SM Diff Apple

8/6/2019 SM Diff Apple

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e a m M e m b e r se a m M e m b e r s -Apeksha Maniar 206 Tulsi Gajjar 246 Vaishali Gusani 248

Vineet Khatri 251 Vipul Raval 252 Vishal Thakkar 253 -Shakti Mistry 256


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D i f f e r e n t i a t i o ni f f e r e n t i a t i o n Creating value through

uniqueness

Customers must be willing

:to

Pay more for the differentiator sproducts

Buy more from thedifferentiator

(at same or

)similar price


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Tangible Differentiation Intangible Differentiation

y p e s o f D i f f e r e n t i a t i o ny p e s o f D i f f e r e n t i a t i o n


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a n g i b l e D i f f e r e n t i a t i o na n g i b l e D i f f e r e n t i a t i o n Components of tangible differentiation

Design Packaging

Style Quality


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n t a n g i b l en t a n g i b l eD i f f e r e n t i a t i o ni f f e r e n t i a t i o n Components of intangible differentiation

Brand loyalty Image

Company reputation Customer Preferences


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o u r c e s o fo u r c e s o fD i f f e r e n t i a t i o ni f f e r e n t i a t i o n Differences in quality Differences in functional features or design Buyer s preferences Sales promotion activities of sellers ( . . )Differences in availability e g timing and location


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o s t o f D i f f e r e n t i a t i o no s t o f D i f f e r e n t i a t i o n &High Cost of R D Increased advertising spend to promote the product Cost of hiring highly skilled staff Use of more expensive material to improve the quality of the

, .product etc Increased expenditure on training


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H I S T O R YI S T O R Y Formed in 1976 :Founders Steve Wozniak Steve Jobs

-1976 Apple I -1977 Apple II - ( )1978 Apple III Failure ( )1985 Macintosh Failure


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, .Steve Jobs resigned in Dec 1985 Job formed new company NeXT - ,Job re united Apple in Feb 1997 &1997 Introduced MAC Operating System

H I S T O R YI S T O R Y


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7S m

od e

l


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h a r e d V a l u e sh a r e d V a l u e s Think Differently /Aggressiveness Achievement /Innovation Vision /Quality Excellence


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h a r e d V a l u e sh a r e d V a l u e s

Empathy for Customers/Users


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S t r u c t u r et r u c t u r e


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S t r u c t u r et r u c t u r e


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Integration mechanisms and

control systems -Increases intra functional

coordination andcommunication

-Helps in problem solving andother strategic issues Reach both first time buyers

and Power users

S y s t e my s t e m


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S t y l et y l eDecision Maker

Charismatic leaderStrongly believes in quality andexcellenceConvincingSpends most of the time in product

development

Perfectionist

Our primary goal here is to make theworld's best PCs not to be the biggest

.or the richest

, Leave your neckties bring your ideas


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Managerial Skills

Engineering Skills Specialized engineering

Industrial design Quality assurance Software

development Battery Technology CPU Software

Engineering Display

Engineering Media Engineering -Multi Touch

Engineering

S k i l l sk i l l s


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S t r a t e g yt r a t e g y Product

Differentiation Premium Quality Exceptional Design Personalized Service Organizational

reputation and brandname


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l u e O c e a n S t r a t e g yl u e O c e a n S t r a t e g y Create Uncontested market spaceCreate and capture new demand

Make the competition irrelevant - -Break the value cost trade off Align the whole system of a company s activities in

pursuit of differentiation and low cost


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p p l e S t r a t e g i c G r o u pp p l e S t r a t e g i c G r o u p


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p p l e P r o d u c t sp p l e P r o d u c t s


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r o d u c t L i f e C y c l er o d u c t L i f e C y c l e


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Financial period Net sales (Mil USD) Net profits (Mil USD) Revenue growth Return on net sales

FY 1997 7,081 -1,045 -28% -15%

FY 1998 5,941 309 -16% 5%

FY 1999 6,134 601 3% 10%

FY 2000 7,983 786 30% 10%

FY 2001 5,363 -25 -33% 0%

FY 2002 5,247 65 -2% 1%

FY 2003 6,207 57 18% 1%

FY 2004 8,279 266 33% 3%

FY 2005 13,931 1,328 68% 10%

FY 2006 19,315 1,989 39% 10%

FY 2007 24,578 3,495 27% 14%

FY 2008 37,491 6,119 53% 16%

FY 2009 42,905 8,235 14% 19%

FY 2010 65,225 14,013 52% 21%

p p l e s G r o w t h T r e n dp p l e s G r o w t h T r e n d


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.p p l e V s C o m p e t i t o r s.p p l e V s C o m p e t i t o r s( . . )Y 2 0 1 0. . )Y 2 0 1 0

Net Sales Margin


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d v a n t a g e s o fd v a n t a g e s o fD i f f e r e n t i a t i o ni f f e r e n t i a t i o n Strong Brand Loyalty creates barrier to

entry as switching costs are considerablyhigh

Constant innovation resulting into Frontend& Backend Integration

-Eco friendly


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i s a d v a n t a g e s o fi s a d v a n t a g e s o fD i f f e r e n t i a t i o ni f f e r e n t i a t i o n Competitors being able to imitate the

products

Low Cost competitor such as Dell and

/HP Compaq gaining more market share Over Emphasize on Quality by Steve Jobs


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S t r a t e g yt r a t e g y


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o c u s S t r a t e g yo c u s S t r a t e g y Providing a product or service that caters to a particular

segment of the market Firms can focus on differentiation or low cost

Serving the needs of the chosen market segment better

than a broad range competitor :Risks changes in preferences of the narrow segment or

attack by a broad cost leader or differentiator


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o c u s S t r a t e g y @ A p p l eo c u s S t r a t e g y @ A p p l e Niche Market Creative users Media Companies

Youth Tech Savvy People


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h e F u t u r e o f A p p l eh e F u t u r e o f A p p l e

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SM Diff Apple