Company Profile Main Competitors by Business Fields Sales Mix of Apple Core Products Market Share by Tablet & Smartphone Vendors Business Model Canvas SWOT-Analysis Porter's five forces on APPLE Strategy Integration Model Key to Success

1. The Strategy of the most valuable company in the world
by:
Mehmet Hasani
APPLE Inc.

2. Presentation Content
§ Company Profile
§ Main Competitors by Business Fields
§ Sales Mix of Apple Core Products
§ Market Share by Tablet & Smartphone Vendors
§ Business Model Canvas
§ SWOT-Analysis
§ Porter's five forces on APPLE
§ Strategy Integration Model
§ Key to Success
25 Juni 2015
Strategic Management - Apple
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3. Company Profile (1)
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Founded:1976 by Steve Jobs • Steve Wozniak • Ronald Wayne
Key People: Arthur D. Levinson (Chairman) • Tim Cook (CEO) • Luca Maestri (CFO)
Industry: Computer hardware • Computer software • Consumer electronics • Digital distribution
Products: iPhone • iPad • Mac • iPod • Apple TV • Apple Watch • OS X • iOS• iLife • iWork
Services: Apple Store • Mac App Store • iOS App Store • iTunes Store • iBooks iCloud
Number of locations: 453 Apple retail stores in 16 countries
Number of employees: 92,600
Revenue: US$ 182.795 billion (2014)
Operating income: US$ 52.503 billion (2014)
Net income: US$ 39.510 billion (2014)
Total assets: US$ 231.839 billion (2014)
Total equity: US$ 111.547 billion (2014)
Enterprise value: US$ 743.080 billion (2014)
APPLE PRODUCT TIMELINE (till 2010)

4. Company Profile (2)
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 have no “real“ official statement for the mission/vision of the Enterprise
§ Here are some quotes from Tim Cook (CEO) to the mission & vision of Apple
Mission & Vision statement Tim Cook
§ We believe in simple, not the complex productd, which can be used intuitively.
§ We believe that we need to own and control the primary technologies behind the products we make.
§ We participate only in markets where we can make a significant contribution.
§ We don’t settle for anything less than excellence in every group in the company, and we have the
self-honesty to admit when we're wrong and the courage to change.
§ We believe in deep collaboration and cross-pollination of our groups,
which allow us to innovate in a way that others cannot
§ We believe in saying no to thousands of projects so that we can really
focus on the few that are truly important and meaningful to us.
WEB Megatrends
§ Collaborative Working: Colaborate the iOS, OSx and Watch OS . . .
§ Big Data: Handle data from the Apple ID • Health kit . . .
§ Internet of Things: Apple TV • Apple Watch • Home Kit • Health kit . . .
§ Open Inovation: make SWIFT Open source • Home Kit • Health kit . . .

5. Main Competitors by Business Fields
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§ In the aspect of PERSONAL COMPUTERS
§ MacBook (Pro, Air)
§ iMac (5K)
§ Mac Pro (Mini)
§ In the aspect of TABLET
§ iPad
§ iPad mini
§ In the aspect of SMARTPHONES
§ iPhone 6
§ iPhone 6 plus
§ In the aspect of ENTERTAINMENT AND APPLICATIONS
§ iOS, OS X
§ iTunes, AppStore
§ Apple TV
§ Car Play
§ In the aspect of MOBILE PAYMENTS
§ Apple Pay
VS.
VS.
VS.
VS.
VS.

6. Sales Mix of Apple Core Products
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68%
12%
10%
3% 5%
2%
u iPhone
u iPad
u Mac
u iPod
u iTunes, Software & Services
u Accessories
0
10
20
30
40
50
60
70
80
Q1
'07
Q2
'07
Q3
'07
Q4
'07
Q1
'08
Q2
'08
Q3
'08
Q4
'08
Q1
'09
Q2
'09
Q3
'09
Q4
'09
Q1
'10
Q2
'10
Q3
'10
Q4
'10
Q1
'11
Q2
'11
Q3
'11
Q4
'11
Q1
'12
Q2
'12
Q3
'12
Q4
'12
Q1
'13
Q2
'13
Q3
'13
Q4
'13
Q1
'14
Q2
'14
Q3
'14
Q4
'14
Q1
'15
Sales of  Products (in millions)
Sales
revenue
ratio
(Q1’15)
§ The three core products (iPhone 68%, iPad 12%, MAC 10%) have a
reveneu share from 90%**
§ Within 4 years* the number of sold iPhones increased 358% to 74.47 million pieces**
§ The iPad increased 192% to 21.42 million sold pieces** and become the market leader*
§ 33% growth recorded the MAC to 5.5 thousend sold** computers.*
* Q1‘2011 - Q1‘2015
** Q1‘2015

7. Market Share by Tablet & Smartphone Vendors
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0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
Q2
'11
Q3
'11
Q4
'11
Q1
'12
Q2
'12
Q3
'12
Q4
'12
Q1
'13
Q2
'13
Q3
'13
Q4
'13
Q1
'14
Q2
'14
Q3
'14
Q4
'14
Q1
'15
Apple Samsung Amazon Asus Lenovo Other
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
Q2
'11
Q3
'11
Q4
'11
Q1
'12
Q2
'12
Q3
'12
Q4
'12
Q1
'13
Q2
'13
Q3
'13
Q4
'13
Q1
'14
Q2
'14
Q3
'14
Q4
'14
Q1
'15
Apple Samsung LG* Lenovo*
ZTE* Huawei* Sony* RIM*
HTC* Nokia* Xiaomi* Others
Market share by TABLET VENDORS
§  market share is decreasing 34% (Q2‘11 – Q1‘15)
§ market share is distributed to new competitors
§ Samsung is the biggest competitor 19% (Q1’15)
§  is still the market leader with 27% (Q1’15)
§ iPad Turnover: $ 8.9 billion à 11,8 % from the total
Turnover $ 75.5 bill (Q1’15)
Market share by SMARTPHONE VENDORS
§  market share is fluctuating between 15% - 18%
§ Samsung is the actual market leader with 24,5% (Q1‘15)
§ Samsungs market share is decreasing
§ iPhone Turnover: $ 51.18 billion à 68% from the total
Turnover $ 74.5 billion (Q1’15)
Apple
Google
Microsoft
US$ 247 Billion
US$ 173.65 Billion
US$ 115.5 Billion
the world's most valuable brand (Q1 2015)

8. Business Model Canvas
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h#p://api.ning.com/files/4iqR7n6daXUgClZnZEcI145Xp91y67e0OGUpGsdF7sFysifKFNJiRhvDDx9WrRRObWMRxTt7SQ0DbrVhilOqhNYRv1UHp4h/BusinessModelCanvas_Apple.jpg

9. SWOT-Analysis on Apple
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§ Customer loyalty combined with expanding
closed ecosystem
§ Apple is a leading innovator in mobile device
technology
§ Strong financial performance
§ Brand reputation
§ Retail stores
§ Strong marketing and advertising teams
STRENGHTS
§ High demand of iPad and iPhone
§ Emergence of the new provider of
application processors
§ Growth of tablet and smartphone markets
§ Obtaining patents through acquisitions
§ Strong growth of mobile advertising market
§ Increasing demand for cloud based services
OPPORTUNITYS
§ Rapid technological change
§ Strong dollar
§ Android OS growth
§ Samsung Galaxy Phone growth
§ Competitors moves in online music market
THREATS
§ High price
§ Incompatibility with different OS
§ Decreasing market share
§ Patent infringements
§ Further changes in management
§ Defects of new products
§ Long-term gross margin decline
WEAKNESSES
h#p://www.strategicmanagemenJnsight.com/swot-­‐analyses/apple-­‐swot-­‐analysis.html

10. Porter's five forces on APPLE (1)
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1. Bargaining power of CUSTOMERS
§ keeps switching costs high by keeping critical products features same and easily transferable among
devices, i.e. contacts, calendar , pages, numbers, iCloud, iPhone, iMovie, iOS ...
§ to increase Apple‘s stickiness, the company carefully broadens ist innovative product flow. (from iPod to
iWatch, but always on iOS)
low
Competitive
rivalry
within an
INDUSTRY
Bargaining
power of
CUSTOMERS
Bargaining
power of
SUPPLIERS
Threat of new
ENTRANTS
Threat of
Substitute
PRODUCTS

11. Porter's five forces on APPLE (2)
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2. Bargaining power of SUPPLIERS
§ reduced the power of chip makers by designing its own chips
§ reduced the power of manufactures, like Foxconn, by buying manufacturing equipment and only allowing
the equipment to be used for Apple products
§ reduced the power of distributors by taking over retailers and product services through the Apple Store
3. Threat of new ENTRANTS
§ Apple has a strong brand image, innovation and customer service – making it difficult for new entrants to
compete against
§ Tim Cook‘s supply chain expertise is a great defense against low end disruption from new entrants. New
entrants will have difficulty matching of beating the supply chain cost structure
4. Threat of Substitute PRODUCTS
§ Mitigates the effect by selectively making products which might ultimately replace the MacBook or the
iPhones. E.g. wearables and simple, cheaper version of the MacBook
5. Competitive rivalry within an INDUSTRY
§ has avoided price-based competition thus far by staying away low end markets where price is the main
differentiator
§ Products never go on sale by generating a superior product to Android phones and rival tablets it
compete based primarily on quality, service and unique ecosystems.
medium
medium
medium
low

12. Strategy Integration Model
§ The Strategy of Horizontal integration:
§ Shorter Product Life Cycles are the first step to offer existing customers to buy new Product
with the latest technology
§ New creative designes and new Innovative Technologies attract existing costumers also new
customers to enter the world of Apple products à must-have-factor
§ Enter new regions and countries to deliver the Products to enter new customers
§ Enter new Markets which are comparable with the existing Product Line to offer new Services
and Products à Home kit • Health kit • Apple Watch • ...
§ The Strategy of Vertical Integration:
§ Offer Services as the App Store, Mac App Store or Watch App Store to sell Apps with a profit
share for apple and 3rd party developers.
§ Owner of an Apple Product have to use Apple Products/Services eg. To manage Music u need
iTunes à Apple expect that the customer by his music tracks via iTunes à Closed-Eco-System
§ Introduce Apple Retail Stores with 3rd party accessories and Apple products for a closer
customer relation and a excellent support with a grade experience
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13. Key to Success
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NEW PRODUCTS
INNOVATIVE + HIGH VALUE PROPOSITION
APPLE
“FANTASTIC“
HIGH CUSTOMER
SATISFACTION
CUSTOMER
LOYALTY
https://oneboldmove.com/wp-content/uploads/2013/10/Loyalty.jpg

14. References
Company Profile:
https://en.wikipedia.org/?title=Apple_Inc.
http://www.finanzen.net/aktien/Apple-Aktie
Mission & Vision
http://examples.yourdictionary.com/best-examples-of-a-vision-statement.html
http://alvinalexander.com/blog/post/mac-os-x/apple-business-philosophy-mission-statement
Competitors form Apple:
http://www.forbes.com/sites/timworstall/2013/09/06/apples-real-competitor-is-apple-itself-and-its-just-bought-that-competition/
http://www.statista.com
Business Model Canvas:
http://businessmodelhub.com/photo/apple-business-model-canvas
SWOT-Analysis on Apple
http://www.strategicmanagementinsight.com/products/swot-analyses/apple-swot-analysis-2014.html
Market analysis on Apple:
http://www.statista.com
http://de.statista.com/statistik/daten/studie/327274/umfrage/quartalsumsatz-von-apple-nach-produktgruppe/
Porters Five Forces
http://de.slideshare.net/sophlee/using-porters-5-forces-on-apple
Figures:
Apfel: http://www.it-inftech.de/wp-content/uploads/2014/01/apple_bite2.jpg
happy customer: http://blog.sogosurvey.com/wp-content/uploads/2012/05/sogosurvey1.gif
Loyalty: https://oneboldmove.com/wp-content/uploads/2013/10/Loyalty.jpg
Apple Timeline: www.techtimely.files.wordpress.com/2011/03/timeline-of-apple-milestones-and-key-product-launches.png
Business Model Canvas: http://businessmodelhub.com/photo/apple-business-model-canvas
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15. Thank You