Strategy Analysis of Apple Ipod

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Jaipuria Institute of Management



- SMGT -I -



Apple's motto, "Think Differently" is a concept that the company does very well by creating innovative products that continue to define the world of computer design. Other computer manufacturers have attempted for decades to replicate the iconoclastic appeal of the Apple design. None have succeeded in the manner of Apple.

When Steve Jobs assumed the post of CEO in 1998, he re-revolutionized the entire company. Apple introduced the iMac and iBook product lines for the more basic computer buyers and the PowerBook and G series computers for the advanced purchasers. Apple continues to forge ahead in design with the introduction of the iPod digital music player and the iTunes Web site for the sale and download of music.

Among giant rival firms, such as IBM, Apple is on the forefront of a revolution of technology, integrating music, images, and animation.

Brief History
• Established in 1976 by Steve Jobs and Steve Wozniak in California. • For funding Wozniak sold his Hewlett Packard scientific calculator. • Raised a net start of $1300.
• Apple delivered the first Apple I to hobbyists.
• Apple quickly earned $774,000.

Vision 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. 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.

Mission Statement

Apple Computer is committed to protecting the environment, health and safety of our employees, customers and the global communities where we operate. We recognize that by integrating sound environmental, health and safety management practices into all aspects of our business, we can offer technologically innovative products and services while conserving and enhancing resources for future generations. Apple strives for continuous improvement in our environmental, health and safety management systems and in the environmental quality of our products, processes and services.

Corporate Strategy
• Apple Inc. is a company that is vertically integrated, designing its own operating systems software and hardware, and selling these products through its own retail stores. • To retain an edge in the highly competitive personal computer and consumer electronics markets, Apple’s stated philosophy is to increase investments in research and development, as well as marketing and advertising to extend market position. Marketing Strategy

• Committed to bringing the best portable music device and mobile communication experience for people of all ages. • Innovative product designs and styles.
• Adhere to customer preferences in size, capacity and weight. Target Market
• Primary Target Market: Teens and Young Adults to age 29. • Secondary Target Market: Adults ages 30+ .
Problems with other MP3 players…..
Communication & distribution
Compleity of design, usage and battery life [pic]
[pic]storage capacity & portability
Before ipods there were MP3 players…..then…..
iPods Everywhere…..
[pic] [pic] [pic] [pic]
Ipods became ICONS because………

•“it makes you happy”,
•“typical Sony product”, “classic Apple product”, •user-friendly
•“an image thing”
•“the iPod” not something like “Apple’s new mp3-player”.

iPod as a cultural artifact….



• Launch –November 10, 2001

• Priced at $399

• 5 GbGigabyte


• Not compatible...
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