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innovation apple-think differentTRANSCRIPT
APPLE Inc. “THINK DIFFERENT”
PRESENTED BY:ROHIT CHANDRA
SIMRANJEET SINGH
RAJAN MITTAL
PARMEET SINGH
MANVIR SINGH
LMT School Of Management
PRESENTED TO:Prof. R.K. DE
CONTENTS• HISTORY• COMPETITIVE ENVIRONMENT• APPLE’S STRATEGY• GROWTH• CHANGES AT THE HELM• DECLINE OF APPLE• APPLE STRATEGY• SWOT• CONCLUSION
“Change the World through Technology”
• On April 1, 1976, as Apple Computer Inc. STEVE JOBS & STEVE WOZNIAK (Co- founder)
• Industry: Computer Hardware and Software, Consumer Electronics
• By 1976, Wozniak developed programming language for 6502 microprocessor.
• In 1978, Apple – II was presented.
• In 1979, Development of VisiCALE.
Sales
Low Market Share
6.6%
1Q Market Share08
Dell
HP
Acer
Apple
Toshiba
Others
Competitor Environment
• High Competition• Share of Dell and HP• Microsoft and Intel-Leaders of Software• CE Industry- Sony, Nokia, Samsung, Cisco,
Motorola
Competitor Environment
GROWTH
In1980, 25000 Apple II was sold & largest In1980, 25000 Apple II was sold & largest stock offering.stock offering.In 1982, Huge infrastructure of retail & In 1982, Huge infrastructure of retail & touch $1B.touch $1B.Focus on dealers.Focus on dealers.Launched program “Kids Can’t Wait”.Launched program “Kids Can’t Wait”.New computer models II-e & LISANew computer models II-e & LISAGUI , interface between People & Machine.GUI , interface between People & Machine.
CHANGES AT HELMIn 1983 , growing invincibly & production demands was high.They move to STEWARDSHIP MANAGEMENT STYLE.John Sculley was elected president & CEO in 1983.Zeal for technological innovation On LISA project needed to be harnessed.In 1985 , Jobs ousted from the board.Reestablished Apple as pioneer in GUI.Unique features for PC & captured the attention of users.
APPLE UNDER SCULLEY
• Macintosh less expensive than LISA.• IN 1985, departure of Jobs & Wozniak.• IBM forceful enter into PC market & apple
demand was depressed.• Reengineering the organization in 1986.• Vision was to target office computing.• Sales were $1.96B to $5.3B in 1989.
• Proliferation of clones, led to slow down of market share growth.
• Apple was decentralized in 1988.• Separate division for product development &
manufacturing • Change in organizational structure cause
problems between marketing and R&D.• Process improvement initiatives• Smart manufacturing and geared the
company to a market pull then technology push.
DECLINE OF APPLE
• Refused to license its OS to other computer manufacturer.
• Technology proprietary and exploit it only in its own products.
• Microsoft with windows, diffuses its technology by putting on IBM PC.
• Finally realized its mistake of superior technology.• In 1991, participate in IBM/Motorola/Apple
consortium.
• Five distinct initiatives:a. Better integration with IBM compatiblesb. New family of Reduced instruction set
computers (RISCs)c. Open system environment known as AIX.d. Multimedia joint venturee. Next generation of OS software based on
object oriented programming.
Contd.
Aim was to break Intel & Microsoft strong hold on PC market. In 1993, Michael Spindler took over as CEO & aggressive actions was taken.Cost cutting measures:Laying off 2500 workers.Freezing executive salariesCanning some projectsReducing R&D by $100M a year.
Contd..
Contd.
• In 1996, Gilbert Amelio, replaced Spindler as CEO.
• Second Quarter loss was $740M.• In 1997, stock fell to 12 year low• Jobs was brought back as an advisor.• He declined as CEO & remain CEO at PIXAR ,
a new hi-tech venture.
• Apple employs a Product Differentiation
• Drawbacks as a result of their strategy include:– Not appealing to Price Conscious Consumers – Risk of Imitation by Competitors– Risk of Change in Customer Taste
Apple’s Strategy
Differentiation Strategy
• Unique Features and characteristics
• Commands Premium Price
• High Customer Service
• Superior Quality
• Prestige
• Rapid Innovation
Sustainable Competitive Advantage
• Differentiation Strategy
• Value Creation
Core Competencies(In Current Scenario)
Differentiation Strategy
• Unique Features and characteristics
• Commands Premium Price
• High Customer Service
• Superior Quality
• Prestige
• Rapid Innovation
Sustainable Competitive Advantage
FF
Value Creation Process
Focus On Education
eMac
Adding Value
iMac
Lifestyle Strategy
Digital Hub
Music Strategy (iTunes)
Video Strategy (iMovie)
Internet Strategy (iTools)
Convergence
Apple I,II,III Mac
Apple’s Problems
• Branding • Innovation• Differentiated Product• Superior Quality• Retail Strategy
Strengths
• High Price Proprietary System
• Niche Market, Less Penetration
• Cannibalization
Weaknesses
Opportunities
• Fast growing Industry (Customer Electronics Industry)
• Technological Innovations• Extend new products to loyal customers• High Potential music phone market• Strategic Alliances
Threats
• Extensive Competition • Substitute Products• Low prices of Competitors• Technical Advancements• Economy downfall
• Free flow of information permits innovation.
• Venture Capital as strong Catalyst.
• Synergy between an inventor & Entrepreneur.
• Packaging leads to success of product.
• Worked feverishly to project this philosophy.
• Incremental Innovation need to be managed with same as vigor as radical innovation.
• Importance of forming alliances with competitor.
• Decided to license OS.
• Attempted to reorganized R&D activities several times
CONLUSION
THANK YOU
LMT School Of Mangement