...EMBA 8700 – Apple Case Write-Up Executive Summary Apple Inc. is a global producer of personal computers, portable digital music players, and mobile communication devices for the consumer electronics industry. The company is also a provider of complementary software, services, accessories and peripherals, networking solutions, third-party applications and digital content. The company’s core strategic position is to differentiate themselves by delivering the best user experience through a combination of innovative industrial design (hardware) and software harmoniously working in concert resulting in a price premium that exceeds the cost of being unique. From an industry standpoint [see Chart 1], rivalry in consumer electronics is extremely high where product differentiation is short-lived (i.e. copycats). Even “the most valuable company in the world” cannot slow down. The industry, the competition, and advancements in technology are dynamic and continue to evolve at lightning speed. Apple must stick to its blueprint of success over the last two decades – differentiated product development and operational excellence without losing sight of the customer’s value chain – or risk falling behind and dropping market share. Analysis As a company, Apple has created an enviable and unique position in the industry of being able to design, manufacture, and market their own operating system, develop their own customer friendly hardware and application software, creating an ecosystem that...
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...King Graduate School, Monroe College Master in Business Administration MG 800: Strategic Management Title: Apple Inc. in 2012 Case Study 10/03/2015 Table of contents 1. Introduction…………………………………………………………………………03 2. The Mission, Vision, and Values of Apple, Inc……………………………………03 3. External Analysis……………………………………………………………………03 4. Internal Analysis……………………………………………………………………03 5. Strategy Analysis……………………………………………………………………08 6. Conclusion………………………………………………………………………….12 7. Recommendations………………………………………………………………….12 References………………………………………………………………………….14 Introduction According to Mahsmr (2012), Apple Inc. started in 1976 as an American manufacturer of personal computers, computer software and peripherals. Originally, it was Apple Computer Inc. for 30 years, and its principal office is based in Cupertino, California. It is the very first thriving personal computer firm that has started the popularized usage of the graphical interface. During its starting years, Steve Jobs and Wozniak were responsible for the introduction of the company first innovation that was put on sale. The first personal computer product was sold then, after which, the two founders continued to produce more and more innovative personal computers. However, not all years were lucky years for Apple Inc, there were also times that the company experienced some financial struggles that led to several changes in the management. In 1997, Steve Jobs took over the...
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...Apple Inc.’s current problems are summarized below in the order of their priority. 1) Apple’s market share is being challenged: This is Apple’s biggest and most immediate problem. With Macintosh revenues being less than 20% of Apple’s Sales in 2011 (Apple Inc. in 2012: Case Study, Yoffie/Rosanno, Page 1), its bottom line is being driven primarily by the sale of iPhones and iPads. A reduction in Apple’s market share will have an adverse effect on its revenues. The table below further illustrate the stiff competition Apple is facing: Smartphones (Global Share) Apple: 18.9% (2011) Android: 46.4% (2011) Tablets (Global Share) Apple is expected to fall from 76.1% to 54.7% in 2012 Android increases from 23.6% to 44.2% in 2012 Apps (Number of Apps) App Store: 585,000 Android: 450,000 (Apple Inc. in 2012: Case Study, Yoffie/Rosanno, Exhibit 7,8 and 9) 2) What’s next? No revolutionary product in the last 2 years: Apple’s next problem is the absence of a recent product that has had run away success like the iPod or the iPhone. This has resulted in more pressure on Apple’s existing product line, which is facing stiff competition. Their recent failures and challenges include : a) Mac Mini: A high price forced people to choose a Windows desktop with more functions and faster performance at a lower price. b) Apple TV: This consumers failed to have the desired effect on...
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...1. How attractive is the PC industry? Conduct an industry analysis on the PC industry (A) in its early stages, and (B) in its later stages. Comment on how the industry has evolved. In personal computer industry, we considered two different time periods. The early stage includes development from 1980s to the early 2000s, and the later stages starts from early 2000s to now. Threat of Entry Early Period PC industry has low entry barrier which is brought by IBM’s entry to the market. In 1980s, IBM adopts open architecture strategy which outsources its operating system (OS) and microprocessors to Microsoft and Intel respectively. This strategy also has several implications: (1) product design and feature information is also available to other potential competitors, (2) IBM does not possess any patents related to product design, which allows competitors to copy the product designs. For small companies, open architecture significantly reduces the risk of market entry as it significantly reduces capital investment for firms to develop their own OS and microprocessors. Another industry environment that sustains lowers entry barrier to 1990s is network effect, which is defined as increase in products’ value due to increase in its popularity among consumers. As IBM converts PC as the mainstream and adopts open architecture strategy, Microsoft and Intel collaboratively develops a new standard known as “Wintel”. Manufacturers, ranging from Dell to generic companies, are able to use...
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...models are available in many different configurations. All models since 1994 are based on the PowerPC microprocessor. They believed had a real advantage for consumers who were becoming entrenched in a digital lifestyle. Also, digital cameras, portable music players, and digital camcorders. That they though could be the preferred hub to control integrate, and add value to the devices. Also to control of both hardware and software.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. Apple's Mission Was to bring an easy-to use computer to market, which led release of the Apple II in 1978. Also, Apple is committed to protecting the environment, health and safety of their employees, customers and the global communities where they operate. They can offer technologically innovative products and...
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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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...Apple Incorporated is a U.S. based computer and electronics firm that manufactures products such as the iPod, iPhone, Macintosh computer, iPad, and Apple Watch. Apple Incorporated was founded in 1976 by Steve Jobs and Steve Wozniak, who released the Apple II computer in 1977 (Apple Inc…, 2015). The next product launched by Apple Inc. was The Apple Lisa which was released in 1983 and was the first computer to have a mouse and a graphical user interface (Apple Inc…, 2015). The first Macintosh computer came in 1984 however it was not successful due to the lack of market share to compete with IBM (Apple Inc…, 2015). After several years of financial losses, Steve Jobs launched a product redesign in 1997 that led to the iMac in 1998 (Apple Inc…, 2015). During the 2000s, Apple began to focus on portal MP3 devices such as the iPod and mobile phones like the iPhone. Then Apple began a new line of business in the music industry with iTunes. Today, Apple Inc. is a major competitor within the computer and consumer electronics industry. Apple Inc. is headquartered in Cupertino, California and has 76,000 employee based in the United States. Apple Inc. has directly and indirectly created and supported 1.9 million jobs in the United States (Israel & Johnson, 2016). Apple Inc. has stores located in 18 countries including the United States (Apple Inc., 2016). After a brief overview and history of Apple Inc., this critical analysis will take a look at the industry in which it operates,...
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...HEAD: Apple, Inc. SWOT Analysis Apple, Inc. SWOT Analysis AIU – MGT680 Abstract As a senior manager of a computer company, this paper will discuss the company’s competitor, Apple, Inc. This paper will include five factors of strengthens, weaknesses, opportunities, and threats for Apple, Inc. It will explain why those factors are important for this company to know. The paper will also propose a strategy and product that will take advantage of Apple, Inc. vulnerabilities which will increase this company’s market share. Apple, Inc. SWOT Analysis Introduction Apple, Inc. is a major competitor for our company and by doing a SWOT analysis of Apple, Inc. means we can help our own strategies. A SWOT analysis looks at strengthens, weaknesses, opportunities, and threats factors of Apple, Inc. By knowing these factors about Apple, Inc. will be important to our company because it takes a look at our competitor. A strategy and product will also be proposed that will take advantage of Apple, Inc. vulnerabilities which will increase this company’s market share. SWOT Analysis Strengths Apple, Inc. has five great strengths that include innovation, brand, customer loyalty, retail stores and marketing, and cash flow abundance. Apple, Inc. innovation includes being the leader in technological innovation with the release of products such as the iPods, iPhone and more. The 2012 Global Innovation 1000 ranked Apple, Inc. number 1 for the 3rd year in a row. Apple, Inc.’s idea...
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...of Apple Marketing Strategy on Consumer Self-concept and How Various Products Appeal to the Different Types of Self In their marketing strategy, Apple Inc capitalizes on their consumer’s self-concept such as their beliefs, opinions, preferences, attitudes and what they think about the Apples brand (Schneiders, 2011). As explained by (Budnikas, 2010), Apple Inc marketing strategy focuses on the customer experience as it is fully aware that all aspects of the consumer experience are important to the success of their brands. Apple Inc develops products that are beautifully designed, innovative, ergonomically simple to use and user friendly interface. Additionally, Apple has also spent as much time and resources on the design of their products packaging as on their products hence they have created an experience among their customers that is impossible to match. Apple Inc also uses scarcity as its marketing strategy (Katie, 2013). The company stocks a limited number of their products. Due to the limited availability of the products, people perceive their products as high quality and of great value (McCormack, 2016). This creates very long queues which helps publicize their products and increase demand. Apple has also come up with Apple Genius. These are employees trained and certified to provide technical assistance to apple stores. This creates trust in their products and conveys their products as superior. Apple Inc products include Mac, iPod, iPad, iPhone and Apple stores...
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...External and Internal Environmental Analysis STR 581 August 27, 2012 Barbara Fuller External and Internal Environmental Analysis Apple Inc. was first launched into the technology market as a computer company. In 1976, Steve Jobs and Steve Wozniak launched Apple Inc. with the mission of reaching a diverse community globally to market its products. Since that time, there have been changes in the external environment of the company that has an impact on the decisions the organization makes. Apple Inc. has implemented frameworks to assess its external and internal environment. The company has identifies the specific domains that affect the operations of the company from the outside. These forces of the organization enable the operations of the company to be influenced. Apple Inc. considers the global market to be of high importance. Globalization is becoming a criterion for large organizations to excel above their competition. Apple Inc. needs managers and executives proactively understanding that if the company is not globalizing it can leave them behind of the competition. This can be a tough challenge for Apple because many U.S. companies have not been successful capturing many global markets. Apple never thought about capitalizing on its digital future globally until they made a change in their strategy. Apple had to realize just how much influence it would make by expanding its products and service to a global level. It would...
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...the creator and the consumer; it does create a monopoly but only for a short time in order for the creator to profit. Once the term of protection expires the consumer can then take the product and make improvements and even buy it cheaper. Without protection people would choose not to share their creation or invention, which would cause poor economy growth. Due to the laws of protection for IP, many lawsuits are filed each day. These types of lawsuits could last for years. A lawsuit that has lasted for a few years is Apple Inc. vs. Samsung; the lawsuit between the two electronic companies began in April 2011. Apple Inc. filled 12 claims of infringement against Samsung; the infringements are between the two product Apple Inc.’s iPhone and Samsung’s Galaxy. The goal for Apple Inc. is the make Samsung pay for the infringement in the past as well as stops them from infringing anymore in the future (Patel, 2011). A few days later Samsung fires back at Apple Inc. with an infringement lawsuit themselves,...
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...------------------------------------------------- Environmental Scanning of APPLE Adalei Padilla* MG485-44* 5/20/2012 ------------------------------------------------- Environmental Scanning of APPLE Adalei Padilla* MG485-44* 5/20/2012 External External Introduction The Apple Company was founded by Steve Jobs and Steve Wozniak in 1976 and incorporated in 1977 introducing the Apple Computer as their first product, ever since they have grown to become one of the largest growing technological organizations worldwide (History of Apple). The financial result for Apple’s 2012 second quarter ended on March 31, 2012 and was reported on April 24th 2012. The company posted quarterly revenue of 39.2 billion and quarterly net profit of 11.6 billion (Apple and the Environment ). Apples’ achievements do not go unnoticed, but we must also credit those individuals who work tirelessly to keep Apple on top. Individuals dedicated to constantly strategizing to ensure the continued success of Apple. Strategies like environmental scanning, that consists of a scan and evaluation of the external environmental to recognize potential threats or opportunities of the organization. The environmental scanning of an organization as large and as successful as Apple must be thoroughly performed and must incorporate the natural physical environment, the societal environment and the task environment. (Thomas L. Wheelen, 2012) Natural Physical Environment: Apple has been trying to diligently go greener to reduce...
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...Marketing Strategies Apple Corporation is well known for employing technological masterminds. The company has undergone extreme successes and failures since its humble beginnings. One such failure was made known to the public in 1996 at the famous “MacWorld” Expo when Apple announced that it was taking a $68 million quarterly loss (Goodell, 1996). Fast forward to 2006, Apple finds itself in the hot seat for violations of worker rights, deaths and even suicides (Chun, 2011). What does all of this mean? Can a company produce a great product and literally get away with murder? Will society look away because we love our iPads and iPhones? This essay will exam Apple’s ethical and social obligations and the consequences of violating these obligations. It will also present processes that may be implemented to assist Apple in adhering to wage and benefits standards. It will address concerns in regards to passing costs of improving to customers and the customer’s willingness to pay more for the highly desired products. Finally, Apple’s marketing strategy will be observed in order to determine recommendations to improve its competitive advantage. Overview of Apple Apple Inc. is a global corporation, based in Cupertino, California, that produces technology ranging from computer servers to software. The name given on April 1, 1976 by founders Steve Jobs and Steve Wozniac was Apple Computer (Steinwart & Ziegler, 2014). The name was later changed to Apple Inc. The release of...
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...of CSR 2.2 Evolution of CSR 2.3 Emergence of CSR 3 Literature Review 3.1 Carroll's CSR Pyramid 3.2 Purpose of the firm and how that shapes views on CSR 3.3 Arguments for and against CSR 3.3.1 Arguments Against 3.3.2 Arguments For 3.3.3 Summary of the key debates 4 Methodology 5 CSR at Apple Inc. 5.1 Apple's profile 5.2 Reasons to engage in CSR 5.3 CSR policies at Apple Inc. 5.4 Type of CSR approach taken by Apple Inc. 5.5 Key dilemmas within CSR challenges 5.5.1. Labour and human rights 5.5.2. Workers’ health and safety 5.6 CSR tactics at Apple Inc. 6 Conclusion 7 References Word Count: 2837 1 Executive Summary Corporate social responsibility (CSR) has been highly regarded by most corporations. However, the exact reason why corporations implement CSR initiatives is often very vague and confusing to others. This paper will explore in depth how international corporations are motivated to incorporate CSR into the business strategies and how they deal with it. Based on academic references, the report firstly outlined the CSR background as well as some theory and key debates about CSR. Then, the methodology was summarized. After that, the case study of Apple Inc. was used to demonstrate the reasons for implementing CSR initiatives in depth. Following that, the types of dilemmas the company faced, the CSR approach and tactics it used were analyzed. Finally, a conclusion was drawn at the end of the paper. 2 CSR Background 2.1 Definition of CSR In...
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...Apple Inc. Company Profile Established on 01st April 1976, and incorporate on 3rd January 1977 with its subsidiary companies, Apple Inc. (formerly known as Apple Computer, Inc.) engages in designing, developing and promoting mobile communication and media devices, personal computers and portable digital music players. The company’s products are sold worldwide through its retail and online stores, direct sales force and many other distributors. Their products, services and programs have been specially designed to target education customers. Apple operates in key five areas; America, Europe, Japan, Asia-Pacific and Retails, which focuses on Apple-owned retails stores worldwide. (Apple Inc) With its continuous success throughout the world, Fortune Magazine has named the world’s most admired company in the world from 2008 to date. (Apple Inc.) Mission 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 recourses 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. (What is Apple's vision and mission?) Vision Apple is...
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