...Apple Readers of this blog know that I’m not a huge fan of Apple, but that’s neither here nor there. No matter what you read in the press or business press about Apple and innovation, marketing, or product development, the fundamental business strategy at Apple is a financial one. Apple’s fundamental strategy is to squeeze as much profit as humanly possible from every sale it makes. Apple’s financial strategy, then, is to maximize its margins, a financial strategy it has pursued single-mindedly since Steve Jobs returned to the company. This foundational financial strategy informs every other aspect of its business model. Product development — to maximize margins, Apple has to offer products that consumers can buy nowhere else. This involves one part cutting-edge design, one-part unique, hard-to-emulate features, and several parts marketing. Always be launching – A standard truth about marketing is that early adopters are willing to pay the highest prices – and highest margins. The Apple launch strategy involves super-hyping products in order to build the largest army of early adopters possible. All those nice people who stood in line for an iPad on the day of its launch were willing to pay a pretty penny to get their hands on the device. The second part of the strategy is to continually relaunch products. The Apple financial strategy – maximize margins as much as possible – is wedded to a marketing strategy of maximizing early adoption. Why is Apple so secretive to the point...
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...Apple Inc. Apple Inc. formerly Apple Computer, Inc., is an American multinational corporation headquartered in Cupertino, California that creates and retails consumer electronics, computer software, and personal computers. Apple’s mission and vision summarizes its committed efforts in bringing the best user experience to its customers through its advanced hardware, software, peripherals, and services along with a unique ability to design and develop its own operating system, hardware, application, software, and services, in order to provide its customers new products and solutions with superior case-of-use, seamless integration, an innovative design (“Apple Inc. Form 10-K Annual Report”, 1, 2012). Company’s mission and vision statements against the performance of the organization Apple’s mission and vision statements and objectives are neither interchangeable nor autonomous. Without objectives, the mission and vision statements are impractical. Without the mission and vision statement the objectives have no relevance. Both statements are too broad to be measurable, and the objectives are too definite to provide the big picture. When properly coordinated they strike a balance that helps to shape the business operations and service strategy. Apple Inc.'s mission statement is as follows - Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through innovative hardware, software and...
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... Abstract In this Business Analysis Part III I will summarize significant facts and conclude the analysis by including conclusions from Business Analysis Part I & II which will help in the decision making to invest or not in Apple Inc. Business Analysis Part III Strategic Initiatives Vision Statement According to Apple Inc “Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1985 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 According to Apple Inc, “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.” Value According to its new CEO Tim Cook, Apple’s core values are: • We believe that we’re on the face of the Earth...
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...1. What are the chief elements of Apple’s overall competitive strategy? How well do the pieces fit together? Is the strategy evolving? Apple Corporation, Capital requirement degree of completion, Brand identifies the product price; demand, and the apple users. Supplier power, Barriers, Rivalry, Treat of Substitutes, and Buyer Power represents Apple’s overall competitive strategy. Music, Internet, and Computer is an n innovation for long term development, technological improvement with a unique design, it transcended the barriers of computer industry to cross many aspects of industries such as itunes, ipod, and iphone. It’s evolving due to a loyal customer base and ambitious leadership. 2. What are the key elements of Apple’s strategy in computers, personal media players, and smartphones? Have its strategies in its core businesses yielded success? Explain. Product diversification and innovation for long term development (music, internet, computer). Integration of software and hardware, technological improvement with a unique design, and transcended the barriers of computer industry to cross many aspect of industries (itunes, ipod, and iphone). 3. What does a competitive strength assessment reveal about Apple’s computer business, as compared to the leaders in the personal computer industry? Use the methodology in Table 4.2 to support your answer. Does it appear that the company’s competitive positions in personal media players and smartphones or stronger or weaker than...
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...Marketing Plan of the Ipad 3 Apple Inc. Table of Contents 1. Executive Summary Apple Inc., founded in 1977 as Apple Computer Inc. with the introduction of the Apple II microcomputer, 14 is the undisputed leader of personal technology devices and supporting applications. They have continually been the frontrunner of groundbreaking technology. 5 Apple Inc. consistently markets and produces new products. They have been the engineers of many state-of-the-art devices and applications because they stand by their motto, “Think Differently”.6 Apple Inc. understands that spending R & D dollars, currently is an investment that is well worth the cost. When launching the IPad 3 in 2012, Apple Inc. instituted a tiered pricing system based on installed components. Although the company set prestige pricing for IPad 3, as it does for all of its products, because of mass customization, this marketing strategy has been very effective. Another product differentiation of the iPad 3 and Apple Inc. in general, is that the company offers an innumerable amount of complimentary downloads from the iTunes store as well as free training and support for all levels of users.8 Apple Inc. produces a host of electronic devices including the increasingly popular iPad tablet computer. Additional products include personal computers, monitors, all-in-one computers, laptops, software, cell phones, portable digital music players as well as peripheral devices and accessories along with their most...
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...Information Systems Case: Apple Inc. 1 Executive Summary It is said that luck follows determination and courage in business. Apple Inc. is one of global giants that has proved this correct – it has completely taken a U-turn in the IT business. Renowned around the world for innovation and quality finishing of its products, Apple Inc.’s humble start as a computer manufacturer has not deterred it from ruling the world of technology and entertainment in a market where giant names like IBM and Microsoft also thrive. The financial position of Apple has become very strong over the past three years. Growing 15% from 2007 to 2008 and 20% from 2008 to 2009, Apple Inc. has maintained a steady and rapid pace that few other companies as innovative as Apple can match (Annual Report, 2009, p.19). The launch of the iTunes music store, that later expanded into a comprehensive online store for videos, books and audios, was a different business model altogether that reaped success within the first week of its launch. However, the subsequent events that occurred in the market and the various risks that are associated with Apple Inc.’s strategy for iTunes are some of the reasons that warrant a revision of the operational strategy, partially, if not altogether. The issue of digital rights management (DRM) and software piracy propped up and Apple has ever since paid out to artists and record companies more than it has pocketed itself. There are several lessons that Apple can learn from the...
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...Case Case Study #1 Apple Inc. Dixie Corbin MGMT 670 Fall 2013 What does a competitive strength assessment reveal about Apple's computer business as compared to the leaders in personal computer industry? Use the methodology in Table 4.2 to support your answer. Does it appear that the company's competitive positions in the media players and smartphones are stronger or weaker than its position in computers? Table 4.1 is in Chapter 4, page 65; Table 4.2 is the SWOT analysis, page 71. Apple Inc. has provided many innovative and creative products to consumers over the years. Many industry analysts want to know if Apple can sustain its growth and defend against new competitive threats. Apple lost their CEO Steve Jobs in 2011 to health issues. They were still able to stay ahead of the competition with impressive growth into 2012. “The company set record quarterly revenues and profits during its second quarter of 2012, which resulted in its stock price catapulting to a level that made it the world’s most valuable company as measured by its market capitalization.” (Gamble & Marino, 2012) Even with the loss of Steve Jobs, Apple was able to continue to provide innovative products such as the iPhone, iPad and iPod. During Job’s absence Tim Cook was able to perform successfully and was eventually appointed Job’s successor as Apple’s CEO. With a new CEO, Apple faced many difficulties including being forced to “work creatively and expeditiously to sustain the company’s success...
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...Running Header: APPLE INC. IN 2010 Apple Inc. in 2010 An Analysis of Business Strategy American Military University BUS620 16 February 2014 Running Header: APPLE INC. IN 2010 Abstract 2 Apple Incorporated is an industry leader and this piece will serve to address questions pertaining to Apple’s competition in the Personal Computer (PC), MP3, and smart phone market and how its strategy has evolved along with the evolution of the products. Threats and challenges that Apple faces as is moves forward are also identified. Finally a brief assessment of Apple Incorporated after the exit of Steve Jobs as its Chief Executive Officer and his effectiveness as a strategic manager. Keywords: Personal Computer Running Header: APPLE INC. IN 2010 Apple Inc. in 2010 An Analysis of Business Strategy 3 Apple is extremely competitive in the personal computer (PC) market and has carved out a very specific niche for its brand through an evolution of product development and marketing strategies. The market for personal computing evolved as quickly as technology could be developed and Apple’s approach was to offer the consumer a “plug and play” option, meaning everything needed for desktop publishing and education (from hardware and software to peripherals) were integrated in the Macintosh system and could readily and easily be utilized (Pearce & Robinson, 2013). Apple offers a level of exclusivity for its consumers. The cost of an Apple machine is expensive, but the quality is...
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...Case 2: Apple Inc. in 2010 The establishment of Apple Inc in its early history always was based on innovation. The founders were highly successful designers and builder , but the key to success was the abilities of the financial partner Mr. Markkula. Mr. Markkula was the key figure for gaining financial capital for the start-up business. Apple wanted to bring a computer into the market that was easily utilized by customers. Apple Computer was focused on differentiation in the beginning providing products to its consumers. Their success would eventually cause others to focus on this market of which IBM caused changes in Apple’s market Apple’s changes of CEO are easily identifiable by the company’s changes in strategy. Some strategies were internal such as reducing costs and others external were in marketing to increase brand recognition. Upon Jobs return to CEO, he clearly identified his strategy as differentiation providing the customers a product that they would only want to purchase from Apple Inc. Jobs utilized his external resources to develop partnerships with Microsoft and Intel to improve upon the Macintosh platform. Apple was very successful in this venture providing their customers with a high quality product of which they willingly paid premiums to enjoy. Apple Inc sought to provide its patrons an ability to see first-hand how their products operate through the opening of retail locations. Apple’s CEO called this the Retail Strategy which makes sense by bring...
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... * Term: Spring1 2010 . * Company: Apple Computer Inc (AAPL) _ . * Instructor: Natasha Bell-Scott _ . 2. Print out your completed electronic template. 3. Attach the following: * This front cover (completed) * Electronic solution template * Company annual report Chapter 1 - Introduction * Chapter 1: Select a Company and Gather Documents—Question 1Fill in the page numbers on the annual report where the following are located. | Required information for this workbook project. | Page No. | Required information for this workbook project. | Page No. | Financial Highlights (Not absolutely necessary, but very common in annual reports.) | 36 | Statement of Cash Flows | 59 | Chairman’s Message (President’s, CEO’s or other top official’s message or letter to the shareholders) | 36 | Notes to Financial Statements | 60 | Management’s Discussion and Analysis (MD&A) | 36 | Report of Independent Accountants or Independent Auditors’ Report | 89 | Income Statement(Statement of Earnings) | 36 | Five- or Ten-Year Summary of Operating Results | | Balance Sheet (Statement of Financial Position) | 56 | Management’s Report (Responsibility) on Internal Control over Financial Reporting (Item 9A. Control and Procedures in SEC 10K) | 93 | Statement of Change in...
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...Balochistan University of information techonology engineering and management sciences | Implementing Strategic Management | APPLE Inc. | Rabia Iftikhar 12285 | MBA 5th B | Jun 24, 2013 | | | | | | Ma'am Mehwish Shahid Think Different ACKNOWLEDGEMENTS Praise and thanks to “ALLAH” Almighty, the one testing us all at all times and making decisions about what we don’t know and can’t know. The report being submitted today is a result of collective effort. There are innumerous helping hands behind who have guided us on our way. Writing this report appeared to be a great experience to us. It added a lot to our knowledge. This report is one of our memorable experiences in student life. Though words are inadequate in offering thanks to our teacher but we owe our profound gratitude to Ma’am Mehwish Shahid for stimulating our creative abilities by assigning this project to us and for her able guidance and useful suggestions, which helped us in completing the project in time. Whatever we have learnt from her and this project report has put indelible impression on our minds and it is our conviction that this learning experience will always be a source of help in our practical life and professional career. Finally, yet importantly, we would like to express our heartfelt thanks to our beloved parents, for cooperation, help, kindness...
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...Apple Inc Financial Report Analysis FINC 330 Business finance instructor: Philip Bradley Prepared by: Table of Contents Page 1) Company Description……………………………………………….…...... 2 Company background………………………………………..….. 2 Industry analysis………………………………………………..... 2 Products and services…………………………………….…......2 Investment strategy…………………………………….……...…3 2) Market Analysis……………….………………………………................... 3 Direct competitors…………………......…………………………. 3 Financial performance comparison…………………......………3 Growth comparison…………………......…………………...…...4 Trailing total returns comparison…………………......…………4 Ratio comparison…………………......…………………………. .5 Detailed ration comparison…………………......……………5 3) Financial Performance Analysis………………………………………...... 6 Ratio analysis........................................................................... 6 Detailed analysis................................................................. 7 4) Recommendations ……………………………………………………..… ..8 5) Conclusions……………………………………………............................ ..9 6) Reference…………………………………………………………………...10 7) Appendix……………………………………………………………….....…11 Income statement....................................................................11 Balance sheet.......................................................................... 12 Cash flow........................................................................
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...APPLE INC. [pic] APPLE COMPUTERS EXECUTIVE SUMMARY This research paper is fully depends upon the true information on the Apple Inc. This paper is specially made for the Apple Computers. The purpose of the paper is to provide the strategic analysis plan for the Apple Inc for the next three years i.e. 2011-2013. The strategic Management Model for Apple Inc gives the useful output from the analysis of all the factors that contributes. This project is based upon to find out the best suitable strategy for the Apple computers so that it can follow that strategy in next three years to carry out the desired goals for the organization. As per requirement of project, the external and internal analysis is carried out. Here we come up with TOWS analysis. From TOWS analysis, there is the 3 suggested strategies for the organization. From those three strategies, we have to pick the one which is best and justified it. OVERVIEW OF APPLE INC Mr. Steve Jobs and Mr. Steve Wozniak founded Apple Inc in 1976 after a long struggle. Before Apple was founded, IBM was already in the market and Apple came into existence when IBM launched its 4004 chip which makes the bulky parts of previous computers into the small chip size. (Aoki, 2009) Apple Inc is wholly owned subsidiary of Apple Inc. Apple Inc deals in designing, manufacturing the personal computers, mobiles, digital music devices, software related to items, services, peripherals and other networking services...
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...Jeremy White Kaplan University Dr. Sjuib May 17, 2012 Executive Summary: Apple Inc, is an American multinational organization which deals in manufacturing, designing and marketing computers, computer software and different consumer electronics. The company has been listed in NASDAQ exchange under ‘AAPL’ ticker symbol. The company is headed by Mr. Bill Campbell. The present CEO of Apple Inc. is Mr. Steve Jobs, who has a strong focus on innovation. The company works strongly on innovation and technology, so as to have a competitive edge in the market, with a strong focus on innovation, the company is able to makes differentiated products which makes Apple Inc. one of the most successful company. Company overview: ‘Apple Inc, is one of the biggest manufacturer of personal PC’s , mobile communication devices and portable music and video players. The Company’s products and services include the Mac line of desktop and portable computers, iPhone, the iPod line of portable digital music and video players, Apple TV, Xserve, a portfolio of consumer and professional software applications, the Mac OS X operating system, third-party digital content and applications through the iTunes Store, and a variety of accessory, service and support offerings. The Company sells its products worldwide through its online stores, its retail stores, its direct sales force, and third-party wholesalers, retailers, and value-added resellers. In addition, the Company sells a variety of third-party...
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...Innovation Strategy Paper Innovation Strategy Paper Not many companies, if any, are known for more innovation than Apple Inc. The products and software produced by Apple Inc. always seem to be years beyond the reach of other companies. Apple Inc. and its wholly-owned subsidiaries (collectively “Apple” or the “Company”) designs, manufactures and markets mobile communication and media devices, personal computers, and portable digital music players, and sells a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications (Apple, 2011, pg. 1). Apple Inc. (Apple) produces such items and services as the “iPhone®, iPad®, Mac®, iPod®, Apple TV®, a portfolio of consumer and professional software applications, the iOS and Mac OS®X operating systems, iCloud®, and a variety of accessory, service and support offerings” (Apple, 2011). Apple’s innovation strategy is described below and is evaluated along with the risks involved with the strategy. Apple’s financials and business plan are also described below. Innovation Strategy Innovative companies can thrive even in a tough economy. Apple Inc. has seen hard times and good times. Apple has survived as a company because of a renewed commitment to innovation. This commitment to innovation spearheaded by Steve Jobs has caused other companies to analyze how Apple does so well. First, it is important to note that Apple has not been always successful. Today...
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