Apple's Winning Marketing Strategy

The Problem
SWOT Analysis
Strategy Recommendation

 Pressure from media and society about Apple's offshore production. President
Donald Trump said about CEO Tim Cook, " really believe he loves this country
and I think he'd like to do something major here. And I told him, I said, 'Tim, it's
going to be a big achievement the day you start building some of your big plants
in this country instead of other countries.' And I think he's got his eyes open to it.
I think he's got his eyes open to it" (BusinessInsider). "One of Trump's top
priorities is striking deals with American companies so he can claim that his
administration is saving or creating American jobs. Apple building a big factory
would be a huge win for Trump's trade policy" (BusinessInsider).
 High prices for seemingly similar models with few differing features. Will
consumer continue to pay more for Apple products?

Any ideas on what Apple should do in response to pressure and questioning about their
offshore production?

What about their prices?

Strengths
History
Weaknesses
Our Recommendation

 Steve Jobs death in 2011

 Image is based upon product quality so mistakes can create serious problems
 High-profile events at Apple factories: over a dozen workers have committed
suicide at Apple supplier factories along with other injuries, illnesses, and deaths

 Loyal employees and strong corporate culture

 World’s most valuable company in 2012
 Efficient and effective supply chain – most production done in China
 Apple stores – reminder of product in architecture and customer service
standards
 “Cult-like following”
 While Apple products provide a function that is already on the market they are
viewed as different, distinctive, and often superior to competition
  Apple changes the products features, quality, and/or aesthetics to create the
perception that consumers have to have the latest model, that the existing one is
now obsolete

Our recommendation for Apple is to continue production as normal unless President

Trump does indeed force some sort of regulation upon the company. Moving production
domestically would raise their prices even higher. However, as stated before their
consumer base was compared as "cult-like" so it is hard to say whether the rise in price
would have an effect on sales.

As of now, Apple holds a lower market share than Samsung but still has nearly double
their revenue.

In 1975, Steve Jobs and Steve Wozniak set up in Jobs' parents' garage to begin
building the first Apple computer. Jobs sold his Volkswagen microbus and Wozniak sold
his Hewlett-Packard calculator to generate the capital to start the business. The Apple I
sold mainly to hobbyists but generated enough revenue for them to create the Apple II
which was a huge success and the start of the revolutionary company.

Steve Jobs was in the midst of a “fruitarian diet” and thought the simple name was “fun,
spirited, and not intimidating”.

Threats
Opportunities

 Steve Jobs fired in 1985

 1997 near bankruptcy
 Competitors: Microsoft, Samsung, Amazon
 Privacy issues – location information being collected
 Patent and copyright lawsuits
 Manufacturing process – 50% of suppliers audited by Apple have violated at
least one part of the supplier code of conduct every year since 2007

 Steve Jobs return to the company in 1997

 2007 renamed from Apple Computer Inc. to Apple Inc.
 2001 Apple launched the iPod
 2007 Apple launched the iPhone
 2010 Apple launched the iPad
 Steps to become a greener company
 Other companies/industries use Apple products to enhance their business