...Apple vs. Dell A Comparative Analysis Submitted in partial fulfillment of the requirement for Elephants and Cheetahs: Systems, Strategy and Bottlenecks Submitted to Prof. Saral Mukherjee Ms. Kavya Sajwan 01-September-2013 Prepared by Anubhav Sinha Indian Institute of Management Ahmedabad EXECUTIVE SUMMARY The computer industry is highly competitive and is characterized by large number of competitors and price based competition. Factors like technology, income levels and internet usage are drivers of growth in the industry. In this industry Dell and Apple have followed two distinct strategies to succeed. Dell has Just-in-time manufacturing facilities, direct sales to customers, mass customization and build-to-order manufacturing. It basically operates assembly plants and purchases all the components from partner suppliers and tries to achieve a virtual integration of suppliers, manufacturing and customers. Dell products appeal to customer segments that are looking for affordable, high performance products and are typically large businesses. The manufacturing practices at Dell have helped in cutting costs and delivering latest technology products to the customers. The direct sales strategy has also provided Dell with a feedback mechanism which helps it forecast demand trends much better and reduce the risk. R&D at dell is geared towards process improvements and quality controls. Dell however, cannot bring architectural innovation...
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...the IT market place. Developing cutting edge software that is futuristic and enticing is what Apple does best. Apple has the ability to offer a diverse product line that caters to a wide variety of consumers, especially tech savvy earlier adapters. Dell’s marketing approach is to create a product line that is affordable and easily used by the general computing public. Audit reports, ratios, cash flows and income statements are analyzed to gain a clearer picture of which marketing strategy is proving to be the more successful. Corporate Histories and Strategies: In 1976, high school friends Steven Jobs and Stephen Wozniak shared a common love and interest in electronics. In their early stages, Apple I & II were designed as a hobby. Apple I was actually created in Steven’s bedroom. “They would showcase the computers at the Homebrew Computer Club (of which they were members) as a demonstration (Apple Museum, 2011)”. The highlights were the video screens, and the fact that it used few chips to operate (during this time keyboards and video screens were not well established). The blue prints/schematics were passed around freely for all to see. Stephen would go to the homes of friends and help them build their own. Their computer displays would take place at club meetings, showcasing new features and additions. Dell, Inc. began in 1984, when then freshman pre-med...
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...Ocotober 31, 2012 Apple Financial Health As stated before in my business analysis paper, Apple is a very rich, prosperous, and innovative company. Its innovations and creativity has enable Apple to keep growing, striving, and propelling itself to the top of the personal computer industry. Apples dominancy and growth is not just known by people around the world it is documented and can be proven by Apple’s financial statements. Financial Statements On apples income statement one can see that their net sales rises each year for the past three years. Starting in 2009 where net sales were just $42,905 million, in 2010 $65,225 million, and then now to 2011 $108,249 million (Apple INC, 2011). This data shows that Apple’s net sales nearly triple from 2009 to 2011. Their gross margin also substantially increases starting at 17,222 million to in 2011 43,818 millions (Apple INC, 2011). This margin represents the percent of total sales revenue that the company retains after the direct costs associated with producing goods sold for a company. This means for the past three years Apple is able to make more profit then the cost that it takes to make its products. Furthermore as with every growing company comes more expenses so their expenses have risen from 2009 to 5,482 million to 10,028 million in 2011 (Apple INC, 2011). Their expenses are counteracted and accounted for by their net income which triples from 2009-2011 from $8,235 to 25,922 million (Apple INC, 2011). The net income...
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...MICROSOFT VS MACBOOK INTRODUCTION May 2006 marked a special moment in computer history. Apple introduced the MacBook: the first consumer Apple laptop that runs on an Intel chip. This is significant because Windows users now can truly compare Windows-based laptops to the MacBook family. The speed of the MacBook is on pace with the speed of PC laptops. Windows users have less and less reasons to remain Windows users. Running parallel to the increasing reasons to consider Mac over Windows is the fact that our world has evolved from a desktop world to a laptop world. Laptops are so fast and well-equipped nowadays that they serve the needs of not only consumer users, but also professional users such as graphic designers and high-end Photoshop users. There's now only two groups of users that should even consider buying desktops:1. mega-power users. This includes hardcore gamers, 3d animation users and professional video editors. These guys need the fastest machines available to make their processor-hogging routines running faster and faster.2. super-budget users. You can get a nice desktop for $500 nowadays. nice laptops go for about $1000+.That leaves the rest of us. And that's a large group. Laptops offer a freedom that no desktop (or even an iMac) can offer: Portability. Use the laptop on the couch while watching TV. Use it at your desk to get serious work done. Use it on the deck to enjoy the spring weather. Use it at the coffee shop or library to simply look cool. Plus, they...
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...Business Analysis II, Apple Inc., Dell Inc., & Microsoft Corp. Cheryl Alcantara Online Main/MGT 521 Jason Miller July 17, 2011 Business Analysis II, Apple Inc., Dell Inc., & Microsoft Corp. Cheryl Alcantara Online Main/MGT 521 Jason Miller July 17, 2011 08 Fall 08 Fall Technology includes items like the telephone and computer. “The computer is capable of handling precisely quantified information much higher speed than the unaided human†(3 International conference Promoting Business Ethics) and can be “compiled and processed by a computer is quite beyond the ability of any human to digest†(the effects of Technology on Business, 2011, p.1). “Looking at product technology we could say that engineers and researchers have with time improved upon the processes for researching and applying new technologies in creation of new products that meet customers needs and demands†(Zayas-Quinones. 2006, p.1). Examples of how technology affects processes, is global business and the tool of technologies by “hardware, software, databases and telecommunication†(Zayas-Quinone’s, 2006, p.1) and the processes in different areas. Technical advances are made through globalization in business such as using telecommunications through “local, wide and global scale private networks and even that public artery†(Lippers, et. al, 2006, p.1). The integration of a systems and support operations include gender and nationality. The...
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...Ford vs Dell Executive Summary FORDs current method of controlling all aspects of the manufacturing is outdated and is limiting the corporation’s annual results. In order to stay competitive and become efficient again, FORD needs to re-evaluate their current supply chain and implement key portions of DELLs vertically integrated supply chain model. A proper implementation will increase information flow between suppliers, departments and dealers resulting in a reduction of redundant inventory and focus towards just in time inventory. All of these factors will further drive up the already US industry leading profit margin per vehicle. In order to accomplish these goals FORD needs to refocus the Purchasing department’s responsibilities, consolidate and develop suppliers that deliver finished high level components and increase the information flow across all points of the supply chain. These steps will help to introduce a more pull-based system. Contents Issue identification 1 Environmental and root cause analysis 2 Alternatives/Options 3 Recommendations 4 Implementation 5 Monitor & Control 6 Issue identification • Current order to delivery (OTD) is more than 60 days. • Management of large supplier network. • Utilization of IT is lacking. • Purchasing isn’t integrated into Product development. • Independent dealership network has resulted in FORDs loss of control over customer service experiences. This network also...
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...Analysis on Apple EXPECTATIONS & EVALUATIONS The objective of this paper is to thoroughly analyze Apple’s financial history and status for the last five years (2003 – 2007). Other important topics will be discussed which include: the company’s background, its assets, bonds, stocks, etc. To support the analysis, different relevant ratios will be calculated for Apple Inc in order to estimate the company’s current status, and also to compare Apple Inc. to the computer industry and one of its major competitors – Dell. The financial analysis of Apple is based on evaluating company and industry data from various sources. A trend analysis was performed using data for the last five years, and presented in Excel charts and tables. Finally, I computed various ratios for Apple, and compared them to industry norms, and to Dell’s. Numerous graphs were created using MS Excel to support the analysis. EXECUTIVE SUMMARY History Apple Computer was formed in April 1976 by 25-year-old Steve Wozniak and 21-yearold Steve Jobs—both college dropouts. After selling a van for some extra start-up cash, the two set up shop in the Jobs’ family garage at 2066 Crist Drive in Los Altos, California, to start building computers. In 1977, Jobs and Markkula hired Michael Scott as the company’s first president and Chief Executive Officer (CEO).8 In April of that same year, Apple decided it would be beneficial to their marketing strategies if they updated their image before putting the Apple II on...
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...Matching Dell Jonathan S. Leonard Two Fundamental Strategies Beat them on costs Sidestep them with differentiation Two Fundamental Strategies Dell relentlessly drove down costs Methods Corporate Financial Comparisons? These are clouded by differences in Business Organization, Product Mix, Industry Mix, Pricing, Cost Allocation Product level Comparison: Apples to Apples Five Forces Analysis Bargaining Power of Some Suppliers (very high) Proprietary standards + customer desire for compatibility Microsoft and Intel positioned to extract profits from industry Other inputs are commodities Bargaining Power of Customers (Low) Resellers and retailers have some grip on end-user relationships, giving them ability to extract price protection, but users more sophisticated (and less in need of assistance) over time Millions of customers Five Forces Analysis Intensity of Rivalry (very high) Wintel standards little distinguishes machines of leading companies except price vigorous price competition Growth of processing power outstrips growth in need for processing intense excess capacity and saturation fight for market share Threat of new entry (high) Capital costs of mfg facility low Stream of low cost entrants (white-box makers) and contract manufacturers Absolute cost advantage difficult to maintain since inputs are available at fixed prices Threat of substitutes (growing) PDAs, phones,etc. Alternative sales methods (online) ...
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...Case Analysis 1: Sara Lee vs Dell vs JCPenney With the advance of technology and the development of society, the competition in industry is increasing intense. If there is no any innovation and just standstill for a company, it will be out of business quickly and be replaced by other competitors. Under this condition, every company wants to make wise strategy to gain profits and strength their competitiveness in the industry. Information technology plays an important role when companies develop strategy. Overview of the problems each company is facing For Sara Lee Bakery Group (SLBG), they delivered fresh-baked goods to their retailers directly. The delivery people needed to count at the retailer’s back door. But, these retailers wanted to reduce labor cost, they reduced the number of hours their back door is open. So, for SLBG, they need more trucks, more time to accommodate the limited door open time. Obviously, it will increase large amount of cost to do this. For Dell, Dell has a short delivery cycle after received customer’s order. Dell has a demand-pull value chain and it could decrease cost by not make too much computer ahead of schedule. However, HP’s local store availability and develops a number of unique features that are highly demanded by customers help HP to fight Dell for the top position successfully. For JCPenney, there was about 10% money they spend, half billion dollar goes transaction. The CEO of JCPenney thought this part of money could use to develop...
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...| Marketing Mix Analysis | Apple Computers vs. Dell Computers | | Jeremy Milliorn - ProductWill Moss - Price Peggy Harris - PlaceNader Khader - Promotion | | This paper describes the elements of the Marketing Mix of Dell Computers and Apple Computers. We will provide details found during research of these elements including Product, Price, Place and Promotion as they relate to manufacturing, marketing, sales and distribution of the products available at each company. | Table of Contents Introduction 3 Target Market 3 Competitors 4 Product 6 Price 10 Place 14 Promotion 17 Table of Figures 21 Works Cited 22 Introduction This paper will introduce the Marketing Mix for Dell and Apple Computers. We have researched the two companies and will describe both similarities and differences in the way they approach the marketing of their products. Both companies offer computers and laptops. Dell offers computers that are designed handle day to day operations of a business or home user while Apple is more attractive to the world of graphic design. There is some overlap due to the fact that Apple is found in educational environments covering classroom activities while the offices of the same campuses might employ Dell. Target Market Dell Computers marketing efforts are aimed at work oriented and business friendly users. Prior to a re-structuring, it focused on individuals and families. Television commercials and promotional literature often displayed...
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...compare some of today’s best bargain laptops and computers that will also offer some of today’s most updated software and features. I will also discuss two of the most popular smartphones comparing and contrasting each devices features. While shopping on the internet for the best computer system I had hundreds of choices. I decided to narrow my choices down by picking a device that had all the features I needed in a computer system, but had a reasonable price tag for a full time worker and a part time student budget. The best option for me is the Dell Inspiron 660, and the Canon PIXMA MG2220 all-n-one printer it has all the features and needs that I would need in a personal home desktop system. The price point for this desktop is around $529.00. This device can be purchased at Wal-Mart, Best Buy, and Hhgreeg making it accessible to most for in store purchase. This desktop is also available for purchase online as well from the dell website directly for the price listed above. The system software consists of OS Provided Microsoft Windows 7 Home Premium 64-bit Edition. The system setup specs consist of Intel Pentium G630 / 2.7 GHz with a Dual-Core processor that includes 64-bit computing. The installed RAM size 4 GB / 8 GB (max). The optical storage available this device is DVD/RW. The graphics controller on this computer is Integrated which includes Graphics Processor / Vendor Intel HD Graphics, Video Interfaces HDMI, and VGA. When it comes to these devices audio output this...
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...Apple Computer – 2005 Forest David: Francis Marion University A. Case Abstract This is a comprehensive strategic management case that includes the company’s financial statements, organization chart, competitor information, and industry trends. Sufficient internal and external data are provided to enable students to evaluate current strategies and recommend a three-year strategic plan for the company. Apple Computer, Inc., located in Cupertino, California, designs, manufactures, and markets personal computers (PCs) and related software, peripherals, and personal computing and communicating solutions. Apple is a member of the S&P 500 and the NASDAQ 100. Its products include the Macintosh line of desktop and notebook computers, the Mac OS X operating system, the iPod digital music player, and a portfolio of software and peripheral products for education, creative, consumer, and business customers. Apple sells its products through its online stores, direct sales force, third-party wholesalers and resellers, and its own retail stores. As of September 24, 2005, Apple operated 116 stores in the United States, and 8 additional stores in Canada, Japan, and the UK. In addition to its own hardware and software products, Apple’s retail stores carry a variety of third-party hardware and software products. Revenues for the period ending September 2005 were $13.9 billion, up 69 percent from September 2004 and up 124 percent from September 2003. B. Vision...
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...SWOT analysis of Apple Company background Name | Apple Inc. | Industries served | Computer hardware, Computer software, Consumer electronics, Digital distribution | Geographic areas served | Worldwide | Headquarters | U.S. | Current CEO | Tim Cook | Revenue | $ 156.508 billion (2012) | Profit | $ 41.733 billion (2012) | Employees | 72,800 (2012) | Main Competitors | Samsung Electronics Co., Ltd., Amazon.com, Inc., International Business Machines Corporation, Cisco Systems, Inc., Google Inc., Microsoft Corporation, Dell Inc., LG Electronics, Lenovo Group Limited, Hewlett-Packard Company, Sony Corporation and many others. | Apple Inc. is an American multinational corporation, which designs, manufactures and sells personal computers, consumer electronics and software, and provides related services. The business has experienced a tremendous growth from 2001 when it has introduced its iPod mp3 player. Apple Inc. is considered to be the most successful electronics company in the world. Mission Apple mission statement 2013 | “Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad.” | Overview Apple’s mission is one of the poorest statements that can be found...
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...Matching Dell - Case Summary by jaina2004 | studymode.com Matching DELL History: IBM Market Leader in Mainframe –market share 61%, starts PC business in ’81, in 2 yrs market share is 42% IBM Strategy : • Purchase PC components as against manufacturing inhouse (Main frame) • Open Architecture : OS – Microsoft, Microprocessor – Intel , reason, to encourage application developers and enhance Peripheral market • Sales : o Largely corporate clients - thought its huge sales force o Retail clients through value added resellers – handled, installations, configured SW,customer networks and service part of responsibility • Competition : Apple with propriety architecture had 20% market share, Compac enters in ’82, Dell in ’84, • Competitors strategy :: use resellers for large corporate accounts, due to lack of sales force • 1986- IBM moves to propriety architecture with PS/2 line and rejects 386 chip • 1980-90 – PC performace improved and chip price declined, o New technology advancement of 386DX and Pentium II processors were significant o Windows 3.0 launched in 1990, commonly called Wintel architecture o PC Sales declined in 1990 due to US recession • Post 1990 o Demand picks up due to economic growth, and technology like computer Networking, email and WWW. o PC prices decline to less than 499USD, 45.5% of US household owsn PC in 1998 â–ª Modular architecture prevalent for HW and SW, PC differed depending on configuration â–ª Most HW components sourced my numerous companies...
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...Organizational Culture at Apple Inc. In the year 1976, it was a dream for most people to buy a computer for their homes. Back then the computer community added up to a few brainy hobbyists. So when Steve Wozniak and Steve Jobs sold a van and two programmable calculators for thirteen hundred dollars and started Apple Computers, Inc., in Jobs garage, the reach for success seemed far. But these two young business men, Wozniak 26 years old and Jobs 21 years old, had a vision. Computers aren't for nerds anymore, they announced. Computers are going to be the bicycle of the mind. Low cost computers for everyone. From the first day on the founders of Apple kept their vision intact and they spoke it at every turn. They only hired people into the company that had the same visions as they did. Even though Jobs was the founder of Apple Computers, he resigned from Apple Computers in 1985 to form NextStep Computers after losing control of Apple. Steve Jobs was re-hired in 1997 to save Apple from its beleagurement when the past three CEO's could not bring Apple to its glory days again. Steve Jobs is one of the founders of the Apple. From the beginning his main goal was to make technologies that will change the life style and that will serve the customer. Jobs left the apple during the 80ies, only to return in 1997 and completely shake things up. He is known not only as a good visionare but as well as someone whose decisions are always unpredictable (switching to Intel). He is as well known...
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