Lauren Monica

Carter Bridges

Kevin Elizabeth
 Who is Apple
Computers, Inc.?
Founded in 1976 by Steve Jobs and Steve
Wozniak

Company was founded after IBM created

the 4004 chip which allowed previously
bulky computer components to be
included on a small chip that is located in
a computer system small enough to fit on
a desktop.

Apple’s logo, now one of the most

recognizable logos in the industry, was
 The Evolution of a
Brand

1 1 1 2
975 976 981 006
 General
Environment
1997- First 2002- Initiated
online store a Switch
opened. Advertising
– Over 4.4 campaign.
million hits – Geared to
and 500,000 switch PC
orders in the users to Mac
first 24 hours users.
of operation.
• Currently
Operates 200
brick and
mortar
locations
 General
Environment
i Series of Constant
computer innovations
products and product
brought $650 re-inventions
million in as the
revenue for consumer
the 2003 fiscal base shifts as
year. well as the
Company has economy.
begun to shift iPod (portable
product lines music)
with the iMac (gaming
& power)
 Industry
Environment
Apple Market Share:
competes in Worldwide:
the following • Desktop- 6%
industries: • Portable- 10%
Domestic:
Computer Educational-
• iBook 15.2%
• PowerBook Annual sales for
• PowerMac 2002 fiscal year
Multi-Media were $1.5 bil
• iMac Down 27% from
previous year.
Entertainme
nt
 Industry
Environment
Porter’s 5 Forces: 1. Substitute
2. Buyers Products
Set Prices Little/no direct
substitutes but
3. Suppliers many
Reinvention of competing
supply chain products.
Cut down Mac OS has no
4. Current Rivals alternatives.
Dell, HP, 2. Threats of
Sony, Toshiba Entrants
High barriers in
industry
 Industry
Environment
Marketing is In light of slight
Apple decline in
Computer, computer sales,
Inc.’s biggest Apple Computer,
survival factor. Inc. has put
Ads featuring more emphasis
testimonials on promotion of
from PC users the iPod.
that have
Mixture of both
switched to
computer and
Mac.
portable mp3
New player sales
advertising allows Apple to
ventures allow
 Competitor
Environment
Apple is planning Creation of
to further enhance peripheral
their switch products has
advertising created
campaigns. diversification.
Award-winning eMac
advertisements – Educational
has created products
competitive edge. – Learning
applications
In order to stay – Portable
competitive, Apple computers
Computer, Inc. has • Apple has
created different
maintained their
versions of their
ability to
operating system.
 Internal
Environment
Apple’s has Internal
resources that Capabilities:
are: Marketing
– Organization • Large budget

al Management
Leadership
– Innovative
Core
– Technologic competencies in
al high-quality
• Apple logo is hardware.
easily Inventory system
identifiable to has given higher
customers in
 Internal
Environment
Outbound Company vision
logistics has is to provide the
made it best possible
possible for merchandise at a
Apple reasonable price
Computer, Inc. possible.
to meet the Strategic
orders and Mission-
demands of Provide
their unique products
customers. which allows
Technological them to enter
 Internal
Environment
Apple works Objectives:
hard to – Open new stores
determine new – Cooperative
ideas on how branding
to gain market – Educational
share in order products
to boost sales. • Strong efforts in
Strategies: advertising,
– Advertising technology
– New Products innovation and
– Technology market share
Innovation growth make
Apple successful!
 Synthesis
Alternatives:
• Tackle the low-end consumer market, focused
segmentation.
• Offer an affordable system with an innovative
design.
• Distinguished, Innovative.
• Devise a strategy to convince competitors’
customers to switch to Apple and retain
current customers.
 SWOT Analysis
•Successful company •Declining market shares
•Favorable Brand Perception •Heavily saturated industry
•Brand-loyal customers •Proprietary software system
•Recognizable logo •Low popularity overseas
•Creative advertisements/promos •Increasing different operating system
•MP3 Innovations
•Well established product lines
•Brick and mortar locations

•Educational materials/ software •Competition in MP3 industry

•MP3 device expansions •Competition in computer industry
•Software designs •High substitution rate
•New Entrants
 To Sum It All Up…
Apple has to concentrate on gaining market
share from its competition if they want to
maintain profitability in the industry.
The expansion into new product lines is an
opportunity that they are exploring, and they
are slowly starting to gain some of this
market share from the competition.
They should use their cash assets that they
have in excess to sponsor this growth in order
to continue to keep this sales growth going.
 The End…

Questions???