Index

Number Particular Pg. No.

1 Introduction 3-5

2 Business Overview 5-12

3 Pestel Analysis 12-17

4 Product Mix 17-20

5 Significance of the Business 21

6 Findings of the study 22

7 Summary 23

8 Conclusion of Apple Company 23-24

9 Reference 25

10 Appendix 26-27

1
2
Introduction:
Apple Inc. is an American multinational corporation that designs and
manufactures consumer electronics and computer software products. The
company's best-known hardware products include Macintosh computers, the
iPod, and the iPhone. Apple software includes the Mac OS X operating system,
the iTunes media browser, the iLife suite of multimedia and creativity software,
the iWork suite of productivity software, Final Cut Studio, a suite of
professional audio and film-industry software products, and Logic Studio, a
suite of audio tools. The company operates more than 250 retail stores in nine
countries, and an online store where hardware and software products are sold.

Established in Cupertino, California on April 1, 1976 and incorporated

January 3, 1977, the company was called Apple Computer, Inc. for its first 30
years, but dropped the word "Computer" on January 9, 2007 to reflect the
company's ongoing expansion into the consumer electronics market in addition
to its traditional focus on personal computers. Apple has about 35,000
employees worldwide and had worldwide annual sales of US$32.48 billion in
its fiscal year ending September 29, 2008. For reasons as various as its
philosophy of comprehensive aesthetic design to its distinctive advertising
campaigns, Apple has established a unique reputation in the consumer
electronics industry. This includes a customer base that is devoted to the
company and its brand, particularly in the United States. Fortune magazine
named Apple the most admired company in the United States in 2008 and in the
world in 2009.

3
BriefIntroduction:

 Type :Public (NASDAQ: AAPL, LSE: 0HDZ, FWB: APC)

 Founded : Cupertino, California, United States (April 1, 1976)as
Apple Computer, Inc.
 Founder(s) :Steve Jobs, Steve Wozniak, Ronald Wayne
 Headquarters : Infinite Loop, Cupertino, California, USA
 Locations : 251 (Q1 FY 2009)
 Area serve : Worldwide; United States, United Kingdom, Canada,
Japan, Australia, INDIA, Italy, Germany and China.
 Key people :Steve Jobs (CEO, Chairman, and co-founder)
Tim Cook (COO) Peter Oppenheimer (CFO)
Phil Schiller (SVP Marketing)
Jonathan Ive (SVP Industrial Design)
Mark Papermaster (SVP Device Engineering)
Ron Johnson (SVP Retail)

4
 SinaTamaddon (SVP Applications)
Bertrand Serlet (SVP Software Engineering)
Scott Forstall (SVP iPhone Software)
 Industry : Computer hardware,Computer software,
Consumer electronics,Digital distribution.
 Products :Mac (Pro, Mini, iMac, MacBook, Air, Pro, Xserve)
IPhone, iPod (Shuffle, Nan, Classic, Touch) Apple TV,
Cinema Display, AirPort, Time Capsule Mac OS X
(Server, iPhone OS), iLife, iWork
 Services :Stores (retail, online, iTunes, App), Mobile Me
 Revenue :▲US$32.48 billion[4] (FY 2008)

Operating:

 Income :▲$ 6.28 billion[4] (FY 2008, 19.32% operating margin)

 Net income :▲$ 4.83 billion[4] (FY 2008, 14.88% profit margin)
 AUM :▲$24.49 billion[4] (FY 2008, 1.74 quick ratio)
 Total assets :▲$39.57 billion[4] (FY 2008, 12.21% ROA)
 Total equity :▲$21.03 billion[4] (FY 2008, 22.97% ROE)
 Employees :35,000[3] (Q1 FY 2009)
 Website :Apple.com

Business Overview of Apple:

Apple Inc is one of the leading companies in the world and deals majorly
in manufacturing and selling of consumer electronics, computer software, and
other online services. It is a global company that originated in California USA.
The founders of the company are the world-renowned Steve Jobs with Steve
Wozniak and Ronald Wayne.

Apple Inc is a multinational company that creates and sells consumer

electronics, computer software, and personal computers, in 363 stores
worldwide, with global sales of about US$16 billion. The company's well-
known products like Macintosh line of computers, iPod, iPhone and the iPad are
mainly recognized as a source of competitive edge due to high brand awareness
related to these products. Apple also sells other branded products like,

5
Mac OS X, iTunes, iLife, iWork, Aperture, Final Cut Studio, Logic Studio,
Safari browser and iOS.

Apple started with manufacturing and selling personal computers but has
now expanded into many sectors. Today (October 2018) Apple is the second
largest phone manufacturer in the world after Samsung. In fact, Apple Inc is the
largest IT Company in the world (by revenue). It operates nearly 500 retail
stores worldwide and employs nearly 120,000 people.

Vision Statement:

According to Apple Inc (2012), “We believe that we are on the face of
the earth to make great products and that‟s not changing. We are constantly
focusing on innovating. We believe in the simple not the complex. We believe
that we need to own and control the primary technologies behind the products
thatwe make, and participate only in markets where we can make a significant
contribution. We believe in saying no to thousands of projects, so that we can
really focus on the few that are truly important and meaningful to us. We
believe in deep collaboration and cross-pollination of our groups, which allow
us to innovate in a way that others cannot. And frankly, we don‟t settle for
anything less than excellence in every group in the company, and we have the
self-honesty to admit when we‟re wrong and the courage to change. And I think
regardless of who is in what job those values are so embedded in this company
that Apple will do extremely well.”

Mission Statement:

According to Apple Inc (2012), ''Apple designs Macs, the best personal
computers in the world, along with OS X, iLife, iWork, and professional
software. Apple leads the digital music revolution with its iPods and iTunes
online store. Apple reinvented the mobile phone with its revolutionary iPhone
and App Store, and has recently introduced its magical iPad which is defining
the future of mobile media and computing devices.''

Another mission statement is: “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."

6
Smart Objectives:

Goal 1: Apple will increase its revenue by breaking into the high-level
watch market and take a 15% market share by 2016. This is a specific goal
because it defines a new market where Apple has taken the time to innovate in a
specific way. To date, there have been no wildly successful smart watches.
Apple aims to set the standard. This is a measurable goal because sales figures
are required to be reported for all American corporations. Apple already has an
advanced sales metrics analytics system in place to report to its stockholders. As
one of the world‟s most popular companies, the results of their efforts will be
closely watched by tech aficionados around the world. This goal is attainable
because Apple has a well-developed distribution system with its retail stores
and online store. Apple‟s popular following is defines trends in consumer
electronics as well as in the culture. Now that the company is making the
attempt to access the fashion interests of it large following, it can begin to
accessorize its product line in a way the makes personal computing functions
even more convenient. This goal is relevant because it sets a high standard of
growth for an area where the company has recently invested a large quantity of
its resources. The goal is time-bound since they have a limited date to achieve
the market share by 2016. Otherwise, their lack of success will be clear.

Goal 2: Apple will increase its annual sales of the iPhone by 10% by the
end of 2014. This is a specific goal because it addressed an area where Apple
has just launched a series of new hardware updates and attaches a specific figure
to its growth objective. This is a measurable goal because Apple keeps track of
its annual sales reports. It will be easy to compare 2014 growth with 2013
growth. This goal is attainable because people are lining up all over the world
outside of Apple stores to get the iPhone 6 and iPhone 6S. The large screen size
will rival that of the Samsung Galaxy S while the new features allowing iPhone
users to answer their phone with their computers will take communication
between gadgets to a whole new level. This goal is relevant as Apple continues
to face heavy competition from Asian developers in the smartphone market. If
Apple does not continue to innovate its smartphone product line and reassert its
dominance, it could quickly become lost in the crowd. This goal is clearly time-
bound as it sets the deadline for growth measurement just after the Christmas
holiday season.

7
Key To Success:

8
Core Competencies:

Competitiue Advantages:

9
Competitors:

 Computers : HP, Dell, IBM, Lenovo, Acer, Toshiba

 Music Devices : Microsoft (Zune), Sony
 Phones : Android (Google), Samsung, Windows Phone
(Microsoft)
 Tablets : Nexus (Google), Surface (Microsoft), Kindle (Amazon)
 Software : Microsoft, IBM, Oracle

Industry & SBU Overview:

Consumer electronics providers operate in a global industry with a

constantly resetting standard of quality. As technology develops, companies are
forced to annually update their product lines. 2014 industry revenue was $211.3
billion. Meanwhile, Apple‟s overall revenue growth rests at 5.2% thanks to
innovative product updates. Companies look to make a profit by selling
personal handheld devices, whichamounts to selling increasingly smaller and
more sophisticated versions of the computer also capable of connecting to the
Internet and acting as communications devices. The main product demand
segments are personal computers, smartphones, and tablets. Competitors work
gain market share by offering low prices and interfaces that are easy to navigate
along with great graphics presentations. As technology becomes increasingly
ubiquitous in daily life, companies will search for new ways to integrate their
software capabilities with new products such as smart watches and clothes that
automatically recharge oursmartphones. Although the entry barrier is high, the
competition to continue innovation shows no signs ofslowing down.

Apple‟s SBU categories currently include smartphones, personal computers,

tablets, software, and accessories, all which fall under the category of hardline
products. In accordance with its SMART goals to improve company
performance, Apple will increase its revenue by breaking into the high-level
watch market and take a 15% market share by 2016. This will effectively allow
Apple to create a new high-tech luxury watch market for itself. Secondly, will
increase its annual sales of the iPhone by 10% by the end of 2014. This will
align with its growth objectives stemming from the release of the iPhone 6.

10
Forecast:

With the estimated growth of the industry‟s CAGR most strongly

positioned in the Asia-Pacific region, the current forecast suggests Apple should
focus its efforts in smartphone sales on Asia above all otherareas. Apple,
however, appears to be hedging its bets that it can find a new market with the
introductionof its watch, a product that will almost certainly have a limited
appeal outside of America and Europe. If Apple wishes to complete its SMART
goals, it will have to succeed simultaneously in multiple regions.

Internal Analysis:

Strengths Weaknesses
 High innovative  Death of CEO Steve Jobs
 Strong product ecosystem brought about huge change to
 Harmonization of hardware & Apple & restructuring of top
software management
 Immense cash reserves (no debt)  Not much variety in
 Loyal customer base appearance from one product
 Dominant home market position to the next
through the halo effect  High price limits
 Made shopping for electronics an
“experience”
 Ubiquitous brand image

11
External Analysis:

Opportunities Threats
 Expansion into other markets  Competing with other highly
(e.g. medical sector) innovative firms (Google &
 Expansion into emerging markets Microsoft)
 Increasing demand for cloud  Low customization options on
based service product interface
 Strong growth of mobile  Rising pay for foxcon workers
advertising market  Rapid technological changes
 Price pressure from samsung

Pestel Analysis:
Economic Impact:

Apple has created entirely new products and entirely new industries, by
focusing on innovation. Apple Innovations as a result have created or supported
more than 500,000 jobs for U.S. workers (Apple). With the different products
that Apple has available to sell, consumers buy a lot of supplies which brings
money into the economy. Apple products are the first things someone can name
as being a want. Technology is something that is always modern, and everyone
wants to stay up to date with. Apple has always comfortably beats its revenue
estimates; originally when the iPhone was unveiled it was universally revered.
Apple‟s release of its products can impact US gross domestic product (GDP),
Apple‟s shares have risen 50% this year, making Apple the most highly valued
company on the American stock market. In the past 11 years Apple has

12
launched three products- the iPod, iPhone, and iPad that have created brand new
markets, fulfilling desires that consumers did not even know they had (Carmen
Ballagan). Apple has proven that it is possible to earn high margins with
brilliant designs and by offering consumers ways to access the internet
effortlessly wherever they go. Apple shows that, even in a period of recession,
consumers are willing to pay for the must-have gadgets. Innovation has been
widely touted as the key to long term economic prosperity (Carmen Ballagan).
Apple and the U.S. tech industry have successfully coordinated global value
chains to develop and manufacture their products while focusing their own
efforts on design, marketing, branding, and distribution. Innovative products
such as American technology products are designed and marketed by U.S.
companies; they create valuable jobs for American workers even if the products
are manufactured offshore (InformationWeek). Apple‟s tremendous success
with their innovative products in recent years has driven growth in U.S.
employment.

Technology & Industry Trends:

Technology will always be an ever growing industry and the demand for
efficient and smart technological advancements has become more apparent.
Everything is changing, consumer products such as phones and tablets to the
way your home computer accesses the Internet. Dual core and Quad core
processors have become the norm in smart technology; as a result people should
expect more powerful devices, smart devices in our pockets are far more
powerful than the desktop computers people dreamed of in the 1980s, as a result
they could soon replace our wallets as well (InformationWeek). Smartphones
also bring computing power in the palm of our hands, (NFC) or Near Field
Communications, which is already part of many smartphones.Imagine tapping
your phone to a receiver at a register, instantly paying for an item without
fumbling for your wallet, or being able to load your transit card onto your
phone, using a simple tap to deduct money for every trip on the train (CNN).
All things you can do now with a smartphone would have seemed like science
fiction only a decade ago. Because of Technology &Industry Trends, it has also
become easier and cheaper to add Internet connectivity over a mobile network
than to build physical telephone lines. Cheap tablets will bring changes in
education, health care, retail, automobiles.

13
Political-Legal (laws that impact the industry):

Large companies like Apple can financially support the political process
in several ways. They may give direct contributions at the state and local level.
Companies like Apple engage in political spending indirectly by supporting
trade associations. Since 2002, Apple has been a moderate political spender; the
company has contributed approximately $580,000 in corporate funds to political
activities (Political Transparency and Accountability Profile). The debate over
“Net Neutrality” has been an ongoing problem for large technology companies
like Apple. Congress and the FCC want to impose regulation if need be. Net
Neutrality changes the way theInternet operates (Political Transparency and
Accountability Profile).

The push for modernization of the American healthcare system would

providegovernment money for infrastructure development and implementation
for health care providers. The adaptability of Apple‟s key products in
innovation health centric ways could bring new sources of revenue, because
Apple creates new and innovative technologies it could raise the future value of
Apple.

Social-Cultural Trends:

Internet and connectivity to the social world is driving a demand for

access everywhere,using high-speed wireless technologies. Smartphones, and
other ultra-portable connected devices, allow users to carry and have access to
the Internet everywhere they go these are fast growing compared to traditional
personal computers (InformationWeek). Apple and other manufacturers face a
loss of relevance in the new technological landscape, driven by consumer
preference. Apple‟s substantial investment in research and development in
highly popular devices, and is at the forefront of this transition. The production
and shipment of Apple‟s devices use considerable sources of carbon emissions
and pollution, which may come under scrutiny as a consumer concern for the
environment, which continues to grow (Brian Masi). Apple has already made
commitments to green manufacturing practices as well as implementing the use
of eco-friendly components, and packaging. This proactive step can be used as a
marketing tool to harvest greater respect from concerned customers. Further, the
Chinese economy continues to grow despite worldwide economic contraction.
The Chinese economy becomes more and more developed, increased wages

14
nationwide will increase the costs of production for Apple and its OEM
partners. The increase in quality of life and disposable income to Chinese
citizens will provide a larger customer base for Apple to tap into
(InformationWeek). Strict Carbon emissions regulations impose a considerable
financial burden on the production of Apple‟s products, driving up costs and
shrinking margins. Apple‟s initiative in implementing green practices sets them
apart from many competitors who will also feel the burden of regulation.

Business Level Strategies:

Apple‟s strong following of loyal customers and an ever-increasing fan

base can beattributed to the company‟s strive to constantly “Think Different,” as
their slogan suggests. The company‟s business strategy leverages on their
unique ability to design and develop their own operating system, application
software, and hardware.

Along with free-spirit innovation and an open-minded approach to

business, Apple‟s primary focus is providing powerful and user-friendly
products and solutions. Combined, these elements drive Apple to remain a
world leader on the cutting-edge of corporate technology. Not only does the
company consider the look-and-feel of their products and services important,
but also the look and feel of their offices and staff! In communicating Apple‟s
primary business philosophy to potential employees, Jobs describes daily life at
the company headquarters:

Don‟t expect business as usual. A lot of big companies are about endless
meetings, Massive bureaucracy, Executive parking spaces and suits. We don't
see what any of that has to do with great work. So we don't bother. This isn't
your cushy corporate nine-to-fiver, Fortunately. Prepare to be inspired. We've
got an environment where you can make things happen. Fast. There's plenty of
open space and open minds. Collaboration, and of course, innovation. We also
have a shared obsession with getting every last detail right. Leave your neckties,
bring your ideas.

This strategy has proven successful, and Jobs shows no signs of regret to
the waysin which Apple now manages its most unique and valuable assets, its
human resources. Business may change, processes may change, but people will
never go out of business. Steve Jobs has created an empire around applying this
philosophy to his business ventures.

15
 Consumer Electronics Industry Attractiveness Matrix
Strategy
Market Development
Apple could focus its efforts
on continued market growth
on the Asian continent by
installing stores in China.
Product Development
Apple could focus on
moving its new Apple Watch
unit
Market Penetration
Apple should not
compromise its price points,
but focus on quality of
product in
penetration efforts abroad
Diversification
Apple could move its iPhone
4c and iPad mini concept
into other areas
Retrenchment
Apple could eliminate low-
end products that dilute the
value of the high
performancebrandassociation
Divestiture/Liquidation
Cost/Benefits Objectives Stakeholders
Impact
• Tariffs & government • Obtain international • Stakeholders will gain
restrictions business more in the long run
• Immediate market • Build brand mystique • Diversified
penetration with the Apple market share
experience
• Obtain new customers
• High risk of failure • Define a new market • Increased wealth for
• Major revenue growth • Differentiate from shareholders
• Trendsetter competitors • More options for
consumers
• Lower level • Maintain high level • Potentially decrease
customers may be standard wealth for shareholders
missed • Core value of being the • Customers will have
• Brand quality and best is maintained less purchase options
reputation will increase
• High cost for new • Create a low-end • Stakeholders may not
research laptop less than $1,000 want to compromise
• Compete with the core product integrity
Chrome book
• Loss of immediate • Maintain high end • Reduced company
inventory value due to expectations value
sales pricing • Offer customers only • Loss of halo effect
• Brand quality and superior solutions • Possible result in loss
reputation will increase of customers
• Perception as elitist • Control brand • Could be perceived as
16
Apple could get rid of its • Increased revenue presentation a monopoly move
third party in store on accessories • Eliminate competition • Could result in loss of
accessories side products company value
to focus on its brand name
product turnover

Harvest • Possible drop in • Only carry newer • Company stock may

Apple could deeply discount
all second generation
products to move stock after
new
Updates come out.
revenue as customers versions of most rise through higher
wait to buy profitable items sales
secondgeneration • Carry new items that • Reduces outstanding
• Increased stock ability customers want the most assets
to move latest products

Strategy Recommendations:

After conducting the analysis, Apple should focus its efforts on appealing
to as broad amount ofconsumers as it can. Apple should not shy away from
building a high-quality product that fits the need of different consumers as this
already fits in their mission statement (students, professionals). With large cash
reserves, Apple can afford to diversify its product portfolio as long as it
maintains its core values of excellence. This will make the company more
profitable as it expands into Asia and works to appeal to customers in countries
with lower GDPs than the US. People around the world are coming to expect to
use smartphones more and more. CAGR over the next four years, in contrast to
the past four, rests at 4.9% as the economy continues to improve. With
international stores already developed, Apple should continue this trend to focus
on giving consumers an impressive experience to couple with their impressive
products. This will allow them to maintain their mystique. Overall, Apple is
strongly positioned to succeed in this competitive industry. With strong brand
name recognition, a notable competitive advantage, a cult following, and a
dazzling product line, the company seems set to keep innovating and attracting
consumers for years to come.

17
Product:
 Apple provides both goods and services.
 The main products include phones, tablets and computers
 Services include:
o Garage Band
o Keynote
o iCloud
 These services work in conjunction with all Apple products
 Apple also provides support services in most Apple storeswhich are
called „Genius Bars‟ and they are for help withApple products and
maintenance work
 Apple provides both consumer and business products
 Most products that Apple sells are usually direct to thepublic
 Apple has business deals with schools and otherbusinesses in which
they supply products and software

Product Mix:
 Breadth:
 Mac
 iPod
 iPad
 iPhone
 Apple TV
 Software's

 Line:
 iMac
 MacBook/Pro/Air
 iPad/2/3/Air/Mini
 iPod/Classic/Shuffle/Nano/Touch
 iPhone 3G/3GS/4/4S/5/5C/5S/6/6 Plus
 iOS
 OS X
 iWork

18
  Depth:
 iOS 2.0/3.0/4/5/6/7/8
 OS X Leopard/Snow Leopard/Lion/Mountain
Lion/Mavericks/Yosemite
 iPhone 8gb/16gb/32gb/64gb/128gb
 iPod 8gb/16gb/32gb/64gb
 iPad 8gb/16gb/32gb
 MacBook with Retina Display

Product line depth:

P IPHONE IPAD MACBOOK

R
O I PHONE 3G, 8 GB I PAD AIR, 16 GB MacBook Pro (15")
D
U
C I PHONE 3G, 16 GB I PAD AIR, 32 GB MacBook Pro (17")
T

I PHONE 5S, 32 GB I PAD MINI 7 INCH Mac OS X Leopard (10.5)

D
E
P
T I PHONE 5S, 64 GB I PAD MINI 10.1 MacBook Pro (3rd gen)
INCH (Late 2013)
H

19
Product Line & Width:

Product Life Cycle:

 With the introduction of the new iPhone, all other iPhones will be on the
decline, perhaps not the most recent on prior to the iPhone 6, which is the
5C and the 5S.

 The iPhone 5C and 5S may be nearing maturity as they both have only
been out for a year, and the iPhone 5S is still similar to the iPhone 6, so
may be still in the growth stage of its life cycle.

 As for other products, as new versions of the same product are released,
the older versions either reach maturity or decline.

20
Significance of the Business:
Apple is important because it fills the role in the market of providing
consumers with premium computing products, and services. If there was no
Apple there would be no iPhone or iPad, and likely smartphones, and tablets
would not be as large of a market as they are currently.

The most successful corporations are able to create new networks through
an innovative vision that executes a business strategy that fits with the
prevailing philosophy of life. Apple is again the most prominent example of this
aspect of entrepreneurship since it sells a world view in which hardware devices
are linked with providing content in a beautiful design. Apple gets us
communicating with friends through social networks, listening to music,
making and modifying photographs, playing games and “looking cool” in a
single vision of what a successful 21st century person aspires to.

Apple created new economic networks through the introduction of

iTunes, their App Store, iPods, iPhones and iPads, resulting in a world view that
people bought into. The latest additions to these services are the iCloud storage
service and Apple Watch, which can communicate information of one‟s body
and health status to other devices. Then there‟s Apple Pay, which will enable
customers to increasingly control their finances through their Apple devices.

Although proposed and pioneered by others, it is Apple‟s total vision of

what a successful 21st century life should be that enables them to reap the
profits from their products and make us “addicted” to them.

It is the success of Apple in this third aspect of entrepreneurship in a

network economy that sets the company apart from its competitors, and whose
lead aspiring businesses should follow.

21
Findings of the study:
After analyzing the survey findings, it was found out that more women
than men bought from Apple. Most of the respondents were young, belonging to
a low income group as most of them were students or fresh career starters. Most
of them were brand conscious who perceived that branded products are better
than regular products, as they offer better quality products. They mainly liked to
shop for Apple‟s products at retail outlets. Majority of them first came across
Apple through word of mouth, which may be due to a recommendation received
from a friend or family. They associated the brand Apple with almost
everything like smart phones, PC/Laptops, music and other technological items.

The findings also highlighted few problems that Apple maybe facing, like:

1. High prices and High competition: Most of the respondents find

Apple‟s pricing to be high and theydo not prefer to pay premium for their
products due to the availability of similar kind of competitor‟sproducts
existing in the market.
2. Fewer store outlet-as Apple stores are located mainly in public places
like malls, technology streets,etc., for many customers they are not easily
accessible.
3. Lack of promotion – for some products like Apple TV very less
promotion is being done.
4. Existence of similar products in the market produced by competitive
brands, which can easily besubstituted by the customer.
5. Other problems and threats have been mentioned in the literature review
through secondary datainformation in the form of Weaknesses and
Threats, while doing SWOT Analysis.

22
Summary:
During the past few years Apple has not only involved itself in the
software business but also the music industry. Also with the iPhone being
launched we can see that apple products are being used in everyday life with
design & simplicity that only they can offer.

Finally, Apple is a serious company that as long as it goes becomes more

famous in the industry. It offers in her customers the most intelligent appliances
and programs. It aims in the manufacture of intelligent appliances with simple
handling o be simple and functional for the consumer.

Conclusion of Apple Company:

Over the past 30 years Apple has amplified from computer design to
developing consumer electronics. The company was started by Steve Jobs,
Steve Wozniak, and Ronald Wayne in the 1970‟s. Steve Jobs is the current CEO
of Apple and is doing a very efficient job in running the company. Apple uses a
differentiation business strategy, which means that all employees and
departments work together in the creation of their products. Since the
employees work together our products tend to be more productive. Apples main
business initiative is customer relationship management. When working with or
purchasing from Apple you are promised top notch customer service and
assistance.

Apple uses many different types of internet business models. Business to

Business e-commerce is used in the selling of computers to help operate
everyday proficiency in other businesses. Business to Consumer e-commerce is
the selling of iPods, computer, and other products to different individuals rather
than businesses. Business to Government e-commerce is the process of selling
of any Apple products to government operated organizations. As you can tell
Apple works with many different groups of customers. When purchasing from
Apple you are offered many different payment options. One payment option is
electronic bill presentment and payment, this system sends bills over the
internet and helps to provide an easy method for you to pay them. This method
is most convenient for customers so that they can purchase and pay for their
items without ever leaving their home.

23
 In running their business Apple finds it very important to use database
warehouses. They feel this way because it is a huge collection of business
information that is collected from many different databases. They also utilize
data marts, which helps them to focus on certain operations throughout the
business rather than the overall summary of the business. In the analytical
processing databases and operational databases which Apple uses the most
consists of many different files. Some of these files are Costumer files, order
files, sales files, and supplier files. In having these files it makes the entire
business process for Apple more convenient and more efficient.

Apples product line has grown rapidly in the past few years. We are
selling products in the following categories; input devices, output devices,
storage devices, computers, and connecting devices. For more detail on our
products read the section titles hardware and software, or visit our website at
http://www.apple.com

Apple is known to use a network called AirPort Extreme card. Airport

Extreme card picks up a Wi-Fi signal rather than a broadcast network. Apple is
related to Bonjor connection. It is an automatic connection where computers
and devices automatically broadcast their own services and listens for services
being offered for the use of others. AirPort Utility for Mac and Windows guides
you through the process of connecting to the internet, and you‟ll have your
network up and running in minutes.

Apple applies the four principles of network security by offering a valid

source of confidentiality with their terms and agreement statement. Apple has
their terms and agreement which explains their integrity and availability.
Whether looking up online or calling the store via telephone any answer to any
question is answered honestly. Their security and access controls explain Mac
OS X Server is built on an advanced architecture to deliver the features you
want with the security you need.

What we found to be the most interesting about Apple is how they are
very innovative and early adapters. Apple is usually the first company to come
out with a new product line before anyone else. This is very risky but it seems
to be working to Apples advantage. This shows that taking risks can sometimes
make or break you.

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Reference:

http://en.wikipedia.org/wiki/Apple_Inc.

http://en.wikipedia.org/wiki/Category:Apple_Inc._executives

http://www.labnol.org/gadgets/computers/apple-india-online-store-prices/3870/

Cook, T. (2014, September 9). Apple reveals the Apple Watch. Fortune. Retrieved
from http://fortune.com/video/2014/09/09/apple-reveals-the-apple-watch/

Kelly, G. (2014, September 19). Apple iPhone 6 Review: Bigger Is Better. Forbes.
Retrieved from http://www.forbes.com/sites/gordonkelly/2014/09/19/iphone-6-
review/

Market Watch Wall Street Journal. (2014, September 1). Apple Inc. Annual Income
Statement. Retrieved September 20, 2014, from
http://www.marketwatch.com/investing/stock/aapl/financials

Q3 2014 Unaudited Summary Data. (2014, September 1). Apple, Inc.. Retrieved
September 20, 2014, from http://images.apple.com/pr/pdf/q3fy14datasum.pdf

Wilson, M. (2014). Four Myths About Apple Design. Fast Company, 187, 30-32.

A study on the marketing strategies of Apple Inc

https://www.slideshare.net/sweetNsourr/dissertation-25988438

https://www.idc.com/promo/smartphone-market-share/vendor

Apple Positioning Strategy http://arunkottolli.blogspot.in/2011/07/apples-

marketpositioning.html

The Segmentation, Targeting and Positioning model

https://www.smartinsights.com/digital-marketing-strategy/customer
segmentationtargeting/ segmentation-targeting-and-positioning/

http://investor.apple.com/secfiling.cfm?filingid=1193125-14-383437&cik=

https://www.statista.com/statistics/216459/global-market-share-of-apple-iphone/

Full Analysis of Apple Competitors http://appleknowledge.xyz/applecompetitors.html

https://appleinccasestudy.weebly.com/apples-target-market.html

http://team8mis.blogspot.com/2009/04/conclusion.html

https://www.scribd.com/document/208470342/Executive-Summary-APPLE

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Appendix:
Detailed history of Apple INC:-

Apple was founded by Steve Wozniak and Steve Jobs in the 70s. They
launched the company of April Fools‟ Day in 1976. Earlier, Wozniak and Jobs
worked for Hewlett-Packard and Atari. Working as hobbyists, they created the
first Apple I and presented it at the Homebrew Computer Club. Subsequently,
they started selling it as a computer kit. The Apple I sold for $666.66.

Apple incorporated in 1977. After its incorporation, Apple received

funding from Mike Markkula. The same year, Apple launched the Apple II.
This computer had an open architecture and color graphics. Due to these
features, it was way ahead of its competitors such as the TRS-80. It also had a 5
1/4 inch floppy disk.

During the late 1970s, Apple grew very fast and in 1980, Apple III was
launched. By this time, Apple came into direct competition with Microsoft and
IBM who had the major share of the market.

Steve Jobs tools inspiration from Xerox and started working on Apple
Lisa in 1978. This computer was designed to have a graphical user interface.
Jobs was convinced that GUI-based computers would come into widespread use
in the future. Subsequently, Apple Lisa became the first computer to have a
GUI that sold to the general public.

Despite the Lisa‟s many plus points, it was a failure. This was due to
limited software availability and its high price. In 1984, the Apple Macintosh
was launched. It was one of best computers to be ever created. It was an instant
success and it ensured Apple‟s position in the market.

In 1985, Steve Jobs was fired from his own company during a power
struggle. Jobs started another company called NeXT Inc.

Apple‟s next product was the Macintosh Portable. This computer was a
failure as it was not received by the public. Despite its failure, the line was
developed further and in 1991, the PowerBook was launched. This was a
commercial success. Apple also launched System 7, an upgraded operating that
had many new features like networking support and color graphics. Until 2001,
all the OS versions released by Apple were based on System 7.

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 In the later years, Apple stagnated and lost market share. None of its
products were innovative. And so in 1997, Steve Jobs was brought back. After
his triumphant return, he took control of the company and brought it back to the
limelight.

In 2001, Apple introduced the iPod. It became a commercial success.

Two years later, Apple started the iTunes store. This was also a commercial
success and thus brought Apple back to the arena. Subsequently, Apple
switched to Intel chips.

In 2007, Apple launched the iPhone. The iPhone was a great success too.

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