Part I: Overview (Ren, Xinxin)
Introduction
Apple Inc.
Apple Inc.
Apple Inc.
APPLICATIONS:
1
MAC
2
iPad
3
iPod
4
iPhone
5
iComputer
6
iTV
Mission Statement of Apple
Inc.
1. The best personal computing experience to students, educators, creative professionals and consumers
2. Enhance resources for future generations and for continuous improvements Customer Profile
1.50% of all households across the US and Europe
2.36% of people claim to be regular users of Apple devices
Business Situation
1.1976, first highly successful mass-produced personal computer 2.2005, 70 % of the hard-drive
MP3 player, > 40 % of the flash based player market
3.2014, 41.3% of smartphone in
US
Problem Solution
Step#1: Believe in the Simple Apple:
The arrogance of simplicity
01
Apple’s design process
02
Simplicity & Choices
Problem Solution
Step#2: Design a full experience
Apple adopts a comprehensive approach
01
Apple re-legitimize vertical integration
02
Apple’s vertical integration offers three competitive advantages
03
The digital music revolution
04
Apple’s vertical integration in h/w for consumer electronics
Problem Solution
Step#3: Look customers in
iTunes’ goal is to lock the consumer in
01
iTunes revenues are insignificant
02 App store revenues are a drop in the bucket
Problem Solution
Step#4: Sell at a premium
Apple’s revenues come from high margin h/w products
Apple’s profit comes from margins
01
in h/w(iPad)
H/w drives Apple’s gross margin
02
Problem Solution
Step#5: Cross-sell your product line
Apple brand appeal drives its product line
01
Who is the iCustomer?
02
iPod and iPhone drive Mac sales
03
Integration reinforced by retail strategy 04 iCustomers will drive Apple’s sales
05
How did apple cross the chasm?
Part II: Porter's competitive forces model
(Dang, Jiyin)
APPLE INC
Organization Structure of Apple
Communication is created in the lower levels
Operational elements are reported to the regional