...advantages. Apple owners were much more attached to their Apple computers than PC users. Early on Apple pushed into the publishing and education markets. They were able to grab half the market for education. Their computers were easy to use, had sharp designs, and high quality. Apple also used a plug and play system with all its own peripherals as a major advantage. But with their own hardware and software, Apple’s computers were very slow and came with very few compatible programs. After Steve Jobs came back to the company, he instilled strong teams and leadership. He put the focus back on innovation by increasing R&D. He also establish Apple’s original strategy of premium products and customer service. He then introduces a website to set up direct sales with customers. Jobs partnered with Microsoft and added USB connectors to become more compatible with other applications and software systems. This eliminated a huge disadvantage Apple previously had. Apple products are also harder to duplicate and substitute because of it’s own proprietary design. Industry foresight has been a huge competitive advantage of Apple. Their innovation has shaped the consumer electronics industry. It has also kept competitors on their toes. Apple sets the standards for the industry. With their customer loyalty, Apple has become a strong brand name. They have product differentiation with the ease of use and design. Vertical and horizontal Integration is another big competitive advantage. Apple has always...
Words: 1128 - Pages: 5
...Case Study 8: Apple Inc. in 2010 By reviewing performances of each product line and analyzing the financial statements before 2010, we suggest Apple to keep all of its business segments, because personal media players and personal computers have played an important role in Apple’s longevity, and Smart phones and tablet computers are critical divers of revenues in the present and future. First, personal media players product line should not be dropped since it was not only the driver of “hallo effect,” but also the leader of personal media player industry. Dropping this product line will cause adverse conjecture about the future of Apple and affect the stock price dramatically, because this business segment created “hallo effect,” helping other products of Apple became popular with customers in the past years, which means it was considered by publics as the icon product to Apple. In addition, there is no need to drop this line. Although there were a lot of producers in the digital music players industry, Apple held 73% market share in 2010, and none of rivals with very little market share in this industry can compete with Apple. Because of the significance and absolute predominance of personal media players, Apple should not drop its media players line. Second, since personal computers is a potential market which has big growth space, and this sector is the main business for Apple, Apple should not get rid of this product line. With the worldwide recovering economy, the demand...
Words: 665 - Pages: 3
...factors for Apple, Inc. that have made it successful in the markets that it competes in. First, the company is constantly coming up with new and creative innovations. In the personal computer industry, it created MacBooks in 2009. In the personal media player industry Apple created the iPod. This followed with the creation of the itunes store, which catapulted iPod sales. This was due to the fact that consumers could download and store music, movies, and applications and use iTunes in conjunction with the iPod. In 2007, Apple entered the smartphone industry by launching the iPhone. Finally, in 2010, Apple introduced the iPad (Thompson, Peteraf, Gamble, & Strickland, 2012) .The iPad is the product that put the entire tablet industry on the map. Apple's innovation was ingenious in that its products are linked together with one another. iPods, iPads, and iPhones are nearly identical in the way they are run and they all are used with iTunes. Users are able to run their songs, movies, and applications on all of the above products. This creates a huge halo effect as many consumers choose Apple products when shopping for portable music devices, tablets, and phones because there is very little learning curve from one product to the next and they can download their iTunes purchases onto all of their Apple products. These products show how innovative Apple is and leave competitors scrambling to launch products to try to achieve success in the markets that Apple has already...
Words: 747 - Pages: 3
...analysis: Apple Inc. in 2010 Jingbo Liu 11529267 1. What, historically, have been Apple’s competitive advantages? 1) Keep the original though to try build the foundation of apple company. When entering in the late 1990s, the computer out from the laboratory as well as some important institutions to enter the market for personal use, then the computer began to uncover the mystery of it, and the explosive growth stages. And Apple has not been the market during the impetuous move, still adheres to a dozen years, we insist on doing their own technologies and platforms. 2) The independent technology to create a completely independent operating platform. MAC system use different subcode with any other system like android and Microsoft, which is extremely difficult to crack. Of course you can see Apple's products are also constantly increased, from MAC, iPhone, ipad and so on, until the iTV, etc., will continue to be unique in the field of information technology. 3) Apple's marketing model seemingly unique tradition but also advance. Apple different marketing tools used in conjunction with local conditions. Clearly it can be seen in the United States it is a populist image, consumers can enjoy Apple brought the trend of breath at the first time. 2. Analyze the personal computer industry. Are the dynamics favorable or problematic for Apple? Apple...
Words: 898 - Pages: 4
...9-502-063 REV: MAY 20, 2010 LUC WATHIEU Apple Stores Ron Johnson (HBS ’84), Apple Computer’s Senior Vice-President of Retail, never missed a chance to show a customer through the nearest Apple Store. A former Vice-President of Merchandising at Target (a leading department store chain), Johnson joined Apple in January 2000 with the mission to oversee the creation of the company’s own stores. The first store opened in May 2001—and just seven months later, 27 identical stores had been opened across the United States. During his store visits, Johnson tried computer applications, listened to a store employee make a presentation in front of the 10-foot screen at the rear of the store in “the theater,” and respectfully introduced his guests to the local “genius,” the official title of a very knowledgeable employee who stood behind a “bar” (complete with stools and water bottles) and helped solve consumer problems. Every detail of the store experience had been carefully designed, and as much as Johnson enjoyed each tour, he was also checking that all the store’s elements were perfectly under control. “The store experience has to be the same every day, every hour, in every store. We care passionately about that,” he often said. The stores were expanding to new territories, mostly in high traffic shopping malls, with the explicit purpose of “enriching people’s lives” and converting new customers to Apple products. To complete that mission successfully, Johnson’s focus was on choosing...
Words: 7093 - Pages: 29
...After Steve Jobs took over as interim CEO of Apple in September of 1997 the company moved from being solely a PC company to creating several new and innovative products, contributing to the company's extreme success. In 2001 Jobs presented his "Digital Hub" strategy involving the Mac computer. This strategy that had been implemented to the Macintosh and other products resulted in Apple becoming the fourth-largest PC vendor in the US. Jobs' digital hub strategy was expanded with the release of the Apple iPod in 2001, followed by the iPhone in 2007, and the iPad in 2010. Although Apple had several great success with Jobs as CEO, the company faced some occasionally failures as well. The Mac Mini did not sell as well as the company had hoped due to limited memory and few expansion options. Another disappointment that Apple faced was the Apple TV. Apple has been able to differentiate themselves from other competitors in the PC industry due to the innovative digital hub strategy that Jobs founded and implemented in the Mac PC. He saw that people were becoming more enriched in a digital lifestyle and used the Mac as the "hub" to control and integrate these other digital devices that people were using day to day. This digital hub strategy ultimately changed the PC industry, creating a lower level of rivalry within the industry. The characteristics of the PC Industry may not have proven to be favorable for Apple, however, the company seems to be able to continue to be a leading PC...
Words: 559 - Pages: 3
...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...
Words: 502 - Pages: 3
...apple inc in 2010 Lou Marino The University of Alabama espite the effects of ongoing poor economic conditions in the United States, Apple Inc. celebrated record quarterly revenues and unit sales of computers during its third quarter of 2010. In addition, the company's newly released iPad tablet computer had sold 3.3 million units between its April 3, 2010, launch and the June 26, 2010, quarter end. The company also sold 8.4 million iPhones during the quarter. Most of the smartphone units sold during the third quarter of 2010 were iPhone 3GS models since the new iPhone 4 launched only four days prior to the close of the quarter. Although there had been some criticism of the antenna design of the iPhone 4, more than 3 million iPhone 4 units had been purchased by July 16, 2010, with only 1.7 percent being returned by dissatisfied customers. By comparison, the iPhone 3GS had a 6 percent return rate. Apple's chief operating officer, Tim Cook, commented to the Wall Street Journal that the company was selling iPads and iPhones "as fast as we can make them" and was "working around the clock to try to get supply and demand in balance.'" Some analysts were projecting that Apple would sell nearly 12 million iPad tablet computers by year-end 2010. However, others were concerned that once Apple aficionados had purchased an iPad to complement their iPhone, iPod, or Mac, further sales growth might be difficult to achieve. A former Apple executive commented, "The first five million will be...
Words: 6733 - Pages: 27
...iPhones, iPods, iPads, the Macintosh desktops and laptops as well as other product services. The differentiation strategy Apple has employed allows them to try meet the needs of a diverse global market by offering its customers innovative new products, as well upgrades and improvements on existing products. Their ability to develop their own operating systems and software gives them complete control over future software, operating systems and products when it comes to future developments. Apple’s innovation strategy revolves around quickly responding to new market demands and, technology advancements. Apple always has improvements in its product lines which match with current technology trends. The pieces fit well together very well because in my opinion differentiation and innovation work well hand in hand. They are innovating new products and services that set them apart from their competitors and, using this to execute their differentiation strategy. Yes, I do believe Apple’s strategy is evolving because through their ability of developing their own operating systems, software and hardware. Apple has been able to grow from just the computer industry and evolved into the media player, mobile phone and tablet computer industries. 2. The key elements in Apple’s strategy in computers are the style, unique features and limited selection. The appearance in Apple computers is very attractive, sleek and stylish. Their computers have this edgy and fashionable look which is very different...
Words: 1109 - Pages: 5
...Apple Inc. in 2010 Jennifer Rossin American Military University BUSN620 Strategic Management May 15, 2015 Abstract Per the assignment given, this paper explores Case Study #4, Apple Inc. in 2010. On April 4, 2010, Apple Inc. (from this point forward, referred to as “Apple”) launched the first generation of the iPad. The third largely hyped product launched by the company over the previous ten years, the iPad was greatly anticipated and touted as the “next big thing.” This paper will examine how Apple competes with the rest of the PC, MP3 player and smartphone markets, along with challenges the company faces (at the time of the study). It will also discuss the leadership of Steve Jobs and the direction Apple has gone in since his departure from the company. Apple vs. the PC In the Beginning When 21-year-old college dropout Steve Jobs and his two friends Steve Woznizk and Ronald Wayne would hang out in Jobs’ parents’ garage, it wasn’t a band they were contemplating forming, but the future of computers as we know them today. On April 1, 1976, the three incorporated Apple Computer. Originally a do-it-yourself kit, sans a case, the Apple 1 was the first all-in-one microcomputer. Eventually, the Macintosh was introduced in 1984. Continuing through to 2010, Apple has continually improved on its version of the personal computer, creating faster machines and a bigger and bigger customer following. Competing in the PC Market In 2010...
Words: 1299 - Pages: 6
...GBA507 | Apple Case Study | | | | Laura GriffinJanuary 2, 2013Professor Gregory Fallon | | Apple Computer was founded in 1976 by masterminds Steven Wozniak and Steven Jobs. Together they created and introduced the first mass produced personal computer and eventually went on to produce breakthrough after breakthrough in the technology and music world. Steve Jobs had a short stint away from the company however, returned many years later to bring Apple Inc. into the fast growing and much anticipated world of music and technology. Apple has been engaged in design, development and marketing of personal computers, media devices, and portable music devices such as, the famous and highly sought after iPod. The company also sells a variety of related software, services, networking solutions, third party digital content and applications. Their product line encompasses products such as, the Mac pc; several versions of the iPod, music download program iTunes, the iPhone, iPad, and the iStore to purchase items that service their product lines. Apple primary operates in the US. And its headquarters are located in Cupertino, CA. The company employs approximately 47,000 employees. Apple has had many highlights in its history, as well as, some setbacks. The company was led by pioneers in the beginning creating the first mass produced personal computer but had a hard time keeping up as other entrants matched and surpassed capabilities of what Apple products...
Words: 3175 - Pages: 13
...he iPhone (pron.: /ˈaɪfoʊn/ eye-fohn) is a line of smartphones designed and marketed by Apple Inc. It runs Apple's iOS mobile operating system, known as the "iPhone OS" until mid-2010, shortly after the release of the iPad. The first iPhone was released on June 29, 2007;[14] the most recent iPhone, the sixth-generation iPhone 5, on September 21, 2012.[15] The user interface is built around the device's multi-touch screen, including a virtual keyboard. The iPhone has Wi-Fi and cellular connectivity (2G, 3G and 4G). An iPhone can shoot video (though this was not a standard feature until the iPhone 3GS), take photos, play music, send and receive email, browse the web, send texts, and receive visual voicemail. Other functions—games, reference, GPS navigation, social networking, etc.—can be enabled by downloading apps; as of 2012, the App Store offered more than 700,000 apps by Apple and third parties.[16] There are six generations of iPhone models, each accompanied by one of the six major releases of iOS. The original iPhone was a GSM phone, and established design precedents, such as screen size and button placement, that have persisted through all models. The iPhone 3G added 3G cellular network capabilities and A-GPS location. The iPhone 3GS added a faster processor and a higher-resolution camera that could record video at 480p. The iPhone 4 featured a higher-resolution 960 × 640 "retina display", a higher-resolution rear-facing camera and a lower-resolution front-facing camera...
Words: 346 - Pages: 2
...NANYANG BUSINESS SCHOOL AB311 STRATEGIC MANAGEMENT GROUP STRATEGIC REPORT ON APPLE INC. SEMINAR GROUP 2 TEAM GENIE Instructor: A/P LAI SI TSUI-AUCH Word Count: 5,999 Done by: CHAN ZHE YING GOH CHUWEN LEE KOK CHONG TEO KOK MIN JOHN 1 Table of Contents I. EXECUTIVE SUMMARY ............................................................................................................... 3 II. MAIN REPORT............................................................................................................................... 5 1. Introduction of Apple Inc. ........................................................................................................... 5 1.1 1.2 2. 2.1 History................................................................................................................................. 5 Current Business Strategy ................................................................................................... 5 SWOT Analysis ........................................................................................................................ 10 Promising Opportunities ....................................................................................................... 10 The Shift from the PC to Mobile Era ............................................................................ 10 Emerging Markets ......................................................................................................... 11 Consumer Digital Lifestyle...
Words: 8330 - Pages: 34
...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...
Words: 3051 - Pages: 13
...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...
Words: 1218 - Pages: 5
