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TRANSCRIPT
EXECUTIVE SUMMARY
Apple does things a little bit different from their competitors that make them who they are.
They have a high level of secrecy before every new launch or relaunch of an upgraded
product. They have expos that are subject to much attention from both media and individuals.
Steve Jobs is one factor I think that makes Apple a little different from other companies in the
same business. He is the co-founder of the company in 1976. He was fired in 1986, but came
back to the company in 1999. He is well known for his skills in presenting his products and
creating strategies for selling dreams instead of just products. Another thing that makes Apple
substantially different from its competitors is their focus on the design of the products, and
their ability to keep the products looking more or less the same for years and years. There is
hard to find concrete, accurate data about Apple on the web. That is due to their high level of
secrecy with their products. I was able to find some number though, not from Apple self, but
from other sites on the internet that follows them closely. Apple is the market leader in the
portable music player market. All number I could find indicates that. If I just take a look
around on the bus or on a plane, it is also quite obvious that Apple is the dominating force in
the market. “Everybody” has an iPod or iPhone. Apple’s marketing has been successful; there
cannot be any doubt about that. Different strategies are listed in the Power Point, these
strategies together with all the secrecy and the design of the products, have made them
tremendously popular. This is despite the fact that their MP3-players are in a high price
range, compared to their competitors.
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ELECTRONIC INDUSTRY
The electronics industry, especially meaning consumer electronics, emerged in the 20th
century and has now become a global industry worth billions of dollars. Contemporary
society uses all manner of electronic devices built in automated or semi-automated factories
operated by the industry. Products are assembled from integrated circuits, principally by
photolithography of printed circuit boards. The size of the industry and the use of toxic
materials, as well as the difficulty of recycling has led to a series of problems with electronic
waste. International regulation and environmental legislation has been developed in an
attempt to address the issues.
History
The electric power industry began in the 19th century and this led to the development of all
manner of inventions. Gramaphones were an early invention and this was followed by radio
transmitters and receivers and televisions. The first digital computers were built in the 1940s
with a slow development in technology and total sales. In the 1990s the personal computer
became popular. A large part of the electronics industry is now involved with digital
technology. The industry now employs large numbers of electronics engineers and electronics
technicians to design, develop, test, manufacture, install, and repair electrical and electronic
equipment such as communication equipment, medical monitoring devices, navigational
equipment, and computers.
Consumer electronics
Consumer electronics are products intended for everyday use, most often in entertainment,
communications and office productivity. Radio broadcasting in the early 20th century
brought the first major consumer product, the broadcast receiver. Later products include
personal computers, telephones, MP3 players, audio equipment, televisions, calculators, GPS
automotive electronics, digital cameras and players and recorders using video media such as
DVDs, VCRs or camcorders. Increasingly these products have become based on digital
technologies, and have largely merged with the computer industry in what is increasingly
referred to as the consumerization of information technology. The CEA (Consumer
Electronics Association) estimated the value of 2007 consumer electronics sales at US$150
billion. Effects on the environment. Electrical waste contains hazardous but also valuable and
scarce materials and up to 60 elements can be found in complex electronics. The United
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States and China are the world leaders in producing electronic waste, each tossing away
about 3 million tons each year. China also remains a major e-waste dumping ground for
developed countries. The UNEP estimate that the amount of e-waste being produced
including mobile phones and computers - could rise by as much as 500 percent over the next
decade in some developing countries, such as India.
Further information:
Electronic waste Increasing environmental awareness has led to changes in electronics design
to reduce or eliminate toxic materials and to reduce energy consumption. The Restriction of
Hazardous Substances Directive and Waste Electrical and Electronic Equipment Directive
(WEEE) were released by the European Commission in 2002.
Apple Electronic: Apple Inc.is an American multinational corporation that designs and
manufactures consumer electronics and computer software products. The company's best-
known hardware products include Macintosh computers, the iPod and the iPhone. Apple
software includes the Mac OS X operating system, the iTunes media browser, the iLife suite
of multimedia and creativity software, the iWork suite of productivity software, Final Cut
Studio, a suite of professional audio and film-industry software products, and Logic Studio, a
suite of audio tools. The company operates more than 250 retail stores in nine countries and
an online store where hardware and software products are sold. Established in Cupertino,
California on April 1, 1976 and incorporated January 3, 1977,the company was called Apple
Computer, Inc. for its first 30 years, but dropped the word "Computer" on January 9, 2007 to
reflect the company's ongoing expansion into the consumer electronics market in addition to
its traditional focus on personal computers. Apple has about 35,000 employees worldwide
and had worldwide annual sales of US$32.48 billion in its fiscal year ending September 29,
2008.For reasons as various as its philosophy of comprehensive aesthetic design to its
distinctive advertising campaigns, Apple has established a unique reputation in the consumer
electronics industry. This includes a customer base that is devoted to the company and its
brand, particularly in the United States. Fortune magazine named Apple the most admired
company in the United States in 2008 and in the world in 2009.
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RESEARCH METHODOLGY
WHAT IS RESEARCH?
Research is a logical and systematic search for new and useful information on a particular
topic. In the well-known nursery rhyme Twinkle Twinkle Little Star How I Wonder What
You Are the use of the words how and what essentially summarizes what research is. It is an
investigation of finding solutions to scientific and social problems through objective and
systematic analysis. It is a search for knowledge, that is, a discovery of hidden truths. Here
knowledge means information about matters. The information might be collected from
different sources like experience, human beings, books, journals, nature, etc. A research can
lead to new contributions to the existing knowledge. Only through research is it possible to
make progress in a field. Research is indeed civilization and determines the economic, social
and political development of a nation. The results of scientific research very often force a
change in the philosophical view of problems which extend far beyond the restricted domain
of science itself.
Research is not confined to science and technology only. There are vast areas of research in
other disciplines such as languages, literature, history and sociology. Whatever might be the
subject, research has to be an active, diligent and systematic process of inquiry in order to
discover, interpret or revise facts, events, behaviors and theories. Applying the outcome of
research for the refinement of knowledge in other subjects, or in enhancing the quality of
human life also becomes a kind of research and development. Research is done with the help
of study, experiment, observation, analysis, comparison and reasoning. Research is in fact
ubiquitous. For example, we know that cigarette smoking is injurious to health; heroine is
addictive; cow dung is a useful source of biogas; malaria is due to the virus protozoan
plasmodium; AIDS (Acquired Immuno Deficiency Syndrome) is due to the virus HIV
(Human Immuno Deficiency Virus). How did we know all these? We became aware of all
these information only through research. More precisely, it seeks predictions of events,
explanations, relationships and theories for them. As stated by Gerald Milburn Scientific
research is a chaotic business, stumbling along amidst red herrings, errors and truly, creative
insights. Great scientific breakthroughs are rarely the work of a single researchers plodding
slowly by inexorably towards some final goal. The crucial idea behind the breakthrough may
surface a number of times, in different places, only to sink again beneath the babble of an
endless scientific discourse.
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What is Research Methodology?
What-is-research-methodology. In simple terms, methodology can be defined as, giving a
clear cut idea on what methods or process the researcher is going to use in his or her research
to achieve research objectives. In order to plan for the whole research process at a right point
of time and to advance the research work in the right direction, carefully chosen research
methodology is very critical. In other words; what is Research methodology can be answered
as it maps out the whole research work and gives credibility to whole effort of the researcher.
More over methodology guides the researcher to involve and to be active in his or her
particular field of enquiry. Right from selecting the topic and carrying out the whole research
work till recommendations; research methodology drives the researcher and keeps him on the
right track. The entire research plan is based on the concept of right methodology.
Further, through methodology the external environment constitutes the research by giving an
in depth idea on setting the right research objective, followed by literature point of view,
based on that chosen analysis through interviews or questionnaires findings will be obtained
and finally concluded message by this research.
On the other hand from the methodology, the internal environment constitutes by
understanding and identifying the right type of research, strategy, philosophy, time horizon,
approaches, followed by right procedures and techniques based on his or her research work.
Research methodology acts as the nerve center because the entire research is bounded by it
and to perform a good research work, the internal and external environment has to follow the
right methodology process.
You can further consult with our experts; what would be the right research methodology for
your project. Kindly feel free to email us for any advise you need related to your research
project or thesis.
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Objective of Study
• To identify the area of study (Ex: finance, economics, marketing, entrepreneurship
etc.)
• Look out for problems/ issues in that area that can be studied.
• Curious problem or a pressing issue can also be studied
• Topics should be narrowly focused and carefully defined
• To understand the market situation
• To understand the competition
• To finding on this research would be significant to a Smartphone producers, in
understanding their basis for students preferences of Apple’s Smartphone.
• An understanding of brand equity personality and identity in Smartphone is crucial it
cannot be emphasized.
• A profound knowledge of understanding would provide a clue as to a student
preference of a brand.
• The motive behind brand loyalty and how brand awareness is built
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Scope of the study
The diversity and innovation of new products in the world of technology play an important
role in the growth and success of the Gizmo Giants in the world of advanced technology. The
scope of this study is to know how the techy master minds like Steve Jobs continue to
provide us with lot of their beautiful innovations and help us to know their marketing
strategies in this competitive scenario. The objective of the study is to draw out lessons for
current and future leaders from the analysis of Steve Jobs’ leadership approach. The most
clear lessons that leaders can learn from Steve Jobs is his deep passion for his work, his
extreme focus and unwavering resolve in his decision making. As one observes Steve Jobs’
marketing approach, it is easy to see his passion for the work of his company. He admits,
himself, in a speech to a group of graduating students from Stanford University, that he
found what he loves to do early in life (Jobs, 2005). He continues to capitalize on this passion
even to this day.
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Collection of Data
Both primary and secondary data were choosen to collect the data that were used to analyzing
the reasearch study. Primary data obtained through questionairs. Where Secondary data were
gathered through collection of journals, articles internet and other published materials.
Collection of primary data:
structured questions were distribute to the neighbours and friends e mails and messages. A
sample size of 20 people were choosen given that is considered adequate and representative.
Collection of Secondary data
This data includes journals articles internet and business magazines etc…
Raw data were collected and then it was analyzed. Questionairs were distributed with th sole
purpose of obtaining data about consumers brand equity.
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Limitations of the study
1. Research work was carried out in California, United States only the finding may not be
applicable to the other parts of the worl because of social and cultural differences.
2. The sample was collected using connivance-sampling techniques. As such result may not
give an exact representation of the population.
3. Shortage of time is also reason for incomprehensiveness.
4. The views of the people are biased therefore it doesn’t reflect true picture.
5. We could not get the company certificate attached.
6. and the sample size was small.
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Introduction
Apple Inc. (commonly known as Apple) is an American multinational technology company
headquartered in Cupertino, California, that designs, develops, and sells consumer
electronics, computer software, and online services. Its best-known hardware products are the
Mac personal computers, the iPod portable media player, the iPhone Smartphone, the iPad
tablet computer, and the Apple Watch smartwatch. Apple's consumer software includes the
OS X and iOS operating systems, the iTunes media player, the Safari web browser, and the
iLife and iWork creativity and productivity suites. Its online services include the iTunes
Store, the iOS App Store and Mac App Store, and iCloud.
Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1, 1976, to
develop and sell personal computers. It was incorporated as Apple Computer, Inc. on January
3, 1977, and was renamed as Apple Inc. on January 9, 2007, to reflect its shifted focus
towards consumer electronics. Apple (NASDAQ: AAPL) joined the Dow Jones Industrial
Average on March 19, 2015. Apple is the world's second-largest information technology
company by revenue after Samsung Electronics, the world's largest technology company by
total assets, and the world's third-largest mobile phone manufacturer. On November 25, 2014,
in addition to being the largest publicly traded corporation in the world by market
capitalization, Apple became the first U.S. company to be valued at over US$700 billion. As
of March 2015, Apple employs 98,000 permanent full-time employees; maintains 453 retail
stores in sixteen countries and operates the online Apple Store and iTunes Store, the latter of
which is the world's largest music retailer. Apple's worldwide annual revenue in 2014 totaled
$182 billion for the fiscal year ending in October 2014. The company enjoys a high level of
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brand loyalty and, according to the 2014 edition of the Interbrand Best Global Brands report,
is the world's most valuable brand with a valuation of $118.9 billion.[9] By the end of 2014,
the corporation continued to receive significant criticism regarding the labor practices of its
contractors and its environmental and business practices, including the origins of source
materials.
Steve Jobs' inventions and innovations of the computer technology industry have changed it
forever. Steve changed the computer industry by making personal computers that are sleek
and easy to use. He developed breakthrough technology that is user friendly and high quality
like the iPhone, iPod, iPad, and operating systems like Mac OS and Mac OS X. Steve
supervised the production of "Toy Story" which was the first completely animated movie.
Animated movies are now a huge market in the movie industry.
History
Apple was established on April 1, 1976, by Steve Jobs, Steve Wozniak and Ronald Wayne to
sell the Apple I personal computer kit. The Apple I kits were computers single handedly
designed and hand-built by Wozniak and first shown to the public at the Homebrew
Computer Club. The Apple I was sold as a motherboard (with CPU, RAM, and basic textual-
video chips), which was less than what is now considered a complete personal computer. The
Apple I went on sale in July 1976 and was market-priced at $666.66 ($2,763 in 2015 dollars,
adjusted for inflation). Apple was incorporated January 3, 1977 without Wayne, who sold his
share of the company back to Jobs and Wozniak for $800. Multimillionaire Mike Markkula
provided essential business expertise and funding of $250,000 during the incorporation of
Apple. During the first five years of operations revenues grew exponentially, doubling about
every four months. Between September 1977 and September 1980 yearly sales grew from
$775,000 to $118m, an average annual growth rate of 533%.
The Apple II, also invented by Wozniak, was introduced on April 16, 1977, at the first West
Coast Computer Faire. It differed from its major rivals, the TRS-80 and Commodore PET,
because of its character cell-based color graphics and open architecture. While early Apple II
models used ordinary cassette tapes as storage devices, they were superseded by the
introduction of a 5 1/4 inch floppy disk drive and interface called the Disk II. The Apple II
was chosen to be the desktop platform for the first "killer app" of the business world:
VisiCalc, a spreadsheet program. VisiCalc created a business market for the Apple II and
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gave home users an additional reason to buy an Apple II: compatibility with the office.
Before VisiCalc, Apple had been a distant third place competitor to Commodore and Tandy.
By the end of the 1970s, Apple had a staff of computer designers and a production line. The
company introduced the Apple III in May 1980 in an attempt to compete with IBM and
Microsoft in the business and corporate computing market. Jobs and several Apple
employees, including Jef Raskin, visited Xerox PARC in December 1979 to see the Xerox
Alto. Xerox granted Apple engineers three days of access to the PARC facilities in return for
the option to buy 100,000 shares (800,000 split-adjusted shares) of Apple at the pre-IPO price
of $10 a share. Jobs was immediately convinced that all future computers would use a
graphical user interface (GUI), and development of a GUI began for the Apple Lisa. In 1982,
however, he was pushed from the Lisa team due to infighting. Jobs took over Jef Raskin's
low-cost-computer project, the Macintosh. A race broke out between the Lisa team and the
Macintosh team over which product would ship first. Lisa won the race in 1983 and became
the first personal computer sold to the public with a GUI, but was a commercial failure due to
its high price tag and limited software titles. On December 12, 1980, Apple went public at
$22 per share, generating more capital than any IPO since Ford Motor Company in 1956 and
instantly creating more millionaires (about 300) than any company in history.
Achievements
In 1976 Steve and Steve Build their first Apple computer in the Jobs' garage
Apple releases the first widely used personal computer in the world, the Apple Two
At 25 years old Apple goes public, jobs is worth 239 million after one day of trading!
Apple introduces the MOUSE, which initially fails
Apple releases the Macintosh with a built in screen
Steve leaves Apple in 1984
Steve buys Pixar Animation Studios in 1986 and releases the first fully animated
movie "Toy Story"(4)
Steve returns to an ailing Apple and becomes CEO in 1996
Apple turns around with the release of the iMac which is a hit(4)
Apple releases the iPod which gained 75% of the market share and changed portable
music forever
Apple introduces the iTunes music store which facilitates legal music downloading
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The iPhone is introduced in 2007 to be the first touch screen phone without a
keyboard
In 2010 Apple releases the iPad
In 2011 Apple is briefly the worlds most valuable company worth $342 BILLION(2)
Awards
The iPhone maker received a Tech Emmy Award at CES 2013 from the National
Academy of Television Arts.
2013 Harris Poll EquiTrend Brand of the Year holding the top spot among computer
manufacturers.
Accomplishments Since 2009: The Apple Mac computer reached its 25th Anniversary
Apple unveiled new MacBook Pro laptops with 13, 15, and 17 inch screens. They all
have lower prices, faster processors longer battery lives than their their.
Introduction of iPhone 3GS – twice as fast as iPhone 3G and comes in 16GB or
32GB costing $199 & $299 respectively
Reduction of price on iPhone 3G, now $99
Unveiling of iPad Tablet Computer – in between a smart phone and a laptop
Apple Inc.'s App Store has been chosen for Macworld's App Gems awards 2011
Apple received the award for outstanding achievement of the year at the MAPIC EG
Retail Awards held in Cannes, France in November 2008.
Apple Inc. has received the International Forum Design (iF) product design award for
its products the iPhone 3G, the second-generation iPod touch, the fourth-generation
iPod nano, and the MacBook Air.
the Small Business Marketing Group of Apple Computer Inc. received the Marketer
of the Year Award from the San Francisco, California Chapter of the American
Marketing Association.
award to Apple for its iPhone product by "Computerworld Hong Kong" in 2009 in the
Smartphone/Mobile Enterprise Device category.
Apple Inc.'s iPod nano is the recipient for the 2008 Invention of the Year Award.
Apple has been named as recipient of the Best Vendor Retailer award in "TWICE'S"
2010 Excellence in Retailing Awards.
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awarded the inaugural CMO Choice Marketer of the Year award for 2007, as selected
by a vote of marketing executives at the annual conference of the Association of
National Advertisers.
Apple Inc. has received the 2008 International Design Excellence Awards for design.
Apple Inc. was awarded Brand of the Decade by the periodical "Brandweek."
won an Emmy Award for inventing and popularizing FireWire, the high-speed data
transfer technology that connects digital devices to computers.
the Best Technology Innovator category for the 2010 CHOICE Awards such as
Google Inc., Apple Inc., and Amazon.com Inc.
the 2002 British Design & Art Direction (D&AD) Gold Award received by Apple for
its Apple iPod audio equipment product.
the Apple iOS mobile operating system (OS) won in the mobile OS category of the
2014 Computerworld Hong Kong Awards.
the Apple Inc. and AT&T have received the annual Wireless Week Excellence Award
under the Special Recognition for Mobile Content category.
Apple Computer DVD Studio Pro 1.1-the 2001 Pick of Show awards for outstanding
products or technologies which foster the advancement of the art and science of
television broadcast.
Vision Statement
It is especially important for managers and executives in any organization to agree on the
basic vision that the firm strives to achieve in the long term. A vision statement should
answer the basic question, “What do we want to become?” A clear vision provides the
foundation for developing a comprehensive mission statement (David, 2011)
a. Vision Statement of APPLE
"Man is the creator of change in this world. As such he should be above systems and
structures, and not subordinate to them."
i. Explanation of APPLE’s vision
According to (Hamilton, 2011) Apple lives this vision through the technologies it develops
for consumers and corporations. It strives to make its customers masters of the products they
have bought. Apple doesn't simply make a statement. It lives it by ensuring that its employees
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understand the vision and strive to reach it. It has put systems in place to enable smooth
customer interaction.
It has put objectives in place to continuously move forward; implemented strategies to fulfill
these objectives; and ensured that the right marketing, financial and operational structures are
in place to apply the strategies.
Mission Statement
“What is our business?” is synonymous with asking the question “What is our mission?” An
enduring statement of purpose that distinguishes one organization from other similar
enterprises, the mission statement is a declaration of an organization’s “reason for being.” It
answers the pivotal question “What our business?” A clear mission statement is essential for
effectively establishing objectives and formulating strategies (David, 2011).
a. Mission Statement of APPLE
“Apple designs Macs, the best personal computers in the world, along with OS X, iLife,
iWork, and professional software. Apple leads the digital music revolution with its iPods and
iTunes online store. Apple reinvented the mobile phone with its revolutionary iPhone and
App Store, and has recently introduced its magical iPad which is defining the future of
mobile media and computing devices.”
Organizational structure of Apple
Apple has hired a new VP who will report directly to Tim Cook. Paul Deneve is cited as
having responsibility for “special projects” and will report directly to Tim Cook.
The previous roles as a manager in luxury brand companies has led to a great deal of
speculation about what new projects Apple could be working on that might also fit this new
manager’s background and title. The most commonly cited speculation is around the iWatch
or TV product lines (with some surprised that he will not be heading Retail.) Although
reading “luxury product CEO” and concluding “new luxury products” seems logical, a little
knowledge about how Apple is organized dispels this notion. And a little knowledge happens
to be about all we have, as Apple’s organization is one of its most closely guarded secrets.
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Even employees at Apple have little idea of how the company is organized. What we do
know is summarized into this org chart:
We have taken the liberty of splitting Tim Cook’s direct reports into “Disruptive” and
“Sustaining” functions—which I admit is a bit cheeky—but the point is to separate the
product creation functions from the management and administrative functions of the
organization.
When seen in this light, the first observation is that there is no “product business” ownership.
Schiller’s Marketing function includes product marketing by product line, but these are not
business ownership roles (product marketing mostly deals with how products are positioned,
promoted, priced, etc.)
There is no “head of devices” or “head of iPhone”. Put more plainly, there is no
organizational consistency with how the company reports its financial performance.
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So it would make little sense to add a new direct report to this chart that did have a specific
product ownership (or creation) role. Product is a “horizontal” responsibility for which every
function is partially responsible.
In lieu of this, my reading of the chart shows another function for which there seems to be no
leader: brand. Brand management is a crucial function in consumer-facing companies, and
many brands-oriented companies orient their organizations (and power) around brand
mangers.
In years gone by I would have said that Brand management was Steve Jobs’ direct
responsibility. Today I would say that it’s something that needs a direct manager. This is
something for which Paul Deneve might be well suited.
This cartoon has been floating around the Internet for a few years. It's supposed to be a
humorous take on how all the biggest tech companies are organized. It might have to be
updated to account for changes at Apple. When Steve Jobs was in charge, everything flowed
through him. Now that he's dead, the company is taking on a more collaborative approach,
according to various reports. The latest, from Adam Satarino at Bloomberg, says Jony Ive is
encouraging Apple's software and hardware teams to collaborate, something that never
happened under Jobs. Ive was given control over Apple's software look and feel in
November. Previously, he was only in charge of the look of the hardware.
This new collaborative approach is causing Apple to be more deliberate than in the past, says
Satarino. This could lead to delays, he says. Because this is Ive's first crack at Apple's
software, it's understandable that there are going to be delays. He's spent six months on a
project that normally takes a year. In the long run it will be interesting to see how this
collaborative approach works. As the org chart above demonstrates, Apple was always a
company with one guy making all the calls. This made product decisions easier. But it also
made them slower at times. Heard from a source that Apple often faced bottlenecks because
everything had to flow through Jobs. And Jobs was the kind of person who would get
intensely focused on one thing, leading to him ignoring other products at the company.
Former Apple employee David Sobotta told us, "If we saw Steve Jobs come into a briefing,
he couldn't talk about anything else, other than the thing he was working on ... He came into
an enterprise sales briefing, and at the time he was working on iMovie. So, we'd be talking
about home movies in the enterprise briefing." In theory, the new organizational structure
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should help certain divisions make decisions more quickly. But, collaboration has its
downside. If everyone is trying to reach consensus on a decision it could lead to big delays.
Apple’s Most Successful Products and Services
iPhone 4, iPad&iPad 2, iPhone, iTunes, PowerBook G4, iPod, OS X, iMac, Quick time, Mac,
Apple II.
PRODUCTS and SERVICES
Apple Store, Mac, iPod, iPhone, iPad, iTunes.
Other Products and Services
Desktops, Xserve, Notebooks.
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Strengths
1. Customer loyalty combined with expanding closed ecosystem. While at first Apple’s
closed ecosystem was a weakness for the business, this has now changed. First, Apple
now has a full range of apps, software and products that are interlinked and support
each other. Second, new products and supplements will be released soon (it), hence
expanding the ecosystem. Third, Apple has a strong customer loyalty, which increases
due to Apple’s closed ecosystem, which, in turn, is supported by customer loyalty. So the
combination of Apple’s expanding closed ecosystem and customers’ loyalty increases
firm’s competitive advantage.
2. Apple is a leading innovator in mobile device technology. Apple has been chosen as the
most innovative business in the world for the 3rd time in 2012. Company’s core
competency of producing innovative products is the strength the company builds upon
and is able to bring the most innovative products to the market.
3. Strong financial performance ($10,000,000,000 cash, gross profit margin 43.9% and
no debt). Apple’s financial performance is one of the best among many companies.
Currently Apple has no debt and is not directly affected by interest rates or credit markets.
Weaknesses
1. High price. Apple’s products cost much more than its competitors devices. Some
critics argue that the price is not justified. When there’s such a fierce competition, Apple
products price becomes a weakness because consumers can easily opt for similar quality but
lower price products.
2. Incompatibility with different OS. The ions and OS X are quite different from other OS
and uses software that is unlike the software used in Microsoft OS. Due to such differences,
both in software and hardware, users often choose to stay with their accustomed software and
hardware (Microsoft OS and Intel hardware).
3. Decreasing market share. The less market share Apple has, the less it can influence its
potential customers and persuades them to jump into using Apple’s closed ecosystem
products.
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Opportunities1. High demand of iPod mini and phone 5. IPod mini sales will increase Apple’s
market share in the tablet market and, will strengthen firm’s competitive
advantage.
2. Itv launch . iTV launch will support Apple TV sales and the products’ ecosystem.
3. Growth of tablet and smartphone markets. Growth of tablet and smartphone
markets is a good opportunity to expand firm’s share in these markets.
Threats1. 2013 tax increases. Tax increases in USA in 2013 will negatively affect Apple.
2. Rising pay levels for Foxconn workers. Pay levels for Foxconn’s workers already
rose 3 times from 2010 to 2012. Foxconn is the main manufacturer of Apple products
and the rising pay level for Foxconn’s workers will likely raise the prices for Apple
products.
3. Breached IP rights. The companies that breach Apple patents might not be
discovered soon and may benefit from it, while weakening Apple at the same time.
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BCG MatrixWhen a firm’s divisions compete in different industries, a separate strategy often must be
developed for each business. The Boston Consulting Group (BCG) Matrix is designed
specifically to enhance a multidivisional firm’s efforts to formulate strategies (David, 2011).
BCG Matrix for APPLE
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Main Competitors of Apple
Samsung
Samsung is making smartphones with very good specification which can compete with
iPhone specification, don't forget that Samsung is big electronics company which ship TVs,
LCD displays, cameras and printers. So they have the required experience and resources to
compete with Apple in hardware market.
Google with Android OS is making a significant competition to iOS market share and they
have enough resources and funding to compete with iOS and they may over take it in the next
few years, no one can ignore that Android is innovative and practical.
Microsoft
The software giant has recently taken a hit from the declining PC market. Microsoft’s
struggling Surface RT tablet also incurred the company a $900 million write down according
to the company’s fourth quarter results.
Other competitors
Apple's diverse range of product offerings means that it competes in many different markets,
each of which may have other major producers that have a significant chunk of market share.
In the smart tablet market, for example, Apple largely dominates with the iPad as of 2014,
but Amazon and Microsoft are still competing with their own smart tablets that have carved
out a niche in Apple's dominant market share. Microsoft also remains one of Apple's
competitors in the computer operating system market, which has suffered with the decline of
the PC market as of 2014. Apart from Samsung, Apple's largest challenger In the smartphone
market, other competitors include Motorola as well as other phone companies that produce
Android or Windows compatible Smartphone. Google is a major Apple competitor in
multiple fronts, including cloud storage, with the Google Drive against Apple's iCloud
service as well as in the wearable technology product industry.
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Marketing Mix
Product
Portable Computers – including Mac products such as Mac Book Pro, iMac, MacBook Air,
Mac Mini, Xserve
Servers – including Xserve, Xsan, MacOS X Ser, MobleMe.
Accessories – including MagicMouse, Keyboard, Led Cinema Display.
Wi-fi Based Stations – including Airport Express, Airport Extreme, Time Capsule.
Developer – including Developer Connection, Mac Program, iPhone Program.
iPod – including iPod Shuffle, iPod Nano, ipod Classic.
iPhone – including iPhone3GS, iPhone3G, iPad.
iTunes – including movies, TV shows, audio books, games.
Periphal products – including Printers, Storage devices, digital videos and cameras.
Price
Apple is a premium brand computer that does not attempt to compete on price. The company
has reduced prices after some initial product launches. It uses skimming and premium pricing
strategies.
The Apple iPad is priced at a minimum of $499.
The Apple iPhone costs begin at $99.
The Apple iPod Classic is priced starting at $249.
The Apple iPod Nano costs $149.
The Apple Mac Book costs $999.
The Apple MacBook Pro is priced at $1199.
The Apple Quicktime Pro for Windows costs $29.99
Apples iPad pricing strategy includes the flexibility to lower the prices if consumer response
dictates such action. This would be consistent with a similar $200 price cut on the iPhone in
2007.
In 2009 Apple announced a reduced cost pricing structure for iTunes – songs will cost 69
cents, 99 cents or $1.29. He said the “vast majority” of the songs will cost 69 cents. Changes
are said to be a response to a slower pace of music downloads.
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Place
Apple, Inc Headquarters are located at is located at 1 Infinite Loop, Cupertino, California.
The Apple Consultants Network includes independent professional service providers and
technology consulting firms that specialize in Apple and third-party solutions. Certified on
Apple technologies, these providers deliver on-site
technology services and support to home users and businesses of all sizes.
Apple service providers are certified technicians, who complete regular Apple training and
assessments, and offer repair services, and exclusive access to genuine Apple parts.
They are located in Asia/Pacific, Africa, the Middle East Europe and Latin America.
Apple has over 200 retail stores worldwide including the US, UK and Canada. Apple recently
opened a new retail store in Shanghai China.
Promotion
Apple, Inc offers special discounts on refurbished MacIntosh computers, iPod Nanos, and the
8GB iPod Touch. In each case a 1 year warranty is included on the all products.
Apple, Inc authorized Training Centers are located throughout the U.S. each provides
instruction in Mac systems, Mac OS X, and Apple’s professional applications. A wide range
of certification exams and courses offer innovative learning opportunities for IT and creative
professionals, educators, and service technicians—delivered exclusively by Apple Certified
Trainers.
The Apple Consultants Network website provides a search tool allowing visitors to locate
nearby certified Mac product consultants in the U.S, Canada, and a number of international
locations.
The online Apple Store offers free shipping for orders over $50.
The online Apple store offers iTunes gift cards.
Apple provides a $100 rebate when you purchase a Mac or specific printers from the online
store.
Apple has packaged back-to-school offers, including some aimed at college students.
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Sales turnover
Highest-ever revenue & earnings drive 48% increase in EPS Growth led by record revenue
from iPhone, Mac & App Store
CUPERTINO, California—January 27, 2015—Apple today announced financial results for
its fiscal 2015 first quarter ended December 27, 2014. The Company posted record quarterly
revenue of $74.6 billion and record quarterly net profit of $18 billion, or $3.06 per diluted
share. These results compare to revenue of $57.6 billion and net profit of $13.1 billion, or
$2.07 per diluted share, in the year-ago quarter. Gross margin was 39.9 per cent compared to
37.9 per cent in the year-ago quarter. International sales accounted for 65 per cent of the
quarter’s revenue. The results were fueled by all-time record revenue from iPhone and Mac
sales as well as record performance of the App Store. iPhone unit sales of 74.5 million also
set a new record. “We’d like to thank our customers for an incredible quarter, which saw
demand for Apple products soar to an all-time high,” said Tim Cook, Apple’s CEO. “Our
revenue grew 30 per cent over last year to $74.6 billion, and the execution by our teams to
achieve these results was simply phenomenal.”
Apple is providing the following guidance for its fiscal 2015 second quarter:
revenue between $52 billion and $55 billion
gross margin between 38.5 per cent and 39.5 per cent
operating expenses between $5.4 billion and $5.5 billion
other income/(expense) of $350 million
tax rate of 26.3 per cent
This press release contains forward-looking statements including without limitation those
about the Company’s estimated revenue, gross margin, operating expenses, other
income/(expense), and tax rate. These statements involve risks and uncertainties, and actual
results may differ. Risks and uncertainties include without limitation the effect of competitive
and economic factors, and the Company’s reaction to those factors, on consumer and
business buying decisions with respect to the Company’s products; continued competitive
pressures in the marketplace; the ability of the Company to deliver to the marketplace and
stimulate customer demand for new programmes, products, and technological innovations on
a timely basis; the effect that product introductions and transitions, changes in product pricing
or mix, and/or increases in component costs could have on the Company’s gross margin; the
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inventory risk associated with the Company’s need to order or commit to order product
components in advance of customer orders; the continued availability on acceptable terms, or
at all, of certain components and services essential to the Company’s business currently
obtained by the Company from sole or limited sources; the effect that the Company’s
dependency on manufacturing and logistics services provided by third parties may have on
the quality, quantity or cost of products manufactured or services rendered; risks associated
with the Company’s international operations; the Company’s reliance on third-party
intellectual property and digital content; the potential impact of a finding that the Company
has infringed on the intellectual property rights of others; the Company’s dependency on the
performance of distributors, carriers and other resellers of the Company’s products; the effect
that product and service quality problems could have on the Company’s sales and operating
profits; the continued service and availability of key executives and employees; war,
terrorism, public health issues, natural disasters, and other circumstances that could disrupt
supply, delivery, or demand of products; and unfavorable results of other legal proceedings.
More information on potential factors that could affect the Company’s financial results is
included from time to time in the “Risk Factors” and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” sections of the Company’s public
reports filed with the SEC, including the Company’s Form 10-K for the fiscal year ended
September 27, 2014, and its Form 10-Q for the fiscal quarter ended December 27, 2014 to be
filed with the SEC. The Company assumes no obligation to update any forward-looking
statements or information, which speak as of their respective dates. Apple designs Macs, the
best personal computers in the world, along with OS X, iLife, iWork and professional
software. Apple leads the digital music revolution with its iPods and iTunes online store.
Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is
defining the future of mobile media and computing devices with iPad.
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Conclusion
The purpose was to analyze growth of a large and well known company. Apple’s success rely
basically on selling a different experience for its computers users than they would have
buying a competitor’s PC, and mostly on entering new segments, mostly digital music, other
than computer, its core business. Networks were also important, especially from the
company’s main opponent, Microsoft, which played a vital role for Apple’s recovery. But all
of these just happened after Steve Jobs returned to Apple, providing the company a sense of
market orientation that perhaps were missing while he was away. It should be also
highlighted that much of his personal beliefs and way of seeing things are presented on the
company’s products. The macro environment has provided adequate opportunities for the
firm to grow since its beginning until nowadays. This study provides theoretical implications
regarding how different factors may affect a company’s growth, and the main practical
implications rely on understanding how important it is for all of these factors to be favorable
for the company, since the negative scenario for one of the factors may have negative impact
over the rest of them.
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Questionnaire
1. Have you purchased the product from Apple Inc?
2. Are you satisfied with the product quality?
3. Are you satisfied with the product service?
4. . How does the price of Apple’s products compare with others in the industry?
5. Why you pay for the product premium price?
6. Where did you hear about Apple’s product?
7. Which part of the product attracts you?
8. Why do you think Apple's products are more popular than competitors?
9. Will you purchase product from Apple in the future?
10. Which sentence would you see describes Apple’s products?
11. Have you ever been in an Apple store? If yes were the "Genius's" (sales staff)
12. What do you mainly use your Apple product for?
13. Why do you feel Apple Inc. is doing so well as a company?
14. What makes them such an innovative company in your opinion?
15. The newest Apple product being released is the iPad. What are your feelings about
this? Do you feel like it would be useful, practical, or worth the money?
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Case Study
Understand the structure and ownership of the media sector
Apple: The Company writing a case study for is Apple. Apple first belonged in the IT
industry. The company was first set up as a IT company and released its first computer in
1976. As the company grew they released more products. Portable computers became
available, then PDA’s. 1998, Apple introduced a new all-in-one computer the iMac. The
iMac design team was led by Jonathan Ive, who later designed the iPod and the iPhone.
Ipad’s, a computer tablet is now available and their latest creation are the Apple TVs
Ownership: Apple was founded by Steve Jobs, Steve Wozniak and Ronald Wayne in 1976.
Steve jobs owned Apple Inc until August 2011, as he then resigned as CEO of the company
and later passed away. As a corporation today, the company is now owned by its
shareholders, or people who invested money in it. For example, Bill Gates owns 51% of the
company. Apple Inc is Vertically integrated. This is when one organization designs and
manufactures everything for the company, therefore all of the profits go straight to Apple. As
a result, they increase their income. There are also disadvantages to vertical integration. One
example of this is can be if the company fails to maintain their finances, they are the only
people affected and will consequently lose more money. Apple Inc owns software and
hardware for the company. iTunes is used to connect the products and purchase various songs
and apps via the iTunes store. Safari is owned by apple which is just as popular as Microsoft
Windows Explorer. The products are also owned by the company. Apple is a great example
of vertical integration because it is one of the most popular forms.
Competitors: Apple Inc’s biggest competitor is Microsoft. This is because they own similar
products within the media. Some examples of these are Internet Explorer and the iPad as
Microsoft has recently released a similar product to this. Another group of competitors are
mobile phone companies. This is because Apple have various iPhones available therefore
they are in competition with companies such as Blackberry, Samsung and Nokia. There are
also competitors for Apple’s computer products. Computer manufacturers such as Toshiba,
Samsung, Acer, Asus, and HP are competitors in computer hardware These competitors
impact on the production and distribution because the company will make sure the products
are at the highest standards therefore the customers will be satisfied and no need to complain
or build a bad reputation of the company.
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Customers: Apple’s customers vary from demographics of any gender aged 12+ of the
upper/middle class. This is because the products are quite expensive and more advanced than
other products within the media therefore the customers have to be willing to pay more then
the average price for a product of similar character. Other characteristics of the target
market for the company can be music enthusiasts, and also professionals in media and
design. In terms of Maslow’s Hierarchy of Needs, Apple’s customers might result in social
needs. This is because someone might want to belong to certain social group and in order for
this to happen, they might feel the need to own a product within the company. Quotes:“Apple
has stated very recently that they have 200 million credit cards registered on iTunes”“59.6
million iPhones sold through June (from SEC filings) and 3.2 million iPads were
sold”“About 8 million iPhones and 4 million iPads were sold during August and July, the
total number of iPod touch sold is 45.2 million.”
Organizational Structure &Implications: There has been changes to the organizational
structure of Apple Inc. Steve Jobs was the CEO of the company up until August 2011 when
he resigned. Later that year he passed away, and Timothy Cook then took over as CEO of
Apple Inc. This is what the Hierarchical Organization Structure looks like today
Controversies Within Apple Inc has been very few controversies within the successful
company. There One example of this is in 2006. The Mail on Sunday alleged that sweatshop
conditions existed in factories in China, where the contract manufacturers operate the
factories that produce the iPod. The article stated that one iPod factory had over 200,000
workers that lived and worked in the factory, with workers regularly doing more than 60
hours of labor per week. Immediately after the allegation, Apple launched an investigation
and worked with their manufacturers to ensure that conditions were acceptable to Apple.
Yearly progress reports have been published since 2008. Although this issue was finally
resolved, there are still some concerns such as; in 2011 Apple admitted that they were finding
more and more child laborers in their factories.
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Bibliography
http://www.marketingteacher.com/apple-marketing-mix/
http://www.gomobilemichigan.org/about/the-mobile-industry.html
http://www.wisegeek.com/what-is-the-mobile-industry.htm
http://arxiv.org/pdf/physics/0601009.pdf
http://howtodo.dissertationhelpservice.com/what-is-research-methodology/
https://en.wikipedia.org/wiki/Apple_Inc.
http://www.bidnessetc.com/subindustry/smartphone-industry/overview/
http://www.cheatsheet.com/popular/3-of-apples-competitors.html/?a=viewall
https://sites.google.com/site/cisjobss2/achie
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