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APPLE INC.

UNIVERSITY OF THE EAST CALOOCAN


COLLEGE OF BUSINESS
ADMINISTRATION
PREPARED BY:
TIMOTHY JAMES D. PACSON
PETER PAUL A. VIRAY

TIME CONTEXT

SUMMARY / ABSTRACT
Apple Inc., formerly Apple Computer, Inc., is a
technological and multinational corporation that
creates personal computers, computer software,
and commercial servers, and is a digital
distributor of media content. Apple's core
product lines are the iPhone smart phone, iPad
tablet computer, iPod portable media players,
and Macintosh computer line. Founders Steve
Jobs and Steve Wozniak effectively created Apple
Computer on April 1, 1976, with the release of
the Apple I, and incorporated the company on
January 3, 1977, in Cupertino, California.

For more than two decades, Apple Computer was


predominantly a manufacturer of personal computers, including the
Apple II, Macintosh, and Power Mac lines, but it faced rocky sales
and low market share during the 1990s. Jobs, who had been ousted
from the company in 1985, returned to Apple in 1996 after his
company next was bought by Apple. The following year, he became
the company's interim CEO, which later became permanent. Jobs
subsequently instilled a new corporate philosophy of recognizable
products and simple design, starting with the original iMac in
1998. With the introduction of the successful iPod music player in
2001 and iTunes Music Store in 2003, Apple established itself as a
leader in the consumer electronics and media sales industries,
leading it to drop "Computer" from the company's name in 2007.
The company is now also known for its iOS range of smart phone,
media player, and tablet computer products that began with the
iPhone, followed by the iPod Touch and then iPad. As of 2012, Apple
is the largest publicly traded corporation in the world by market
capitalization, with an estimated value of US$626 billion as of
September 2012. Apple Inc's market cap is larger than that of
Google and Microsoft combined. Apple's worldwide annual revenue
in 2010 totaled US$65 billion, growing to US$127.8 billion in 2011
and $156 billion in 2012.

MISSION
Apple designs Macs, the best personal
computers in the world, along with OS X,
iLife, iWork and professional software.
Apple leads the digital music revolution
with its iPods and iTunes online store. Apple
has reinvented the mobile phone with its
revolutionary iPhone and App Store, and is
defining the future of mobile media and
computing devices with iPad.

VISION
"Man is the creator of change in this
world. As such he should be above
systems and structures, and not
subordinate to them."

CORPORATE SOCIAL
RESPONSIBILITY
ONE GREAT COLOR. ONE GREAT CAUSE
DONATES $500,000 TO LOCAL ANTI-POVERTY
CHARITY SF GIVES

HONORS AND AWARDS


PURPLE AWARDS FOR 2012 AND 2014
TECHNOLOGY AND ENGINEERING EMMY
AWARD 2012
MACWORLDS APP GEMS AWARD 2011
WORLDS MOST ADMIRED COMPANY AWARD
2010
OUTSTANDING ACHIEVEMENT AWARD 2008

I.OBJECTVES
To expand their sales to customers who have
not yet own any Apples products.
To produce hassle free products that provides
service and enjoyment for customers.
To become the leading business in mobile
market.

II. CENTRAL PROBLEM OR


STATEMENT OF THE PROBLEM
1. CONSISTENCY OF SALES
2. GLOBALIZATION OF MARKET
3. FLAWS OR DEFECTS OF THEIR
PRODUCTS

III. AREAS
OF
CONSIDERATION

STRENGTH
REVOLUTIONARY
DIFFERENTIATED PRODUCT

HIGH CUSTOMER LOYALTY

PRODUCT BREADTH

CHARISMATIC VISIONARY
CEO

HIGH QUALITY AND USER


EXPERIENCE

STRONG BRAND HALO


EFFECT

WELL INTEGRATED
PLUGNPLAY INTUITIVE

FINANCIALLY STRONG

FAST INNOVATION PACE

INNOVATION CULTURE
PATENTS

WEAKNESSES
MAC: LOW MARKET SHARE

SOME PRODUCT FAILURE

RELIANCE ON SUPPLIERS
FOR MP, APP AND MEMORY

HIGH INVESTMENT IN R&D


INVENTORY COST

ITUNES: LOW MARGIN


IPOHNE: LIMITED TO
SINGLE SP-ATT

INVENTORY COST ADV.


PURCHASE
CLOSED SYSTEMS

IPHONE: LACKING
FEATURES
INNOVATION LIMITED TO
KEY PERSONNEL

OVERSEAS LESS MARKET


PRESENCE
CONTENT PROVIDER
RELATIONS

OPPORTUNITIES
CAPITALIZE ON IPODIPHONE GROWTH

IPHONE FEATURE
LIMITATION

TABLET PRODUCTS

ADDITIONAL CELLULAR N/W

ITUNES PRODUCTS

GLOBAL DEMAND FOR CONS


ELECTRONICS

THREATS
IMITATORS
MP3 DYING MARKET
RAPID TECHNOLOGY
CHANGES
HIGH COMPETITIVE
MARKETS
FREE CONTENT
AVAILABILITY

NEW ENTRANTS GOOGLE


GLOBAL ECONOMIC CRISIS

IV. ALTERNATIVE
COURSES OF ACTION

1. Develop Mprocessor, Software rather than


rely on Intel, Microsoft and Extend product
line to provide some products with lower
price
Advantage it will generate more profit. The
additional profit may use to fund the other
aspects of the company and may lead to
improvement in their products.
Disadvantage the product may suffer and
may lead to unsatisfactory of the products. It
will affect the operations that may lead to
delaying of products

2. INTERNATIONAL EXPANSION
Advantage Increase the customers and sales.
It will be more accessible and convenient to
customers that wanted to buy their products.
Disadvantage Management and control of
markets in diverse countries might impose
problems. It may take years to recover the
investment. They will need more human
resources and cost a lot to them

3. Improve all deficiency of the brand or product.


Continue the innovations of their products
Advantage Continue to produce products that
will fully satisfy the customers
Disadvantage Heavy investment in R&D
might be the cause of loss.

V. RECOMMENDATIONS
We therefore conclude that the best solution to
the problem is alternative course of action # 3, which
is to improve all deficiency of the brand or product
and continue the innovations of their products. Add
more features to the current products for greater
compatibility. Features such as iTune software
compatible with windows based computers, Office
programs loadable from PC installation disk.
Contract music spokesperson to attract the upcoming
generation. This will invoke a sense of style and
linking apple with a distinctive and memorable top 10
hit. This will stay in the customers awareness and
influence future purchase decisions.

VI. PLAN OF ACTION


1. Create material that will be exclusive for the
company that will use to manufacture their
products.
2. Increase the number of the retail stores in location
that may be convenient for the customers and
expansion of markets in the countries that doesnt
have any Apple store.
3. Negotiate or make deals with other companies
that have same line of business, it will also help to
develop the product by increasing the accessibility
of it.

VII. POTENTIAL PROBLEM


1. What if other companies copy their product
strategies?
2. What if there will be shortage of the materials that
will be use to build their products?
3. What if there are big changes in technologies and
innovations?
4. What there will economic crisis?

VIII. CONTINGENCY PLAN


1. Create their own raw materials that will be use or
needed in producing their product
2. They should practice adapting fast phasing of
innovation
3. Continue to change their products within 6-8
months
4. Use other materials that have low cost but the
same quality