Apple Inc. Case Study

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It's only a PowerPoint Outline, sorry we didn't actually write a paper, should still be of some help though.

Apple, Inc. Case Study BUSI 400-003 September 24, 2008

Dominant Economic Characteristics
Large Market Size
Steady Growth Rate
Number of rivals is constant/low
Scope of competitive rivalry is intense
Low differentiation of products
Product innovation is key in competition
No surplus of supply as it relates to demand
Pace of technological change is high
Competition Analysis
Collective Strength of Five Forces on Profitability:
Rivalry among competitors – Strong

Threat of potential entry – Weak

Power of substitutes – Moderate

Power of suppliers – Strong

Power of buyers – Moderate

Driving Forces
Product innovation
Marketing innovation
Changing societal concerns
Attitudes and lifestyles
Increasing globalization
Diffusion of technical know-how across more companies and countries
Noah’s bubble chart for Competitive Position of Major Companies Key Success Factors
Overall Attractiveness & Competitive Environment

Industry attractiveness
high demand for mp3 and digital music
High profit margins
Industry unattractiveness
cost of keeping up to date with technology
Competition is fierce
Current Strategy
Broad differentiation strategy
Unique attributes & designs
Not easily copied
Buyer loyalty
Complementary strategies
Offensive
1st to market
Product innovation
Alliances
Nike+iPod
Intel
Financial Position
Major growth

Financial Performance

S.W.O.T. Analysis
Strengths
Brand Recognition
Pointed Marketing
R&D
Control of Hardware AND Software

Weaknesses
Cost of constant R&D
Cost of switching
Opportunities
iPod vehicle connectivity
Retail store growth

Threats
Microsoft “Sync” in Ford cars
Dell and HP low-budget computers
Value Chain
Weighted Competitive Strength Assessment

Bubble chart from matt????
Strategic Issues Analysis
iPod market maturing

Rising star in the iPhone

What to do about Microsoft?

Maintain image position in market
Strategic Inflection Points
Develop better laptops
Blend trends with products
Build quality assurance above customer expectations.
Strategic Vision & Objectives
Mission statement
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. Vision statement

“To make a contribution to the world by making tools for
the mind that advance humankind.”

Strategic Objectives
Grow computer/laptop share by 10% in next three years.

Maintain current mp3 market share over next 3 years, after this time, reevaluate mp3 market presence in market.

Increase presence in mobile phone industry through innovation of iPhone by 5% of market in five years.

Increase capabilities of OSX and iLife by 7% over 4 years.

Maintain the growing increase in EPS from 20% a year to 30% per year by 2012.

Diversification Recommend
Functional Area Missions and Task Statements
R & D – allocate 10% resources of R & D to create a competitive advantage over the competition’s innovative process Production – develop more efficient, production alliances to increase production Marketing and Sales – develop multimillion dollar advertising campaign in response to Microsoft’s Human Resources – develop incentives for apple employees to maintain customer loyalty

Initiatives
1st Year
Marketing campaign
R & D innovation

2-4 Year
Production
Achieving market share goals
Maintaining a Capable Organization
Critical Positions
Staffing the organization...
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