Apple Computer, Inc. was formed April 1, 1976.
Global innovator of computer based products for over thirty years.
Publicly held company.
The most successful products that Apple Computer, Inc. manufactures is the iPod and iPhone.
Product and label exposure are Apple Computer, Inc. marketing techniques.
Apple Computer, Inc. presently employs a cost differentiation strategy.
Introduction
The BFs assess the economics, stakeholders management and marketing mix to gauge a general view of the general business environment so that Apple Inc is better prepared to compete.
Economics
Apple Computer, Inc. has been a founder of the information age. The technology and entertainment industries are repetitively and rapidly changing. It brought about changes to how businesses are conducted and how people communicate and socialize. It presented excellent new market opportunities where many new businesses start-up, eg. social media Facebook, bloggers, Tweeter, internet search engine Googleetc.
HRM ( information not available in the case )
Marketing ( Strength)
Marketing competence - reputation for brand development which gains customers through well-planned and carefully executed marketing promotions.
Presented a memorable commercial in Jan 1984 Super Bowl commercial for their Macintosh computer. In 2003, Apple computer, Inc. was presented with Advertising Age's Marketer of the Year recognition for it's innovative, assertive and historic promotions on the iPod and iTunes products. In 2007 after three consecutive years, Apple Computer, Inc. was designated the honor of being the most innovative company by Business Week.
Marketing 4Ps
Product : Apple Computer, Inc. applied the iPod to gain a primary position in the music downloading business. As a result, Apple Computer, Inc. became the wholesaler of downloaded music to the consumer by applying the Fair Play Digital Rights Software (DRM) and DRM free versions.
Price : Apple Computer, Inc. applied the iTunes products which offer a library of more than 10,000 audio literary works at a cost to the consumer ranging from $2.95 to $15.95. In the initial few days of promotion, iTunes surpasses the benchmark of one million downloads.
Place : Apple Computer, Inc. used the iPhone to enter into partnership agreements with telecommunication cellular phone companies in France, The United Kingdom and Germany. This has motivated Apple Computer, Inc. to focus upon gaining 1% of the cell phone market in 2008.
Promotion : In 2003, Apple Computer, Inc. entered into a promotion with Volkswagen of America to promote it's iPod. Apple Computer, Inc. promoted free iPod with the purchase of Volkswagen Beetle 10.
Organization
Apple Computer, Inc. is a publicly held company which is operated by a Board of Directors. The Board of Directors nominates the Chief Executive Officer who oversees all of the functions of the organization. The Chief Executive Officer provides active management at Apple Computer, Inc.
Innovation
Product and Design
In 1977, Apple computer, Inc. introduced the Apple II. The characteristics of the Apple II were it's form and color graphics. In the 1980s, Apple Computer, Inc. introduced the Apple III and the Lisa personal computer. These personal computers were not as successful as the Apple II personal computer.
The largest success of Apple Computer, Inc. was the Macintosh (MAC) personal computer. The Macintosh personal computer increased Apple computer, Inc. annual sales to a billion and a half dollars. In the next decade, the 1990s, Apple Computer, Inc. annual sales volume had increased to $7 billion.
In the late 1990s, upon Steve Jobs' return as Chief Executive Officer at Apple Computer, Inc., a contract was negotiated with Microsoft in order to make it's Office 98 suite collaborate with the Macintosh personal computers.
SUBCONCLUSION
Apple Computers, Inc. became successful through being able to anticipate the needs of the consumer. This ability to anticipate the customers' needs caused Apple Computer, Inc. to gain global label recognition. This global label recognition facilitated the entry of new products into the market by Apple Computers, Inc.
Discuss and Identify the key success factors of Apple Inc.
So far Apple is able to maintain their core competencies, innovative culture, and successful entry into new markets.
Apple’s continual success lies in vigilant and considerate strategic management of these complex issues and challenges.
Success Factors
A reasonable use of financial and strategic controls will help ensure that Apple Computer both benefits from feedback on past performance and communicates the important drivers of future performance. The following criterion presents a set of measures to efficiently determine the company's success.
Apple Computer, Inc. success is greatly attributed to it's marketing. Apple Computer, Inc. has developed a wide variety of products which it markets to the regular consumer (Pg. 127).
Apple Computer, inc. success is greatly attributed to its innovation (pg. 127).
Apple Computers, Inc. success it greatly attributed to it's retail chain outlets (Pg. 127)
Apple Computers, Inc. success is attributed to it's brand exposure (pg. 127).
Perspective: A carefully considered plan.
Criteria: Being a brand can increase the customer base.
|Customer: N/A
|Market share: N/ A
Customer satisfaction: N/A
|Internal Business Processes: N/A
|Cost management for pricing flexibility: N/A
|Margins: N/A
Inventory control: N/A
|Product quality: N/A
|Advertising/marketing effectiveness: N/A
|Learning and Growth: N/A
|New product introductions: N/A
Technological breakthroughs: N/A
|Research and development investments: N/A
|Training and cross-organization sharing programs: N/A
Evaluation of Alternative Strategies ( Strategy 1, 2, 3 & 4 )
Recommended long term strategy
What ?
How ?
Why?
Pros & Cons
Strategy 1
Evolution of Apple Computer, Inc. into the center of the consumers digital life options.
Introduction of iLife, iPhoto, iMovie, iTunes and iPod.
In order to increase profitability.
Pros: Increased consumer exposure.
Cons: Dissemination of technology
which enabled the competitors to spin off
similar products.
Strategy 2
Marketing of
iTunes.
Strategic alliances with music producers.
In order to gain exposure for iPod and iTunes
product line.
Increased profitability (50% profit margin on iPod.
Monopolization of iPod and iTunes markets.
Strategy 3
Marketing of iPhone.
Combination of mobile telephone, iPod and Internet accessible devices.
New interface
founded upon multi- tactile
presentation with
innovative
software.
Increased market share of
iPhone.
Service and maintenance costs of iPhone.
Strategy 4
Apple TV.
Revolutionized
Video Internet Segment.
In order to provide
exposure for
Apple TV.
Increased market share of
Apple TV.
Requisite of the application of HDTV for effective
operation.
Chosen Strategy
Apple Computer, Inc. strategy of marketing iLife, iPod, iTunes and iPhotos provided the required brand exposure. Apple Computer, Inc. was able to become the center of the consumers’ digital life choices as an outcome of Apple Computer’s marketing of this digital platform.
Rationale
The logic of this perspective was to enable Apple Computer, Inc. with increased profitability by means of diversifying their product line and becoming a company which operates on a cost differentiation basis.
Conclusion
One of Apple Computer, Inc. keys to success has been it is ability to innovate new products to the consumer market. Apple Computer, Inc. can also attribute it’s success to it’s retail marketing perspective. This corporate ideology has facilitated Apple Computer, Inc. evolution into the center of the digital consumers options for electronics. This exposure will further enable Apple Computer, Inc. to introduce new products into the market as a result of it is previous marketing successes.
