STRATEGIC MANAGEMENT (301)

Submitted To:
Dr. Vandana Bharti Ma’am

Submitted By:
Vivek Yadav
Utkarsh Singh
Prateek Singh
Rohit Raj Verma
Aditya Mishra
Sakshi Seth
Apple Inc. in 2015
History
• On 1st April 1976, Apple Computer is founded by Steve Jobs
and Steve Wozniak in garage of Job’s parents in L.A
California.
• In 1978,they launched their first successful computer Apple II
and became the industry leader.
• In 1980, Apple launched a successful IPO.
The Sculley Years, 1985-1993
• In 1981, IBM entered into PC market and Apple’s net income
fell 62% between 1981 & 1984.
• In 1983, Steve Jobs recruited John Sculley (CEO of Pepsi Cola)
to focus on MAC.
• In 1984, MAC computer was released.
• In 1985, Steve Jobs left the Apple due to dropping stock price
of Apple
• Sculley pushed the MAC in desktop publishing and education.
In education Apple grabbed more than half of the market.
• By this Apple’s market share recovered and Apple was the
most profitable company in the world with $1billion cash.
The Splinder and Amelio, 1993-1997
• Sculley was replaced by Michael Splinder in 1993.
• Splinder announced that Apple would license a handful
companies to make Mac clones.
• In 1995, People were more interested to buy Window
computers then Mac.
• Company appointed a new CEO Gilbert Amelio in 1996 after
following a loss of $69 million in 1st quarter of 1996.
• Amelio announced the acquisition of NeXT to develop a new
OS based on NeXT.
• Apple lost $1.6billlion under Amelio.
Steve Jobs and the Apple Turnaround
• To save the company from bankruptcy Steve Jobs became the
interim CEO of Apple.
• Steve Jobs hires Tim Cook in 1998.
• Jobs was focusing on innovation and increased its spending on
R&D.
• For the first time Apple launched a website to set up direct
sale.
• In 1998, Apple introduce iMac with $1299 which is Plug & Play
supported.
• With this new product launched Apple posted a $309 millions
profit in fiscal year 1998
The PC Industry
• The Window OS combined with an Intel Processor known as
Wintel ahs dominated the market in early 1990.
• Thousand of manufactures were building PCs from Microsoft
and Intel.
• By increasing the Internet demand and emerging market such
as china , the PC industry was booming in early 2000s.
• Lenovo, HP, Dell – The top three vendors accounted the 51.1%
of worldwide shipment of PC in 2014.
Buyers ,Suppliers and Distribution
• PC buyer fell into five categories – Home, Small and medium
sizes business (SMB), Corporate, Education and Government.
• Larger enterprises bought PCs direct from manufacturer, while
Home and SMB customers were purchased their computer
from superstores (Wal-Mart, Costco), electronic retailers, and
web based retailers.
• Computer products like memory chips, disk drivers , keyboards
were widely available at highly competitive prices
• Microprocessors and Operating system were supplied by
mainly two companies - Intel and Microsoft .
Changing the Macintosh
• Apple introduced a new OS in 2001, fully overhauled platform
which was based on UNIX.
• Apple had built Macs with IBM CPU called Power PC.
• Apple’s first retail store was opened in McLean, Virginia, in
2001
• In 2014, Apple had more than 450 stores in 14 countries.
Moving Beyond the Macintosh
iPod and iTunes -
• Apple launched iPod in 2001.
• iTunes was opened in 2003.
• It was first legal site that allowed music download on a basis
of pay-per-song.
• After the iTunes stores launch iPod sales shoot up to 3,04,000
units in one quarter which were only 78,000 before launching
iTunes.
• Online music stores such as Amazon.com, Napster an
Walmart.com were the competitor of iTunes.
The iPhone
• In January 2007, A revolutionary mobile phone iPhone was
launched .
• 3.5- inch touch-screen interface ran on Apple’s OS X platform
called iOS.
• iPhone sold about 6 million units over five quarters.
• Apple introduce Siri, a voice-activated technology with the
release of 4s in 2011.
• After few years apple announced iPhone 5 and iPhone 5c with
larger screen size.
• iPhone 6 and 6plus was the most successful iPhones in history
with 4.7-inch and 5.5 inch screen respectively.
Moving Beyond the iPhone: The iPad

• Apple released the iPad on March 2, 2010.

• More than 4,50,000 iPads were sold during its first week on
market.
• The price of iPads was $499 to $829 and sold by Apple retail
stores, and other retail stores.
• In late 2012 Apple released iPad Mini, it was a less expensive
version of iPad with 7.9 inch screen.
Apple Watch and Apple Pay
• After Steve Jobs’s death, Tim Cook announced his first his new
major product initiative in September 2014 – The Apple
Watch.
• On the same day Cook also introduced Apple Pay, Apple’s new
payment system.
• Most of the largest banks and credit cards companies had
signed to support it.
• Apple pay allowed users to pay at dozens of retailers including
Walgreens, McDonald’s, Macy’s and Whole Foods through
their iPhone or iWatch .
SWOT Analysis
Internal External

Strengths Opportunities

Weaknesses Threats
Strengths
 Globally recognized brand.
 Strong cash position.
 Excellent brand loyalty by its customers.
 Effective innovation process.
 Strong R&D Department.
 Own Operating System (iOS).

Weaknesses
• High selling price.
• Limited distribution system.
• Weak presence at governmental business arena.
Opportunities
• Laptop and other electronics market is growing high.
• iWatch and Mac Pro.
• Apple’s direct online sales channel will continue to grow.

Threats
• Stiff competition
• Pandora, Amazon Music and other music system can make
Apple music less attractive.
• Apple software and hardware are expensive compared to
other competitors like Dell.
Recommendations
• The company can use their strengths to exploit the
opportunities to expand its distribution network. And Apple
can use nits strong brand image and rapid innovation process
to successfully develop and launch new product lines.