iLiberty-The Licensing of OS X Leasing out the Mac Operating System, OS X, to outside PC makers.Leasing out the Mac Operating System, OS X, to outside.

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<ul><li><p>iLiberty-The Licensing of OS XLeasing out the Mac Operating System, OS X, to outside PC makers.iLiberties would have the same internal components.All manufacturing and R&amp;D would be done by the PC companies</p></li><li><p>Overall benefits for Apple from this strategy Increased sales with extremely high profit margins.Increased sales of software and peripheral hardware across the board.Expanding cash flow to continue Apples policy of technical innovation.</p></li><li><p>Benefits of Licensing Taking advantage of others large and effective marketing campaigns.Taking advantage of others superior production efficiencyCompeting for school and company contracts.</p></li><li><p>How this changes Apples strategy Apples current strategy: leveraging their superior operating system to boost hardware sales.Old focus: HardwareNew focus: Operating SystemProduction of lower end hardware.</p></li><li><p>Why switching over from PCs to iLiberties is worth it to the consumer:The iLiberties will be less expensive and the OS will be of a higher quality than those of the PCsMac OS X is more hacker proof and virus proof than Microsoft Windows XPOS X is extremely intuitive and easy to learnWide availability of software for Macs</p></li><li><p>SWOT Analysis: Strengths In 2004 Apple had $2.96 billion in cash available for investment in new technologies. It has a loyal customer base that is accustomed and comfortable on its OSX operating system.High quality operating system and hardware/peripheral products are stable, reliable and virtually virus free. </p></li><li><p>SWOT Analysis: WeaknessesDoesnt get its products the exposure they deserve The company has been struggling in recent years to keep up market share.Apples quality over quantity motto doesnt permit the production of cheaper PCs at a lower level of quality.</p></li><li><p>SWOT Analysis: OpportunitiesMicrosofts weakening grip on their market shareThe Windows operating system has many flaws that make it prone to viruses and security breaches. Technological solutions to this are not an option.Profit margins are extremely high with Operating Systems.</p></li><li><p>SWOT Analysis: ThreatsWindows continues to solidify its status as the featured operating systemApples market share in the computer market continues to decline.Its current situation and its future with its market share. </p></li><li><p>Advertising MediumsTelevision</p><p>NBCThe Apprentice 6:00 p.m. NewsFoxThe OCMTVThe NewlywedsMTV Video Music AwardsThe Real WorldESPN and The WBHourly Commercials</p></li><li><p>Advertising MediumsNEWSPAPERSThe New York TimesEducation SectionTechnology SectionBusiness SectionMAGAZINESSeventeenDisney MagazineSports Illustrated</p></li><li><p>i Thinki Libertyi Createi Learni Plani Questioni Playi Changei Designi Inventi Explorei Challenge</p></li><li><p>Target Cities and PopulationsSales Representatives</p></li><li><p>Marketing FinancialsNEW YORK TIMES (5 year cost)1st 5 months: $66,680.00 1st year: $188,424.002nd year: $144,124.803rd 5th years: $169,505.28 (total)5 year total: $502,054.04MAGAZINES (5 year cost)Seventeen: $277,140.00Disney: $109,850.00Sports Illustrated: $960,000.00</p></li><li><p>Marketing FinancialsTELEVISIONAllotted $600,000.00 per 30 second commercial, averages depending on time slotsTelevision Total (5 year cost): $45,000,000.00</p><p>Total Marketing 5 year Cost: $ 79,000,000.00</p></li><li><p>How this will affect the sale of Apple made MacsWe do not expect sales of Apple made Macs to dip.Different target markets for iLiberty and traditional Macs. iLiberties target: Consumers for which price is most important.Apple made Macs target: Consumers who desire superior quality and performance.</p></li><li><p>Survey ResultsPeople who rate quality as the most important differentiator: 62%People who reported spyware, adware, or virus problems on their computers:Mac Users: 4%PC Users: 69%PC Users who said they would switch away from Windows if an alternative was available: 51%</p></li><li><p>FinancialsWe have the ability to finance this venture through debt due to our low debt-to-equity ratio.</p></li><li><p>FinancialsExpected return on sales High profit margin</p></li><li><p>Financials</p></li><li><p>Financials</p></li><li><p>Financials</p></li><li><p>Financials</p></li></ul>


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