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Apple communicates (Brand Promise) its core values clearly and is able to
satisfy the consumers which leads to Brand bonding. The Brand Bonding
among Apple users are very strong.
Apple products have the following attributes:
Apple has been consistent and has kept everything simple. The consumer has a
great bonding with the brand because of this simplicity. But it is not just the
simplicity that catches the attention, it is exclusivity and innovation.
The logo was changed to a simpler version – staying in tune with it core values.
The tag line “ Think different”
-People want to be unique and feel special and Apple has been very successful in
being innovative and making the consumer feel special.
- The name Apple – shows a connect with Steve Jobs younger days and his
experience. The same has be done with all apple products it is an experience
which lingers with all the Apple users.
"To make a contribution to the world by making
tools for the mind that advance humankind"
“We believe that we need to own and control
the primary technologies behind the products
we make, and participate only in markets
where we can make a significant
• Become “The Name”
iPod, iTunes, iPhone, iCloud and iPad
by Apple gave new directions to
electronics, music and software market
• Lock the customer in
125 m iTunes accounts linked with
credit card. For iTunes it alliance
with Sony BMG, EMI, Universal
and Warner Bros., partnered with
Google and YouTube for iPhone.
• Sell at Premium
They set their pricing strategically to a
market that can bear the cost. They
justify their price with features and
benefits that can’t be matched
• Product Positioning
Hype in the surrounding for Apple
products was created due to unique
advertisements, word of mouth , look
• Think different
Usage of innovative technology
and design. Updating it every 4
months of the products software
• Simplicity of choice
Simplified Apple’s product mix in terms of
4 lines of desktops and portable computers
designed for both professional and
Communicate in the Language of Your
Series of strategic alliances
Simplicity and user friendly
Quality of Apple products
Launch of iTune & iCloud
STORES AND DISTRIBUTION
It has 274 stores which give high visibility.
It has 3000 resellers which have high service level and more
It has 320 large distributions which drive huge volumes of traffic
and its absence of differentiation avoided through corners.
It has on-line stores in 36 countries which has visibility web and
worldwide, and give mass atomization for customers.
The company increased its retailer stores from 0 to 300 over a
iTunes is in alliance with Sony BMG,EMI,Universal and Warner
Bros., partnered with Google and Youtube for iPhone.
The company had developed a strong supplier chain for easy
availability of the input material for production process.
Acquired microprocessor company PA semi known for highly
sophisticated and low price chips.
Mobile Market Share
RESEARCH IN MOTION
Computer Market Share
Smartphone Market Share
RIM Blackberry OS
Palm/ Web OS
High quality and attractive products
Leadership in electronic industry and high technology
Leading the product design,
Good relationship with customers.
• It is reported that in 2007, 52% of sales of Apple
were from outside America. Bad
internationalrelations, wars and terrorism might
influence Apple in a huge manner; moreover
these are all factorsApple has no ability to
control.Apple Inc. produces many of its parts and
products outside the U.S., like Ireland, Czech
Republic,Korea, China, and Cork. Political
Conflicts between the U.S. and any of these
states may have awful outcomes for Apple Inc.
The global economic depression might have immense
impact on Apple Inc. The inflation rate is high, while
consumer’s incomes didn’t have significant
changes, moreover the unemployment rate has
increased, leading consumers to spend less, especially
on ‘luxury products’, as Apple products might be
viewed. Even though the U.S. dollar has lost
value, Apple Inc. is not as endangered economically.
The corporation has purchased itself foreign
currency, to minimize the economic effects of inflation
on Apple Inc. It needs to be said that the U.S. dollar’s
depreciation has in fact increased Apple’s revenue in
the international market.
• Globalization includes the interaction of people
worldwide, for which technology plays the main role.
Today’s World cannot be imagined without technological
devices as Computers, mobile phones etc. Apple is the
globally seen as the King of technology, not because of
most usage, but quality and design.
• Another big social influence is the music industry, which
over the last decade has become virtual and set its market
to the cyberspace. Apple having developed the biggest
virtual media store, iTunes, is well ahead any other
competition of this direction. Web piracy might be a
threat, but most governments punish those behaviors.
• The technology market for computers and mobile
phones has become huge, adding more competition in
the market. Also technology innovations and changes
are almost as fast as light, therefore the products
lifecycle is very short.
• Investing largely in Research and Product
Development, Apple is on top of the market, regarding
innovative products. This includes making the work for
the competition to follow, but it’s still better because
innovation is a big part of the brand and has shown to
• The list, which is compiled by Greenpeace and
released in San Francisco on Thursday, shows
that the company relies heavily on highly
polluting coal power at the sites that house its
banks of servers
Windows OS and media player for playing music and
video ( Microsoft)
Competition to Mac OS X (Linux)
Alternate sources of computer hardware
(Dell, HP, Lenovo)
Small stylish MP3 players (Creative, Samsung, Sony)
Online music stores similar to itunes stores (Napster)
THREAT OF NEW ENTRANTS
Streaming audio and video with v-cast (Verizon)
On demand online services (similar to i-tunes)
New entrants with disruptive technology (The “next
BARGAINING POWER OF
Suppliers of processors and computer memory
(Motorola, IBM, Intel)
Strategic alliance/supplier of Mac (Microsoft)
Supplier of tv and movies (Disney, ABC, Fox, Sony)
Sources of music (BMG, Sony, Warner, Universal)
Magazine :outlook (April-2009)
BARGAINING POWER OF
Customers share music using peer-to-peer networks
without paying for music (Ares, Limewire)
Retailers may pressure for lower prices or better terms
Consumers/Businesses may reduce spending on
computers if they fear economic downturns (Consumer
Attitudes & Behaviors)
Consumer Refresh Cycles
Sources: Harvard Business review -09
THREAT FROM SUBSTITUTES
Satellite radio for music (XM, Sirius)
Entertainment media, media and music (XBOX, PS2)
Alternative means to acquire music (Music
Alternative sources for videos
(Cable, Broadcast, Theatres)
Magazine :PC-1 (April-2009) 37
Current Ratio (C.A /C.L)
Quick Ratio ((C.A – Inventory) / C.L)
Debt to equity ratio (T.Debt / S.H Equity)
Inventory turnover ratio (Sales / Inventory )
Gross profit margin
Operating profit margin
Earnings Per Share