American multinational technology company Apple Inc. was founded in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne and is headquartered in California, designing and selling consumer electronics like the iPhone, iPad, and Mac computers. Apple has experienced tremendous growth, becoming the world's largest publicly traded company, generating $108 billion in revenue in 2011 with over 60,000 employees globally. The company faces intense competition in the dynamic technology industry from companies like Microsoft and faces challenges of maintaining innovation and market leadership.

1. Strategic Analysis
and he indeed did so…
Submitted by:
NILESH A. MASHRU | PGDIBS-2012 | Roll no. 28 | Mumbai, BKC

2. American Multinational Corporation founded on April 1,
1976 by the legendary Steve Jobs, Steve Wozniak & Ronal
Wayne.
Headquartered in California and present globally
Designs & sells Consumer electronics, computer software
and personal computers
Best known for Macintosh computers, the iPod, the iPhone
and the iPad.
World’s largest publicly traded technology company by
market capitalization
$108 Billion revenue in 2011, 60400 employees, 364 retail
stores in 13 countries
World’s most admired company since 2008 as per Fortune
Magazine
Most competitive & fastest changing market space.

3. November 1997 - Jobs introduces a new line of Macintosh April 2010 - Apple begins selling the iPad, a 10-
computers called G3, and a website that lets people order inch touchscreen tablet, and has an 84 percent
directly from Apple. share of the tablet market by year's end.
1998 - Apple unveils the iMac desktop computer. Researcher iSuppli estimates 12.9 million iPads
2001 - Apple opens its first retail store. were shipped as of December 10.
2001 - Apple introduces the iPod, a palm-sized, hard- November 2010 - The Beatles' 13 albums become
drive-based digital music player. available on iTunes, ending years of talks
2003 - The iTunes Store opens, allowing users to buy and between Jobs, Beatles' management company
download music, audiobooks, movies and TV shows Apple Corps and Beatles label EMI Group.
online. January 17, 2011 - Jobs announces that he will
January 2007 - Apple announces the iPhone. The device take another medical leave.
features one button on its smooth face and a virtual February 10, 2011 - Verizon Wireless, a venture of
keyboard. It also introduces Apple TV, which attracts few Verizon Communications Inc and Vodafone
buyers. Group Plc, starts selling the iPhone in stores and
September 2007 - Apple unveils the iPod Touch -- puts an end to AT&T's exclusive contract for the
essentially an iPhone without the phone -- which has phone in the United States.
wireless capabilities and performs much like a portable February 15, 2011 - Apple launches a long-
computer. awaited subscription service for magazines,
2008 - Apple opens its App Store as an update to iTunes. newspapers, videos and music -- a move that
The store features small applications -- from games to could hurt streaming services Netflix and Hulu.
social and business tools -- that add functions to the March 2, 2011 - Apple launches the iPad 2, a
iPhone and iPod Touch. Apple also releases the MacBook sleeker, lighter version of its tablet with a new
Air. dual-core processor, two cameras and, for the
June 2009 - Jobs returns to the company after undergoing first time, it comes in either white or black.
a liver transplant.
2009 - Apple releases the iPhone 3GS. The company has
sold more than 220 million iPods so far.

4. Wozniak’s skill of manufacturing microcomputers
Job’s vision of manufacturing a Personal Computer
Shared Idea of Building & selling personal computers

5. Redesigned the TV Interface computer
including graphics and eventually
colour
Improved case & keyboard
Debuted at the West Coast Computer
Fair on April 16, 1976.
Sales for 1977 totaled $774K
Most expensive of PC of it’s time
Apple III - Introduced in 1980
Focus of Apple III on competing
with Microsoft and IBM in
business arena
Included software for the first time
Faced stability issues & recalled
Never successful

7. The ultimate all-in-one goes all out. It has fun written all over it.
It’s Brilliant. In every sense of the word. It’s the most amazing iPhone, Yet.

8. Strengths Weaknesses Opportunities Threats
• Strong brand name • Business Strategy • Paradigm Shift from PC • Intense Competition
• Aggressive marketing • High Price to Mobile Era • Dynamic business
efforts • Product offering vs • Emerging Markets environment
• Lack of debt expectations • Growth in smartphones & • Risk of International
• Innovation • Low market share in tablets market operations
• Product popularity desktop & laptop • Evolution of digital • Risk of Imitation and
• Design capabilities segment lifestyle piracy
• Ecosystem of products • Corporate Social • Robust outlook for • Recent struggles on IPR
Responsibility Mobile advertising infringement
• Retail presence &
Strategy • Product recalls • Improved standard of
• Absence of Steve Jobs living
• Wide Distribution
• Sense of pride in owners
• Horizontal & Vertical
Integration
• Research & development
• Training to new users

9. Bargaining Power of Suppliers:
Highly saturated industry in hardware
Threat of New Entrants:
components
High capital investments in technology &
Dependence on Intel for chips required for
production
Macintosh. However independence in non-pc
Established brand presence of Apple
devices helps mitigation
High product differentiation
Dependency of Microsoft for mac-compatible
High switch costs
OS ; Apple being 3rd largest seller results in
Dynamic International business environment
low bargaining power of Microsoft
Competitive Rivalry:
Bargaining Power of Buyers:
Large no. of competitors and intense
High number of substitutes
competition
High number of product suppliers
High product differentiation
Low switch costs for consumers
Positive reputation for high quality &
Innovation helps Apple to maintain
perceived uniqueness in eyes of consumers
competitive advantage
Dynamic environment making innovation
inevitable
Availability of Substitutes:
High no. of substitute products
Product positioning & innovation vital for
survival
Strong brand name & loyal customer base
lowers risk for Apple

10. Product Strength & Innovation
Exclusive Apple Stores – Ensure consumer loyalty
Solutions provider & not a mere product supplier
Hip & posh brand image
Product range
Media presence
Consistency
Attractiveness

11. Business Level Strategies Corporate Level Strategies
Product Differentiation Retail strategy
Unique Features R & D at home Strategy
Command Premium Price Branding Efforts
High Customer Service Horizontal Integration by adopting a
Superior Quality digital hub strategy
Create sense of pride to owner Vertical Integration between PC &
Rapid Innovation Music market
Education Sales Focus on competitive advantage
Outsourcing Services Be Unique
Media fodder – maintain brand Moderate to High level of
curiosity Diversification
Maximize economies of scope with
more products on same platform

12. A key to greatness is finding the intersection, or the sweet spot, of where
your passion and strengths, intersect with economic opportunity.
When Apple stayed focused
in balanced way on their
sweet spot, they excelled.
When the focus was on
profits first, they flourished
for a period but then became
arrogant, and began to
descend quickly.
When Apple concentrated
on their passions at the
expense of the practical
needs and of the customer,
they failed.

13. Find your noble passion
Make your passion your customers
Continually invest in your passion and talents
Thinking deeply about the desired future experience of the customer
Don't be confined. Innovate beyond today's realities
Focus on both your customers' functional AND emotional needs
Use mockups extensively so you can visualize
Create simplicity, elegance and beauty

14. S/O W/O
Increase IPhone and related product sales Global expansion through Mexico, Portugal,
through online advertisement. Overall net France and Australia
sales increased by 66% from 2010 Robust outlook for mobile advertising market
Apple’s brand recognition throughout all its provides growth opportunity
markets can strengthen by the offering less Creating departament responsible for recalls
expensive version of each product to appeal to and product warranties to maximize customers
lower income market satisfaction
The company did not pay dividends because Improve brand recall through television ads
it reinvests the capital in the operation of the
business
Focus on B2B sales & promotion of software
S/T
services & reviving revenues of the iPod Purchase voice and data network to complement
the smartphone division will help acquire
W/T stronger market position
Long term agreements between Apple Inc. and Robust financial performance strengthens
the suppliers to guarantee production investors’ confidence and provides capital for
commitments future growth avenues, such as opening stores
Constant promotion of the brand will create and expanding e-commerce throughout the global
stronger awareness and demand for products market.
Promote laptop & desktop range & price them Focused R&D driving innovation and
competitively consolidating its market position. Apple’s R&D
Participation in local communities and charities expenditure was $1,782 mil in 2010, an increase of
to create positive image which was shadowed 33% from 2009. This provides the company with
by lawsuits new technological innovations which can be used
Continue investment in technology in order to in Apple products.
stay ahead of competitors and become a Form a partnership with Google to supplement
market leader the Apple products

15. And He indeed did so…