8531939 Apple Computers

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AppleAppleComputers,Computers,Inc.Inc.

LaurenCarter

MonicaBridges

ElizabethKevin


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o s pp e

Computers, Inc.? Founded in 1976 by Steve Jobs and SteveWozniak

Company was founded after IBM created the4004 chip which allowed previously bulky

computer components to be included on asmall chip that is located in a computersystem small enough to fit on a desktop.

A les logo, now one o the most


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19

761981

2006

19

75

T e Evo u on o a

Brand


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1997- First online

store opened. Over 4.4

million hitsand 500,000

orders in thefirst 24 hoursof operation.

Genera

Environment 2002- Initiated aSwith Advertising

campaign. Geared to switchPC users to Macusers.

Currently Operates200 brick andmortar locationsworld-wide.


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i Series of computerproducts brought

$650 million inrevenue for the2003 fiscal year.

Company hasbegun to shiftproduct lines withthe aspiration tothink different.

Genera

Environment Constantinnovations and

product re-inventions as theconsumer baseshifts as well as theeconomy.

iPod (portablemusic)

iMac (gaming& power)


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Apple competes in thefollowing industries:

Computer

iBook

PowerBook

PowerMac

Multi-Media

iMac Entertainment

iPod

In us ry

Environment Market Share: Worldwide:

Desktop- 6%

Portable- 10% Domestic:

Educational-15.2%

Annual sales for 2002fiscal year were $1.5bil

Down 27% fromprevious year.


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Porters 5 Forces:

1. Buyers

Set Prices2. Suppliers

Reinvention of supply chain

Cut down

3. Current Rivals Dell, HP, Sony,

Toshiba

In us ry

Environment4. Substitute Products Little/no direct

substitutes but

many competingproducts.

Mac OS has noalternatives.

5. Threats of Entrants

High barriers inindustry

Apple isestablished


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Marketing is AppleComputer, Inc.sbiggest survival factor.

Ads featuringtestimonials fromPC users that haveswitched to Mac.

New advertising

ventures allowApple to gainmarket share.

In us ry

Environment In light of slight

decline in computersales, Apple Computer,

Inc. has put moreemphasis on promotionof the iPod.

Mixture of bothcomputer and

portable mp3 playersales allows Appleto remainprofitable.


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Apple is planning tofurther enhance theirswitch advertisingcampaigns.

Award-winningadvertisements hascreated competitiveedge.

In order to staycompetitive, AppleComputer, Inc. hascreated differentversions of their

operating system.

Compe or

Environment Creation of peripheral

products has createddiversification.

eMac Educational

products

Learningapplications

Portable computers

Apple has maintainedtheir ability todistinguish themselves

from their competition.


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Apples has

resources that are: Organizational

Innovative

Technological

Apple logo is easilyidentifiable tocustomers in thecomputer market.

In erna

Environment Internal Capabilities:

Marketing

Large budget

ManagementLeadership

Core competencies inhigh-quality hardware.

Inventory system hasgiven higher economiesof scale.


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Outbound logisticshas made itpossible for Apple

Computer, Inc. tomeet the orders anddemands of theircustomers.

Technologicaldevelopment is akey supportactivity.

In erna

Environment Company vision is toprovide the best possiblemerchandise at the mostreasonable price possible.

Strategic Mission-Provide unique productswhich allows them toenter into new markets.

iPod

eMac


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Apple works hard todetermine newideas on how to

gain market sharein order to boostsales.

Strategies:

Advertising New Products

TechnologyInnovation

In erna

Environment Objectives: Open new stores

Cooperativebranding

Educationalproducts

Strong efforts inadvertising, technologyinnovation and market

share growth makeApple Computer, Inc.successful!


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SynthesisAlternatives: Tackle the low-end consumer market,

focused segmentation.

Offer an affordable system with aninnovative design.

Distinguished, Innovative.

Devise a strategy to convince competitorscustomers to

switch to Apple and retain currentcustomers.


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Successful companyFavorable Brand PerceptionBrand-loyal customersRecognizable logoCreative advertisements/promos

MP3 InnovationsWell established product linesBrick and mortar locations

Declining market sharesHeavily saturated industryProprietary software systemLow popularity overseasIncreasing different operating system

Educational materials/ softwareMP3 device expansionsSoftware designs

Competition in MP3 industryCompetition in computer industryHigh substitution rateNew Entrants

SW

OT Analysis


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Q

uestions???

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8531939 Apple Computers