Download - Apple Inc. 2008 Case Study
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APPLE INC.
( MBA 660 USM)
Presented By:
Jennifer Cao
Mercy Antony
Tejal Sinora
Lashunda 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 Competitive Advantage
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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)
Convergence
Apple I,II,III Mac
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Technology Development
New Product Ideation Designing/ Funding Product Creation Diffusing products across company
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Value Chain
Inbound LogisticsOperations Distribution Sales and Marketing
Service
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• Apple employs a Product Differentiation
• Drawbacks as a result of their strategy include:– Not appealing to Price Conscious Consumers – Risk of Imitation by Competitors– Risk of Change in Customer Taste
Apple’s Strategy
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Apple’s Problems
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Strategic Alternatives
Problem Strategy AlternativeLow Market-Share Price
DifferentiationExtend their current product line to include some products with a lower price point. Ex. Re-launch “Mac Mini”
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Two Fold Agenda
• Continue to focus on niche market• Set up for Job’s 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????