The strategies of Apple

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The strategies of Apple

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Abstract

In this paper, we will focus the analysis of the market of the Personal Computer (PC) and portable music player. These two products represent nearly 80% of the sales from Apple. Other activities are in support of these two flagship products.
Given the comparison with the global PC market, Apple has a strong presence in the education segment, especially the U.S. but is not very popular in the segments for individuals and the administration segment.

The factors for the success of Apple during the Steve Jobs era

Marketing
- Refocusing on core products and concentration on the range of computers (improved readability)
- Marketing effort (iMac, think different etc.)
Advanced technology and new products
- Intel improves
- Enhanced Interoperability: Bootcamp, Office etc
- iPod and iPhone revolution
- iTunes and selling music online
Management
- WCR becomes negative (massive sub-contracting, inventory reduction by selling online)
-The end of licenses of Mac OS
-Development of a distribution business

Steve Jobs created the conditions that encouraged exceptional growth improving matters at the level of the management, the marketing and especially in innovation which is a very important factor in this market. Technological advances and the creation of new markets have helped Apple considerably.

Tags - Apple, Steve Jobs, marketing, strategy, revenue

Introduction
Mission
History
Internal analysis
1. Value chain
2. Resources and skills
External analysis
1. Environmental Analysis
2. Sector Analysis
The sources of change
1. External sources of change
2. Internal sources of change
3. The opposing forces
The typology of change
1. The pace of change
2. The importance of change
3. Mintzberg Phases
Recommendations and conclusion

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Extract

[...] computers Our analysis has showed us that despite the success of the iPod, one must not forget that the computer remains at the heart of Apple's business and represents two-third of its EBIT. Pursue a strategy of differentiation The computer is becoming a commodity. Apple does not intend to fight its Asian competitors based on the costs. The design, ergonomics, performance, battery –life, ease of use can help it keep the premium position this requires continual investment in Research and Development. [...]

[...] We recommend returning to investing of the amount to Research and Development in order to develop the technologies of tomorrow. More effective marketing communication strategies to expand market share: The education market has always been an asset to Apple, however it is mainly in the United States that Apple has a strong presence in this segment. We need to develop targeted marketing strategy for this segment that consists of students (tomorrow's customers with high purchasing power) and universities in Europe and Asia. [...]

[...] In addition, Apple has chosen to minimize its fixed costs in order to reach its break-even point faster. Apple's cost structure Desktops & Laptops iPod Others Total Unit Hypothesis iPod Unit Hypothesis Total Cost of goods sold millions) 3865 853 Cost of the parts of a computer = 80% of its cost in stores (p. We also consider that Apple gets a 25% discount on purchases, but pay of the purchase cost for labor 3178 141 $ 2,337 Gross margin millions) 2410 531 Corroborated by the benchmark% of the Gross Margin of pure players in the sector Apple is on top thanks to its pricing policy Premiums 1362 61 Range from 25 to 30% (p.13). [...]

[...] By Owen W. [...]

[...] It is this closed miniature techno-economy which has been the strength of Apple in recent years. The cost structure is broken down to the two key activities that are at the heart of our analysis. EBIT calculated total vs Actual total EBIT 2005 The calculated EBIT total is $ 1.634 billion. This figure has been arrived at based on our calculations and assumptions. It is supported by an actual 2005 EBIT of $ 1.650 billion EBIT margins and profitability Note that the EBIT margin of computers is much larger than iPods vs the latter being twice as profitable as all the other activities of the company. [...]

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