BY

Parithi Malar USM 13125

Ameerah USM 13091

Ayu Syahriza USM 13093

Teoh E-Jean USM 13136

Norzuliana USM 13122

Road MapIntroduction – Ayu

Company Profile – Ayu

Mission & Vision – Ayu

History – Ayu

Strategic Profile – Ameerah

Global Expansion – Malar

Macro Environment Factor (PESTLE) - Zuliana

Micro Environment Factor – E-Jean

Conclusion – E-Jean

Introduction

Apple Inc. is an American multinational technology company headquartered in Cupertino, California that designs, develops and sells computer electronics, computer software, online services and personal computers.

Its best-known hardware products are the Mac line of computers, the iPod media player, the iPhone smartphone, and the iPad tablet computer.

Apple has continuously come up with innovative products making it the most valuable company in the world and leaving behind all its competitors.

C O M P A N Y P R O F I L E Established: on April 1, 1976 Founders: Steve Jobs, Steve Wozniak Industry: Computer Hardware Computer software Consumer electronics Digital distribution Key People: CEO - Tim Cook Total Revenue: US $ 65.23 billion(FY 2010) Profit: US $ 14.01 billion(FY 2010) Employees:49,400 No. of Locations: 317 retail stores

MISSION STATEMENT

“ Apple is committed to protecting the environment, health and safety of our employees, customers where we operate. Apple strives for continuous improvement in our environmental, health and safety management systems and in the environmental quality of our products, processes and services ”

VISION STATEMENT

“ Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings ”

The Beginning

• Apple’s history starts in 1974 with the story of Stephen G Wozniak and Steven P Jobs, young and exceptional people who began building a computer in their garage and launched the microcomputer revolution.

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Founder of Apple Inc• The founder Steve

Wozniak; a brilliant engineer, who developed his own computer at home which was the first of it’s kind

Steve Jobs• Steve jobs (a good

friend of Wozniak’s) was also interested in computers and urged Wozniak to sell his new home computer

• Jobs and Wozniak decided to go into business April 1st 1976 as ‘Apple Computers Inc’

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APPLE I• Released April 1st 1976• Had 8 KB of RAM• It was box wood-made with a

basic motherboard inside.

REVOLUTION OF APPLE

APPLE II•In 1977, Apple II was released for 1298$

• Had color graphics – a first for a personal computer

• Floppy disk drive added •Supported the BASIC program

• Had 64 KB of memory

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REVOLUTION OF APPLE

APPLE III• Released May 1980

• The Apple III was a business-oriented personal computer that was intended as the successor to the Apple II series, but largely considered a failure in the market

APPLE LISA•Released in 1983•Became the 1st personal computer sold to the public with a GUI•Commercial failure due to high price tag (almost 10,000$) and limited software it could run

REVOLUTION OF APPLE

The Macintosh

THE MACINTOSH I • Released in 1984• Although not as successful as

Apple predicted, it soon became popular with anyone who needed an easy to use computer with a mouse and a graphical interface

THE MACINTOSH II• In 1987 the Mac II was the

first computer to have computer graphics

• A basic system with 20 MB drive and monitor cost about $5200

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The Macintosh Portable The Power Book 100

Quadra 950

The PowerMac 6100

1974

The idea for Apple Computers was

BORN

1974

The idea for Apple Computers was

BORN

1976

First Computer was

SOLD

1984

The Macintosh was

INTRODUCED

1984

The Macintosh was

INTRODUCED

1985

was dischargedSteve Jobs

1986 1996

1998 1999

Apple introduced all-in-one

the iMacAlso Apple unveiled

the iBook

And the Innovations continues..

Steve Jobs

1955-2011“The ones who are crazy enough to think that they can change the world, are the ones who do”

S T R A T E G I C P R O F I L E Porter’s Five Forces Generic Competitive Strategy

BEST COST PROVIDER

High Customer Loyalty

High Demand Uniqueness

Focused Differentiation Strategy , Example :

Samsung

Focused Low Cost Strategy , Example : Xiaomi , LG , Lenovo

Overall Low Cost Provider Strategy , Example : OPPO

Product DifferentiationLower Cost

S T R A T E G I C P R O F I L E Value Proposition

Apple has positioned itself to a certain type of customer, wealthy people, innovators, people with good jobs, good lifestyle, etc. If Apple targets the poor, the trendy guys will stop buying Apple. This would hurt the brand more than the increasing sales because of lower prices, and in good times, where everybody has more money. Apple would have the problem that they cannot raise prices, because everybody expects a cheap Apple. On the other hand, there are no really substitution products, there are no similar machines than we can buy to have the same user experience, PCs are the same competition to Apple as Ford is to Mercedes. PCs are the everyday workhorse for the masses; Apple is the elegance for the minority.

Global ExpansionGlobal Market Share

Global Expansion

The biggest breakthrough in the global market came for Apple with the unveiling of the iPhone4. It was released in 88 countries, which was a much smaller lag behind the U.S. introduction in the past “The shift shows how important overseas sales have become for Apple, which struggled before the iPhone to become a global player”.

Through foreign licensing and partnerships Apple has been able to expand its brand to market shares that were one untouchable. Apple has implemented a Supplier Code of Conduct as a direct derivative of its business dealings with foreign entities.

Global Expansion At the moment, China is Apple’s focus for global expansion.

China is an emerging market for Apple not only because of the cheap labor, but because it’s a strong economy with the biggest population on the globe. This could translate to China being the becoming the largest market in the world. “Apple’s iPad, iPhone, and other Apple products are made in China by a $61 billion company named Foxconn. According to Reuters, Foxconn is the world’s largest maker of electronic components

Apple has acknowledged in the past that there are many hurdles to get over before Apple Pay can expand outside the US. Because every country has a different banking system and regulations, the service will need to cater its payment solution to each country’s requirements.

Apple Inc – PESTLE Analysis

PE

ST

L

E

Political Factors• It is reported that more than a half of sales of

their products come from countries other than America.

• Apple Inc manufactures a number of its parts and products from outside the US, like Czech Republic, Ireland, China, Korea and Cork.

• The bad political relations between US and the other world have bad outcomes for the company.

Economic Factors

Inflation, recession and currency are three important economic factors that Apple

noticed.

Since Apple Inc products were viewed as luxury products, therefore customers

started pending less on them.

US dollar value keeps fluctuating, however the company has purchased itself foreign currencies and thus, the economic effects

on the company are minimized.

Social Factors

Possessing these items are considered as status symbols in many societies which have also increased

the sales of Apple Inc products.

As the purchasing power of the common has risen in various markets across the world the purchasing of

luxury products have gone up.

As the world cannot be imagined without the gadgets, thus Apple products have marked their presence on the

international market.

Technological Factors• Technology has a short lifetime. That is why

Apple needs to upgrade their product more often so they will outdo their competitors easily.

• Apple Inc has invested largely in its product research and development field and thus its products are at the top of the new innovative products ranking.

• One of the most innovative and technologically advanced products is the iPod which marked the demise of walkman.

Legal FactorsApple Inc has been a participant in various legal proceedings and claims since it began operation.

In October 2009, Nokia Corporation sued Apple for Apple's infringement of Nokia's patents relating to wireless technology

Apple has been in a number of patent cases with players like HTC and Samsung.

Environmental FactorsFrom reporting the entire carbon footprint to finding ways to reduce that footprint, Apple

takes a comprehensive approach to environmental responsibility.

Apple’s commitment to the environment includes properly disposing of electronic equipment at the end of its useful life. It responsibly recycle your computers and

displays.On track towards achieving an ambitious

goal: to power every Apple facility entirely with energy from renewable sources —

solar, wind, hydro and geothermal.

Samsung devices price is cheaper than iPhone but they can come

out with products that can

comparable with iPhone. For

example , iPhone 6 plus and

Samsung Edge 6.

Threat – MediumSamsung is still very strong competitors and substitute for

iPhone if compare with Sony Ericson/Oppo/

Xiaomi.

Threat – LowApple is

continuously differentiate its

products from its rivalry.

Threat - LowAPPLE doesn't make the iPhone itself. It

neither manufactures the components nor

assembles them into a finished product

Threat - LowThe more customer a

company has, the less bargaining

power each customer will have

Buyers

SubstitutesSuppliers

New Entrants

Rivalry

MICRO ENVIRONMENT FACTORS

Micro Environment Factors

-due to Apple continuously differentiate its

product from its rival.

iPhone have a strong brand preferences and high

customer loyalty if compare with other new entrant due

to they have successful develop the brand name and

iPhone have high brand recognition.

iPhone target - customer with high salary range, which

is different target market with other competitor.

New Entrant - Low

Threat of substitute- Medium

• Samsung is still very strong competitors and

substitute for iPhone if compare with Sony

Ericson/Oppo/ Xiaomi. They are readily available and

Samsung smartphone price is attractive if compare

with iPhone which is slightly expensive in the market.

• In terms of quality, iPhone is so much better than

Samsung because some of iPhone part is unique, even

is iPhone application/software or its quality.

• It is well known Android smartphone is always lag and

running slow but iPhone perform well on this.

Supplier Power –Threat Low• APPLE doesn't make the iPhone itself. It neither

manufactures the components nor assembles them into a

finished product.

• Samsung turns out to be a particularly important supplier. It

provides some of the phone's most important components.

The demand of suppliers’ products is medium as iPhone

have 26% components are from Samsung.

• But nwadays, iPhone have reduced the power of

manufactures, like Foxconn, by buying manufacturing

equipment and only allowing the equipment to be used in

iPhone devices. Apple also reduced the power of

distributors by taking over retail distribution and product

services through the Apple store.

Buyer Power-Threat Low

The more customer a company has, the less

bargaining power each customer will have. And if the

switching cost is high, then buying power substantially

decreases.

Apple keep switching cost high by keeping critical

products features same and easily transferable among

devices , for example, contact, calendar, iCloud ,

iPhoto and others.

How are Industry Rivals Positioned In the Market

• Samsung devices price is cheaper than iPhone but they can

come out with products that can comparable with iPhone. For

example , iPhone 6 plus and Samsung Edge 6.

• The technology part for Samsung – Samsung Galaxy S6 has

3Gb ram but iPhone 6 plus only have 1 Gb. You can also

charge Samsung's new phone wirelessly with a charging pad

instead of plugging it in. Apple iPhone need to be plugged in

to charger.

• For device backup part, it can backup everything using iCloud

and Samsung need to backup by manually.

How to THINK DIFFERENT

Conclusion

For more than 35 years apple has been a trends set company able to foresee the future of domestic computers and consumers electronics, it will continuing it because apple’s others name is innovation and apple know,