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8/4/2019 finalpowerpointpresentation-appleinc-090415194543-phpapp01

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APPLE INC.( MBA 660 USM)Presented By:

Jennifer Cao

Mercy Antony

Tejal SinoraLashunda Price

Logan Tisdale


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Change the World through

Technology

April 1976, Apple Computer, Founder Steve Jobs

Industry: Computer Hardware and Software,

Consumer Electronics

1984, Macintosh

Sculley- Mac with new features

Amelio- Return to Premium Price

Jobs back-Apple Turnaround


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Current Scenario

Sales


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Current Issues

Steve Jobs


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Current Issues

Low Market

Share

6.6%

1Q Market Share08

Dell

HP

Acer

Apple

Toshiba

Others


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Opportunities

Fast growing Industry (Customer Electronics

Industry)

Technological Innovations

Extend new products to loyal customers

High Potential music phone market

Strategic Alliances


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Big Move

Jan 2007- Apple Inc.

CE Industry


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Competitor Environment

High Competition

Share of Dell and HP

Microsoft and Intel-Leaders of Software

CE Industry- Sony, Nokia, Samsung, Cisco,

Motorola


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Competitor Environment


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Threats

Extensive Competition

Substitute Products

Low prices of Competitors

Technical Advancements

Economy downfall


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Five Forces Model


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Branding

Innovation

Differentiated Product

Ease of Use

Superior Quality

Retail Strategy

Strengths


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Marketing and Sales

Customer Loyalty

Online Sales

Strengths


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High Price Proprietary System

Niche Market, Less Penetration

Cannibalization

Weaknesses


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Differentiation Strategy

Value Creation

Core Competencies


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Differentiation Strategy

Unique Features and characteristics

Commands Premium Price

High Customer Service

Superior Quality

Prestige

Rapid Innovation

Sustainable CompetitiveAdvantage


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FF

Value Creation Process

Focus On Education

eMac

Adding Value

iMac

Lifestyle Strategy

Digital Hub

Music Strategy (iTunes)

Video Strategy (iMovie)

Internet Strategy (iTools)

Conve

rgence

Apple I,II,IIIMac


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Technology Development

NewProductIdeation

Designing/ Funding

ProductCreation

Diffusingproductsacrosscompany


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Value Chain

Inbound

Logistics

Operations Distribution Sales and

Marketing

Service


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Apple employs a Product Differentiation

Drawbacks as a result of their strategyinclude:

Not appealing to Price Conscious Consumers

Risk of Imitation by Competitors

Risk of Change in Customer Taste

Apples Strategy


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Apples Problems

Low

MarketShare

Prices TooHigh

LowCustomization


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Strategic Alternatives

Problem Strategy AlternativeLow Market-Share Price

DifferentiationExtend theircurrent product

line to includesome productswith a lower pricepoint.Ex. Re-launchMac Mini


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Two Fold Agenda

Continue to focus on niche market

Set up for Jobs replacement

The Strategy


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Consistently low share

High success in niche market

Brand differentiation

Market Share


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Ups and Downs of their own

Established Identity of Apple

Jobs success rate

Previous CEOs


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Concentrate on current customers

Expand niche market

Use iPod as gateway

Focus


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One year planning phase

Jobs appoints successor

Two year mentoring phase

Chief advisor position

Replacement Plan


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Questions????

Documents

finalpowerpointpresentation-appleinc-090415194543-phpapp01