Apple Inc.
Shivani Saini
Vijay Chandran Bala
Jehaangir Basha
Vikash kr verma
“It’s is better to be pirate than to join navy.”
Steve jobs, Apple inc
Evolving PC Industry: Snapshot
• Computer industry started experiencing growth from mid 70s
• Guess, which company bought PCs into mainstream: Yes, that was IBM, that captured almost 70% of the PCs
market share till 80s, when other companies started entering PC industry,
• The Lisa is a personal computer designed by Apple Computer, Inc. during the early 1980s. It was the first
personal computer to offer a graphical user interface in an inexpensive machine aimed at individual business
users
• By 1990s, ‘Wintel’ (Windows OS + Intel processor), replaced “IBM compatible” as the industry standard. Other
entrants: Dell, Compaq etc
• By 2008, PCs in use around the world: 1 billion!
• Target market of PC manufacturers comprise of 42% Home buyers, 32% SMB, Large corporation 12%,
Education 8% and Government 6%.
• Major PC manufacturer that hold 50% of market share HP, Dell, Acer & Lenovo.
1983
Apple Lisa was the first computer with a GUI.
We are in uncharted territory. We have never sold this many of anything before.
- Apple keynote address, 12 sept 06 -
Apple.inc 02
“Innovation distinguish between a leader and follower.”
APPLE’ S DNA
Here’s to the crazy ones. The misfits . The rebels. The troublemakers.
The round page in the square holes. The one who see thing differently.
They are not found of rule. And they have no respect for the status quo.
You can quote them, disagree with them glorify and vilify them.
About the only thing you cant do is ignore them. Because they change things.
They push human race forward. And some see them as crazy one we see them as
Genius. Because the people who are crazy enough to think they can change the world, are
the one who do.
Apple.inc 02
Apple .Inc
• Fortune magazine named Apple the most admired company in the United States in 2008, and in 
the world from 2008 to 2012.
• Apple was established on April 1, 1976, by Steve Jobs, Steve Wozniak and Ronald Wayne 
to sell 
the Apple I personal computer kit
• Apple II sparked a computing revolution that drove PC industry to $1 billion in annual sales in 
less than 3 years. 
• In 1984, Apple next launched the Macintosh. Its debut was announced by the now famous $1.5 
million television commercial "1984". It was directed by Ridley Scott and was aired during the 
third quarter of Super Bowl XVIII on January 22, 1984. It is now hailed as a watershed event for 
Apple's success and a "masterpiece". 
• In 1985 a power struggle developed between Jobs and CEO John Sculley, who had been hired 
two years earlier.The Apple board of directors instructed Sculley to "contain" Jobs and limit his 
ability  to  launch  expensive  forays  into  untested  products.  Jobs  resigned  from  Apple  and 
founded NeXT Inc. the same year.
• Apple was introducing fresh new products and generating increasing profits in the process. The 
magazine Mac Addict named the period between 1989 and 1991 as the "first golden age" of the 
Macintosh.
• During Amelio's tenure Apple's stock continued to slump and hit a 12-year low in Q2 1997
• The Apple Board forced Amelio out and in September 1997 Steve Jobs became the companys 
interim CEO
• At the 2000 Macworld Expo, Jobs officially dropped the "interim" modifier from his title at Apple 
and became permanent CEO.
• The company subsequently branched out, introducing and improving upon other digital 
appliances
• Apple entered the cellular phone business with the introduction of the iPhone, a multi-
touch display cell phone, which also included the features of an iPod and, with its own mobile 
browser, revolutionized the mobile browsing scene
Mission statement
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 reinvented the mobile phone with its revolutionary iPhone and App
Store, and has recently introduced its magical iPad which is defining the future of mobile media
and computing devices.
‖
Vision
"Man is the creator of change in this world. As such he should be above systems and structures, and
not subordinate to them."
Core values
Design and innovation
Ease & Simplicity
Quality
Apple.inc 02
Apple.inc 02
Strength Weakness
Design and innovation capabilities Expensive comp aredto other competitive eg Dell
Distinctive graphical user interface Repair and serviceissues such as : iPod Battery
Easeof use Product features such asWi-Fi capabilities
Own operating system
Window parallel reliability.
Opportunity Threats/Competition
Mobile phone business Linux, Microsoft
Home entertainment, Digital tv Objection from music and labels
Creative Sony ,Samsung & micromax
DRM Free copies Amazon
Competitive advantages
Design and innovation oriented
Greater Horizontal and vertical integration
Designing from scratch to finish bundled with applications and peripherals
Plug and play solution
R & D Oriented
An everything ready device
Firm infrastructure
HRM
Technology Development
Procurement
Inbound
Logistics
Operations Outbond
Logistics
Marketing/
sales
Service
Alliances withmajor
suppliers
Designand innovation Horizontal & vertical
integration
Plug and play solutions i-tunes gives amajor
edge
Linkagewith
independentsoftware
vendors
Technology driven Complete bundleof
application
Operating system more
secure, and less prone
to virus
Collaborating with
other leaders
i-pod & i- tunes combo
gives brand awareness
apush
Apple’s retail
experience, new Mac
customers bought
more.
Product Development
New product
:ideation
Designing &
Funding
Product creation
Beta testing
Improvement&
launch
Low
High
High
Analysis of the industry based on Porter’s 5 forces
Threat of new
entrant
Threat of new
entrant
Bargaining power of
customer
Bargaining power of
customer
Bargaining power of
supplier
Bargaining power of
supplier
Threat of substitute
product
Threat of substitute
product
Current
Competition :Very
intensive
Current
Competition :Very
intensive
Low
BCG Analysis of apple products
Challenges in front of apple.inc
• Frequent changes of strategies and leadership at the helm
• Closed system of the apple Mac, application system not easily available
• Niche market operator, less penetration
• Premium segment, research oriented hence costly
Design is not what it looks like and feels like. Its
like how it works.

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Apple.inc 02

  • 1. Apple Inc. Shivani Saini Vijay Chandran Bala Jehaangir Basha Vikash kr verma
  • 2. “It’s is better to be pirate than to join navy.” Steve jobs, Apple inc
  • 3. Evolving PC Industry: Snapshot • Computer industry started experiencing growth from mid 70s • Guess, which company bought PCs into mainstream: Yes, that was IBM, that captured almost 70% of the PCs market share till 80s, when other companies started entering PC industry, • The Lisa is a personal computer designed by Apple Computer, Inc. during the early 1980s. It was the first personal computer to offer a graphical user interface in an inexpensive machine aimed at individual business users • By 1990s, ‘Wintel’ (Windows OS + Intel processor), replaced “IBM compatible” as the industry standard. Other entrants: Dell, Compaq etc • By 2008, PCs in use around the world: 1 billion! • Target market of PC manufacturers comprise of 42% Home buyers, 32% SMB, Large corporation 12%, Education 8% and Government 6%. • Major PC manufacturer that hold 50% of market share HP, Dell, Acer & Lenovo.
  • 4. 1983 Apple Lisa was the first computer with a GUI.
  • 5. We are in uncharted territory. We have never sold this many of anything before. - Apple keynote address, 12 sept 06 -
  • 7. “Innovation distinguish between a leader and follower.”
  • 8. APPLE’ S DNA Here’s to the crazy ones. The misfits . The rebels. The troublemakers. The round page in the square holes. The one who see thing differently. They are not found of rule. And they have no respect for the status quo. You can quote them, disagree with them glorify and vilify them. About the only thing you cant do is ignore them. Because they change things. They push human race forward. And some see them as crazy one we see them as Genius. Because the people who are crazy enough to think they can change the world, are the one who do.
  • 10. Apple .Inc • Fortune magazine named Apple the most admired company in the United States in 2008, and in  the world from 2008 to 2012. • Apple was established on April 1, 1976, by Steve Jobs, Steve Wozniak and Ronald Wayne  to sell  the Apple I personal computer kit • Apple II sparked a computing revolution that drove PC industry to $1 billion in annual sales in  less than 3 years.  • In 1984, Apple next launched the Macintosh. Its debut was announced by the now famous $1.5  million television commercial "1984". It was directed by Ridley Scott and was aired during the  third quarter of Super Bowl XVIII on January 22, 1984. It is now hailed as a watershed event for  Apple's success and a "masterpiece".  • In 1985 a power struggle developed between Jobs and CEO John Sculley, who had been hired  two years earlier.The Apple board of directors instructed Sculley to "contain" Jobs and limit his  ability  to  launch  expensive  forays  into  untested  products.  Jobs  resigned  from  Apple  and  founded NeXT Inc. the same year. • Apple was introducing fresh new products and generating increasing profits in the process. The  magazine Mac Addict named the period between 1989 and 1991 as the "first golden age" of the  Macintosh.
  • 11. • During Amelio's tenure Apple's stock continued to slump and hit a 12-year low in Q2 1997 • The Apple Board forced Amelio out and in September 1997 Steve Jobs became the companys  interim CEO • At the 2000 Macworld Expo, Jobs officially dropped the "interim" modifier from his title at Apple  and became permanent CEO. • The company subsequently branched out, introducing and improving upon other digital  appliances • Apple entered the cellular phone business with the introduction of the iPhone, a multi- touch display cell phone, which also included the features of an iPod and, with its own mobile  browser, revolutionized the mobile browsing scene
  • 12. Mission statement 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 reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced its magical iPad which is defining the future of mobile media and computing devices. ‖
  • 13. Vision "Man is the creator of change in this world. As such he should be above systems and structures, and not subordinate to them." Core values Design and innovation Ease & Simplicity Quality
  • 16. Strength Weakness Design and innovation capabilities Expensive comp aredto other competitive eg Dell Distinctive graphical user interface Repair and serviceissues such as : iPod Battery Easeof use Product features such asWi-Fi capabilities Own operating system Window parallel reliability. Opportunity Threats/Competition Mobile phone business Linux, Microsoft Home entertainment, Digital tv Objection from music and labels Creative Sony ,Samsung & micromax DRM Free copies Amazon
  • 17. Competitive advantages Design and innovation oriented Greater Horizontal and vertical integration Designing from scratch to finish bundled with applications and peripherals Plug and play solution R & D Oriented An everything ready device
  • 18. Firm infrastructure HRM Technology Development Procurement Inbound Logistics Operations Outbond Logistics Marketing/ sales Service Alliances withmajor suppliers Designand innovation Horizontal & vertical integration Plug and play solutions i-tunes gives amajor edge Linkagewith independentsoftware vendors Technology driven Complete bundleof application Operating system more secure, and less prone to virus Collaborating with other leaders i-pod & i- tunes combo gives brand awareness apush Apple’s retail experience, new Mac customers bought more.
  • 19. Product Development New product :ideation Designing & Funding Product creation Beta testing Improvement& launch
  • 20. Low High High Analysis of the industry based on Porter’s 5 forces Threat of new entrant Threat of new entrant Bargaining power of customer Bargaining power of customer Bargaining power of supplier Bargaining power of supplier Threat of substitute product Threat of substitute product Current Competition :Very intensive Current Competition :Very intensive Low
  • 21. BCG Analysis of apple products
  • 22. Challenges in front of apple.inc • Frequent changes of strategies and leadership at the helm • Closed system of the apple Mac, application system not easily available • Niche market operator, less penetration • Premium segment, research oriented hence costly
  • 23. Design is not what it looks like and feels like. Its like how it works.