2012

Strategic Marketing Management

Analysis on Apple Computers Inc

Submitted to: Sir Shahnawaz Tue 6:00 9:00

Submitted By:

Sheena Isabella Lobo (12823) Sara Ahmed (12303) Tehmina (14447) Nisa Zehra (12793) Owais (8806) Shariq Mahmood (13058)

APPLE COMPUTERS INC, 2008

Apple Computer In was founded in 1976 by STEVE JOB. It started by making computer circuit and then later on decided to build computers, it then paid attention on building its own personal Macintosh computers.

They created laptops called "MAC BOOK" and later also entered into MP3 player and mobile phone industry with I Phone in 2008.

Its market share had declined significantly to a current 3% market share, still Apple is a successful business due to its other products and its Macintosh computers are still profitable. Currently Apples PC Business is on the rise again. Apple also provides software for Mac OS.

Competitors products became cheaper over time while Apple didnt have the benefits of growing economies of scale. Cheaper prices for competing products could be a reason why consumers chose other PCs over Apples Macintosh.

Despite Apples superior products, the new IBM-standard, with its standardized components that made components cheaper through economies of scale, higher industry competitors forces, easier distribution of computers, better information about computers and their prices etc. are reasons for Apples declining market share over time.

SWOT CONVERGENCE MODEL

CORE COMPETENCY DISTINCTIVE COMPETENCY SUSTAINED COMPETETIVE ADVANTAGE STRATEGIC IMITATION

MAC BOOK iPAD, iPHONE iPOD

MAC (OPERATING SOFTWARES)

Maturity

iPod

Growth

iPad, iPhone
Decline Introduction MAC Books

iPad

MAC OS

Loyalty Status

Hardcore Loyal Split Loyal Switcher Shift loyal

Mac OS iPod Mac Books I POD and I Phone

Late Maturity

iPod

Early Maturity

iPad, iPhone
Introduction

Decline

Mac OS

Mac Books

Brand Personality

Excited Competence Sophisticated Sincere

I PAD, I PHONE I POD MAC BOOK MAC (OPERATING SOFTWARES)

Maturity

iPod

Growth

Decline

iPad, iPhone
Introduction MAC Books iPad

MAC OS

PORTERs FIVE FORCES MODEL

THREAT OF NEW ENTRANTS

E business Unruly technology

BARGAINING POWER OF SUPPLIER

Suppliers force higher cost Suppliers of tv Strategic allaiance of suppliers with competitors

COMPETITIVE RIVALRY
Mac competition onx Dell and HP Innovative MP3 players

BARGAINING POWER OF BUYER

Consumer lower spending on computers Retailer can force low price

THREAT OF SUBSTITUTE
Entertainment media movies and music Mp3 players

BCG Matrix

Stars: Profitable and growing product. Usually companies pour more money in it to push them further. In Apples case, the star products are the iPhone and iPad Cash cows: extremely profitable product, no extra effort or investment is needed to maintain them. Here one finds the iPod, where Apple enjoys a huge market share in a stable market. Question marks: These products have an uncertain future. No apple product fits in this category. Dogs: These products should be stopped if unprofitable. If profitable, no investment should be made. This may mean selling the product operations. In Apples case, the MAC operations.

High

Star*
iPad, iPhone

?
Mac Books
Dog
Mac OS
Market Share Low

Growth

Cash Cow
iPod

Low

High

Product Market Growth Matrix & Apple

Market penetration
Present Market
i TUNES APP STORE

Product development
I PAD, I CLOUD , MAC OS

Market development New market

WHITE BOX PC, IPHONES

Diversification
MACINTOSH PERSONAL COMPUTER

present product

new product

Product Development

Market Development Market Penetration

Diversification

GE Matrix & APPLE

Miles & Snows Typology & Apple

Prospector Reactor Defender Analyzer

3M
INTERNATIONAL HARVESTER DURING 1960 FOLLOW THIS APPROACH

IBM BIC

Building blocks & Apple

Quality Mac OS

Customer Responsiveness Efficiency iphone Innovation mac book ipod

Adopter categories Introduction Early Adopter Early maturity Late maturity Laggards MAC BOOK I PAD I PHONE MAC OS I POD