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Apple Inc . A Digital Difference (ADD) Ben Carver Dustin Fleig Daniel Pierce. About us… . Founded April 1, 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne Wayne sold his 10% stake back a few weeks later for $800.00 First company to commercialize the personal computer
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Apple Inc. A Digital Difference (ADD) Ben Carver Dustin Fleig Daniel Pierce
About us… • Founded April 1, 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne • Wayne sold his 10% stake back a few weeks later for $800.00 • First company to commercialize the personal computer • Business has expanded and now company designs and manufatures personal computers, portable digital music players and mobile phones. Also sells a vartiety of sotware, services, perepherals and netwokring solutions
Continued… • Headquartered in Cupertino, CA • Manufacturing facility in Quork, Ireland • Has approximately 21,600 employees world wide
Vision Statement • Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings.
Generic Strategy • Broad Differentiation • While it can be argued that Apple Inc., or more specifically the Mac, can be considered Focused Differentiation. • Apple Inc. as a whole is Broad Differentiation because: • Their cross section of the market • Constant innovation • Many product variations with differentiating features • Ability to offer buyers something different from competitors
Target Market and Customers • Target Market- • Very broad because of Apple’s 6 different product segments • Desktops • Portables • Ipods • Other music related products/services • Iphone and other related products and services • Peripherals and other sales • Typical Customer- • Apple products are tailored to people who need/want products with superior graphics with the latest innovative technology on the market today with affordable prices.
External Environment Analysis • Strategic Group and Weighted Key Analysis
Strategic Group Maps Personal Computers Price Apple HP IBM Dell Innovation
Strategic Group Maps Handheld Phone Apple Blackberry Price Palm Samsung Innovation
Strategic Group Maps MP3 Player Apple Price Zune Samsung SanDisk Sony Innovation
SWOT Analysis • Strengths • Brand loyalty • Only company in the computer industry that designs their own operating system, hardware application software and services • Majority of their profits are foreign markets • Culture of secrecy • Stock price is highest in personal computer industry • NO DEBT • Peripherals
SWOT Analysis • Weaknesses • Iphone cannabolizing Ipod sales • Compatibilty • Long term management (Steve Jobs) • Research and Development Costs • Apple has 20.77 billion dollar stale balance • First version Iphones were “unlocked”
SWOT Analysis • Opportunities • Expansion of Apple TV • Obtain more carriers for the Iphone
SWOT Analysis • Threats • Highly dependant on consumer purchasing based on market fluctuations • High level of competition in competitive markets • Fast moving • Market share (far behind)
Central Problem • The central problems are cannobolization and high switching costs
Symptoms • The Iphone is taking sales away from the Ipod • Market oppurtunities for Ipod and Iphone overlap • Apple has compatibility issues with other hardware and software
Rejected Solutions • Ignore the problem • Continue to allow Ipod to mature • Creating Apple products to compete against the industry standard
Recommended Solutions • Make significant drop in the price of Ipods which will distinguish a difference between the sales of the Ipod and Iphone • Adopt the industry standards and continue to support Microsoft products