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Apple Inc.

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Jenna LaPorte

on 23 October 2013

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Transcript of Apple Inc.

Apple Inc.

Apple Computer
was founded

System 7 OS upgrade

"There's no Step 3!"
"..I dropped the "interim" from my title. I'm still called iCEO, though, because I think it's cool."
-Steve Jobs
The first retail store opened in McLean, Virginia.
Steve Jobs in his Palo Alto, California, home two weeks after his successful surgery to remove a cancerous tumor from his pancreas.
MacBook Pro
Apple Computer becomes Apple Inc.
"I have asked Tim Cook to be responsible for Apple's day-to-day operations, and I know he and the rest of the executive management team will do a great job."
iPad & iPhone 4
Problem 1
Steve Jobs' second medical leave causes lots of concern.
Effective succession planning
Problem 2
Extremely high priced products
secure position in niche market
limited market potential
Five Forces
The Threat
New Entrants
The Bargaining Power of Buyers
The Bargaining Power of Suppliers
The Threat of Substitute Products and Services
The Intensity of Rivalry among Competitors in an Industry
Jobs takes yet another medical leave of absence
Steve Jobs
Apple's New CEO, Timothy Cook
"Shareholder friendly" company
Cook & CompanyCriticism
Master of the Five Forces

Steve Jobs excelled at understanding and exploiting these factors.
produced high quality products

created a loyal fan base

minimized the power of suppliers
Lesson Learned
Innovation is key.
Economies of Scale

industry powerhouse

new entrants will struggle to compete with Apple on a capital scale
Product Differentiation
high customer loyalty
creates large barrier
to entry for competitors
Capital Requirements
new companies can not afford to keep up with Apple
Buyers have the power when a single buyer is the main source of income.
not the case for Apple

most of their products are sold to a very diverse group
Buyers have the power when certain products yield low profits.
Apple has high cost, high profit items.
Buyers have the power when the product a seller is offering is unimportant to the quality of the buyer’s existence.
In today’s business world, Apple's products are wildly important.
does not pertain to Apple
buyers do not have much power
The supplier group for music is dominated by few companies
Apple leads the world in music purchases
five main record labels
Jobs made tremendous headway with this
new regime must keep these relationships strong to withhold their standings
The supplier is an important input to the buyer’s business
If the relationships were to dwindle, Apple could see major declines in their bottom line.
ITunes provides a large portion of revenue
high quality products
difficult to reproduce
plastic version of iPhone
increase market share in the lower end of smart phones
increases the markets susceptibility to similar products from competitors
Since Jobs..
Steve Jobs
Intense rivalries result from numerous or equally balanced competitors
2-5 real, legitimate threats to Apple in each of their respective markets

Apple is head and shoulders above most competitors, but can they maintain their advantage?
Apple must find a way to maintain its customer loyalty
fair share of rivals

when dealing with rivals they must be sure to take the due care not to lose their customers
Jenna LaPorte
Ross Champagne
Kristen Huval
Brad Murphree
Rui Han
stability for both the company and shareholders
high cost to train possible successors
Capitalize on niche market
Threat Level: low
How difficult would it be for a new firm to compete with Apple?"
Threat level: low
When was the last time you negotiated the price on your iPhone?
Threat level: medium
Do you control your suppliers or do your suppliers control you?
Threat level: medium
Not everyone needs "Apple"...
Threat level: high
August 24, 2011
G. G. Dess, G. T. Lumpkin, A. B. Eisner, G McNamara, (2012). Strategic Management. 6th ed. United States of America: McGraw-Hill Education.

adpressive (2013). 1984 Apple Computer Super Bowl Commercial. [ONLINE] Available at: [Last Accessed September 30,2013]

(2013). PowerBook. [ONLINE] Available at: http://en.wikipedia.org/wiki/PowerBook. [Last Accessed September 22, 2013].

Chris Burns (2011). Apple Releases Full Page Welcome to IBM 30 Years Ago Yesterday. [ONLINE] Available at: http://www.slashgear.com/apple-releases-full-page-welcome-to-ibm-30-years-ago-yesterday-13171586/. [Last Accessed October 2, 2013].

(2013). John Sculley. [ONLINE] Available at: http://en.wikipedia.org/wiki/John_Sculley. [Last Accessed October 2, 2013].

(2013). iMac. [ONLINE] Available at: http://en.wikipedia.org/wiki/IMac. [Last Accessed October 3, 2013].

e.g. Microsoft Corporation (2004). The Top 100 Steve Jobs Quotes. [ONLINE] Available at: http://www.complex.com/tech/2012/10/steve-jobs-quotes/iceo. [Last Accessed October 3, 2013].

Benj Edwards (2011). A Tale of two Apple Stores (the first two). [ONLINE] Available at: http://www.macworld.com/article/1159817/first2applestores.html. [Last Accessed October 2, 2013].

(2013). Steve Jobs. [ONLINE] Available at: http://en.wikipedia.org/wiki/Steve_Jobs. [Last Accessed September 26, 2013].

(2013). MacBook Pro. [ONLINE] Available at: http://en.wikipedia.org/wiki/MacBook_Pro. [Last Accessed September 26, 2013].

John Paczkowski (2009). Apple's Steve Jobs: "I Have Decided to Take a Medical Leave of Absence". [ONLINE] Available at: http://allthingsd.com/20090114/breaking-apples-steve-jobs-taking-medical-leave-until-end-of-june/. [Last Accessed September 26, 2013].

Cadie Thompson (2013). How Apple has changed since Steve Jobs. [ONLINE] Available at: http://www.usatoday.com/story/tech/2013/10/05/apple-steve-jobs/2924065/. [Last Accessed October 4, 2013].

John Laster (2011). Brief History of Apple Inc: A Worth Reading Story of Success. [ONLINE] Available at: http://www.techieapps.com/brief-history-of-apple-inc-a-worth-reading-story-of-success/. [Last Accessed October 5, 2013].
MGMT 490, Sec. 3
October 22, 2013

Division of Labor
Jenna: research/production of Prezi
Ross: research/refinement of Prezi
Kristen: research/condensing of facts
Brad: research/provision of overview
research/contribution of problems & solutions
Apple's Website

Can Cook fill the shoes of Steve Jobs?

Has Apple become a non-innovative company?
Full transcript