Apple Case Study 14

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Executive Summary
Apple Computers has maintained an image synonymous with stunning modern design, appealing usability and durable functionality. As the present trend is shifting away from the dated look of technology of the past, and moves towards a sleek fashionable design, the consumer is becoming more tech savvy and more conscious of their physical appearance. As a result, Apple’s appeal has grown greater in recent years. A leader is design and functionality, Apple can take advantage of the consumer’s desire to be stylish while marketing a new line of trendy products that appeal to the market’s shift towards healthy living as well. In an attempt to combine the sleek elegant design of their current products and blending it with the trendy look of Lululemon’s stylish fitness clothing, Apple, has created a garments line that will appeal to the Stylish and active consumer while merging it with the functional design of fitness devices. Since the bridge between fitness and technology has already been built, Apple can expand on both to integrate them into one product. Using a sophisticated look and incorporating health monitoring systems into a hip and modern concept sure to please tomorrow’s consumer.

Company Description
Apple inc. (formally Apple Computers Inc.) Is a Manufacturer, Designer and Seller of various consumer electronics including personal computers, media devices (including the iPod, iPhone and many other devices), accessories and peripherals as well as the sales of media (including music, video and many other entertainment mediums) and software to support the previously listed items, including operating systems, music and video applications and various other resources. It also offers connectivity and wireless services. The company has (as of September 2007) 197 retail stores in the United States, Canada, Japan, Italy and the United Kingdom. In December 2007, Apple posted revenue of 9.6 billion. Apple shipped 2.3 million Macintosh computers and 22.1 million iPods in their first quarter. In their past quarter Apple reported the highest revenue and earnings in their history.

Strategic Focus and Plan Mission/Vision
“Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market with its revolutionary iPhone.”

It is suggested that Apple Inc. increase sales from 9.6 billion in 2008 to 11.2 billion by 2010.

to create a new combined brand loyalty using the exsiting apple and lululemon markets as the base market holdings, thus increasing the new products profit adding 30% to the current profit over the next 2 years.

Competitive Advantage
Apple’s advantage in creating this new product, is based on its already present loyal market, by currently offering high quality simple and intuitive design and make it accessible to the average consumer, without compromising its elegant and attractive exterior. Their high quality products are of the utmost calibre and are extremely reliable pertaining to security and durability. Apple’s products are already a status symbol and have an association with the “cool”, and their new products will continue to uphold this representation.

Situation Analysis
Internal Analysis

Steve Jobs is the co-founder and present CEO of Apple Inc. In 1984 he resigned from the company due to tension between Jobs and then CEO John Sculley (formally of Pepsi). In 1997 he returned launching Apple Inc. into a widely recognized and successful company on the world stage. Jobs, whose resume includes such achievements as co-founding Oscar winning...
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