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Transcript of Apple Inc.
Industry & Company Overview
Macintosh was easy to use and it had good design and technical elegance
Introduced in high fashion magazines
His product was different and stood out.
Apple introduced the green lineup of notebooks
Evolution of the PC Industry
Computers were not accessible for everyone. Mostly IBM had large computers for businesses.
Steve Jobs had a vision to build a computer that was easy to use for everyone
In 1978 the PC industry expanded and rocketed to $1 billion
IBM teamed up with Microsoft to create a PC and brought it into the mainstream in 1980
Became a portal for the internet
Competitors like Dell, Hp, Lenova, and Acer and other no-name tech companies soon emerged
Each newly created company tried to create a faster, cheaper, easiest to use, and sleekest looking computer product
Apple Inc. 1976-Present
Historically, what was Apple's source of competitive advantage?
Secretive about their information and refused to license its hardware to third parties
IBM put theirs available to the public
The advantage with the Apple products was they they had hardware, software, and peripherals that were simple to use
Dynamics & Struggle with PCs
The upcoming PC's market dynamics proved to be problematic for Apple. The competition was serious and fierce. There were many companies offering the same product.
Apple was having a hard time standing out even with the introduction of the Macintosh in 1984, which led Apple to face financial difficulties later on.
Historically, this is when Apple began to struggle with PCs.
Apple went through a series of CEOs, each who operated the company in his own way
Sculley made Apple mainstream in schools and created an alliance with IBM to create a new PC operating system; which still led to a 34% decrease in gross margin
Spindler tried to cut costs and Amelio increased the process again
Through the problematic market Steve Jobs, CEO once again, expanded into other markets in order to differentiate it's products. "Digital Hub"
Soon enough Apple created laptops, notebooks, and the iPod with its complementary product: iTunes.
In 2007 Apple created the iPhone and in 2010 dipped into the tablet industry as well by introducing the iPad
A whole new distribution system was set up exclusively for the Apple app store
Apple products are now being sold at Walmart, Best Buy, Target, University Bookstores, and online
Offering student discounds contributed to Apple taking the lead in coming up with useful and innovative products
How sustainable is Apple's competitive position in Pcs? MP3 players and Smartphones?
How Sustainable is Apple's competitive position in Pcs?
Introduced the new "digital hub"
Has both hardware and software control through Apple Store
Apple made their PC's more compatible with other PC's by working with Microsoft
Fast paced & energy efficient computers which are now all Integrated through Intel
How sustainable is Apple's competitive position in MP3 players?
And in Smartphones?
Superior quality, design, and variety offered on iPods
Cannibalization of other brand's mp3 players
The iPhone introduced a renaissance era for the phone industry
Revolutionized digital data handling
State of the art technology - Siri
Threats from new entrants against its OS- Google Android
More app developers are willing to work on new OS
Lower margins than before and tense relations
-Expansion through affordable products
-Target international markets
-Potential threats from other tablets
High quality user experience
High consumer loyalty
Easy to use products
High sales margins
Controls product by manufacturing both product & OS
Subject to supply shortages & price increases
Quality product control
Less market presence oversees
Lack of different price points with products
Continue to capitalize on iPhone/iPod/iPad Growth
Growing income in Asia and other emerging nations
Integration with other products for ex: CarPlay, Tv
Use of intel chips to run the Windows OS
(Android),Samsung, Nexus, HTC
Rapid technology changes
Highly competitive electronic market
Global economic crisis
Our Recommendations/Case Updates & Advice
Apple should continue international market growth
iTunes availability to the international market
Continue to pursue R&D product developement
Evaluate niche market concentration and market penetration
Make their products available to all of the cellular companies
Continue developing and delivering superior products at a lower cost
Improve domestic supply chain
Take your "image seriously"
Pay attention to Apple in the market
Meet the media
Discuss its plans, explain its culture, and answer its critics
Buy a blazer
Tim Cook's primary problem as an Apple CEO
Change your tone and look
Our advice for Tim Cook
THE PEST ANALYSIS
In 2007, 52% of sales were from outside America.
Bad international relations, wars and terrorism greatly influenced the company.
Apple produces many of its products outside the US in Ireland, Korea, China, and Czech Republic. Conflicts with these countries would have an awful impact for Apple Inc.
U.S dollar value has gone down yet Apple not endangered economically. Apple inc. has purchased itself foreign currency to minimize the economic effects of inflation on itself.
As inflation rates increase and unemployment rates increase, Apple might be in danger because consumers tend to spend less on "luxury items" Apple's products
Apple plays a main role in globalization because it is the interaction of people worldwide, which is done mostly through electronics.
Because of it's quality and design Apple is known as "King of Technology".
The music industry is another huge factor because Apple has created the biggest virtual media store : iTunes
Apple's image portrays modern individual's lifestyle, combines functionality with design. That leads to brand identification and loyalty.
More competition as risen for Apple since the technology market for cell phones and computers has grown.
The product lifestyle for Apple seems to be very short due to the fast innovations and changes introduced within technology
Apple invests largly in Research and Product Developement which is why it is always on top of the market regarding innovative products