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Apple Case Study
Apple Case Study

Part I: Overview (Ren, Xinxin)
Introduction
Apple Inc.

Apple Inc.

Apple Inc.

APPLICATIONS:

1

MAC

2

iPad

3

iPod

4

iPhone

5

iComputer

6

iTV

Mission Statement of Apple
Inc.
1. The best personal computing experience to students, educators, creative professionals and consumers
2. Enhance resources for future generations and for continuous improvements Customer Profile
1.50% of all households across the US and Europe
2.36% of people claim to be regular users of Apple devices

Business Situation
1.1976, first highly successful mass-produced personal computer 2.2005, 70 % of the hard-drive
MP3 player, > 40 % of the flash based player market
3.2014, 41.3% of smartphone in
US

Problem Solution
Step#1: Believe in the Simple Apple:

The arrogance of simplicity
01

Apple’s design process

02

Simplicity & Choices

Problem Solution
Step#2: Design a full experience

Apple adopts a comprehensive approach
01

Apple re-legitimize vertical integration

02

Apple’s vertical integration offers three competitive advantages

03

The digital music revolution

04

Apple’s vertical integration in h/w for consumer electronics

Problem Solution
Step#3: Look customers in

iTunes’ goal is to lock the consumer in
01

iTunes revenues are insignificant

02 App store revenues are a drop in the bucket

Problem Solution
Step#4: Sell at a premium

Apple’s revenues come from high margin h/w products
Apple’s profit comes from margins
01
in h/w(iPad)
H/w drives Apple’s gross margin
02

Problem Solution
Step#5: Cross-sell your product line
Apple brand appeal drives its product line
01

Who is the iCustomer?

02

iPod and iPhone drive Mac sales

03

Integration reinforced by retail strategy 04 iCustomers will drive Apple’s sales
05

How did apple cross the chasm?

Part II: Porter's competitive forces model
(Dang, Jiyin)
APPLE INC

Organization Structure of Apple

Communication is created in the lower levels

Operational elements are reported to the regional
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