1. BY
Parithi Malar USM 13125
Ameerah USM 13091
Ayu Syahriza USM 13093
Teoh E-Jean USM 13136
Norzuliana USM 13122

2. Road Map
Introduction – Ayu
Company Profile – Ayu
Mission & Vision – Ayu
History – Ayu
Strategic Profile – Ameerah
Global Expansion – Malar
Macro Environment Factor (PESTLE) - Zuliana
Micro Environment Factor – E-Jean
Conclusion – E-Jean

3. Introduction
Apple Inc. is an American multinational technology company
headquartered in Cupertino, California that designs,
develops and sells computer electronics, computer software,
online services and personal computers.
Its best-known hardware products are the Mac line of
computers, the iPod media player, the iPhone smartphone,
and the iPad tablet computer.
Apple has continuously come up with innovative products
making it the most valuable company in the world and
leaving behind all its competitors.

4. C O M P A N Y P R O F I L E
 Established: on April 1, 1976
 Founders: Steve Jobs, Steve Wozniak
 Industry:
 Computer Hardware
 Computer software
 Consumer electronics
 Digital distribution
 Key People: CEO - Tim Cook
 Total Revenue: US $ 65.23 billion(FY 2010)
 Profit: US $ 14.01 billion(FY 2010)
 Employees:49,400
 No. of Locations: 317 retail stores

5. MISSION STATEMENT
“ Apple is committed to protecting the
environment, health and safety of our
employees, customers where we
operate. Apple strives for continuous
improvement in our environmental,
health and safety management
systems and in the environmental
quality of our products, processes and
services ”

6. VISION STATEMENT
“ Apple is committed to bringing the
best personal computing experience
to students, educators, creative
professionals and consumers
around the world through its
innovative hardware, software and
Internet offerings ”

7. The Beginning
• Apple’s history starts in 1974 with the
story of Stephen G Wozniak and Steven P
Jobs, young and exceptional people who
began building a computer in their
garage and launched the microcomputer
revolution.
7

8. Founder of Apple Inc
• The founder Steve
Wozniak; a brilliant
engineer, who
developed his own
computer at home
which was the first
of it’s kind

9. Steve Jobs
• Steve jobs (a good
friend of Wozniak’s)
was also interested in
computers and urged
Wozniak to sell his new
home computer
• Jobs and Wozniak
decided to go into
business April 1st 1976
as ‘Apple Computers
Inc’

10. 10
APPLE I
• Released April 1st 1976
• Had 8 KB of RAM
• It was box wood-made with a
basic motherboard inside.
REVOLUTION OF APPLE
APPLE II
•In 1977, Apple II was released for
1298$
• Had color graphics – a first for a
personal computer
• Floppy disk drive added
•Supported the BASIC program
• Had 64 KB of memory

11. 11
REVOLUTION OF APPLE
APPLE III
• Released May 1980
• The Apple III was a business-
oriented personal computer that was
intended as the successor to the
Apple II series, but largely
considered a failure in the market
APPLE LISA
•Released in 1983
•Became the 1st personal computer
sold to the public with a GUI
•Commercial failure due to high price
tag (almost 10,000$) and limited
software it could run

12. REVOLUTION OF APPLE
The Macintosh
THE MACINTOSH I
• Released in 1984
• Although not as successful as
Apple predicted, it soon became
popular with anyone who needed
an easy to use computer with a
mouse and a graphical interface
THE MACINTOSH II
• In 1987 the Mac II was the
first computer to have
computer graphics
• A basic system with 20 MB
drive and monitor cost
about $5200

13. 13
The Macintosh Portable The Power Book 100
Quadra 950
The PowerMac 6100

14. 1974
The idea for Apple
Computers was
BORN

15. 1974
The idea for Apple
Computers was
BORN
1976
First Computer was
SOLD

16. 1984
The Macintosh was
INTRODUCED

17. 1984
The Macintosh was
INTRODUCED
1985
was discharged
Steve Jobs

18. 1986 1996

19. 1998 1999
Apple introduced all-in-one
the iMac
Also Apple unveiled
the iBook

20. And the Innovations continues..

21. Steve Jobs
1955-2011
“The ones who are crazy
enough to think that they
can change the world, are
the ones who do”

22. ST R AT E G I C P R O F I L E
Porter’s Five Forces Generic Competitive Strategy
BEST COST
PROVIDER
High Customer
Loyalty
High Demand
Uniqueness
Focused Differentiation
Strategy , Example :
Samsung
Focused Low Cost
Strategy , Example :
Xiaomi , LG , Lenovo
Overall Low Cost
Provider Strategy ,
Example : OPPO
Product DifferentiationLower Cost

23. ST R AT E G I C P R O F I L E
Value Proposition
 Apple has positioned itself to a certain type of customer, wealthy
people, innovators, people with good jobs, good lifestyle, etc. If Apple
targets the poor, the trendy guys will stop buying Apple. This would
hurt the brand more than the increasing sales because of lower prices,
and in good times, where everybody has more money. Apple would
have the problem that they cannot raise prices, because everybody
expects a cheap Apple.
 On the other hand, there are no really substitution products, there are
no similar machines than we can buy to have the same user experience,
PCs are the same competition to Apple as Ford is to Mercedes. PCs are
the everyday workhorse for the masses; Apple is the elegance for the
minority.

24. Global Expansion
Global Market Share

25. Global Expansion
 The biggest breakthrough in the global market came for Apple
with the unveiling of the iPhone4. It was released in 88 countries,
which was a much smaller lag behind the U.S. introduction in the
past “The shift shows how important overseas sales have become
for Apple, which struggled before the iPhone to become a global
player”.
 Through foreign licensing and partnerships Apple has been able to
expand its brand to market shares that were one untouchable.
Apple has implemented a Supplier Code of Conduct as a direct
derivative of its business dealings with foreign entities.

26. Global Expansion
 At the moment, China is Apple’s focus for global expansion. China is an
emerging market for Apple not only because of the cheap labor, but
because it’s a strong economy with the biggest population on the globe.
This could translate to China being the becoming the largest market in the
world. “Apple’s iPad, iPhone, and other Apple products are made in China
by a $61 billion company named Foxconn. According to Reuters, Foxconn
is the world’s largest maker of electronic components
 Apple has acknowledged in the past that there are many hurdles to get
over before Apple Pay can expand outside the US. Because every country
has a different banking system and regulations, the service will need to
cater its payment solution to each country’s requirements.

27. Apple Inc – PESTLE Analysis
P
E
S
T
L
E

28. Political Factors
• It is reported that more than a half of sales of their
products come from countries other than America.
• Apple Inc manufactures a number of its parts and
products from outside the US, like Czech Republic,
Ireland, China, Korea and Cork.
• The bad political relations between US and the other
world have bad outcomes for the company.

29. Economic Factors
Inflation, recession and currency are three important
economic factors that Apple noticed.
Since Apple Inc products were viewed as luxury products,
therefore customers started pending less on them.
US dollar value keeps fluctuating, however the company
has purchased itself foreign currencies and thus, the
economic effects on the company are minimized.

30. Social Factors
Possessing these items are considered as status symbols in many
societies which have also increased the sales of Apple Inc products.
As the purchasing power of the common has risen in various markets
across the world the purchasing of luxury products have gone up.
As the world cannot be imagined without the gadgets, thus Apple
products have marked their presence on the international market.

31. Technological Factors
• Technology has a short lifetime.That is why Apple needs
to upgrade their product more often so they will outdo
their competitors easily.
• Apple Inc has invested largely in its product research and
development field and thus its products are at the top of
the new innovative products ranking.
• One of the most innovative and technologically advanced
products is the iPod which marked the demise of
walkman.

32. Legal Factors
Apple Inc has been a participant in various
legal proceedings and claims since it
began operation.
In October 2009, Nokia Corporation sued
Apple for Apple's infringement of Nokia's
patents relating to wireless technology
Apple has been in a number of patent
cases with players like HTC and Samsung.

33. Environmental Factors
From reporting the entire carbon footprint to finding
ways to reduce that footprint,Apple takes a
comprehensive approach to environmental
responsibility.
Apple’s commitment to the environment includes
properly disposing of electronic equipment at the end of
its useful life. It responsibly recycle your computers and
displays.
On track towards achieving an ambitious goal: to power
everyApple facility entirely with energy from renewable
sources — solar, wind, hydro and geothermal.

34. Samsung devices
price is cheaper than
iPhone but they can
come out with
products that can
comparable with
iPhone. For example
, iPhone 6 plus and
Samsung Edge 6. Threat – Medium
Samsung is still very strong
competitors and substitute
for iPhone if compare with
Sony Ericson/Oppo/ Xiaomi.
Threat – Low
Apple is continuously
differentiate its
products from its
rivalry.
Threat - Low
APPLE doesn't make the
iPhone itself. It neither
manufactures the
components nor assembles
them into a finished
product
Threat - Low
The more customer a
company has, the less
bargaining power each
customer will have
Buyers
SubstitutesSuppliers
New Entrants
Rivalry
MICRO ENVIRONMENT FACTORS

35. Micro Environment Factors
-due to Apple continuously differentiate its product from its rival.
iPhone have a strong brand preferences and high customer loyalty if
compare with other new entrant due to they have successful develop
the brand name and iPhone have high brand recognition.
iPhone target - customer with high salary range, which is different
target market with other competitor.
New Entrant - Low

36. Threat of substitute- Medium
• Samsung is still very strong competitors and substitute for iPhone
if compare with Sony Ericson/Oppo/ Xiaomi.They are readily
available and Samsung smartphone price is attractive if compare
with iPhone which is slightly expensive in the market.
• In terms of quality, iPhone is so much better than Samsung
because some of iPhone part is unique, even is iPhone
application/software or its quality.
• It is well known Android smartphone is always lag and running slow
but iPhone perform well on this.

37. Supplier Power –Threat Low
• APPLE doesn't make the iPhone itself. It neither manufactures the
components nor assembles them into a finished product.
• Samsung turns out to be a particularly important supplier. It provides
some of the phone's most important components.The demand of
suppliers’ products is medium as iPhone have 26% components are from
Samsung.
• But nwadays, iPhone have reduced the power of manufactures, like
Foxconn, by buying manufacturing equipment and only allowing the
equipment to be used in iPhone devices. Apple also reduced the power of
distributors by taking over retail distribution and product services
through the Apple store.

38. Buyer Power-Threat Low
The more customer a company has, the less bargaining
power each customer will have. And if the switching
cost is high, then buying power substantially decreases.
Apple keep switching cost high by keeping critical
products features same and easily transferable among
devices , for example, contact, calendar, iCloud , iPhoto
and others.

39. How are Industry Rivals Positioned In the
Market
• Samsung devices price is cheaper than iPhone but they can come
out with products that can comparable with iPhone. For example ,
iPhone 6 plus and Samsung Edge 6.
• The technology part for Samsung – Samsung Galaxy S6 has 3Gb
ram but iPhone 6 plus only have 1 Gb.You can also charge
Samsung's new phone wirelessly with a charging pad instead of
plugging it in. Apple iPhone need to be plugged in to charger.
• For device backup part, it can backup everything using iCloud and
Samsung need to backup by manually.

40. How toTHINK DIFFERENT
Conclusion
For more than 35 years apple has been a
trends set company able to foresee the future
of domestic computers and consumers
electronics, it will continuing it because
apple’s others name is innovation and apple
know,