Innovation distinguishes between a leader and a follower.

Steve Jobs

APPLE COMPUTER, Inc.

Saad Munir Zamara Amjad Ayesha Shaukat

Something for you Apple Glimpse

Company Mission Statement

Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. 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.

Proposed Mission Statement

Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Think Differently is a concept Apple executes with perfection, Innovation being the core competency of the company. The company 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. A challenge for the company is to shift towards environment friendly production of differentiated goods. As differentiation will ensure that the current profitability of the company is sustained. Apple will also strive to provide added opportunities for growth and enrichment of company personnel.

Proposed Vision Statement

Become the World Leader of innovation in the computer market

Porters Five Force Model

Potential entry of new competitors

Potential development of substitute products

Bargaining Power of Suppliers

Bargaining power of Customers

Rivalry among existing firms

APPLE inc. Value Chain

Enterprise Architecture and Portfolio Management

Finance

Activities

Support

Sourcing, Staff and Vendors Facilities and Operations IT Enablement Procurement Hardware Engineering Marketing and Sales Solution Development Demand Relationship Management

Primary Activities

Production

Outbound Logistics

Inbound Logistics

Service Support

M A R G I N

Internal Factor Evaluation

Strengths
user-friendly GUI Highly Innovative products Brand Loyal Customers Financial Strength

Weight Rate Score

0.1 0.07 0.09 0.05

4 4 3 3

0.4 0.28 0.27 0.15

Steve Jobs Return to APPLE

ITunes and music store is a great source of revenue

0.05
0.1 0.05

3
4 3

0.15
0.4 0.15

Diversifications in Products

Internal Factor Evaluation

Weaknesses
Weak Corporate structure

Weight Rate Score

0.05

0.1

Low e-trade
Business marketing strategy Market Share Product sales performance Weak Corporate structure Low e-trade

0.14
0.08 0.15 0.07 0.05 0.14

1
1 2 2 2 1

0.14
0.08 0.3 0.14 0.1 0.14

External Factor Evaluation

Opportunities
Increase viruses and worms on Microsoft based systems.

Weight Rate Score

0.05

0.1

Large population is Brand Conscious

Ties with windows can make huge user shift to Mac Increasing market of downloaded music and Mp3 Players Expanding use of the Internet to sell products and services. increase in popularity of internet

0.05
0.06 0.15 0.1 0.1

3
2 4 2 2

0.15
0.12 0.6 0.2 0.2

External Factor Evaluation

Threats
Weak foreign economies and us economies
High Competition between Firms Risk of product Piracy, copyright infringements Risk of product obsolescence Substitute product development Competitors charge lower prices on similar products

Weight Rate Score

0.04
0.1 0.03 0.05 0.07 0.1

2
2 2 2 2 1

0.08
0.2 0.06 0.1 0.14 0.1

Porters Five Force Model

Apple
Critical Success Factors Innovation(Product Design) Market Share Brand Loyalty
Weight Rating Score

Dell
Rating Score

HP
Rating Score

MICROSOFT
Rating Score

IBM
Rating Score

0.13 0.12 0.09 0.05 0.10 0.08 0.08 0.05 0.05 0.09 0.13 0.05

4 1 4 3 3 2 2 3 4 3 3 1

0.52 0.12 0.34 0.15 0.29 0.15 0.15 0.15 0.20 0.27 0.39 0.05

3 4 3 3 3 4 3 3 3 3 4 1

0.39 0.48 0.26 0.15 0.29 0.30 0.23 0.15 0.15 0.27 0.52 0.05

1 3 3 3 3 2 3 3 4 3 3 1

0.13 0.36 0.26 0.15 0.29 0.15 0.23 0.15 0.20 0.27 0.39 0.05

3 4 4 4 2 4 3 4 3 3 3 2

0.39 0.48 0.34 0.20 0.19 0.30 0.23 0.20 0.15 0.27 0.39 0.10

2 2 3 3 3 2 3 4 2 3 3 1

0.26 0.24 0.26 0.15 0.29 0.15 0.23 0.20 0.10 0.27 0.39 0.05

Customer Service/Support Diversification(Product Range) Business Structure Efficiency

Pricing History of Name e-Store Financial Position Product Quality Concern for Environment

2.78

3.23

2.62

3.24

2.58

Boston Consulting Matrix

World growth Rate = 14.1%

Market Share Dell = 15.3% Market Share Apple= 5%

Relative Market Share = 5/15.3= 0.326

Boston Consulting Matrix

SWOT

The External-Internal Matrix

Grand Strategy
Rapid Market Growth Quadrant 2 Quadrant 1

Weak Competitive Position

APPLE Inc. Quadrant 3 Quadrant 4

Strong Competitive Position

Slow Market Growth

SPACE Matrix

QSPM
Alternative STRATEGIES

Opportunities
Weight
Increase viruses and worms on Microsoft based systems Large population is Brand Conscious Ties with windows can make huge user shift to Mac Increasing market of downloaded music and Mp3 Players Expanding use of the Internet to sell products and services increase in popularity of internet

Market Penetration

Product Development

AS 4 3 3 4 3 3

TAS 0.2 0.2 0.2 0.6 0.3 0.3

AS 3 3 2 3 2 2

TAS 0.15 0.15 0.12 0.45 0.2 0.2

0.05 0.05 0.06 0.15 0.1 0.1

QSPM
Alternative STRATEGIES

Threats
Weight
Weak foreign and US economies High Competition between Firms Risk of product Piracy, copyright infringements Risk of product obsolescence Substitute product development Competitors lower prices

Market Penetration

Product Development

AS 1 3 1 1 1 1

TAS 0 0.3 0 0.1 0.1 0.1

AS 3 4 3 4 4 3

TAS 0.12 0.4 0.09 0.2 0.28 0.3

0.04 0.1 0.03 0.05 0.07 0.1

QSPM
Market Product Penetration Development Threats + Opportunities

2.4

2.87

QSPM
Alternative STRATEGIES

Strengths
Weight
user-friendly GUI

Market Penetration

Product Development

AS 3 3

TAS 0.3 0.2 0.2 0.1 0.4 0.2 0.2

AS 3 3 3 3 3 4 3

TAS 0.3 0.21 0.24 0.12 0.3 0.2 0.18

0.1

Highly Innovative products

Brand Loyal Customers

0.07
0.080.044 2 3

Steve Jobs Return to APPLE

ITunes and music store is a great source of revenue Diversifications in Products Financing option

0.1
3

0.05 0.06
3

QSPM
Alternative STRATEGIES

Weaknesses
Weight
1. Weak Corporate structure

Market Penetration

Product Development

AS

TAS

AS

TAS

0.05 0.15 0.08 0.15 0.07

1 2 3 3 1

0.1 0.3 0.2 0.3 0.1

3 3 1 2 4

0.15 0.45 0.08 0.3 0.28

2. Low e-trade 3. Weak Business-to Business marketing strategy

4. Market Share 5. Product sales performance

QSPM
Market Product Penetration Development Strengths + Weaknesses

4.9

5.68

NET SALES/ CASH from SALES

ASSET TURNOVER

Inventory Turnover

Gross Profit Margin

Operating Expense Ratio

Net Profit Margin