Apple Computers

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Table of Contents

Introduction……………………………………………………………..3 Chapter 1………………………………………………………………..4 Chapter 2………………………………………………………………..4 Chapter 3………………………………………………………………..8 Chapter 5……………………………………………………………….10 Chapter 6……………………………………………………………….11 Chapter 7……………………………………………………………….12 Chapter 10……………………………………………………………...14 Chapter 9……………………………………………………………….15 Chapter 8……………………………………………………………….16 IRMe’s………………………………………………………………….18 Points of Interest…………………………………………....…………..19 Works Cited.………………………………………………...………….21

Apple Computers

Ticker Symbol: AAPL
Exchange: NASDAQ

Introduction

For my theory in practice report I have decided to analyze Apple Computers. The main reason that I am interested in analyzing this company is that I would like to invest in the company’s stock. I have been tracking this company for about six months, watching the ups and downs of the company’s stock, and trying to learn as much about the company as possible. I have also studied this company’s marketing process and environment. My initial interest in Apple Computers began two years ago when I made the switch from PC to Mac; upon making this switch, I realized that the Mac is a far superior product. Since then I have watched as Apple Computers quickly gained brand equity as well as market share. Now with the iPod phenomenon, Apple Computers is a very unique company to observe.

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Chapter 1
Company Description
Steve Jobs and Steve Wozniak created Apple Computers Inc. in 1977; their goal was to make and sell personal computers. Today, Apple is still dedicated to this goal. Apple’s mission statement is: “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” (Apple Investor Relations, 2006). Apple has the belief that the computer can be the digital hub of everybody’s life, linking personal, school, and business.

Emergent Strategy
Though Apple’s initial intent was to sell personal computers, it has recently found huge success with the iPod digital music player. The enormous success of this device has shifted the focus of Apple’s business toward maintaining dominance in the digital music player market. Recently, the iPod’s market share has been estimated at 92.1 percent and rising (Becker, 2004). Apple had no idea that the iPod would be such a great success, so this decision can be seen as an emergent strategy. Because Apple is the number one producer of digital music players, it can use the iPod product to gain Apple brand recognition. By using the iPod to gain brand recognition, Apple can increase sales of its desktop and laptop computers. According to Forbes.com, 16-23% of PC users who own iPods are estimated to switch to Apple computers this year (“Apple Could Grow Global PC Market Share To 5% In 2005”, 2005). This strategy will help Apple gain market share in the personal computer market. Currently, Apple’s market share in the desktop market is 2.88% domestic and 1.75% worldwide; in the laptop market Apple’s market share is 4.99% domestic and 2.93% worldwide (Dalrymple, 2005).

Chapter 2
Industry Definition
Apple Computers competes in a variety of different industries; however, its main business operations are in the domestic personal computer assembly industry. This industry includes the production of products such as desktop computers, laptop computers, and portable computing devices. Scope

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The major players in this industry are Dell, HP, Gateway, IBM, Apple, Sony, and Acer. These companies compete on a variety of levels. Strategic groups are formed depending on the sales model the company uses (either direct, retail, or both) and the standard it uses (either the Wintel standard or OS X). This division places Apple in its own strategic...
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