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TRANSCRIPT
Customer satisfaction
Of
APPLE
Submitted To:- Submitted By:-Dr. Mitu Matta Abhay Gupta
(11BBA002)PREFACE
The BBA program is well structured and integrated course of business studies. The main
objective of major Project at Graduation level is to develop skills in student.
Project report is an integral part of BBA and each and every student has to prepare a project
report. During the whole project, we got some experience and came to know about the
management practices in real. It is only through the project which we came to know that how
much the advertisement is important for the sale of our product and how it works. We learned
about the preference of classmate comparison to other competitive which would in return,
help us in the future.
ABHAY GUPTA
(11BBA02)
ACKNOWLEDGEMENT
We have taken efforts in this project. However, it would not have been possible without the
kind support and help of many individuals and organization. We would like to extend my
sincere thanks to all of them.
We are highly indebted to our teachers for the guidance and constant supervision as well as
for providing necessary information regarding the project and also for their support in
completing the project.
We would like to express our gratitude towards our parents and member of B.A Department
for their co-operation which help us in completion of this project.
We would like to express our special gratitude to industry persons for giving us such
attention and time.
Our thanks and appreciations also go to our friends in developing the project and people who
have willingly helped us out with their abilities.
ABHAY GUPTA
(11BBA02)
DECLARATION
We are Management student of Lingaya’s University hereby declare that this project report
entitled “A study on customer satisfaction of apple” is an original work and the same has
not been submitted by any other institute for the award of any other degree.
The interim report was presented to the supervisor and pre – submission presentation was
made. Feasible suggestions have been duly incorporated in consultation with supervisor and
every effort has been made to avoid in this report nevertheless errors may creep in this report.
Any mistake, error or discrepancy noted in future may be brought to our notice.
Signature of supervisor ABHAY GUPTA
(11BBA02)
EXECUTIVE SUMMARY
The Company’s goal for its executive compensation program is to attract and retain a talented, entrepreneurial and creative team of executives who will provide leadership for the Company’s success in dynamic, competitive markets. The Company seeks to accomplish this goal in a way that is aligned with the long-term interests of the Company’s shareholders. The Compensation Committee oversees the executive compensation program and determines the compensation for the Company’s executive officers. The Company believes the compensation program for the named executive officers was instrumental in helping the Company achieve strong financial performance in the challenging macroeconomic environment in 2009.
In 2009, the Company’s revenue grew to $36.5 billion, representing an increase of $4.1 billion or 12% over the prior year. Net income also increased to $5.7 billion in 2009, an increase of $870 million or 18% over the prior year, and the Company’s gross margin in 2009 was 36.0%, up from 34.3% in the prior year. The Company’s strong earnings and operational excellence helped drive a cash balance at the end of 2009 of $34 billion, an increase of $9.5 billion over the prior year. Further, the Company’s total shareholder return over the prior 1-, 3- and 5-year periods was 63%, 141% and 857%, respectively. In 2009, each named executive officer was a member of the Company’s executive team. Each named executive officer is expected to contribute as a member of the executive team to the Company’s overall success rather than merely achieve specific objectives within that officer’s area of responsibility. Each named executive officer has been an employee of the Company for at least 10 years and none has an employment agreement or severance arrangement.
The Company believes the executive compensation program has served the Company well. Therefore, no significant changes were made to the executive compensation program in 2009. The executive compensation program for the named executive officers, other than Mr. Jobs, consists of three elements: long-term equity awards in the form of RSUs, annual performance-based cash bonus awards, and base salaries. Mr. Jobs’s total compensation consists of a salary of $1 per year.
The Company continues to rely primarily on long-term equity awards in the form of RSUs to attract and retain an outstanding executive team and to ensure a strong connection between the executive compensation program and the long-term interests of the Company’s
shareholders. In general, the Company’s RSU awards to the named executive officers, other than Mr. Jobs, have been made every two years and no shares vest prior to the end of an approximate four-year vesting period. Consistent with this philosophy, RSUs that were awarded to the named executive officers in 2008 will vest in 2012, but no RSUs were awarded to the named executive officers in 2009. Exceptions are made for executives who are promoted to the executive team or are recent hires, and in special cases as determined by the Compensation Committee.
The Company places less emphasis on total cash compensation than on long-term equity awards. Accordingly, the design of the Company’s annual performance-based cash bonus program for the named executive officers remained the same in 2009 as in 2008, with target bonuses set at 50% of base salary and maximum bonuses set at 100% of base salary. As noted below, these target and maximum bonus opportunities are substantially lower than the range commonly provided by peer companies.
In 2009, the Compensation Committee changed the performance criteria used in the Company’s bonus program from revenue and operating income prepared in accordance with US GAAP to adjusted sales and adjusted operating income. Adjusted sales and adjusted operating income differ from US GAAP in that they exclude the effects of subscription accounting related to sales of iPhones and Apple TV. Because the Company believes these measurements help evaluate the underlying performance of the business, the Company uses such measurements to evaluate management performance and determine appropriate levels of compensation.
The Compensation Committee set performance goals for the bonus program based on the adjusted sales and adjusted operating income objectives in the Company’s internal business plan. In 2009, the Compensation Committee awarded cash bonuses equal to 100% of the base salary for each of the named executive officers, other than Mr. Jobs (who does not participate in the bonus program), because the Company’s adjusted sales and adjusted operating income for 2009 exceeded the maximum performance goals established by the Compensation Committee.
In 2009, each of the named executive officers, other than Mr. Jobs, received an increase in base salary following a review of each named executive officer’s performance, the Company’s financial results and the competitive environment. This was the first salary increase for the named executive officers since 2006, other than increases for Mr. Mansfield and Mr. Forstall before they became members of the executive team in May 2008.
The first part of the Compensation Discussion and Analysis, entitled “Executive Compensation Philosophy,” discusses in greater detail the Company’s philosophy and approach to executive compensation. The second part of the Compensation Discussion and
Analysis, entitled “Compensation Decisions for 2009,” discusses the Compensation Committee’s compensation decisions for the named executive officers in 2009.
TABLE OF CONTENT
DECLARATION
ACKNOWLEDGEMENT
PREFACE
CHAPTER -1
(A) INTRODUCTION(B) IMPORTANCE(C) STEPS(D) METHODS(E) PROCESS(F) FOCUS OF THE STUDY
CHAPTER-2
(A) COMPANY PROFILE
CHAPTER-3
REAREARCH METHODOLOGY
CHAPTER-4
ANALYSIS AND INTERPRETATION
CONCLUSION
BIBLIOGRAPHY
INTRODUCTION TO THE TOPIC
Customer satisfaction
Customer satisfaction provides a leading indicator of consumer purchase intentions and loyalty. Customer satisfaction data are among the most frequently collected indicators of market perceptions.
Their principal use is twofold:-
1. Within organizations, the collection, analysis and dissemination of these data send a message about the importance of tending to customers and ensuring that they have a positive experience with the company’s goods and services.
2. "Although sales or market share can indicate how well a firm is performing currently, satisfaction is perhaps the best indicator of how likely it is that the firm’s customers will make further purchases in the future. Much research has focused on the relationship between customer satisfaction and retention. Studies indicate that the ramifications of satisfaction are most strongly realized at the extremes." On a five-point scale, "individuals who rate their satisfaction level as '5' are likely to become return customers and might even evangelize for the firm. A second important metric related to satisfaction is willingness to recommend. This metric is defined as "The percentage of surveyed customers who indicate that they would recommend a brand to friends." When a customer is satisfied with a product, he or she might recommend it to friends, relatives and colleagues. This can be a powerful marketing advantage.
A business ideally is continually seeking feedback from customers: are the products helpful? are their needs being met? Constructive criticism helps marketers adjust offerings to meet customer.
“LOVE THE CUSTOMERS, NOT THE PRODUCT.”
IMPORTANCE OF CUSTOMER SATISFACTION
Customer satisfaction is important because it provides marketers and business owners with a
metric that they can use to manage and improve their businesses.
In a survey of nearly 200 senior marketing managers, 71 percent responded that they found a
customer satisfaction metric very useful in managing and monitoring their businesses.
Here are the top six reasons why customer satisfaction is so important:
It’s a leading indicator of consumer repurchase intentions and loyalty
It’s a point of differentiation
It reduces customer churn
It increases customer lifetime value
It reduces negative word of mouth
It’s cheaper to retain customers than acquire new ones
1. It’s a leading indicator of consumer repurchase intentions and loyalty
Customer satisfaction is the best indicator of how likely a customer will make a purchase in
the future. Asking customers to rate their satisfaction on a scale of 1-10 is a good way to see
if they will become repeat customers or even advocates.
Any customers that give you a rating of 7 and above, can be considered satisfied, and you can
safely expect them to come back and make repeat purchases. Customers who give you a
rating of 9 or 10 are your potential customer advocates who you can leverage to become
evangelists for your company.
Scores of 6 and below are warning signs that a customer is unhappy and at risk of leaving.
These customers need to be put on a customer watch list and followed up so you can
determine why their satisfaction is low.
2. It’s a point of differentiation.
In a competitive marketplace where businesses compete for customers; customer satisfaction
is seen as a key differentiator. Businesses who succeed in these cut-throat environments are
the ones that make customer satisfaction a key element of their business strategy.
Picture two businesses that offer the exact same product. What will make you choose one
over the other?
If you had a recommendation for one business would that sway your opinion? Probably. So
how does that recommendation originally start? More than likely it’s on the back of a good
customer experience. Companies who offer amazing customer experiences create
environments where satisfaction is high and customer advocates are plenty.
This is an example of where customer satisfaction goes full circle. Not only can customer
satisfaction help you keep a finger on the pulse of your existing customers, it can also act as a
point of differentiation for new customers.
3. It reduces customer churn
An Apple customer satisfaction report (2008) found that price is not the main reason for
customer churn; it is actually due to the overall poor quality of customer service.
Customer satisfaction is the metric you can use to reduce customer churn. By measuring and
tracking customer satisfaction you can put new processes in place to increase the overall
quality of your customer service.
I recommend you put an emphasis on exceeding customer expectations and ‘wowing’
customers at every opportunity. Do that for six months, than measure customer satisfaction
again. See whether your new initiatives have had a positive or negative impact on
satisfaction.
4. It increases customer lifetime value
A study by Info Quest found that a ‘totally satisfied customer’ contributes 2.6 times more
revenue than a ‘somewhat satisfied customer’. Furthermore, a ‘totally satisfied customer’
contributes 14 times more revenue than a ‘somewhat dissatisfied customer’.
Satisfaction plays a significant role in how much revenue a customer generates for your
business.
Successful businesses understand the importance of customer lifetime value (CLV). If you
increase CLV, you increase the returns on your marketing dollar.
For example, you might have a cost per acquisition of $500 dollars and a CLV of $750.
That’s a 50% ROI from the marketing efforts. Now imagine if CLV was $1,000. That’s a
100% ROI!
Customer lifetime value is a beneficiary of high customer satisfaction and good customer
retention. What are you doing to keep customers coming back and spending more.
5. It reduces negative word of mouth
Apple found that an unhappy customer tells between 9-15 people about their experience. In
fact, 13% of unhappy customers tell over 20 people about their experience.
That’s a lot of negative word of mouth
How much will that affect your business and its reputation in your industry?
Customer satisfaction is tightly linked to revenue and repeat purchases. What often gets
forgotten is how customer satisfaction negatively impacts your business. It’s one thing to lose
a customer because they were unhappy. It’s another thing completely to lose 20 customers
because of some bad word of mouth.
To eliminate bad word of mouth you need to measure customer satisfaction on an ongoing
basis. Tracking changes in satisfaction will help you identify if customers are actually happy
with your product or service.
6. It’s cheaper to retain customers than acquire new ones.
This is probably the most publicized customer satisfaction statistic out there. It costs six to
seven times more to acquire new customers than it does to retain existing customers.
If that stat does not strike accord with you then there’s not much else I can do to demonstrate
why customer satisfaction is important.
Customers cost a lot of money to acquire. You and your marketing team spend thousands of
dollars getting the attention of prospects, nurturing them into leads and closing them into
sales.
Customer Satisfaction in 7 Steps
1. Encourage Face-to-Face Dealings:
This is the most daunting and downright scary part of interacting with a customer. If you're not used to this sort of thing it can be a pretty nerve-wracking experience. Rest assured, though, it does get easier over time. It's important to meet your customers face to face at least once or even twice during the course of a project.
2. Respond to Messages Promptly & Keep Your Clients Informed:
This goes without saying really. We all know how annoying it is to wait days for a response to an email or phone call. It might not always be practical to deal with all customers' queries within the space of a few hours, but at least email or call them back and let them know you've received their message and you'll contact them about it as soon as possible. Even if you're not able to solve a problem right away, let the customer know you're working on it.
3. Be Friendly and Approachable:
A fellow Site Pointer once told me that you can hear a smile through the phone. This is very true. It's very important to be friendly, courteous and to make your clients feel like you're their friend and you're there to help them out. There will be times when you want to beat your clients over the head repeatedly with a blunt object- it happens to all of us. It's vital that you keep a clear head, respond to your clients' wishes as best you can, and at all times remain polite and courteous.
4. Have a Clearly-Defined Customer Service Policy:
This may not be too important when you're just starting out, but a clearly defined customer service policy is going to save you a lot of time and effort in the long run. If a customer has a problem, what should they do? If the first option doesn't work, then what? Should they contact different people for billing and technical enquiries? If they're not satisfied with any aspect of your customer service, who should they tell? There's nothing more annoying for a client than being passed from person to person, or not knowing who to turn to. Making sure they know exactly what to do at each stage of their enquiry should be of utmost importance. So make sure your customer service policy is present on your site -- and anywhere else it may be useful.
5. Attention to Detail (also known as 'The Little Niceties'):
Have you ever received a Happy Birthday email or card from a company you were a client of? Have you ever had a personalized sign-up confirmation email for a service that you could tell was typed from scratch? These little niceties can be time consuming and aren't always cost effective, but remember to do them.
Even if it's as small as sending a Happy Holidays email to all your customers, it's something. It shows you care; it shows there are real people on the other end of that screen or telephone; and most importantly, it makes the customer feel welcomed, wanted and valued.
6. Anticipate Your Client's Needs & Go Out Of Your Way to Help Them Out:
Sometimes this is easier said than done! However, achieving this supreme level of understanding with your clients will do wonders for your working relationship.
7. Honour Your Promises:
It's possible this is the most important point in this article. The simple message: when you promise something, deliver. Clients don't like to be disappointed. Sometimes, something may not get done, or you might miss a deadline through no fault of your own. Projects can be late, technology can fail and sub-contractors don't always deliver on time. In this case a quick apology and assurance it'll be ready ASAP wouldn't go a miss.
Methods to measure customer satisfaction
Managing customers’ satisfaction efficiently is one the biggest challenge an organization face. The tools or methods to measure customer satisfaction needs to be defined sophisticatedly to fulfill the desired norms. There are following methods to measure customer satisfaction:
1. Direct Methods: Directly contacting customers and getting their valuable feedback is very important. Following are some of the ways by which customers could be directly tabbed:
a. Getting customer feedback through third party agencies.b. Direct marketing, in-house call centres, complaint handling department could
be treated as first point of contact for getting customer feedback. These feedbacks are compiled to analyse customers’ perception.
c. Getting customer feedback through face to face conversation or meeting.d. Feedback through complaint or appreciation letter.e. Direct customer feedback through surveys and questionnaires.
Organizations mostly employ external agencies to listen to their customers and provide dedicated feedback to them. These feedbacks needs to be sophisticated and in structured format so that conclusive results could be fetched out. Face to face meetings and complaint or appreciation letter engages immediate issues. The feedback received in this is not uniformed as different types of customers are addressed with different domains of questions. This hiders the analysis process to be performed accurately and consistently. Hence the best way is to implement a proper survey which consists of uniformed questionnaire to get customer feedback from well segmented customers. The design of the prepared questionnaire is an important aspect and should enclose all the essential factors of business. The questions asked should be in a way that the customer is encouraged to respond in a obvious way/. These feedback could receive by the organizations can be treated as one of the best way to measure customer satisfaction.
Apart from the above methods there is another very popular direct method which is surprise market visit. By this, information regarding different segment of products and services provided to the customers could be obtained in an efficient manner. It becomes easy for the supplier to know the weak and strong aspects of products and services.
2. Indirect Method: The major drawback of direct methods is that it turns out to be very costly and requires a lot of pre compiled preparations to implement. For getting the valuable feedbacks the supplier totally depends on the customer due to which they looses options and chances to take corrective measure at correct time. Hence there are other following indirect methods of getting feedback regarding customer satisfaction:
Customer Complaints: Customer’s complaints are the issues and problems reported by the customer to supplier with regards to any specific product or related service. These complaints can be classified under different segments according to the severity and department. If the complaints under a particular segment go high in a specific period of time then the performance of the organization is degrading in that specific area or segment. But if the complaints diminish in a specific period of time then that means the organization is performing well and customer satisfaction level is also higher.
Customer Loyalty: It is necessarily required for an organization to interact and
communicate with customers on a regular basis to increase customer loyalty. In these
interactions and communications it is required to learn and determine all individual customer
needs and respond accordingly. A customer is said to be loyal if he revisits supplier on
regular basis for purchases. These loyal customers are the satisfied ones and hence they are
bounded with a relationship with the supplier. Hence by obtaining the customer loyalty index,
suppliers can indirectly measure customer satisfaction.
Factor affecting customer satisfaction
Customer satisfaction is the overall impression of customer about the supplier and the products and services delivered by the supplier. Following are the important factors that could affect customer satisfaction:
Department wise capability of the supplier. Technological and engineering or re-engineering aspects of products and services. Type and quality of response provided by the supplier. Supplier’s capability to commit on deadlines and how efficiently they are met. Customer service provided by the supplier. Complaint management. Cost, quality, performance and efficiency of the product. Supplier’s personal facets like etiquettes and friendliness. Supplier’s ability to manage whole customer life cycle. Compatible and hassle free functions and operations.
The above factors could be widely classified under two categories i.e. suppliers behaviour and performance of product and services. The supplier’s behaviour mostly depends on the behaviour of its senior subordinates, managers and internal employees. All the functional activities like customer response, direct product and maintenance services, complaint management etc. are the factors that rely on how skilful and trained the internal and human resources of the supplier are. The second category is regarding all the products and services. This depends on the capability of supplier to how to nurture the products and service efficiently and how skilled the employees are. It’s all about how the skills are implemented to demonstrate engineering, re-engineering and technologicalaspects of the products and services. The quality and efficaciousness of the products is also an important factor that enables compatible and hassle free functions and operations. This bears to lower maintenance and higher life of the product which is highly admired by the customers.
If the product is having some problem or compatibility issues and requires frequent maintenance and support than the customers could get irritated and possibilities of sudden divert is there which lead to supplier’s financial loss. In the same way if the product is expecting huge amount of financial and manual resources then customers could get a feeling of dissatisfaction and worry. However, if these aspects are handled efficiently by giving class services and dealing with complaints effectively then dissatisfied customers could be converted into long time satisfied customers and retaining them becomes easy.
It is practically impossible for the supplier to provide all the above explained features. There are always some positive as well as negative features in products and services which could lead to delight or irritate customers. The final opinion is the sum of overall experiences which a customer percept. But it is also true that more the positive aspects, the more the customer is satisfied. Hence the aim of the supplier should be always to enhance these positive feelings among all the customers to increase customer satisfaction. The supplier must identify how to enhance these positive aspects to maximum level by analyzing the customer’s data and information using CRM system. The individual liking and disliking of customers differ from customer to customer. It is hence required to target a customer and identify individual requirement to make them satisfied.
Having discussed the above factors that affect customer satisfaction we can say that higher
the satisfaction level, higher is the sentimental attachment of customers with the specific
brand of product and also with the supplier. This helps in making a strong and healthy
customer-supplier bonding. This bonding forces the customer to be tied up with that
particular supplier and chances of defection are very less. Hence customer satisfaction is very
important panorama that every supplier should focus on to establish a renounced position in
the global market and enhance business and profit.
PROCESS
Step 1 – Understanding Customer Expectation
Step 2- Promises to Customers
Step 3 – Execution
Step 4 - On-going Dialog with a Customer
Step 5 - Customer Satisfaction Surveys
STEP 1- UNDERSTANDING CUSTOMER EXPECTATIONS
We must know what our customers expect from us. We must work with our
customers to precisely learn their expectations
Customer Expectations differ by region by country.
STEP 2- PROMISES TO CUSTOMERS
Set promises that can be kept
• Aim to exceed expectations rather than to meet them
• Delight customers by surprising them (Surprise is something not promised, yet delivered)
STEP 3- EXECUTION
• Products and Services are provided to customers
• Customers had certain expectations before products/services were delivered
• Depending if these expectations were met, not met, or exceeded customer
experiences certain level of “Customer Satisfaction”
• Occasionally there are problems with products/services provided
• A problem can be fixed during the initial call or a visit (first contact resolution), or a ticket
is opened
•Tickets are worked on. Customer problems are eventually solved
• Depending on how the Problem Resolution is handled customer experiences certain level of
“Customer Satisfaction”
STEP 4- ONGOING DIALOG WITH CUSTOMER
•Executive meetings
• User Group meetings
• Other meetings
STEP 5- CUSTOMER SATISFACTION SURVEYS
• Customer Satisfaction Surveys
•Event Driven Surveys
•Internal Indicators of Customer Satisfaction
• Tickets Resolved Within Objectives
• Tickets Overdue
• Resolve Time
• Response Time
NEED OF THE STUDY
Today customers are becoming harder to please. They are smarter, mare price conscious,
more demanding,
To understand the customer perception towards purchase in APPLE.
To evaluate the overall satisfaction towards Apple.
This study was undertaken to discover the reason for not using this product.
SCOPE OF THE STUDY
The scope of the study is to analyse the Customer Satisfaction in APPLE. To collect the
data, survey method was used. The sample size of this is 100. This study was conducted to
improve the satisfaction level of Customers.
a. Opportunity to the researcher to understand the factors involved in the
customers satisfaction.
b. Opportunity to the customers to share their opinion with the organization.
c. The study present the actual feeling of the customers, both their positive and
negative views about the product, which will serve as guideline for the
management to take steps regarding to improve the satisfaction level of the
customers.
d. The research may act as a source of secondary Data.
INTRODUCTION OF THE COMPANY
APPLE
Apple Inc. is an American multinational corporation headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software and personal computers. Its best-known hardware products are the Mac line of computers, the iPod media player, the iPhone smartphone, and the iPad tablet computer. Its consumer software includes the OS X andiOS operating systems, the iTunes media browser, the Safari web browser, and the iLife and iWork creativity and productivity suites.
Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1, 1976 to develop and sell personal computers. It was incorporated as Apple Computer, Inc. on January 3, 1977, and was renamed as Apple Inc. on January 9, 2007 to reflect its shifted focus towards consumer electronics.
Apple is the world's second-largest information technology company by revenue after Samsung Electronics, and the world's third-largest mobile phone maker after Samsung and Nokia.Fortune magazine named Apple the most admired company in the United States in 2008, and in the world from 2008 to 2012. On September 30, 2013, Apple surpassed Coca-Cola to become the world's most valuable brand in the Omnicom Group's "Best Global Brands" report.]However, the company has received criticism for its contractors' labour practices, and for Apple's own environmental and business practices. As of May 2013, Apple maintains 408 retail stores in fourteen countries as well as the online Apple Store and iTunes Store, the latter of which is the world's largest music retailer. Apple is the largest publicly traded corporation in the world by market capitalization, with an estimated market capitalization of $446 billion by January, 2014. As of September 29, 2012, the company had 72,800 permanent full-time employees and 3,300 temporary full-time employees worldwide. Its worldwide annual revenue in 2013 totalled $170 billion. As of Q1 2014, Apple's five-year growth average is 39% for top line growth and 45% for bottom line growth. In May 2013, Apple entered the top ten of the Fortune 500 list of companies for the first time, rising 11 places above its 2012 ranking to take the sixth position.
“THINK DIFFERENT”
PRODUCTS
I-pad – The I-Pads a tablet or "slate" computer. Upon the release of the original i-Pad, Apple formally declared that it is a "magical and revolutionary" device for "browsing the web, reading and sending email, enjoying photos, watching videos, listening to music, playing games, reading e-books and more.
I-pod- iPod is a small portable music player. Users can transfer songs to their iPod with their computer, iTunes, and the i-Pod software. Since the release of the Apple iPod in 2001, under the iPod brand Apple has released many variations of its product such as the iPod classic, iPod Touch, iPod Shuffle, iPod Mini, iPod Nano and several spin-off devices such as the iPod Photo.
I-phone - An Internet-enabled Smartphone developed by Apple. The iPhone combines mobile phone capabilities with a wireless Internet device and an iPod into one product. The iPhone also includes a 3.5-inch multi-touch screen (4-inch Retina Display on the i-phone), rather than a keyboard, that can be manipulated by users with by two finger touches. The iPhone runs on a special version of Apple's Mac OS X operating system.
I-mac - The iMac is a low-cost version of Apple Computer's Macintosh. The iMac was designed to attract people who have never owned a personal computer and also to win back former Mac users who have moved to personal computer
I-tunes - iTunes is media management software created by Apple, Inc., for both the Macintosh and Windows operating systems. You can use it to manage and play both audio and video files on your computer.
Macintosh - The Macintosh features a graphical user interface (GUI)that utilizes windows, icons, and a mouse to make it relatively easy for novices to use the computer productively. Rather than learning a complex set of commands, you need only point to a selection on a menu and click a mouse button.
Tablet - Tablet operating systems. Most tablets use a special operating system designed to make the most of a touch interface, this gives the tablet the cool interactive feel that makes them fun and useful. A good operating system is an important part of a great tablet compute
Literature Review
Steve Jobs and Steve Wozniak founded Apple on April 1, 1976. The two Steves, Jobs and
Woz (as he is commonly referred to – see woz.org), have personalities that persist throughout
Apple’s products, even today. Jobs was the consummate salesperson and visionary while
Woz was the inquisitive technical genius. Woz developed his own homemade computer and
Jobs saw its commercial potential. After selling 50 Apple I computer kits to Paul Terrell’s
Byte Shop in Mountain View, CA, Jobs and Woz sought financing to sell their improved
version, the Apple II.
They found their financier in Mike Markkula, who in turn hired Michael Scott to be CEO.
The company introduced the Apple II on April 17, 1977, at the same time Commodore
released their PET computer. Once the Apple II came with Visicalc, the progenitor of the
modern spreadsheet program, sales increased dramatically. In 1979, Apple initiated three
projects in order to stay ahead of the competition: 1) the Apple III – their business oriented
machine, 2) the Lisa – the planned successor to the Apple III, and 3) Macintosh.
In 1980, the company released the Apple III to the public and was a commercial flop. It was
too expensive and had several design flaws that made for less-than-stellar quality. One
design flaw was a lack of cooling fans, which allowed chips to overheat. In late 1980, Apple
went public, making the two Steves and Markkula wealthy – to the tune of nine figures. By
1981, the Apple III was not selling well and Scott infamously fired 40 people on Feb 25
(“Black Wednesday”). Scott’s direct management style conflicted with the culture Jobs and
Markkula preferred, and Scott resigned in July. Markkula stepped into his position as CEO.
In August 1981, IBM released their PC. Unimpressed and unafraid, Apple welcomed IBM to
the PC market with a slightly smug full-page ad in the Wall Street Journal. It would not be
long before IBM’s PC dominated the market.
The Xerox Alto was the inspiration for Apple’s Lisa. Apple employees were able to examine
the Alto in exchange for allowing Xerox to invest in Apple before Apple’s initial public
offering (IPO). Apple released the Lisa in January 1983 and was notable for being the first
computer sold to the public that utilized a Graphic User Interface (GUI). Unfortunately, the
Lisa was not compatible with existing computers, and therefore came bundled “with
everything and a list price to match.”At $9,995 (over $21,000 in 2005 dollars), the Lisa
missed its target market by a wide margin.
Jobs attempted to control the Lisa project. Scott, unimpressed with the performance of Jobs
on the Apple III project, had Jobs head up the dog-and-pony show for the pending IPO. Jobs,
looking for a project to lead, inserted himself into the Macintosh development team. Using
his considerable influence, Jobs was able to procure the resources to produce a computer that
was faster than Lisa, used a GUI, had a mouse, and sold for ¼ th of Lisa’s price. Apple
introduced the Macintosh with great fanfare during the 1984 Super Bowl. The Orwellian-
themed commercial (directed by Ridley Scott, of ‘Alien’ fame) portrayed IBM as Big Brother
and embodied Macintosh and Apple as freedom-seeking individuals breaking away from this
oppressive regime.The commercial was largely successful and sales for the Mac started
strong. However, Mac sales later faded. John Sculley left PepsiCo to join Apple in April
1983. He was famous for engineering the “Pepsi Challenge”, in which blinded testers tasted
both Coke and Pepsi to unveil the ‘truth’ of the taste of Pepsi. In response to lagging Mac
sales, Sculley contrived the ‘Test Drive a Macintosh’ campaign. In this promotion,
prospective users could take home a Macintosh with only a refundable deposit on their credit
card. While lauded by the public and the advertising industry, this campaign was a burden on
dealers and significantly impeded the availability of Macs to serious buyers. In 1985, Apple
tried to have lightening strike twice with their ‘Lemmings’ commercial during the Super
Bowl. In what was becoming Apple’s typical patronizing fashion, this commercial insulted
current PC user by portraying them as witless lemmings, unthinkingly doing harm to them
Although Jobs attempted to overthrow Sculley, the board backed Sculley. Jobs left Apple to
form NeXT computer. After Jobs left in 1985, sales of the Mac “exploded when Apple’s
LaserWriter met Aldus PageMaker.” Apple dominated the desktop publishing market for
years to come. Under Sculley, Apple grew from $600 million in annual sales to $8 billion in
annual sales by 1993. Apple introduced Mac Portables in 1989 and the first PowerBooks in
1991. By 1992, PC competition ate into Apple’s margins and earnings were falling. Sculley
was under pressure to have Apple produce another breakout product. He focused his energy
on the Newton – Apple’s introduction of the Personal Digital Assistant (PDA). Despite
Sculley generating substantial demand for Newton, it did not live up to the hype due to it
being severely underdeveloped. Sculley resigned in 1993 and Michael Spindler replaced
him.
Spindler spent most of his time and energies on regaining profitability, with the end goal of
finding a buyer for Apple. Over the next several years, Spindler shopped Apple to Sun
Microsystems, Eastman Kodak, AT&T, and IBM. Meanwhile, Apple was unable to meet the
growing demand for its products due to supplier problems and faulty demand predictions. To
add insult to injury, Microsoft released Windows 95 with great fanfare in 1995. After
significant quarterly losses in 1996, the board replaced Spindler with Dr. Gil Amelio, CEO of
National Semiconductor. Dr.Amelio tried to bring Apple back to basics, simplifying the
product lines and restructuring the company. One of Apple’s most pressing issues at the time
was releasing their next generation operating system (code named “Copland”) to compete
with Windows 95. Amelio and his technology officers found that Copland was so behind
schedule that they looked outside the company to purchase a new OS. Ultimately, and
somewhat ironically, they decided to purchase NeXT computer from Jobs. Naturally, Apple
welcomed Jobs back into the fold. The board became increasingly impatient with Amelio
due to sales not rebounding quickly enough. Apple bought out Amelio’s contract after just 1
½ years on the job. Jobs eventually claimed the CEO position. Then, he cleaned house by
revamping the board of directors and even replacing Mike Markkula (who had been with the
company since the beginning). Jobs simultaneously put an end to the fledgling clone
licensing agreements (which created a few Mac clones) and entered into cross-licensing
agreements with Microsoft. On May 6, 1998, Apple introduced the new iMac, a product so
secret that most Apple employees had never heard of it. The new iMac was a runaway
success with its translucent case, all-in-one architecture, and ease of use. It brought Apple to
a new market of users – those who had never owned a computer before. Jobs further
simplified the product lines into four quadrants along two axes: Desktop and Portable on
one, Professional and Consumer on the other. Apple completed the matrix with the
introduction of the consumer-based iBook in 1999.
The year 2001 was an important year for consumers of Apple products. Apple opened their
first 25 retail stores (totalling 163 stores in 4 countries as of May 2006). In September 2001,
Apple introduced the new iMac featuring a screen on a swivel. The new iPods (portable
music players) were a tremendous success. Apple sold so many that Apple’s dependence on
Mac sales was significantly less. This was no small feat considering that the 2001 iMac
became Apple’s best-selling product “by a long shot”. Apple offered iTunes (a free
application) to help their consumers organize music on iPods and Macs.
In 2003, Apple expanded iTunes by 1) opening the iTunes music store to allow Mac users to
purchase music online and 2) expanding iTunes to Windows users. Sales of iPods
skyrocketed and currently provide the bulk of product sales to Apple. In 2005, Apple
announced that it would start using Intel-based chips to run Macintosh computers. In April
2006, Apple announced Boot Camp, which allows users of Intel-based Macs to boot either
Mac or Windows OS. This functionality allows users who may need both OSs to own just
one machine to run both, albeit not simultaneously.
Vision Statement
"Man is the creator of change in this world. As such he should be above systems and
structures, and not subordinate to them."
Explanation of vision
Apple lives this vision through the technologies it develops for consumers and corporations.
It strives to make its customers masters of the products they have bought. Apple doesn't
simply make a statement. It lives it by ensuring that its employees understand the vision and
strive to reach it. It has put systems in place to enable smooth customer interaction. It has put
objectives in place to continuously move forward; implemented strategies to fulfil these
objectives; and ensured that the right marketing, financial and operational structures are in
place to apply the strategies.
Value Chain Analysis
To determine where Apple developed distinctive capabilities, Porter’s generic value chain
model provides a systematic framework for identifying Apple’s utilization of resources.
Primary activities for Apple include Technology and Product Design, Production, Sales and
Marketing, Customer Service, and Legal Services.
Technology and Product Design
This component represents the true core (no pun intended) of Apple’s capability. From being
the first platform to run an electronic spreadsheet (VisiCalc on the Apple II Plus) to the first
to establish a “digital lifestyle” hub (the Macintosh product lines), Apple’s history is rich
with cutting-edge technology development. Apple drives to be the best, no simply the first.
The Apple operating system is universally regarded as more stable and reliable than
Windows, while the desktop publishing software bundles (Imovie, iPhoto, iTunes, etc.) are
the most comprehensive available to end users. Ives best summarizes the entrepreneurial
culture within Apple by saying that “it’s very easy to be different, but very difficult to be
better.”
Production
Because Apple had long refused to license its operating system to external entities, the
bundled packages of Apple-developed hardware and software became the cornerstone of
Apple’s production process. Apple achieved unparalleled performance via 64-bit
architecture, integrated distinctive styling with the multi-colour translucent iMac cases, and
redefined intuitive operation with the iPod. While every product introduction has not been a
success (Lisa, Newton, etc.), Apple treats component production as a natural extension of the
design process.
Sales and Marketing
We could simply title this section “Steve Jobs”. Since his return as CEO in 1997, Jobs
personally unveils all new product introductions, reviews corresponding marketing
campaigns, and approves new product development guidelines. In a departure from their
turbulent history, Jobs “entered into patent cross-licensing and technology agreements with
Microsoft.” (Linzmayer, 290) After years of unimpressive market share growth and
cannibalization of a loyal consumer base, the door to the expansive PC market was now more
accessible to Apple than ever before. Apple continued to command a market premium for
producing a “better mousetrap” throughout its history.
Customer Service
How has Apple retained substantial cash reserves during the explosive growth and dominance
of PCs worldwide? Apple created a virtual love affair with their customer base by delivering
technically superior products (iPods vs. other MP3 players, Macs vs. PCs, etc.), and
aggressively pursuing hardware and software updates. Apple integrated their primary
activities so well that it is transparent to the consumer where one activity begins and the other
ends. A perfect example of this is Apple’s willingness to develop software to run Windows
XP on its new Intel-based iMac and then post it online free to iMac users. (Winfield) In such
an environment, customer service merely becomes the realization of receiving a little more
than expected. Although Apple employs many resources and capabilities to support their
primary activities (human resources, supply procurement, etc.), the most strategically relevant
would be Legal Services.
Legal Services
In a market climate of constant change and innovation, it is inevitable that the drive to expand
product and service offerings will subject Apple to patent and copyright infringement claims.
The dispute over the Apple logo on its iTunes Music Store, for example, continues despite a
previously reached settlement with Beatles’ Apple Corps Ltd. in 1991. (Dow Jones
Newswires) While such litigation as Microsoft’s Windows infringement on Mac OS patents
has been highly publicized, use of legal guidance to drive acquisition versus internal
development strategies for such products as Garage Band and iMusic have proven highly
valuable. Intellectual property is sacred to Apple. There was a recent attempt to uncover the
identities of internal “sources who leaked confidential information about an unreleased
product to online media outlets in 2008.’’
Mission Statement
“Apple is committed to bringing the best personal computing experience to students,
educators, creative professionals and consumers around the world through its innovative
hardware, software and internet offerings”
SWOT Analysis
Although participation in such activities may add value, they may not be a source of
competitive advantage. Ultimately, the value, rarity, inimitability, and/or organization
(VRIO) of an activity or resource determine its sustainability as a source of competitive
advantage. Within this context, we can identify a firm’s strengths, weaknesses, opportunities,
and threats (SWOT).
Strengths
Technical savvy – Product lines are easy to use and stable. Recent integration with
Microsoft products lines and Intel processors demonstrate ability and willingness to
adapt to a diverse customer base. (Mossberg) Such innovation, however, would not
be sustainable without a learning environment tolerant of mistakes. While the pure
technical expertise alone is not a valuable or rare resource, it becomes very costly to
imitate when it exists within the socially complex, entrepreneurial culture of Apple.
Financial vitality – Cash reserves remained robust and stable despite stagnant market
share growth in the computer hardware and software arenas. Apple exploited this by
resisting market pressures to reduce costs, tightly integrating product packages, and
forming strategic alliances (i.e. securing the backing of all major music distributors in
the support of iTunes).
Brand loyalty – The only way that Apple could maintain the financial vitality
described above is via a fanatical, almost cult-like, affair with its customer base. Such
brand loyalty is extremely costly and time-consuming to imitate.
Steve Jobs – As discussed earlier, Jobs proved to be a vital component to Apple’s
success. During his absence (1985-1996), Apple experienced the most turbulent
(financial and innovative) timeline in its history. Immediately upon his return, he
replaced most of the Board of Directors, pruned and focused the new product ideas,
and delivered seven consecutive quarters of positive earnings to shareholders. As
such, Jobs is certainly a valuable, rare, and hard to imitate resource that Apple fully
exploits.
Weaknesses
Market share – Apple has historically been strongest in the US geographical and
educational vertical markets. With the educational market facing tightening budget
constraints and the US approaching a PC saturation point, Apple may need to burn
cash more quickly and succumb to market cost pressures on its products without a
strategic innovation, integration, or divesture.
Steve Jobs – For virtually the same reasons Jobs is strength, he is simultaneously a
weakness. The aggressive drive to bring innovative visions to life was noticeably
absent and painfully felt (especially by shareholders) during his departure. The
apparent absence of succession planning coupled with a lust for the limelight
positioned Jobs as Apple’s single consciousness in the eyes of consumers and
shareholders.
Opportunities
Consumer electronics – With the startling success of the iPod and iTunes, Apple
entered the consumer electronics market. By expanding the iTunes concept to
downloadable mobile phone features and movies (podcasts), the door is now open to
develop new and potentially profitable strategic alliances with peripheral component
manufacturers (speaker, home stereo, etc.) and media transmission giants (Disney,
TBS, Verizon, etc.).
PC hardware and software market growth – With cross-licensing of operating system
platforms in place, Apple entered the high-volume business environment traditionally
dominated by Windows-based PCs. The introduction of Intel-based processors
prompted businesses to replace PCs with iMacs. They did this to gain a level of
stability and reliability in their business applications that PCs failed to provide. An
example is Japan’s Aozora Bank Ltd., who is replacing 2,300 PCs with iMacs.
(Wingfield) Apple must establish themselves as a credible player in business desktop
applications to overcome the “desktop publishing” stereotype.
Threats
Legal risks – In a market that literally changes at the speed of thought, patent and
copyright infringement risks remain high. As long as operating systems and support
software packages continue to converge and remain relatively easy to imitate, present
and future lawsuits are inevitable. The Apple records claim against iTunes remains
unresolved.
Competition – This threat occurs primarily on two fronts: PC hardware/software and
consumer electronics. For the same reasons discussed in the opportunities section, the
threat of imitability (cloning, pirating, etc.) increases. As relative newcomers to the
consumer electronics arena, will Apple retain a competitive advantage as they
diversify their offerings (speakers, home entertainment systems, etc.).
OBJECTIVE OF THE STUDY
The objective of the study is the study is divided into two folds.
PRIMARY OBJECTIVE:
To study the level of Customer Satisfaction of the customers of Apple.
SECONDARY OBJECTIVES:
To find out the source of awareness towards Apple.
To know the expectations of the customers of Apple Product.
To determine customers opinion regarding quality of the product.
To find out the additional features which the customer like to prefer.
RESEARCH METHODOLOGY
Meaning:
Research is any investigation to discover new facts. Clifford woody defines research
as “comprising of defining and redefining problems, formulating the hypothesis or suggested
solutions, collecting, organizing and reaching conclusion”.
Definition:
The American Marketing Association defines Market research as “the systematic
gathering, recording and analysis of data about the problems relating to the marketing of the
goods and services”.
Research design:
Research design is the basic framework, which provides guidelines for the rest of
research process; it is a map or blue print according to which the research is to be conducted. The
research design specifies the methods for data collections and data analysis. The research
specially pinpoints that to carry out research property.
1. How the data would be collected.
2. Which instruments for data collections would be used and,
3. What sampling plan would be used?
The research has to carefully decide and make a choice from the group of different alternatives
available to him.
NEED FOR RESEARCH DESIGN:
To handle adequately and intensively large canvass.
To delimit the area of investigation.
To facilitate intensive enquiry into the problem.
To have a smooth flow of work in the field of research.
To prepare the execution of the various activities systematically.
AREA OF STUDY:-
Area of study is marketing division of Apple, Study on Customer Perception is the topic
chosen for research, and the sample size is 100.
Type of research design
Descriptive research:
It includes surveys and fact-finding enquiries of different kinds. The major purpose of
it is description of the state of affairs, as it exists at present.
Methods of data collection:
Primary data are those, which are collected afresh and for the first time, and thus happen to
be original in character.
Secondary data, on the other hand, are those which have already been collected by someone
else and which have already been passed through the statistical process.
Sample size
A sample is a smaller representation of a larger whole. The use of sampling allows for
adequate scientific work by making the time of the scientific worker count.
It was decided to draw a sample from the universe in such a manner that findings
based in it will corresponded closely to those that would have obtained from the whole
universe. The steps taken were
The sampling unit to be studied that is, who is to be surveyed, was decided.
The second issue was to be decided on the sample size, that is, how many respondents
have to be surveyed. After pre testing the questionnaire, it was decided to collect data from
100 respondents.
Sample Method
CONVENIENCE SAMPLING :-
In this method the sample units are chosen primarily on the basis of the
convenience to the investigator. The units selected may be each person who comes
across the investigator very frequently
T ools for data collection :-
Among the various tools available in social research, the researcher has chosen the
questionnaire as the tools for data collection. The research deals with more of delicate and
more personal type of data. The researcher preferred the Questionnaire as the tool for data
collection, which ensures anonymity, freedom of choosing the right time and freedom to
answer all the questions without.
A nalytical tools used :-
PERCENTAGE ANALYSIS
It refers to a special kind of ratio, percentage are used in making comparison
between two or more series of data. Percentages are used to determine relationships
between the series if data. Finding the relative differences becomes easier through
percentage. It is expressed as,
Percentage = No. Of Respondents x 100/ Total no of respondents
QUESTIONNAIRE
1. Which Model of APPLE are you using?
(A) Iphone4
(B) Iphone4s
(C) Iphone5c
(D) Iphone5s
40%
30%
20%
10%
Chart TitleA B c D
2. From how many years are you using apple model ?
A) 0-2
B) 2-4
C) 4-6
D) More than 6
60%
30%
5%5%
Chart TitleA B C D
3. Preference for choosing particular product?
a) Comfort b) os
c) Features d) Performance
e) Look f) Price
15%
5%
10%
10%
20%
40%
Chart Title1 2 3 4 5 6
40% people prefer features of os.
4. Are you satisfied with your product?
a) Yes
b) No
If No, then give the reason for same in Q.3
70%
30%
Chart Title1 2
5. What is your Pre-sales experience while purchasing the phone?
a) Excellent b) Good
c) Average d) Below Average
40%
30%
20%
10%
chart title1 2 3 4
40% excellent, 30%Good, 20% Average, 10% Below Average.
6. What is your post-sales experience after purchasing the phone ?
a) Excellent b) Good
c) Average d) Below Average
40%
30%
20%
10%
chart title1 2 3 4
7. Are you satisfied with the feature of product?
a) Comfort…./5 b) os…./5
c) Features…./5 d) Safely…../5
e) Looks …../5 f) Price…../5
13%
18%
14%23%
14%
18%
Chart Title1 2 3 4 5 6
13% Comfort, 18% OS, 14% features, 23% Safety, 14% looks, 18% Price.
8. How will you rate apple product on the basis of value for Money?
a) Above Expectation b) Below Expectation
c) As per Expectation
40%
30%
30%
Chart TitleA B C
9. Do you find easy availability of product?
a) Yes
b) No
95%
5%
Chart Title1st Qtr 2nd Qtr
95% Yes, 5% No
10. Would you like to repurchase
Apple product?
a) Yes
b) No
40%
60%
Chart Title1 2
40% Yes, 60% No
11. Would you like to recommend the apple product?
a) Yes
b) No
70%
30%
Chart Title1 2
70% Yes, 30% No
12. In which sector do you think/feel apple should improve?
a) Price b) Quality
c) Service c) Others
30%
40%
20%
10%
Chart title
1234
30% Price, 40% Quality, 20% Service, 10% Others
13. Are you satisfied with the overall service of apple?
a) Excellent b) Good
c) Average d) Below Average
30%
40%
20%
10%
Chart title
1234
30%PRICE, 40%QUALITY, 20%SERVICE, 10%OTHERS
FINDINGS
On average more than 73% people feel that prices are affordable whereas 12% do not agree,
74% believe that attractive discounts are offered whereas 26% are not satisfied with the
discounts offered. 20% said that presales are not offered and 15% said that post sales follow
ups are not done regularly whereas 85% said that they were done regularly but people feel
that is the people’s products. as it is satisfactory on all other parameters: knowledgeable sales
persons, employees spent enough time before and during sales, display of merchandise,
products in good condition, prices are affordable, attractive discounts are offered, respond
complaints quickly, service at Apple service station’s excellent, careful with personal
information and is value for money. The overall opinion is apple products are very Good.
Conclusion
We feel that Apple must focus on several key aspects to continue to grow and succeed. They
must continue a stable commitment to licensing, push for economies of scope between media
and computers, and become a learning organization. Apple apparently made a commitment to
licensing. Although it should continue, Apple may want to consider other forms of strategic
alliances. An equity strategic alliance may offer Apple the opportunity to obtain additional
competencies. An effective way for a company like Apple to accomplish this would be in the
form of a joint venture. Apple should continue pushing the new line of media-centric
products. Meanwhile, Apple should not lose focus on its computers. Macintosh computers
were 39% of Apple’s sales in 2005. (Burrows) This very innovative company exploits its
second-mover position. In the future, they will need to continue innovating to expand the
boundaries of both media and computers. One persistent element of both competitive
advantage and risk is Steve Jobs. He is both synonymous with Apple’s success and has a
large equity interest in Apple and Disney. If he were to divest his leadership position, the
reaction of both the market and consumers would be uncertain. Given his position within the
organization as well as the history of the company when he was gone, Apple must find a way
to learn as an organization. This will allow the company to withstand a departure by
Jobs.Based on the actions of the organization; we feel that the mid-term performance of
Apple will be strong. This period allows Apple time to overcome their challenges if they
move swiftly. For this reason, we feel that they will continue to succeed and will continue to
outperform their peers.
Apple avoids competition
If you look at the history of Apple, you'll see that instead of rising to competition, they often
ignore it, or try to use legal means, or bundling clout, to erase it.
When challenged by a larger market force, as with the IBM PC and its clones in the early 80s,
and with Windows 3.0, 95 and then NT 4.0 in the 90s, they miss obvious marketing
opportunities, ways to make their products stronger by participating in markets that others
develop. This is an art that Microsoft has mastered, there's no reason Apple couldn't have
learned the same lessons, but they didn't.
And when dealing with smaller competitors, Apple routinely and often unconsciously forced
them out of business by bundling, or declaring that they will bundle a competitive offering.
When the Internet happened, Apple struggled against it instead of embracing it, preferring to
invest in technologies that eventually ended up on the scrap heap. A wasted lead in content
development, developers going to Windows, a poor Java implementation on the Mac.
The bottom line, the strategy of avoiding competition has been disastrous for Apple. But they
want to do it again.
The same old strategy
The cloners, Motorola, Power Computing, UMAX, IBM and others, are poised to ship
products that would take Apple out of the hardware business, because they're cheaper, faster,
bigger, more powerful machines than Apple's new products. These are the computers that
Mac users want and are, in my opinion, entitled to.
Even though we haven't seen the license agreements with the cloners, it appears that Apple
has the contractual right to forbid them to ship the computers, for any reason at all. Apple
wants to keep their hardware business, so they exercise that right.
I despise companies that use hardball tactics to put their competitors out of business. I admire
companies that rise to competition. I happily buy new products when I have a choice. I don't
like to buy products that I'm forced to buy.
Is it a nice business?
If you don't have anyone to compare with, if you aren't subject to customer choice, your
product loses direction, you focus inward, and eventually (as now for Apple) your interests
become out of synch with the interests of your customers.
Focus on that for a moment. A company whose interests are against their customers. Is that a
nice business? Does it have much of a future?
Is it legal?
The customer's interest here is clearly served by competition. The usual benefits apply --
lower prices, more realistic configurations, more diversity.
Apple's complaint that the cloners weren't growing the market can be explained by Apple's
licensing policy that kept them from making fundamentally different products than
Apple.Where's the cheap sub-notebook Mac? Where's the handheld Mac? The Mac built into
the dashboard of my car? Apple wouldn't let the cloners make these products. Apple is an
economic disaster area. They want Mac users to put all their eggs in Apple's crumbling
basket.
BIBLIOGRAPHY
www.google.com www.wikipedia.com www.apple.co.in