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8/6/2019 Apple Shahbaz
1/28
APPLE INC.Presented To
Dr.SarwarPresented By:
Shahbaz Idrees
Khubaib BelalUmair Shafeeq
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Industry Scope
Growth in technology industry is high in
emerging market(china,india,Middle East).
By 2010 more than one billion PCs wereused around the world.
Industry is growing with 6.6%(2009)(www.news.cnet.com/8301-1001_3-20002117-92.html)
Pcs shipment increase by 57% and were
expected to reach 70% in 2012.
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Trends
Increased demand for portability.
People used App store for downloading
application. Rapid change of technology almost in 9
months.
Appliance are used for education,cooperate, entertainment, data transfer.
Decrease in MP3 player sales.
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DEEP List Analysis
Demographic
Emerging markets China and India
Use and experience apple software on retail store
280 store in 10 countries Preference shifted towards features phone attractive
hardware design and user friendly interface.
Developers App sales.
Next generation mobile devices.
Encroach on functionality.
Education marked focused.
Home consumer life style.
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Economic Factors
Premium price of Apple s products
Price sensitive buyers loved the prices.
Large enterprises bought directly from buyer.
CPU prices dropped since 1970 30% per year.
Price competition in emerging market
Grey markets (unauthorized use of I Phone)
Subsidized and unsubsidized I Phone
Low cost I phone
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Social Factors
Online music stores discounted prices
Social networking services.
User friendly. Download applications on to the mobile
phone.
New consumer behavior.
1997 launched website for direct sales.
White box channel.
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Technological factors
Advance micro devices, VIA Technology
Key application software
(word processing,graphic,desktoppublishing,internetbrowsing)
3G network in iphone
A4 link Intel Atom (ipad) low power ,fastprocessing speed
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Ecological
Worlds greenest line up of note books that
were energy efficient and used recyclable
materials.
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Porters Five Force Model
Bargaining power of buyers
Bargaining power of supplier (Process chips, graphic card software,pherpheral equipment)
Threat of substitute
Intensity of rivalry (Dell,HP,IBM,Tosheba,Sony)
Threat of new entrant
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Strategic Issue
Apple is facing a projected decline in
earnings per share in 2009 and must
assess the future leadership of the
organization
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KSF
Research and development
Innovation in features and design
Advertisement Distribution network
Brand image
Sales and marketing Ability to effectivelysell products
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SWOT ANALYSIS
Strengths
Brand Loyalty
Steve Jobs strong leader Corporate culture innovation
Research and Development(9%)
Strong distribution network(280stores in 10countries)
Successful advertising campaign
Slogan (The ultimate all in one design)
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Weakness
Apple depends on software of Microsoft.
High price
Mac speed was low as compared toMicrosoft.
Mac Mini had limited memory and few
expansion option. Steve Jobs dependency
Niche Market, Less Penetration
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OPPORTUNITIES
Less expensive new product lines with quality.
New car models with ipod connectivity.
Emerging market(China ,India ,Middle East)
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Threats
Pressure from competitors.
Substitution effect
Technology changes at a rapid rate.
Forced to develop new products.
Short product life cycle.
Economy downfall
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Current Scenario
Sales
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Competitors of PCs
Hewlett Packard (HP)
Acer
DellLenvo
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Competitor Analysis
HP World largest technology company diversifying into services
servers and storage
Strong retail presence through 110000 world wide outlets
Acer & Lenvo Active in emerging market
Use Taiwan based gateway
Acer strength innote books &netbooks
Worldwide PC shipment grew 22% in 2009
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Lenvo
Dominant position in china where it
commanded a 3rd
position of the marketDell
Devoted 1% of revenue to R&D
Contract with Taiwan and china foedesign and testing
Consumer friendly and low cost
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Products of Apple
I pod Sleek design,simpler user interfae,large storage
1000 songs can store
70%market share MP3 market
40% Gross Margin in 2007 I pod touch 3.5inch screen , multi touch graphic interface
I-Tunes Music down load per pay song
I-tune store is the No.1 music store in the world Feb 2010 sold 10 billion songs
8000 moves can be rented or download from Ipod
113000 IPod sold per quarter (August)
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I Phone Development cost 150m
3.5 inch touch screen
In 1st generation sold 6m unit in 5 quarter
3GB,8GB,16GB model
30% of apple total revenue
Capturing 14%market shares
I Pad Use Apple own branded chip A4 like Intel's A tom
450000 IPad sold on its 1st week
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Competitor Environment
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FF
Value Creation Process
Focus On Education
eMac
AddingValue
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
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Apples Problems
Low
MarketShare
Prices TooHigh
LowCustomization
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Differentiation Strategy
Unique Features and characteristics
Commands Premium Price
High Customer Service
Superior Quality Prestige
Rapid Innovation
Sustainable Competitive
Advantage
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Strategic Alternatives
Problem Strategy Alternative
Low Market-Share Price
Differentiation
Extend their
current product
line to includesome products
with a lower price
point.
Ex. Re-launch
Mac Mini
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RECOMMENDATIONS
FOR COMPANY:
Lowering the cost of products and maintainingthe same quality standards
Can form joint ventures
Knowledge Management
More number of retail stores for easy access
Continuous innovation to expand
Be unique and different
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Questions????