Apple Inc., 2008
5/14/2009
Apple Inc. Case Study
Key Success Factors
•Expertise in particular technology/research
• Proven ability to improve production processes
• Customer-need satisfaction
• Continued innovation
Recommended Strategy
Spread out consumer confidence in Steve Jobs to the
Apple team and stakeholders Develop and launch the stakeholders. MacBook Air Mini by 2nd quarter 2010 to encourage said consumer confidence in Apple.
1
5/14/2009
Environmental Analysis
Internal Positive
External Positive
● Brand Recognition
● Highly technological society
● Customer Loyalty
● BRIC countries’ continued growth
Internal Positive
● Sterling Reputation
Internal Negative
External Negative
● Steve Jobs’ health concerns
● Stagnant Desktop line
● Lack of netbook product line
Five Forces Model
Supplier
Bargaining PowerModerate
● Global recession
● Poor IP protection in emerging markets Threat of SubstitutionLow
• Cost of switching
F
products is high
• Product loyalty is strong
Competitive
Rivalry-High
• Rapid and frequent product innovation by large firms
• Only two CPU manufacturers (Intel/AMD)
• Product technology copying
• Small pool of talent to choose from
Buyer Bargaining
Power-Moderate
• Infrequent Customer
Purchases
• Customer Switching dd costs are high g • Recession creates decreased demand
• Large firms with disparate unique strategies
Potential new
Entrants-Low
•High barriers to entry
•Incumbent firms spend to keep out new firms
Apple Notebook Sales on the Rise!
12000
10000
8000
6000
Notebooks
Desktops
D kt
4000
2000
0
2001 2002 2003 2004 2005 2006 2007 2008
Mac percentage of revenue has increased 15% since 2006…
…and iPod’s percentage of revenue has decreased 20.8%.
2
5/14/2009
Product Life Cycles
Introduction
Growth
Maturity
Product lifecycle curve
Decline
iPod, all models Mac desktops
Sales
iPhone
Apple Inc. Case Study
Key Success Factors
•Expertise in particular technology/research
• Proven ability to improve production processes
• Customer-need satisfaction
• Continued innovation
Recommended Strategy
Spread out consumer confidence in Steve Jobs to the
Apple team and stakeholders Develop and launch the stakeholders. MacBook Air Mini by 2nd quarter 2010 to encourage said consumer confidence in Apple.
1
5/14/2009
Environmental Analysis
Internal Positive
External Positive
● Brand Recognition
● Highly technological society
● Customer Loyalty
● BRIC countries’ continued growth
Internal Positive
● Sterling Reputation
Internal Negative
External Negative
● Steve Jobs’ health concerns
● Stagnant Desktop line
● Lack of netbook product line
Five Forces Model
Supplier
Bargaining PowerModerate
● Global recession
● Poor IP protection in emerging markets Threat of SubstitutionLow
• Cost of switching
F
products is high
• Product loyalty is strong
Competitive
Rivalry-High
• Rapid and frequent product innovation by large firms
• Only two CPU manufacturers (Intel/AMD)
• Product technology copying
• Small pool of talent to choose from
Buyer Bargaining
Power-Moderate
• Infrequent Customer
Purchases
• Customer Switching dd costs are high g • Recession creates decreased demand
• Large firms with disparate unique strategies
Potential new
Entrants-Low
•High barriers to entry
•Incumbent firms spend to keep out new firms
Apple Notebook Sales on the Rise!
12000
10000
8000
6000
Notebooks
Desktops
D kt
4000
2000
0
2001 2002 2003 2004 2005 2006 2007 2008
Mac percentage of revenue has increased 15% since 2006…
…and iPod’s percentage of revenue has decreased 20.8%.
2
5/14/2009
Product Life Cycles
Introduction
Growth
Maturity
Product lifecycle curve
Decline
iPod, all models Mac desktops
Sales
iPhone
References: Brigham, E.F., Daves, P.R. (2007). Intermediate financial management Chase, R.B., Jacobs, R.F., Aquilano, N.J. (2006). (2008). Crafting and executing strategy: The quest for competitive advantage