• Recommendations• Conclusion

Overview

History of Apple

• 1976 Apple started in a garage in Santa

Clara, CA by Steve Wozniak and Steve Jobs

A easy to use PC for small computer users

• 1980 $117,000,000 in sales IPO• 1983 Wozniak quits Jobs hires John Sculley From Pepsi

Co. to become President of Apple• 1984 Macintosh PC

History of Apple

Cont. History of Apple • 1985

– Jobs and Sculley have a “falling out”– Jobs fired– Sculley becomes CEO– Bill Gates wants to buy Mac O/S, Sculley says

No, Gates buys DOS from IBM, • 1993– Apple release Newton, the first PDA– Earnings Plunge, Apple restructures, Sculley

Resigns• 1997

– Apple CEO Gilbert Amelio buys Next Step from Steve Jobs

– Earnings Plunge, Apple restructures, Amelio Resigns

Cont. History of Apple • 1998

– Steve Jobs returns as CEO – Jobs restructures Apple along two products lines

• Consumer “i”Mac– “i” for internet

• Professional “Power”Mac– “power” for power user

– Sales return, Brand emerges, Innovation rules• USB, Firewire, Airport• iPod and iTunes

– Stock price takes off like a rocket!

Apple Inc.

Apple Inc.Apple’s shift towards a digital hub strategy was initiated by the debut of: iPod in 2001 iPhone in 2007 iPad in 2010. These product lines set Apple on a path toward becoming a full-fledged digital convergence company. The change in the company’s name from ‘Apple Computer’ to “Apple Inc.” in 2007 marked the official repositioning of the company

SWOT Analysis

SWOT Analysis• Strengths:

– Brand Marketing– Ecosystem of Products– Retail Strategy– Horizontal Integration– Vertical Integration– Research and Development

• Weakness:– Business Strategy– Reliance on Steve Jobs– Apple’s Product and Expectations– Corporate Social Responsibility

Cont. SWOT Analysis

• Opportunities:– Shift from the PC to Mobile– Emerging Markets– Consumer Digital Lifestyle

• Threats:– Intense Competition– Risk of International Operations– Risk of Imitations, Unauthorized Modifications

Recommendations

Recommendations

• Leverage on Innovation and Consumer Feedback.• Leadership.• Target Emerging Markets.• Launching a New Product Line.• Expand on Its Current CSR Initiatives

Conclusion

ConclusionWe conclude that Apple can increase market presence by developing simple but adequate products specifically for emerging markets through leveraging on its expertise in research and innovation, as well as its strong balance sheet to obtain bulk discounts from suppliers to drive costs down. It will enable the products to be relatively more affordable to consumers of these markets.