Apple Inc Case Analysis
Apple Inc. Case Analysis
MB 730 Strategic Analysis
Professor McClellan
Date: 09/23/2012
Name: Allen (Hanlin) Wang
Overview of the PC Industry The personal computer industry came up during the 1970s. A personal computer is one intended for individual use, as opposed to a mainframe computer where the end user's requests are filtered through operating staff, or a time sharing system in which one large processor is shared by many individuals. In the 1980s, personal computers were mostly used by business corporations. Until the 1990s, due to the internet age and information age, personal computer became common to enter into people’s household. The most common known personal computer manufacturers include HP, Dell, Acer, Lenovo, Toshiba, Fujitsu, IBM, Compaq, NEC, and Apple. Among all these brands, the global leading personal computer manufacturers accounted for more than 50% of worldwide PC market share in 2011 are HP with 17.2 shares, Dell with 13.0 shares, Acer with 12.1 shares, and Lenovo 11.2 shares. (See Exhibit 1 --- Global PC market share information.[i]) Apple as a comparatively high-priced manufacturer focusing on design-focused affluent customers achieved a market share of 4.5% in Q1 2012. HP acquired Compaq Computer in 2002 and overtook IBM to regain its strong market position. In 2007, HP became the world’s largest technology company. It has a good brand equity and strong financials with revenues of 127.24 billion and a net income of 7.07 billion in 2011. The weakness of HP is weak internal controls and flat R&D spending. Dell is also one of the best known PC brands in the world. Dell has a price advantage of its product with retail stores in Walmart, Bestbuy, and Stapes. Dell’s Direct Model approach enables the company to offer direct relationships with customers such as corporate and institutional customers. Also, Dell faces a huge range of products and components from many suppliers from various countries which makes
MB 730 Strategic Analysis
Professor McClellan
Date: 09/23/2012
Name: Allen (Hanlin) Wang
Overview of the PC Industry The personal computer industry came up during the 1970s. A personal computer is one intended for individual use, as opposed to a mainframe computer where the end user's requests are filtered through operating staff, or a time sharing system in which one large processor is shared by many individuals. In the 1980s, personal computers were mostly used by business corporations. Until the 1990s, due to the internet age and information age, personal computer became common to enter into people’s household. The most common known personal computer manufacturers include HP, Dell, Acer, Lenovo, Toshiba, Fujitsu, IBM, Compaq, NEC, and Apple. Among all these brands, the global leading personal computer manufacturers accounted for more than 50% of worldwide PC market share in 2011 are HP with 17.2 shares, Dell with 13.0 shares, Acer with 12.1 shares, and Lenovo 11.2 shares. (See Exhibit 1 --- Global PC market share information.[i]) Apple as a comparatively high-priced manufacturer focusing on design-focused affluent customers achieved a market share of 4.5% in Q1 2012. HP acquired Compaq Computer in 2002 and overtook IBM to regain its strong market position. In 2007, HP became the world’s largest technology company. It has a good brand equity and strong financials with revenues of 127.24 billion and a net income of 7.07 billion in 2011. The weakness of HP is weak internal controls and flat R&D spending. Dell is also one of the best known PC brands in the world. Dell has a price advantage of its product with retail stores in Walmart, Bestbuy, and Stapes. Dell’s Direct Model approach enables the company to offer direct relationships with customers such as corporate and institutional customers. Also, Dell faces a huge range of products and components from many suppliers from various countries which makes