...Analysis of Apple Retail Stores BUS60 Managerial Marketing October 3, 2011 Introduction The Apple brand has gone through an amazing transformation since the 1980’s. What began as a computer hardware company competing with Microsoft has now become a technological juggernaut of unbelievable proportions. To accomplish such a meteoric rise, Apple has done an amazing job of developing products that people want to buy and also marketing these products rather effectively to their target market. Apple, Inc uses the Apple brand to compete across several highly competitive markets, including the personal computer industry with its Macintosh line of computers and related software, the consumer electronics industry with products such as the iPod, digital music distribution through its iTunes Music Store, the smart phone market with the Apple iPhone, and more recently magazine, book, games and applications publishing via the AppsStore for iPhone and the iPad tablet computing device. After visiting their Apple store its clear that the Apple brand is not just intimate with its customers, it's loved, and there is a real sense of community among users of its main product lines. Generic Marketing Strategy Using the strategies described by Robert Miles and Charles Snow (1978), the marketing strategy that Apple has adopted seems to be a hybrid between Analyzer and Prospector. To paraphrase; Prospectors are organizations that almost continually search for market opportunities, and...
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...analyze the core competency of the Apple when Apple chose Mp3 player and handset markets to diversify.From the textbook, core competency are complex sets of resources and capabilities that link different businesses in a diversified firm through managerial and technical know-how , experience and wisdom. From the sales data in the case, we can figure out that Apple increased the sales of both its computer products and the iPod and other music products through 2002 to 2005. So we can conclude that Apple has a core competence of producing a bunch of innovative and high-quality products including computer ,MP3 player and handset at the same time. Here we actually can conduct an VRIO analysis to further analyze Apple's core competency. First, is Apple's core competency valuable? The answer is of cause yes. The iPod generates huge profits for Apple. By the end of 2005, iPod occupied 75% market share of US.MP3 market. In the mean time, in2005, Mac revenues came to 6.275 billion dollars. So, second, is Apple's core competency rare? The answer is yes. Apple is actually a dominant player in MP3 industry. Not a lot of companies can produce a bunch of cutting-edge products at the same time. Third, is Apple's core competency hard to imitate. The answer is yes. By producing those cutting-edge technology products, Apple created a culture of innovation. In the mean time, Apple also attracted millions of loyal Apple fans. They are willing to buy every product of Apple because they trust Apple's brand...
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...Final Paper: Case Analysis for Apple Final Paper: Case Analysis for Apple Final Paper: Case Analysis for Apple Table of Contents Introduction 2 Branding strategy 3 Designing a global identity 3 Using marketing mix strategies in creating unique relationship with the consumers 4 Apple’s strategies for promotions 4 Apple’s strategy for product placement 5 Product as a decisive part in Apple’s marketing magic 6 How Apple’s pricing strategies influence consumer behavior? 6 Conclusion 8 References 9 Introduction Apple is a multinational corporation that concentrates on the production of personal and business computers, electronics, and software. The company was founded on April 1, 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne. It is truly one revolutionary company that changed the world in several ways. It started the revolution in personal computers in the 1970s with introducing the Apple II (O’Grady, 2008). The company’s introduction of the iPod made a huge impact in the electronic market, following by the iPhone and the iPad. By 2010, more than 60% of Apple Inc.’s revenues were coming from iPhone & iPad. This was a strategic move for the benefit of Apple Inc.’s customers, their employees and the market. It was clear that the company was a serious player in consumer electronics. However, all of these variations and innovations were not approved instantly. Their introduction of the Macintosh Portable, as well as a variety of other...
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...Executive Summary In week 8 of AMBA 640, we will be analyzing the Apple case located in chapter one of Management Information Systems: Business Driven MIS Inc from an information systems management perspective. Our analysis will look at some of the common tools used to analyze competitive intelligence such as Porter’s Five Forces Model, the three generic strategies for choosing a business focus and the value chain analysis. We will also discuss why and how data, information, business intelligence and knowledge are important to Apple. This analysis will also include how Apple identified areas where it achieved a competitive advantage using management information systems and why competitive advantages are temporary. Introduction Apple was launched April 1, 1976 by Steve Jobs, Ronald Wayne and Steve Wozniak and is considered to be one of the most innovative technologies companies in the world. The company is responsible for products and services such as the Macintosh desktop and laptop computers, iTunes, iPod, iPhone, iTouch, iPad, Apple TV, and iCloud. Apple also develops its own software to run on its computers, its philosophy “has always been to create products that consumers find easy to use and marry innovative technology to work productivity and personal entertainment” (Mallin & Finkle, p.49, 2011). This accomplished company faces constant challenges from a competitive market to a technology lifecycle that is continuously being shortened and thus must make...
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...Apple PC CASe Analysis Strategic profile and Case Analysis The industry has really taken off since the creation of the first PC and continues to grow rapidly especially with emergence of the Portable PC or Laptop. Profits margins have continued rise steadily every year (Appendix II). Apple is a very successful company thanks to the strong leadership of Steve jobs and their innovation and diversity. However they are not doing as well in the PC industry and have only 4.2% of the world market and needs to improve on that. Situation Analysis General Environment Analysis Demographics: The scope of PC buyers is huge and ranges from home consumers, small to medium sized business, corporate, education and government. The home consumers accounts for the majority sales of the PC products and the age is quite broad ranges from kids in grade school to adults over the age of 60. These are families with a medium to high disposable income that are educated. Economic Trends: Apple has continued to grow each year despite the economic downturn in 2009 and gross margins have remained steady for Apple’s competitors (exhibit 5). The share prices of Apple are higher than they have ever been as seen in exhibit2. Political/legal trend: The government regulations and changes that occur frequently especially in different parts of the world such as China and Europe directly affects the industry and environmental policies and fees that are being pasted on to consumers which causes an...
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.......................................................................................................................................... 2 2.0. Company Profile ..................................................................................................................................... 3 3.0. Apple Distinctive Competencies ............................................................................................................ 4 3.1. The R-C Model.................................................................................................................................... 4 3.2. Building Blocks of Competitive Advantage ........................................................................................ 6 4.0. Nature of Competition in the PC industry ............................................................................................. 7 4.1. PC Industry Life Cycle ......................................................................................................................... 7 4.2. Porters 5 Forces ................................................................................................................................. 8 5.0. Apple Sustainable Competitive Advantage.......................................................................................... 10 5.1. Value Chain ...................................................................................................................................... 10 5.2. New McKinsey...
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...Apple Analysis Executive Summary In week 8 of AMBA 640, we will be analyzing the Apple case located in chapter one of Management Information Systems: Business Driven MIS Inc from an information systems management perspective. Our analysis will look at some of the common tools used to analyze competitive intelligence such as Porter’s Five Forces Model, the three generic strategies for choosing a business focus and the value chain analysis. We will also discuss why and how data, information, business intelligence and knowledge are important to Apple. This analysis will also include how Apple identified areas where it achieved a competitive advantage using management information systems and why competitive advantages are temporary. Introduction Apple was launched April 1, 1976 by Steve Jobs, Ronald Wayne and Steve Wozniak and is considered to be one of the most innovative technologies companies in the world. The company is responsible for products and services such as the Macintosh desktop and laptop computers, iTunes, iPod, iPhone, iTouch, iPad, Apple TV, and iCloud. Apple also develops its own software to run on its computers, its philosophy “has always been to create products that consumers find easy to use and marry innovative technology to work productivity and personal entertainment” (Mallin & Finkle, p.49, 2011). This accomplished company faces constant challenges from a competitive market to a technology lifecycle that is continuously being shortened and thus must...
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...APPLE INC. TABLE OF CONTENT INTRODUCTION… …………………………………………………………... 1 METHODOLOGY……………………………………………………………… 1 COMPETITION……….……………………………………………………….. 2 PORTER’S 5 FORCES……………………………………………………. 2 ANSOFF’S METRIX……………………………………………………… 2 SWOT AND PASTE ANALYSIS……………………………………………… 3 CONCLUSION ………………………………………………………………….. 4 RECOMMENDATION………………………………………………………… 5 APPENDICES ……………………………………………………………………… 6 REFERENCE LIST ……………………………………………………………… 7 1. Introduction Apple Inc. is an America multinational cooperation that produces software and electronics like phones, computers and tablets. According to Steve Jobs (CEO) perspective, he wanted a unique and effective insight about how people wanted to interact with technology. Steve Job believes in the ideology of Henry Ford who once said. “If I had asked people what they wanted, they will say faster horses.” Further illustrating the ideology that customer’s main problem is thinking on what they know instead on what is possible. So Job and his colleagues thought about customer experience more deeply than the customers could. According to Steve Job, Apple’s mission statement is to contribute to the world by making tools for the mind that advance humankind, through the innovation of PC and mobile devices. Thus, this vision statement is satisfactory and suited to the condition of apple. However...
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...Business Analysis of Apple Inc. Apple Inc., founded in 1976 by Steve Jobs and Steve Wozniak were looking to create a new type of computer. Thirty years later not only have they become one of the leading computer companies, but have also become successful in many other technological areas. Apple has branched out in computers (iMac, Macbook, Macbook Air, iPad), music industry (iPod, iTunes), cellular phone (iPhone), and have become leaders in these areas as well. To make an informed decision of whether or not to invest in Apple Inc., a business analysis must be done to determine the financial health of the company. The United States has been enduring an economic downturn since December 2007, according to The National Bureau of Economic Research (Isidore, 2008). Despite the recent economic downturn, Apple Inc. has turned a substantial profit for the past five years and is consistently one of the top performing firms in the Fortune 500. A review of their financial statement shows the extent of their success through the country’s struggles. Apple Inc.’s balance sheet, which is provides detailed information about a company’s assets, liabilities, and shareholder’s equity (U.S. Securities and Exchange Commission, 2007). Apple Inc. has reported steady grains of their assest from the preverious years. They reported a gain of 150% in 2007, 16% in 2008, 1% in 2009 and 11% in 2010. Apple Inc.’s total current assets went from $14 billion in September 2006 to $41 billion in September...
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...BU 415 Analysis: What did organization do well? * Connected all devices allowing for synergy between users devices, this also makes people buy all of their products since only their products are all connected (drives sales) * The syncing of all items (emails, documents etc) allows for business’ to have people work from home, vacation etc which increases workers satisfaction (the flexibility of being able to wdo work anywhere) * Information systems promote business cohesion, efficiency, globalized markets and workplace * iCloud API addition provides value for the developers of Mac Apps allowing them to integrate iCloud into their apps. Third party iOS and OS X developers who want to keep loyal users and attract new users, can engage consumers through iCloud’s network of users providing flexibility to reach thousands of apps regardless of the device they are using. What measures might have facilitated or improved the process? * Apple’s ultimate goal is to create a world of only Apple devices and their associated platforms where users can live and work. Apple’s vision creates a perception of exclusivity and builds a barrier to entry. However, this can either be viewed as facilitating the company’s underlying goal or hindering it. Apple operates in a closed system with proprietary hardware and software that is often incompatible with software applications used in the business realm. Keeping both short and long term sustainability in mind, the introduction...
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...Apple: Incremental Innovation and Impending Obsolescence. From the humble beginnings of a portable music player to the empire we know today of phones, computers, music players, games systems and of course, if they don’t have it, ‘there’s an App for that’ – Apple Inc. is an innovative force to be reckoned with in the current portable communications and entertainment industry. It owes this success to constant, incremental changes made to its products over the course of many years – closed innovation allowing them to fend off all comers while delivering something unique to the market. It started in 2001, when the first iPod music player – Mac compatible only – was released. Sales were slow, through analysis of the sales, market transition and the wants and needs of the consumer Apple determined that through development of Windows-compatible iTunes software they could increase their market share. This product (service) development enabled Apple to establish a presence within the market dominated by Microsoft at the time, while not directly threatening their market share. Apple exclusive formats were offered through iTunes, which was at the front of the commercial market in licensed online music distribution, such as .AAC, Quicktime Movie (.mov) and Apple Lossless (an FLAC clone) enticed users to make the switch from their MP3 players to the iPod. This was followed up by multiple hardware innovations, incremental changes in design and product functionality, from...
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...Internal Analysis – Apple Driving Forces of Change The driving forces of change in the industry that Apple started in include the • Growth of the industry • Changes in how the product is used and who buys it • Other firms entering and exiting the market. Key Success Factors • Technology began growing • Outsourcing and manufacturing • New Product/skills of management Resources and Capabilities Tangible Resources - Apple was able to get going at the beginning due to a large investment. They were able to sell their products through distributors and retail stores. They were later able to invest in their own stores and sell products directly to the consumer. They had a positive culture. Employees are happy and truly believe in the products. Apples corporate organization has allowed them to be successful. Intangible Resources - Apple is considered one of the most innovative companies in the world. From the beginning they were looking for ways to change the world and bring new technology to the forefront. They have a good reputation with quality products. Apples ethics are not questioned and they are a major player in technology world. They have been extremely flexible, especially when making their products compatible with a windows operating system. Capabilities/Value Chain - Apple began operations out of a small garage. This small garage grew to a warehouse, to a hundreds of stores around the world. They have a very sharp and clean image. After sales plummeted in the...
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...* Microsoft is now much smaller than Apple, but growing faster. * Microsoft is seeking the bulk of its new money from subscriptions, not product sales. * It may be time for Apple AND Microsoft in your portfolio. For most of this century, the choice between Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) has been a no-brainer. You buy Apple. You leave Microsoft alone. But under Satya Nadella, who became Microsoft CEO about a year ago, that may be changing. Suddenly it's Microsoft that has momentum, potential and opportunity, while Apple seems to be slowing down. Take the top line. For the 12 months between fiscal 2013 and 2014, Apple grew sales from $170.9 billion to $182.8 billion. That's a gain of about 7%. For Microsoft, sales grew from $77.9 billion to $88.8 billion. That's a gain of 11%. Through the third quarter (Microsoft reports its Christmas quarter on Monday) the company was bringing 19.5% of its revenue to the net income line. Apple was bringing in 20%. Apple is now worth 70% more than Microsoft, $644 billion vs. $379 billion. Now look at what's coming. From Apple, a new Phone, a new Watch, the headphones and music service it bought with Beats. From Microsoft, a downloaded Windows that updates like iOS, a holographic headset with software and a competitive Azure cloud. Remember, Microsoft is growing from a smaller base, with barely half of Apple's sales. Apple hasn't always been the smart bet. In fact, if you had bought shares in both at their IPOs and just...
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...| APPLE Background Established on April 1, 1976 in Cupertino, California, and incorporated January 3, 1977,the company was previously named Apple Computer, Inc., for its first 30 years, but removed the word "Computer" on January 9, 2007 to reflect the company's ongoing expansion into the consumer electronics market in addition to its traditional focus on personal computers. So now Apple 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. Recent Developments in APPLE Apple has built an Innovation Factory – one that harnesses creativity in its people, stimulating new ideas, and launching successful, profitable new innovations... Apple leverages its diverse culture, innovation processes, partners and networks to seize the new opportunities in the marketplace and grow its business...exponentially… In 2006, Apple switched the Mac to Intel chips, and combined with sleeker designs and continuous refinements, the Mac has gained market share ever since. In 2001, Apple launched the iPod, one of the most successful consumer electronics products in history. Setting the bar for portable music players, every competing product is measured against the iPod's ease of use and capabilities. In 2007...
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...my business. I will conduct a detailed analysis of their brand, stakeholders, customers, products, business ownership, and a SWOT analysis. Background Information Apple was founded by Steven Jobs, Stephen Wozniak, and Ronald Wayne in 1976, they launched their first computer in 1977 in which they earned over $100 million by 1980. In 1984, Apple introduced the Macintosh, the first personal computer with a mouse, which was very unsuccessful in the beginning. Steven Jobs left Apple but returned to work there in 1997. Apple created very innovative products such as the iPod, iMac, iPhone, and iTunes. Apple is known for technologically advanced innovative products, which in return allows them to market their products at high dollar value and create a high demand. With the resignation and death of Steven Jobs, the future of Apple is unpredictable. SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats) Strengths Apple’s products are leading the way in design, reliability, longevity, uniqueness, and development. Products such as the iPhone, iPad, Mac, and the iPod have become the forefront in their specific arenas. Apple is known for creating innovative products that attract to people of all ages. Unlike many other companies, Apple is involved with every aspect of their product from the design to the software on the products. With the variety of products offered by Apple, they have very many loyal customers whom can use Apple for all of their IT needs. This is important...
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