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Formulation Presentation
March, 7 2008
Executive Summary
Apple Profile
Products: Desktop
computers, laptops,
digital music players,
software
Markets: High-end,
technology-savvy
users
Size: $8.3 billion in
sales in 2004
Industry:
Key Players:
Dell
Hewlett-Packard
Microsoft
Keys to success:
Innovation
Quality support services
Vision:
To be a leading
innovator of new
technologies that
change the way people
go about their daily
Operating Environment
Economic Factors
Intense growth dependent on machines
Demand for product services & support
Social Factors
Wireless communication
Powerful & portable devices
Political Factors
Copyrights protection
Technological Factors
Strong rivalries among top competitors
Continuously changing products
Ecological Factors
Pollution
Corporate Social Responsibility
Summary
Product support services
Powerful & portable devices
Industry Analysis
Porters Five Forces Model
2. Substitute Products
3. Powerful Suppliers
Forward Integration
4. Powerful Buyers
Backward Integration
5. Threat of Entry
Advanced Knowledge
Capital Requirement
Sector: Technology
Industry: Diversified
Computer Systems
Products: Servers,
Business Critical
Systems & Software
Sector: Technology
Industry: Personal
Computers
Products:
Desktops, Mobility
Products, Software
& peripherals
Sector: Technology
Industry:
Application Software
Products: Video
game consoles,
servers and storage
software, and digital
music players.
General Administration:
Procurement
SWOT Summary
Strengths:
Weakness:
Opportunities:
Threats:
Forward integration
Becoming a low- end commodity
Competitive position
International Corporate-Level
Alternatives
Global brick & mortar locations
Nearly 2.4 billion people living in China
and India alone, accounts for 37% of the
global population
Major areas of economic growth are in newmarkets (China & India), and in product &
service expansion
Keys to Success
International
Strategic Alliances
Pros:
No cost advantage
Focus Differentiation:
Pros and Cons
Pros:
Cons:
Ability to meet
targeted segments
needs
Ability to adapt to
segments changing
needs or demands
High customer loyalty
within segment
Strategic Choice
In order to achieve the long term objective
of technological leadership it is
recommended that Apple establishes a
strategic alliance with a leading
communication provider