Apple Inc Case Study

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Behavioral Sciences|
Apple Inc.
|
Group 1 Project |

TABLE OF CONTENTS

Introduction3
External Environment3
Customers3
Suppliers4
Competitors7
Regulatory Environment8
New Entrants8
Substitutes10
Conclusion10

INTRODUCTION

Apple Inc. is an American multinational corporation that designs and markets consumer electronics, computer software, and personal computers. The company's best-known hardware products include the Macintosh line of computers, the iPod, the iPhone and the iPad. Apple software includes the Mac OS X operating system; the iTunes media browser; the iLife suite of multimedia and creativity software; the iWork suite of productivity software; Aperture, a professional photography package; Final Cut Studio, a suite of professional audio and film-industry software products; Logic Studio, a suite of music production tools; the Safari web browser; and iOS, a mobile operating system. As of October 2010, the company operates 317 retail stores in ten countries, and an online store where hardware and software products are sold. As of September 2011, Apple is the largest publicly traded company in the world by market capitalization and the largest technology company in the world by revenue and profit.

Since 1976, when the first Apple I came to the market, Apple has been widely successful at building brand loyalty in Apple products. Apple’s products are meant to compliment each other, which encourages consumers to purchase another product in the brand. Apple has also been smart in selling their products through the educational network. This helps not only to hook students on to Apple products early on, but also to build a “cool” and “hip” image. Apple is consistently coming out with new innovations to keep their products interesting, while also keeping up with the demands of modern technology. The bottom line: Apple delivers outstanding products consistently that receive high consumer ratings, causing consumers to keep coming back for more.

Apple’s innovative products, incredible brand image and success story make it truly admirable. Hence, we have chosen Apple for this project. EXTERNAL ENVIRONMENT
Customers

Apple Inc. as a name is known to have attained a cult status, especially among the tech savvy 21st century youth.

Apple sells in almost all the developed and developing countries of the world, with rapid emergence in the third world as well. All of these countries and cultures have different demand patterns and sensitivities. To this end, buying behavior and buying capacities also vary across nations. To this diverse customer base, Apple provides a whole range of hi-tech personal devices, which are sold on the philosophy of “Buy Different, Think Different”. Thus as it permeates different cultures of the world, Apple as a brand has established a culture of its own. Some other important features, which shape Apple’s strategies, are: * Customers are empowered due to availability of low priced products giving similar features. * The Internet and new media avenues allowing easier information exchange have enhanced information availability. Hence the companies need to be more careful regarding their value proposition * Rapid inter-temporal variation in consumer tastes has influenced companies to race to meet these demands. Also, companies like Apple with sheer innovation have influenced consumer tastes. Now they need to maintain their lead on the S-curve of consumer demand with constant innovation

There is in fact noticed an unusually high amount of brand loyalty for Apple products which has resulted in an emotional bond between its customers and the brand. The reason more and more often cited for this is the company’s constant innovativeness.

Dynamism: Low; because of favorable brand image, high brand loyalty and repeat purchases across different customer classes Richness: Medium; increasing purchasing power and number of potential consumers in the...
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