Upload
roiley-biz
View
52
Download
6
Embed Size (px)
Citation preview
GROUP - 2
• Shruti Vyas – 6
• Priyanka Sarda – 30
• Sunita Sur Roy- 44
• Nitin Chinta – 48
• Tarmeen Shaikh- 53
• Savio Pillai - 93
• Megha Jain- 133
Question 1: Trace the History & Apple through
the Years
1st April 1976
Steve Wozniak & Steve Jobs
APPLE - I
A.C. “Mike” Markkula Jr.
APPLE – II1978
IPO – Dec 1980
Entry of IBM 1981
MACINTOSH 1984
John Sculley – New CEO 1985
Job found NeXT
Mac Classic 1990
PowerBook Laptop1991
Apple & IBM – Joint Venture1991
‘Kaleida’ – Multimedia applications
Newton (PDA)1993
Micheal Spindler – New CEO1993
Gilbert Amelio – New CEO1996
Apple acquired NeXT Software1996
Steve Jobs returned as interim CEO1997
Apple launches its website1997
• Jobs announced that Microsoft would invest $ 150mn in Apple
• Also develop its core products like Microsoft Office for Macintosh
Apple launches iMac1998
Apple launches project to create Final Cut Pro1998
A
Apple launches its 1st retail store in McLean, Virginia
2001
Apple launches iPod2001
Apple introduced Mac OS X based on UNIX2001
Apple introduces iPod for Windows2002
Apple launched iTunes Music Store2003
Apple developed web browser – Safari2003
Apple created a video iPod2005
Apple abandoned PowerPC chips & began building Macintosh with Intel Core Duo chips
2005
Apple entered into joint venture – for new flash memory
2005
2007
Apple released Apple TV2007
Apple launched iPhone2007
Macintosh sales increased by 40%2007
Ultra thin mac book Mac pro
MacBook Pro Mac mini
Jobs released ‘Apple TV, take two’2008
Apple operated 215 stores & retail divisions – 19% total revenue
2008
Apple offered the iPod range2008
Apple launched iPhone 3G2008
Question 2: What have been the highlights of Company’s
Performance under various CEOs?
Steve Jobs & Steve Wozniak
Steve Jobs & Steve Wozniak
• 1976 – Apple – I - sales of 200 pieces.• 1978 – Apple – II - sales – more than $1bn • 1980 – Apple sold more than 1 lakh Apple II• 1982 – Apple market share dropped to 6.2%• 1984 – Apple’s net income fell 17 %
1981 1986 1991 1996 1998 2000 2002 2004 2005 2006 20070
5000
10000
15000
20000
25000
30000
3341902
6309
9833
5941
7983
5742
8379
13931
19315
24006
Net Sales ($ mn)
1981 1986 1991 1996 1998 2000 2002 2004 2005 2006 20070
100
200
300
400
500
600
700
800
900
21
128
583 604
310
380
447489
534
712
782
R&D ($ mn)
Net Income ($ mn)
1981 1986 1991 1996 1998 2000 2002 2004 2005 2006 2007
-2000
-1000
0
1000
2000
3000
4000
39 154310
-816
309
786
65276
1335
1989
3498
Operating Income ($ mn)
1981 1986 1991 1996 1998 2000 2002 2004 2005 2006 2007
-2000
-1000
0
1000
2000
3000
4000
5000
66274
447
-1383
261620
46349
1650
2453
4409
Market Value ($ mn)
1981 1986 1991 1996 1998 2000 2002 2004 2005 2006 20070
20000
40000
60000
80000
100000
120000
140000
160000
180000
200000
1223.7 2578.36649.9 2598.5 5539.7 4996.2
5146.4
25892.5
60586.6
72900.8
173426.9
John SculleyTenure : 1985 – 1993
Apple Inc. - Worldwide PC share
John Sculley
• 1990 – worldwide market stabilized to 8%• 1990 – share in education market more than 50% - Apple was most profitable PC company in the world.• The gross profit – 50%• R&D – 9% of sales• 1991 - Invested $ 500 mn to develop next
generation OS• 1993 – Gross margin dropped to 34%
1981 1986 1991 1996 1998 2000 2002 2004 2005 2006 20070
5000
10000
15000
20000
25000
30000
3341902
6309
9833
5941
7983
5742
8379
13931
19315
24006
Net Sales ($ mn)
1981 1986 1991 1996 1998 2000 2002 2004 2005 2006 20070
100
200
300
400
500
600
700
800
900
21
128
583 604
310
380
447489
534
712
782
R&D ($ mn)
Net Income ($ mn)
1981 1986 1991 1996 1998 2000 2002 2004 2005 2006 2007
-2000
-1000
0
1000
2000
3000
4000
39 154310
-816
309
786
65276
1335
1989
3498
Operating Income ($ mn)
1981 1986 1991 1996 1998 2000 2002 2004 2005 2006 2007
-2000
-1000
0
1000
2000
3000
4000
5000
66274
447
-1383
261620
46349
1650
2453
4409
Market Value ($ mn)
1981 1986 1991 1996 1998 2000 2002 2004 2005 2006 20070
20000
40000
60000
80000
100000
120000
140000
160000
180000
200000
1223.7 2578.36649.9 2598.5 5539.7 4996.2
5146.4
25892.5
60586.6
72900.8
173426.9
Michael SpindlerTenure : 1993- 1996
Michael Spindler
• 1993 – Education market share 60% - Desktop publishing 80%• 1993 – $50 per copy of Mac OS - 16% cut down on work force & reduction on R&D cost• 1996 – Apple reported a loss $69 mn• Further layoffs
1981 1986 1991 1996 1998 2000 2002 2004 2005 2006 20070
5000
10000
15000
20000
25000
30000
3341902
6309
9833
5941
7983
5742
8379
13931
19315
24006
Net Sales ($ mn)
1981 1986 1991 1996 1998 2000 2002 2004 2005 2006 20070
100
200
300
400
500
600
700
800
900
21
128
583 604
310
380
447489
534
712
782
R&D ($ mn)
Operating Income ($ mn)
1981 1986 1991 1996 1998 2000 2002 2004 2005 2006 2007
-2000
-1000
0
1000
2000
3000
4000
5000
66274
447
-1383
261620
46349
1650
2453
4409
Net Income ($ mn)
1981 1986 1991 1996 1998 2000 2002 2004 2005 2006 2007
-2000
-1000
0
1000
2000
3000
4000
39 154310
-816
309
786
65276
1335
1989
3498
Market Value ($ mn)
1981 1986 1991 1996 1998 2000 2002 2004 2005 2006 20070
20000
40000
60000
80000
100000
120000
140000
160000
180000
200000
1223.7 2578.36649.9 2598.5 5539.7 4996.2
5146.4
25892.5
60586.6
72900.8
173426.9
Gilbert AmelioTenure – 1996-1997
Gilbert Amelio
• 1996 – Apple incurred a loss of $ 1.6 bn• 1996 – worldwide market share fell from 6%
to 3%
1981 1986 1991 1996 1998 2000 2002 2004 2005 2006 20070
5000
10000
15000
20000
25000
30000
3341902
6309
9833
5941
7983
5742
8379
13931
19315
24006
Net Sales ($ mn)
1981 1986 1991 1996 1998 2000 2002 2004 2005 2006 20070
100
200
300
400
500
600
700
800
900
21
128
583 604
310
380
447489
534
712
782
R&D ($ mn)
Operating Income ($ mn)
1981 1986 1991 1996 1998 2000 2002 2004 2005 2006 2007
-2000
-1000
0
1000
2000
3000
4000
5000
66274
447
-1383
261620
46349
1650
2453
4409
Net Income ($ mn)
1981 1986 1991 1996 1998 2000 2002 2004 2005 2006 2007
-2000
-1000
0
1000
2000
3000
4000
39 154310
-816
309
786
65276
1335
1989
3498
Market Value ($ mn)
1981 1986 1991 1996 1998 2000 2002 2004 2005 2006 20070
20000
40000
60000
80000
100000
120000
140000
160000
180000
200000
1223.7 2578.36649.9 2598.5 5539.7 4996.2
5146.4
25892.5
60586.6
72900.8
173426.9
Steve JobsTenure : 1997 - 2011
Steve Jobs
• 1997 – Mac market had fallen by 11% - Mac clones market sales 20% of mac unit sales. 1998 – iMac sales - 6 mn units - R&D spending increased.2007 – Mac sales - 43% of Apple total revenue -Laptops sales - increased from 45% to 61 %of Apple’s revenue- Leopard sales – 4mn copies- Overall sales – more than $ 1bn
Steve Jobs
• 2007 – 45% of total revenue – iPod + iTunes• iTunes songs downloads:
• 2008 – iPod sold 150 mn pieces - 70% of US market share
Year No. of Songs Downloaded
(99 cents per song)
Total Revenue from iTunes
2003 1 mn 9.9 Lakhs
2008 5 bn 4.95 bn
Steve Jobs
• 2008 – Apple raised its revenue to $1 bn by introducing MS Office in Mac.
- Retail division contributed 19% of total revenue. - sales of 10.3 bn Macs - Apple’s PC share increased to 8.5% (in US) & 2 – 3% (worldwide)
Steve Jobs
• 2008 – 5 lakhs revenue from movies download per day
• 2008 – Apple iPhone market share 19.5% (US) - < 1% (worldwide)
1981 1986 1991 1996 1998 2000 2002 2004 2005 2006 20070
5000
10000
15000
20000
25000
30000
3341902
6309
9833
5941
7983
5742
8379
13931
19315
24006
Net Sales ($ mn)
1981 1986 1991 1996 1998 2000 2002 2004 2005 2006 20070
100
200
300
400
500
600
700
800
900
21
128
583 604
310
380
447489
534
712
782
R&D ($ mn)
Operating Income ($ mn)
1981 1986 1991 1996 1998 2000 2002 2004 2005 2006 2007
-2000
-1000
0
1000
2000
3000
4000
5000
66274
447
-1383
261620
46349
1650
2453
4409
Net Income ($ mn)
1981 1986 1991 1996 1998 2000 2002 2004 2005 2006 2007
-2000
-1000
0
1000
2000
3000
4000
39 154310
-816
309
786
65276
1335
1989
3498
Market Value ($ mn)
1981 1986 1991 1996 1998 2000 2002 2004 2005 2006 20070
20000
40000
60000
80000
100000
120000
140000
160000
180000
200000
1223.7 2578.36649.9 2598.5 5539.7 4996.2
5146.4
25892.5
60586.6
72900.8
173426.9
PEST ANALYSIS
Political
Sociocultural
Technological
Economical
Political
• Foreign Trade Regulations
Sociocultural
• Population demographics• Income distribution• Lifestyle changes• Levels of education
Economical• Money Supply• Disposable Income
Technological• New discoveries /developments• Speed of technology transfer• Rates of obsolescence
Question 3: Do you think Job’s was effective as CEO in
crafting and executing company’s strategy?
1976 - 1985
• Proprietary Designs• Premium Pricing
1997 - 2008
• Integration of art & technology• 1998 – iMac series• Retail stores & Website• Reverse Razor – blade strategy - iPods &
iTunes• Outsourcing• Reenergize Apple’s image• Co-opetition• Upgrades in every 12- 18 months
COMPANY 1 GB- 2GB 4GB- 16GB 30GB- 160GB
8GB-32GB (multi touch)
APPLE $49-$69 $149-$199 $249-$349 $299-$499
SanDisk $40-$70
$80-$200 $350 NA
Sony $45-$60 $100-$300 NA NA
Microsoft NA $130-$180 $200-$250 NA
iPod Competitors: Comparison of models and prices for mp3 players (Aug 2008)
Net sales by products
2007($mn)
change 2006($mn)
change 2005($mn)
Desktops 4020 22% 3319 (3.04)% 3436
Portables 6294 56% 4056 42% 2839
iPod 8305 8.19 7676 69% 4540
Other musical product
2496 32% 1885 109 899
Net Sales (Product wise) ( $ mn)
Power Mac
iMac
Deskto
ps
PowerBook
iPod
iPhones
Periphera
ls
Software
Servi
ces
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
8305
200220032004200520062007
1997 - 2008
• iPhone & AT&T• Inventories• R&D spending
Inventories ($ mn)
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 20070
50
100
150
200
250
300
350
400
450
500
437
78
2033
11
4556
101
165
270
346
Gross Margins of Apple and major competitors in %
1997 2000 2003 2004 2005 2006 20070
5
10
15
20
25
30
35
40
21
28 29 29 30 30
35
2321
19 19 18 1719
38
3129
2725 26
24
AppleDellHP
Still why was apple just a marginal player??
• Cost was very high in comparison to its competitors
• Incompatibility of its products and software with the other products and software
• Overestimated sales leading to unsold inventory
Worldwide PC Market Share
HP Dell Acer Lenovo Toshiba Fujitsu IBM CompaqPackard
Bell Apple
2000 7.8 11.4 3 5.1 7.1 13 4.5 3.5
2001 6.9 12.9 2.8 4.5 6.2 11.2 3.5 2.5
2002 16 15.1 3.2 4.2 5.9 3.3 2.3
2003 16.2 16.7 3.1 3.1 4.1 5.8 1.9
2004 15.8 17.9 3.6 2.3 3.6 4 5.9 1.9
2005 15.6 18.1 4.7 6.2 3.5 4.1 2.2
2006 16.5 16.6 5.8 7.1 3.9 2.3
2007 18.8 14.9 7.9 7.5 4.1 2.6
Question 4: What are the elements of Steve Jobs strategy over the period convened in the case? Compare the strategy of
other CEO’s with that of Jobs.
Name (of the CEO)
Goal / Objective Strategy Tools of Implementation
John Sculley To increase the Net Income / Reduce the Manufacturing Cost
•Taligent – Joint Venture with IBM for new OS •Kaleida - Joint Venture with IBM for multimedia Application•Horizontal and Vertical integration
To increase the Market Share
Penetrating into Educational and Corporate World
• Superior Software + Peripherals• Launch of a low priced product (face competition)•Developed its own proprietary OS•Offered new products every 6-8 months
Name (of the CEO)
Goal / Objective Strategy Tools of Implementation
Michael Spindler
To increase the Net Income / Reduce the Manufacturing Cost
Reinvigorate its core market (education and publishing)
•Cutting the Workforce by 16%•Reduction in R&D spending
To increase the Market Share Internationally
Increasing the users of Mac OS
•Licensing for Cloning Mac OS
Name (of the CEO)
Goal / Objective Strategy Tools of Implementation
Gilbert Amelio To increase Product line
Introduction of Apple into High-margin segment
•Launch of servers, Internet Access Devices and PDAs
He also acquired NeXT software and took the developed OS from them.Also bought back Steve Jobs back to Apple as a part time advisorThere were deep payroll cuts during his time.
THANK YOU