1.
REPORT
By Averi, Matt, Razz, Reggie & Sean

2.
AGENDA
I. iOVERVIEW
II. ENVIRONMENTAL SCAN
III. iSWOT
IV. COMPETITIVE ANAYSIS
V. MARKET OUTLOOK
VI. Q&A

3.
iOVERVIEW
I. Apple earns industry-specific revenue from two operating segments:
1) Operating System Software 2) Application Software
II. Apple exists in multiple industries
Market Leader

4.
iOVERVIEW
I. Announces iTunes Radio in 2013
Operating at a loss to capture market share from Pandora & Clear Channel (iHeart Radio)

5.
iOVERVIEW
Disruptive innovation in music business model

6.
iOVERVIEW
I. Announces
WATCH II. Announces PAY
COMING EARLY 2015

7.
iOVERVIEW
III. Industry Impact
Shift from leveraging economies of scale to focused operations to differentiate from Apple
“A pivotal first step would be to invent a new POV that it can own independently of Apple (or any other
brands), and make sure it was a unique approach to form and function, not just communications content.”
Source: FORBES Will HP Inc. Be A Dinosaur Or A Disruptor?, October 8, 2014

8.
ENVIRONMENTAL SCAN
Political Factors
Social Factors
iPEST Analysis
Economic Factors
Import penetration in manufacturing sector
Price of computers and peripheral equipment
Consumer Confidence Index (CPI)
Per capita disposable income (note: wages have not increased)
Number of broadband connections (infrastructure )
Corporate profit
Source: IBISWorld (2014) Source: IBISWorld (2014)
Technological Factors
Source: IBISWorld & Gartner Research (2014)
Firms must follow state and federal laws (IP laws)
Streamlined Sales and Use Tax Agreement (SSUTA)
24 states & District of Columbia
E-commerce:
Federal Trade Commission
Department of Justice
Consumer Protection Agency
We are in the midst of a radical shift in living patterns
Urban living
Increase in immigrants
Aging (world) population
Average life expectancy in U.S. is 79 years of age
Increasing adoption of the digital life (integration)
Source: Pew Research & CDC (2014)
Level of technology change is high
New products every 6 months
Industry operators depend on the internet as a selling platform
New developments with social media and apps
Internet of Things (IoT)
Innovations in human-computer interaction

9.
iSWOT
Strengths
Opportunities
Weaknesses
Dependence on cellular networks
Product delays typically due to issues with supply chain
High dependence of iPhone & iPad sales
Source: MarketWatch Source: MarketWatch & Global Data (2014) & Global Data (2014)
Threats
Source: MarketWatch & Global Data (2014)
Increase in demand for wearable technology
iOS expansion to in vehicle devices (smart cars)
Increasing adoption of the digital life (integration)
Source: MarketWatch & Global Data (2014)
Stagnate global economy
Theft of digital content (iCloud images distributed by hackers)
Intense global competitors
Declining sales of iPads
Premium pricing can hinder growth in emerging markets
Lower priced Android devices
Consistent high revenue streams & operational efficiencies
Leader in R&D (3% of sales)
Masters of design to create aesthetically appealing products
Strong brand image & equity
Owns the largest library of music (5 million) & movies (500)
Increase in demand for tables
Enterprise sector allowing personal devices
Mobile payments (iBeacon)
Iphone 6 issues with bending
U2 download backfire (Bono apologizes 10.15.14)

10.
COMPETITIVE ANALYSIS

11.
MARKET OUTLOOK
Computer Manufacturing in the U.S.
Revenue is projected to continue declining
at an average annual rate of 5.2% to total
$11.0 billion in the five years to 2019
The share of consumers that own at least
one computer is anticipated to increase
from 81.7% in 2014 to 87.4% in 2019
The growth of cloud computing (i.e.
software and media delivered over the
internet) means demand for servers will
increase
Industry is declining
Computer Manufacturing in the U.S.
Revenue will increase at an average annual
rate of 7.8% to $30.8 to 2018 billion
Threat of regulation could hamper growth
outlook
During the five next years, the number of
(e-commerce)operators is expected to rise
2.6% per year on average to 5,310
companies
Industry is growing

12.
MARKET OUTLOOK
Industry is declining
Computer Manufacturing in the U.S.
Industry is growing
Online computer & Tablet Sales in the U.S.
Retail Market for Personal Computers
Internet Radio Broadcasting
Other industries
Cell Phone Repair
Design, Editing, Rendering Software Publishing in
the U.S.
Speech & Voice Recognition Software Developers
Source: IBISWORLD (2014)

13.
THANK YOU

14.
Q&A