Apple Inc.

Shivani SainiVijay Chandran Bala

Jehaangir BashaVikash kr verma

“It’s is better to be pirate than to join navy.”

Steve jobs, Apple inc

Evolving PC Industry: Snapshot

• Computer industry started experiencing growth from mid 70s• Guess, which company bought PCs into mainstream: Yes, that was IBM,

that captured almost 70% of the PCs market share till 80s, when other companies started entering PC industry,

• The Lisa is a personal computer designed by Apple Computer, Inc. during the early 1980s. It was the first personal computer to offer a graphical user interface in an inexpensive machine aimed at individual business users

• By 1990s, ‘Wintel’ (Windows OS + Intel processor), replaced “IBM compatible” as the industry standard. Other entrants: Dell, Compaq etc

• By 2008, PCs in use around the world: 1 billion!• Target market of PC manufacturers comprise of 42% Home buyers,

32% SMB, Large corporation 12%, Education 8% and Government 6%.• Major PC manufacturer that hold 50% of market share HP, Dell, Acer &

Lenovo.

1983Apple Lisa was the first computer with a GUI.

We are in uncharted territory. We have never sold this many of anything before.

- Apple keynote address, 12 sept 06 -

“Innovation distinguish between a leader and follower.”

APPLE’ S DNAHere’s to the crazy ones. The misfits . The rebels. The troublemakers.

The round page in the square holes. The one who see thing differently. They are not found of rule. And they have no respect for the status quo.

You can quote them, disagree with them glorify and vilify them.About the only thing you cant do is ignore them. Because they change

things.They push human race forward. And some see them as crazy one we see

them as Genius. Because the people who are crazy enough to think they can

change the world, are the one who do.

Apple .Inc

• Fortune magazine named Apple the most admired company in the United States in 2008, and in the world from 2008 to 2012.

• Apple was established on April 1, 1976, by Steve Jobs, Steve Wozniak and Ronald Wayne to sell the Apple I personal computer kit

• Apple II sparked a computing revolution that drove PC industry to $1 billion in annual sales in less than 3 years.

• In 1984, Apple next launched the Macintosh. Its debut was announced by the now famous $1.5 million television commercial "1984". It was directed by Ridley Scott and was aired during the third quarter of Super Bowl XVIII on January 22, 1984. It is now hailed as a watershed event for Apple's success and a "masterpiece".

• In 1985 a power struggle developed between Jobs and CEO John Sculley, who had been hired two years earlier.The Apple board of directors instructed Sculley to "contain" Jobs and limit his ability to launch expensive forays into untested products. Jobs resigned from Apple and founded NeXT Inc. the same year.

• Apple was introducing fresh new products and generating increasing profits in the process. The magazine Mac Addict named the period between 1989 and 1991 as the "first golden age" of the Macintosh.

• During Amelio's tenure Apple's stock continued to slump and hit a 12-year low in Q2 1997

• The Apple Board forced Amelio out and in September 1997 Steve Jobs became the companys interim CEO

• At the 2000 Macworld Expo, Jobs officially dropped the "interim" modifier from his title at Apple and became permanent CEO.

• The company subsequently branched out, introducing and improving upon other digital appliances

• Apple entered the cellular phone business with the introduction of the iPhone, a multi-touch display cell phone, which also included the features of an iPod and, with its own mobile browser, revolutionized the mobile browsing scene

Mission statement

Apple designs Macs, 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 reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced its magical

iPad which is defining the future of mobile media and computing devices.‖

Vision

"Man is the creator of change in this world. As such he should be above systems and structures, and not subordinate to them."

Core values Design and innovation Ease & Simplicity

Quality

Strength Weakness

Design and innovation capabilities Expensive comp aredto other competitive eg Dell

Distinctive graphical user interface Repair and service issues such as : iPod Battery

Ease of use Product features such as Wi-Fi capabilities

Own operating systemWindow parallel reliability.

Opportunity Threats/CompetitionMobile phone business Linux, MicrosoftHome entertainment, Digital tv Objection from music and labels

Creative Sony ,Samsung & micromaxDRM Free copies Amazon

Competitive advantagesDesign and innovation orientedGreater Horizontal and vertical integrationDesigning from scratch to finish bundled with applications and peripheralsPlug and play solutionR & D OrientedAn everything ready device

Firm infrastructure

HRM

Technology Development

Procurement

InboundLogistics Operatio

ns

OutbondLogistics

Marketing/ sales

Service

Alliances with major suppliers

Design and innovation

Horizontal & vertical integration

Plug and play solutions

i-tunes gives a major edge

Linkage with independent software vendors

Technology driven

Complete bundle of application

Operating system more secure, and less prone to virus

Collaborating with other leaders

i-pod & i- tunes combo gives brand awareness a push

Apple’s retail experience, new Mac customers bought more.

Product Development

New product :ideation

Designing & Funding

Product creation

Beta testing

Improvement & launch

LowHigh

High

Analysis of the industry based on Porter’s 5

forces

Threat of new entrant

Threat of new entrant

Bargaining power of customer

Bargaining power of customer

Bargaining power of supplier

Bargaining power of supplier

Threat of substitute product

Threat of substitute product

Current Competition :Very intensive

Current Competition :Very intensive

Low

BCG Analysis of apple products

Challenges in front of apple.inc

• Frequent changes of strategies and leadership at the helm• Closed system of the apple Mac, application system not easily

available • Niche market operator, less penetration• Premium segment, research oriented hence costly

Design is not what it looks like and feels like. Its like how it

works.