1. APPLE Inc.
“THINK DIFFERENT”
MATHIVANAN K.
MBA 2014
SOURASHTRA COLLEGE,
MADURAI

2. “Change the World through Technology”
• On April 1, 1976 - Apple Computer Inc.
STEVE JOBS & STEVE WOZNIAK &
RONALD WAYNE (Co- founder)
• Industry: Computer Hardware and
Software, Consumer Electronics
• In 1978, Apple – II (color graphics & open
architecture). Introduction of a 5 1/4 inch
floppy disk drive.
• In 1979, Development of VisiCalc
(spreadsheet program).
• In 1980, launched an IPO (record
breaking after 1956 IPO of Ford Motor
Co.)

3. Products And Figures
Hardware – Mac (personal computer series),
Apple Remote Desktop.
Software - Mac OS X, Mac OS X Server, Quick Time, i Life, i
Work, Logic pro, Cinema Display etc.
Consumer Electronics - i pod, i pod hi-fi, i phone, Apple TV.
Employees - 19,787 full-time ; 3,399 temporary
(March 31,2007)
Retail stores - 183

4. Porter’s 5 forces

5. EXISTING RIVALRY – VERY HIGH
 Windows OS and media player for playing music and video
(Microsoft)
 Competition to Mac OS X (Linux)
 Alternate sources of computer hardware (Dell, HP, Lenovo)
 Small stylish MP3 players (Creative, Samsung)
 Online music stores similar to itunes stores (Napster)
 I-phone segment (Nokia, Samsung , Motorola, HTC)

6. THREAT OF NEW ENTRANTS - LOW
 Streaming audio and video with v-cast (Verizon)
 On-demand online services (similar to i-tunes)
 New entrants with disruptive technology (The
“next Google”)

7. BARGAINING POWER OF SUPPLIERS -
MODERATE
 Suppliers of processors and computer memory
(IBM, Intel) - High
 Strategic alliance/supplier of Mac (Microsoft)
 Supplier of TV and movies (Disney, ABC, Fox,
Sony)
 Sources of music (BMG, Sony, Warner,
Universal)

8. BARGAINING POWER OF CUSTOMERS -
MODERATE
 Customers share music using peer-to-peer
networks without paying for music (Ares, Lime
wire)
 Retailers may pressure for lower prices or better
terms (Distributors)
 Consumers/Businesses may reduce spending on
computers if they fear economic downturns
(Consumer Attitudes & Behaviors)
 Consumer Refresh Cycles. But many Loyalists
(Niche class).

9. THREAT FROM SUBSTITUTES -
MODERATE
 Satellite radio for music (XM, Sirius)
 Entertainment media and music (XBOX, PS2)
 Alternative means to acquire music (Music CDs,
DVDs)
 Alternative sources for videos (Cable, Broadcast,
Theatres)

10. Competitor Environment
• High Competition
• Share of Dell and HP
• Microsoft and Intel-Leaders of Software, ardware
• Phone Industry- Sony, Nokia, Samsung

11. Competitor Environment

12. • Differentiation Strategy
• Innovation
Core Competencies
(In Current Scenario)

13. Differentiation Strategy
• Unique Features and characteristics
• Commands Premium Price
• High Customer Service
• Superior Quality
• Prestige
• Rapid Innovation
Sustainable Competitive
Advantage

14. FF
Value Creation Process
Focus On Education
eMac
Adding Value
iMac
Lifestyle Strategy
Digital Hub
Music Strategy (iTunes)
Video Strategy (iMovie)
Internet Strategy (iTools)
C
o
n
v
e
r
g
e
n
c
e
Apple I,II,III
Mac

15. Sustained Competitive Advantage
Valuable : Innovators
Rare : Strong R & D
Costly to imitate : itunes, Mac OS
Non substitutable : applications,
softwares

16. • Branding
• Innovation
• Differentiated Product
• Superior Quality
• Retail Strategy
Strengths

17. • Less Penetration
• Cannibalization
Weaknesses

18. Opportunities
• High growth potential.
• Line Extension.
• High Potential music phone market
• Strategic Alliances

19. Threats
• Competition
• Substitute Products
• Threat of Suppliers

20. Ansoff Matrix
Existing Products New Products
Existing
Markets
Macbooks, iStation
Macbook Wheel,
Apple TV
New
Markets
Ipod, iPhone iTunes

21. BCG Matrix
STAR
I-PHONE
APPLE MAC BOOK
Ipod
PROBLEM CHILD
CASHCOW DOGS
Apple TV
Mac Mini

22. GE Matrix
Smart Phone Market- I
Phone
Apple software's
Music Player Industry –
I Pod
Personal Computer
- Mac
High
Medium
Low
Strong Medium Weak
Market
Attractivene
Business Strength

23. Corporate Level Strategy
Diversification: Iphone, Apple TV
Backward Integration: Manufacturing of
Semiconductors
Forward Integration: Retail

24. Acquisitions
•Emagic in 2002
-To acquire knowledge and skills
about Music software
•PA Semi in 2008
- Mac Hardware acceleration
- Backward integration
- Skilled Manpower

25. Strategic Alliances
1. Apple – Disney
- To reduce losses of standalone istore
and Disney outlets
- To improve the Disney store
“experience”
2. Apple – Microsoft

27. THANK
YOU