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Transcript of Apple
Strategy implementation plans
How to sustain a competitive advantage?
One of the most Profitable Companies of the World
Major Offerings: iPhone, iPad, MacBook, iTunes, etc.
Steve Jobs & Steve Wozniak collaborate 1976 – Incorp. In 1977
Initial Success & IPO followed by Competition from IBM et. al.
Focus on Design & Marketing – Steve Jobs
Post PC Era Revolutions - iX
Technological Consumer Products
High Quality Premium Priced Products
Sustainability of Business Model
Innovation in the Post-Jobs Era
Home Audio theatre
Smart home security systems
US Market Share
Cell phones (nexus)
Nexus player ( android TV platform)
Android Gears for ( Nexus – LG – Sony –etc )
Smart Home ( Nest Cam)
Share-Market Value: $623B
World’s most valuable brand
Significant investments in R&D
Marketing and advertising capabilities
Rock Solid finances
$710.22B of Market Capital
$33.42B in cash assets
Gaps between product lines
Expand operations in emerging markets.
- Europe, Australia, China
Invest in emerging technologies
- Insteon Inc, Homekit
Mobile payment service
- Best buy, Target, Cvs Health Corp.
Scope in Retail segment.
- 16 countries, 439 stores, 250,000 visitors, $5.2B per quarter
Expand & dominate new markets.
-Target the BRICS nations
Expand software enterprise offering.
-Keynote, pages etc.
Offer innovative IoT products.
-Leverage on existing mobile devices to integrate with new ones.
Expand to home automation and monitoring.
-Offer devices that automate & monitor homes.
Matrix of Change
This strategy helps to keep manufacturing cost low and reduce the amount paid on income tax in the US!
Apple online & retail stores:
Apple maintains stores both online and in physical locations to reach its customers quicker and promote customer loyalty.
Open-sourced operating system with frequent updates: Apple operating system is open-sourced to make it more accessible to software providers. This makes the operating system more attractive
Creative Marketing strategy: Apple’s marketing department is tasked with coming up with catchy creative advertisement campaigns to attract more customers.
low investment in R&D: Compared to their competitors, Apple has a relatively low investment in R&D, relying more on innovation and creativity led by Steve Jobs passion and visions.
Target objectives are the main processes required to sustain competitive advantage.
WCG is a professional consulting group hired to analyze Apple’s implementation process.
Sustainability and growth
Innovate and retain competitive advantage
Apple in a post Steve Jobs era
New products using the Internet of Things
Begin with the selected alternative
Continue to utilize the advantages that Apple has to stay ahead in the race
Develop software and hardware that capitalizes on the IoT
Example: items for home automation
Short Term Plan
Online stores offering digital content
- Digital content can be shared and hence is prone to copy right issues.
- Google has started to leverage a massive amount of traffic.
Low iPhone market-share in China and India
- Largest consumer markets in the world but Apple has a low, single digit market share.
- Apple doesn't target the mid range smartphone users.
- Patent lawsuit with Samsung and warranty lawsuit with Italy.
Invest more in the R&D current departments and found new departments that focus on introducing new products.
New departments may be established out of the Silicon Valley to get more worldwide innovators.
Apple needs to expand its retail stores, local marketing campaigns, in metropolitan cities (focus more globally).
Facilitate connecting its iOS platforms to the Internet of Things products produced by Apple or by any other manufacturer.
Increase the budget of R&D by offering new proposals to the CEO, to emphasize the need of Apple to introduce new products.
Although Apple has high ROI, its R&D budget is small and its offered product catalogue is short in return.
Should study the expansion process and how it will be introduced locally in new markets through local marketing campaigns.
Looking for new hot locations in cities with high potential. Apple’s expansion process will include customer services offered by apple staff.
The Worldwide customer service department will have to train new staff, we should see Apple structured by regions in the near future.
Ranked #1 by Gartner Inc.
Stays ahead in the rapid technology curve
CMO Survey marketing award since 1997
No Peoducts on New technology.
Small array of products and few variations.
Limited Array of Products
leans to absorb too many agendas
Consequence of High priced products