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Apple Case Analysis

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by

Michelle Cyr

on 10 April 2013

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Transcript of Apple Case Analysis

Case Analysis Apple Apple Introduction Founded on April 1, 1976
394 retail stores (as of Nov 2012)
Headquarters in Cupertino California Presentation Overview Introduction of Apple
Apple's Problems & Objectives
SWOT Analysis
Market Analysis
Solutions
Recommendations Apple's Objectives Improve its position in the computer and mobile phone industries

Maintain its leadership position in the digital music industry

Achieve rapid success in the tablet and computer market. Apple designs, develops, and sells: consumer electronics
computer software
personal computers Apple's Problems Apple competes in a fast-paced, rapidly growing technology market
Apple has many competitors
Competition is progressing in the market SWOT Analysis Strengths Brand awareness
Brand representation
Advanced technology
Leader in technology and mobile devices
Strong brand loyalty
Globally recognized brand
Fast paced growth SWOT Analysis Weaknesses Problems with new CEO
Competition is high
Competition selling similar products for a lower price
Problems with their main supplier SWOT Analysis Opportunities Holiday seasons
New products
Apple is entering the small tablet market
The Apple TV
Apple has room to run SWOT Analysis Threats Competition is trying to knock the company down
Consumers may not be finding a difference in their new products
Faces stiff competition. The list is endless. Apple has the highest gross margins
Higher prices
More annual sales
Generally a more recognizable brand with focus on rivals Market Analysis Apple's Strategy Broad Differentiation Strategy Unique product attributes
Buyers find appealing, valuable, and worth the high price
Diverse variety of products. Pricing Strategy High quality and high price. Solution #1 iTunes Point System Consumers receive 1 point per song
They may redeem 10 points to receive 1 free song
A larger amount of points can be redeemed for a larger price item (Apple's choice) Solution #1 iTunes Point System 1 free song = $0.90 loss (to pay the record label)
1 song = $0.30 profit by using the point system
If a typical consumer uses his points to earn a free song, Apple makes $3.00 per 10 songs rather than $3.87. iTunes will bring in an extra $390,990,000. If iTunes receives a 10% increase: Solution #1 iTunes Point System May 1, 2013 – Launch advertisements

June 1, 2013 – Launch the new point system. Send notifications to iTunes accounts regarding the point system.

August 1, 2013 – Apple may have special offers or opportunities for consumers Solution #2 Consumer Survey Apple needs to gather information to help develop better products
Focus should be around what consumers want
Eliminate unnecessary features
Cap of 20,000 people Solution #2 Consumer Survey In return, consumers will get: A) One free iTunes song via code provided OR B) A chance to win one of the following: Ten $20 iTunes card
Ten $30 iTunes card
One iPad Solution #2 Consumer Survey A) ITunes cards total: $500
1 IPad total: $316 (cost to Apple)
Total $ 816 B) 20,000 free songs: $18,000 Solution #2 Consumer Survey April 1st – Create the Survey
April 4th - Post the Survey to the Apple website
April 28th- Last day for survey
April 29th- Send out thank you emails
April 30th- Announce the winners of prizes
May 1st – Evaluate the surveys Solution #3 iPad Software for Police Force Apple needs to continue expanding into other markets
It would benefit Apple to work with the government Solution #3 iPad Software for Police Force Solution #3 iPad Software for Police Force Apple will have to do significant amounts of market research in order to know exactly what the police force needs
Boosts company image
Create a stronger more stern image Developing cost – $30,000
Managing cost - $10,500
Trade shows - $20,000
Marketing research cost - $10,000
Total - $75,000 Solution #3 iPad Software for Police Force May 1 – Conduct research.
June 1 – Bring information together with the developers to begin developing products and services for the police force.
July 15 – Predicted time to have the first prototype.
September 1 – Approach police force with the new innovation and build a contract. Recommendation Solution #3 Extreme sales potential in this market
Potential to expand to other government sectors
Differentiate Apple from competition
Word of mouth advertisement Recommendation May 1 – Conduct research.
June 1 – Bring information together with the developers to begin developing products and services for the police force.
July 15 – Predicted time to have the first prototype.
September 1 – Approach police force with the new innovation and build a contract.
Full transcript