...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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...Economic Analysis of Apple Inc. Introduction 3 Industry analysis 4 Personal computers 4 Computer software 5 iPod and iTunes 5 Company analysis 7 Apple Computers Inc 7 Apple Inc 8 Innovation 9 Profitability 9 Recommendations 11 Personal computing 11 Conclusions 12 References 13 Appendix 14 Introduction The primary purpose of this report is to execute an economic analysis on Apple Inc. We will review the impacts that the competitive market has had on Apple, since it was founded in 1976. This report will detail how Apple Inc. is both a dire example of the adverse effects of monopolistic competition on a company as other companies into the market; as well as an exceptional example the economic rewards yielded by innovation and brand differentiation within a competitive market. An analysis of Apple Inc would be incomplete without reviewing its past and present competitors. Reviewing these competitors will help the reviewer gain insight into comparative advantages held by other companies and the economic impact this has had on Apple Inc. this report will review the industry as a whole in order to understand the impacts of industry level supply and demand upon Apple Inc. The report will briefly examine the impact of market prices and international trade as an aspect of this report. More importantly, it will review specialization is undertaken by Apple Inc and the economic benefits gained by this course of action. Essentially, the economic view of Apple Inc is looking...
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...ECO320-65: CAPSTONE Economic Analysis of Apple Inc Student 2 Cleary University May 14, 2007 ECO320-65: CAPSTONE Economic Analysis of Apple Inc. Introduction 3 Industry analysis 4 Personal computers 4 Computer software 5 iPod and iTunes 5 Company analysis 7 Apple Computers Inc 7 Apple Inc 8 Innovation 9 Profitability 9 Recommendations 11 Personal computing 11 Conclusions 12 References 13 Appendix 14 Introduction The primary purpose of this report is to execute an economic analysis on Apple Inc. We will review the impacts that the competitive market has had on Apple, since it was founded in 1976. This report will detail how Apple Inc. is both a dire example of the adverse effects of monopolistic competition on a company as other companies into the market; as well as an exceptional example the economic rewards yielded by innovation and brand differentiation within a competitive market. An analysis of Apple Inc would be incomplete without reviewing its past and present competitors. Reviewing these competitors will help the reviewer gain insight into comparative advantages held by other companies and the economic impact this has had on Apple Inc. this report will review the industry as a whole in order to understand the impacts of industry level supply and demand upon Apple Inc. The report will briefly examine the impact of market prices and international trade as an aspect of this report. More importantly, it will review specialization...
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...execute an economic analysis on Apple Inc. We will review the impacts that the competitive market has had on Apple, since it was founded in 1976. This report will detail how Apple Inc. is both a dire example of the adverse effects of monopolistic competition on a company as other companies into the market; as well as an exceptional example the economic rewards yielded by innovation and brand differentiation within a competitive market. An analysis of Apple Inc would be incomplete without reviewing its past and present competitors. Reviewing these competitors will help the reviewer gain insight into comparative advantages held by other companies and the economic impact this has had on Apple Inc. this report will review the industry as a whole in order to understand the impacts of industry level supply and demand upon Apple Inc. The report will briefly examine the impact of market prices and international trade as an aspect of this report. More importantly, it will review specialization is undertaken by Apple Inc and the economic benefits gained by this course of action. Essentially, the economic view of Apple Inc is looking a company set within the market structure of monopolistic competition and how it has successfully used innovation and branding to turn itself into a pseudo-oligopoly despite competitors continually entering the market. Industry analysis Reviewing Apple Inc involves investigating the competitors that almost led to the demise of Apple Computers Inc in...
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...inventory ratio of 15 might seem a bit high, although the denominator of the current liability to inventory ratio is inventory and it is really low. It’s really hard to compare the company to the industry average because there is no other company that handles its inventory like Dell does. The company’s operation ratio expense is 12.64, way below compare to their industry do to their very low inventory. Assets Utilization: Asset utilization is vital to the success of an organization, the way assets are used within the organization is their biggest and strongest strategy making Dell a leader in its industry. A reflection of this strategy is their impressive inventory turnover ratio of 45.45. Unlike the industry average low numbers on the rest of the asset utilization ratios such as fixed assets turnover, total assets ratio and asset to equity ratio, Dell’s average 50% higher than its competitors. Profitability: Dell has been successful due to its differentiated strategy compared to its competitors. The Direct Model' that Dell adopted has been highly successful in reducing its bottom line costs. By this its return on asset ratio is 9.2% and an extraordinary return on equity ratio of closed to 50%, Dell,...
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...political, economic and financial instability as Apple. Apple, what was once considered a memory of times gone by has transformed itself and is on the verge of becoming the modern day David and Goliath. Today, Apple is a prominent provider of hardware and software, including Macintosh computer, the iPod digital media player, and the iPhone. With the iMac in 1998, iPod in 2001, iPhone in 2007, and iPad in 2010 Apple set itself apart with innovative design and has extended this differentiation throughout its entire product offering. Apple PCs are popular with consumers, students/educators, and creative professionals. Apple is also the largest vendor of portable digital music players globally with 70%+ market share. It is the largest vendor of legal digital music downloads globally. Following its entry into the smartphone business only 3 years ago, the iPhone already represents 1/3 of Apple's revenues and more than 1/2 of gross profits. Apple's products are available online, in its own retail stores, through its direct-sales force, and through third-party resellers. Apple is headquartered in Cupertino, CA and has approximately 34,300 full-time employees. Apple Financial Analysis The Company and its History On April 1, 1976, the Apple computer was born. Steven Wozniak and Steven Jobs had been friends through out high school. They had both been extremely interested in electronics and began dabbling in computer-design together (Apple History, n.d.). Steven Wozniak, a college drop-out...
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...Apple Inc. in 2008 Problem Statement Innovation and unique user experience can basically outline the value proposition by Apple Inc. that brought the corporation to success. Apart from these, it is still necessary for Apple to develop a suitable strategic profile from time to time to cope with changing market environment. However, the rather unchanged strategies throughout decades and unsustainable competitive advantages could have been the hindrances from further success, as seen from low return on equity in early 2000s as well as low market share in the personal computer industry, which stayed below 3% from year 2000. Facing intense competitions, Apple should create sustainable competitive edge in order to maintain its leader position in multiple markets. Analysis With global recognition, the success of Apple Inc. can be attributed to its multi-faceted comparative advantages. From the marketing perspective, Apple Inc. has done successful product differentiation. Most of its products, including Macintosh, iPod and iPhone, have proprietary designs that are recognised as sleek, unique and fashionable. It also provides own high-quality bundled software to power the hardware so as to provide a complete user experience and desktop solution to customers. These represent the simple positioning strategy of Apple: staying in the premium market as being superior and distinctive. Second, its high spending in research and development (R&D) fuelled multiple “revolutionary” innovations...
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...sapient institute of management studies 2012 Project report on Marketing Mix of Apple Inc. Guided By:- Dr.Vishal Khasgiwala Submitted By:-Hussain RatlamWala Aziz RatlamWala Contents SL no. | Particulars | Page no. | 1 | Introduction of sector | 3 | 2 | Introduction of Company | 4 | 3 | Organization structure | 6 | 4 | The 4 p’s | 7 | 5 | Unique Selling Proposition | 10 | 6 | Comparative analysis | 10 | 7 | Recommendation | 14 | 8 | Conclusion | 16 | Page no (2 of16) IT Industry in India | | | | IT Industry in India comprises hardware, software, and ITES (Information Technology Enabled Services). As per McKinsey-NASSCOM report, India's annual revenue from the IT industry for 2008 has been projected at US $ 87 billion. This includes IT services, software products and services, IT enabled services and e-businesses. The distribution of US $ 87 billion has been worked out as: * IT Services generating a revenue of US $ 38.5 billion * Software products and services contributing with a revenue of US $ 19.5 billion * IT enabled services (ITES) generating a revenue of US $ 19 billion * E-business earning a revenue of US $ 10 billion * Other vital observations of the NASSCOM-McKinsey report about Indian IT industry are: * Of the total Indian exports, IT will constitute 35% * FDI (foreign direct investment) of almost US $ 5 billion will be attracted by the IT industry * Software and services...
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...Case study on | Strategic Analysis | Of Dell Inc. | | mujeeb | [Pick the date] | | Introduction: The purpose of this report is to analyze the strategic position of Dell Inc. Headquarter in Round Rock, Texas; Dell computer was founded in 1984 by Michael Dell who was then an undergraduate student at the University of Texas. From very inception the company is providing superior value to its target market by providing latest technology at competitive prices around the world. Dell is cited as the largest player of the personal computer market. The company follows unique selling policy that is known as Dell Model—selling computers and other equipments directly to customer and build-to-order strategy thereby eliminating the intermediary margins and inventory costs. The mission statement of Dell has been divided into three parts customer satisfaction that states “We are an established company striving to satisfy customers by meeting their demands of quality, responsiveness, and competitive pricing. Each customer is #1” , team satisfaction that states, “Management and employees are committed to cooperating as a team for the purpose of profitability and gratification of a job well done” and community satisfaction “We will provide jobs in a clean, safe, environmentally sound atmosphere and be an active participant in community affairs” (Dell, 2010). 1. External Analysis: The primary industry of Dell is personal computer and computer equipments that are evolving...
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...CASE STUDY ON Strategic Analysis Of Dell Inc. mujeeb [Pick the date] Introduction: The purpose of this report is to analyze the strategic position of Dell Inc. Headquarter in Round Rock, Texas; Dell computer was founded in 1984 by Michael Dell who was then an undergraduate student at the University of Texas. From very inception the company is providing superior value to its target market by providing latest technology at competitive prices around the world. Dell is cited as the largest player of the personal computer market. The company follows unique selling policy that is known as Dell Model—selling computers and other equipments directly to customer and build-to-order strategy thereby eliminating the intermediary margins and inventory costs. The mission statement of Dell has been divided into three parts customer satisfaction that states “We are an established company striving to satisfy customers by meeting their demands of quality, responsiveness, and competitive pricing. Each customer is #1” , team satisfaction that states, “Management and employees are committed to cooperating as a team for the purpose of profitability and gratification of a job well done” and community satisfaction “We will provide jobs in a clean, safe, environmentally sound atmosphere and be an active participant in community affairs” (Dell, 2010). 1. External Analysis: The primary industry of Dell is personal computer and computer equipments that are evolving with the passage...
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...STRATEGIC MANAGEMENT BPMN6023 INDIVIDUAL TERM PAPER “DELL INC. : CHANGING THE BUSINESS MODEL (MINI CASE)” PREPARED BY : MOHD NOOR SHARIFFUDDIN AL-MUHARRAM BIN MAT SHUIB @ SHARIF MATRIX NO : 814812 MASTER OF BUSINESS ADMINISTRATION UNIVERSITI UTARA MALAYSIA TABLE OF CONTENTS Description | Page | 1 | Executive Summary................................................................................................. | 3 | 2 | Company Background.............................................................................................. | 3 | 3 | Industry Background................................................................................................ | 4-5 | 4 | Internal Environmental Analysis.............................................................................. | 5 | 5 | External Environmental Analysis............................................................................. | 5-6 | 6 | SWOT Analysis......................................................................................................... | 6-7 | 7 | Strategic Recommendation..................................................................................... | 8 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1. Executive Summary The modern business environment is characterized by intense competition and this trend...
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...1. Evaluation of the External Environment a. Introduction i. Apple Computers originated in Cupertino, California by three friends, Steve Wozniak, Steve Jobs, and Ronald Wayne. Wozniak was the computer nerd of the three and had been working on a computer design and once Jobs convinced him of finishing his model and selling it to the public the beginning of Apple computers was underway. On January 3, 1977 the hard work of the three friends became Apple Computer, Inc. Soon after Wayne sold his share back to Jobs and Wozniak. The two Steve’s continued on to create one of the most successful companies that would in future years be known for their computers, music devices, cell phones, and software worldwide. Apple took off after Wozniak’s Apple I adding numerous versions of the Apple, the Macintosh line, the iPod, iPhone, and iTunes products, and numerous other computer/software products to the Apple Computer, Inc. family. Apple has made its mark on the technology industry by continuing to be successful innovators that lead their numerous product markets. b. Identification of the Current Corporate Level Long-Term Strategies and Tactics ii. Apple has two major long-term strategies and tactics that they focus on. The first being strategic alliances that they have with IBM, Microsoft, and AT&T. The alliances they formed with IBM and Microsoft have enabled Apple to further their computer growth and guarantee software that is available and...
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...Apple (Computer) Inc. Whither the MAC? | Case Study Analysis | Strategic Analysis in terms of Capabilities Analysis & Five Force Model | Submitted by : Muhammad Saad Dasti Section B | 1. Prepare a Five Forces Analysis of the personal computer industry. (Think of your traditional Windows based PC.) How attractive is this industry? In order to properly identify and evaluate competitive position of personal computer , competitive analaysis model has been created to fully depict the position of display systems according to current scenario * The personal computer industry is somewhat vulnerable against the bargaining power of buyers. In recent years customers have more and more alternative options to the personal computer. Smartphone’s, tablet computers, and other handheld devices like IPods have most of the same capabilities as a personal computer. And because of the availability, sleekness, and trendiness of these alternatives, they have become increasingly popular making personal computers more and more obsolete. In order for the personal computer to compete with these newer alternative options, it must differentiate itself in order to regain market share. * Suppliers in the personal computer industry can be categorized into three groups, including hardware suppliers, software suppliers and service suppliers. The core of their...
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...9B13N017 LENOVO GROUP LIMITED – A GOOD INVESTMENT FOR THE FUND? 1 Ken Mark wrote this case under the supervision of Professors Craig Dunbar and Stephen Foerster solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveycases.com. Copyright © 2013, Richard Ivey School of Business Foundation Version: 2013-11-22 INTRODUCTION On June 3, 2013, Peter Grisham, a portfolio manager for Penhall Investment Funds, was reviewing the financial data his team had prepared on Lenovo Group Limited, one of the major holdings in Penhall’s Global fund. Penhall managed a number of mutual funds aimed at individual and institutional investors and had delivered strong investment performance by identifying key growth sectors and investing in a leading company in each sector that Penhall’s research indicated...
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...COMMON ASSESMENT: CASE ANALYSIS Submission 21st February 2001 Present an in-depth comparative analysis of two firms operating in two different countries. In the case analysis compare and contrast the differences in political, ethical, economic and legal differences and their impact on management decision making. Introduction: The aim of this paper is to identify the key political, ethical and economic differences between Apple, based in the USA and Shell, based in Holland, and then compare the differences based on management the individual decision making processes in the subject countries. The ethical conditions will also be discussed, with regard to laws on corporate social responsibility of the companies, as well as the environmental laws of the countries and the impact on the companies. Shell Holland Royal Dutch Shell plc, also known as shell, is a global group of energy and Petrochemicals Company with more than 100,000 employees in almost 90 countries. Shell is a worldwide oil and gas company, which is headquartered in the Netherlands and with its registered office in the United Kingdom. It is the largest energy company and the second-largest company in the world measured by revenues, It is management controlled and is active in every area of the oil and gas industry, that includes exploration and production, refining, distribution and marketing, power generation and trading. It also has major renewable energy activities, hydrogen, solar...
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