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EXECUTIIVE SUMMARY

The computer industry is highly competitive and is characterised by


large number of competitors and price based competition. Factors
like technology, income level and internet usage are drivers of
growth in the industry, in this industry Dell and Apple have follow two
distinct strategies to succeed.

Dell has just-in-time manufacturing facilities, direct sales to


customers, mass customization and build-to-order manufacturing. It
is basically operates assembly plants and purchases all the
components from partner suppliers and tries to achieve a virtual
integration of suppliers, manufacturing and customers. Dell products
appal to customer segments that are looking for affordable, high
performance products and are typically large business. Apple makes
high quality, user-friendly products with high aesthetical value. It
targets customers who are willing to pay a premium for the
innovative devices and are looking for user experience. Its retail
stores also serve as a place for providing pre-purchase experience
of using the products. Apple makes use of scale economics and has
outsourced its manufacturing facilities. It keeps its suppliers in tight
control and is able to get huge discount because of the volume.
Even through Apple cant rollout the technological advancement in
components as quickly as dell is able to create architectural
innovation and provide customers with and integrated product with
bundled feature of highly quality networking and media.

Some functions of Dell are characterized as cheetah, like roll-out


technology, high verity, and small drop size whereas some
characteristics like builds-to-order and forecasting are responsible

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for minimizing risk. Apple overall has the essence of an artist.
However, some functions like manufacturing deriving scale
economics, bulk purchasing are characteristics of an elephant. The
distribution function at apple has the characteristics of a cheetah
during product launching.

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INTRODUCTION

Apple Inc., originally Apple computer, is an American multinational


corporation headquartered in California that designs, develops, and
sells consumer electronics, computer software and personal
computers. The company was founded on 1 April, 1976, and
incorporated in 1973. The word computer was removed from its
name on January 9, 2007, to reflect its shifted focus towards
consumer electronics. Its best known hardware products are the
Mac line of computers, the iPod, the iPhone and iPad. Its software
includes the OSX and iOS operating systems, iCloud, iTunes media
browser, theiLife and iWorkcreativity and production suites. Fortune
magazine named Apple the most admired company in the United
States in 2008.

Dell computer was founded by Michael Dell. Dell traces origins to


1984 when Michael dell created PCs limited. The company changed
its name to Dell Computer Corporation in 1988 and began
expanding globally as a multinational company first in Ireland. In
1992, Fortune magazine included Dell Computer Corporation in its
list of the worlds 500 largest companies. Michael Dell is the
youngest CEO of the fortune 500 ever. Dell Inc. is now the 41st
among the fortune 500 companies.

In this project report a comparative study on marketing


strategies of Apple macbook and Dell laptop is done

A laptop or a notebook is portable personal computer with a


clamshell form factor, suitable for mobile use. Although there used
to be a distinction between laptops and notebooks, a laptop
combines the components and inputs of a desktop computer,

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including display, speaker, and keyboards and pointing device into a
single device. Laptop has provided us with the productivity like using
a laptop in places where a desktop PC cannot be used. Second is
Immediacy having instant access and up-to-date information,
personal and work files. Connectivity, small size and low power
consumption.

Coming off the heels of yet another successful Apple launch


debut, its clear that Apple is on top of their game in a way like no
other. This is all because of their product line and design standards;
it lies beyond Steve Jobs emphatic adherence to Apples core
philosophy which states that the user doesnt know what they
want.

Here are companys latest product lines and revenue models,

A design firm
A media platform
A publishing company
A computer builder
A movement

By looking at these revenue models, we find this company at the


top of the respective industry as none other company has managed
to attain such standards. Apple has managed to deal with its
environment and planned out some really worth applying strategies,
some of them are:
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Ignoring critics :-
Apple decides to flip the script and instead focus on building
what they want to build, no matter the perceived cost. When
Steve Jobs debuted the iPad, the critics stood in line,
throwing every insult they could muster. The critics said that
the iPad would fail. The numbers say otherwise.

Turning the ordinary into something unique:-

For quite some time, PC fans enjoyed the work of buying


their own parts and building their own tower systems. At the
same time, PC makers were building standard hardware for
standard applications.

Apple would have none of that.

Theyve been pioneering not only the features of standard


operating systems and computer systems, but
simultaneously reinventing the design standards as well. As
a result, we have the gorgeous iMac, the beautiful new
Macbook Air, and who could forget, the amazing iPhone 4.

Where others focus on one aspect of the equation, Apple


focuses on the entire product, and it shows.

Justifying the price:-


Once more, Apple ignores the standard by not only pricing
their technology more than 2x what their competitors
charge, but doing so without blinking.
Communicating in the language of your audience:-
Sure, the jargon is there for those that need it, but its
presented in a way that makes you want to learn about
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megapixels, rather than shy away from them. The art is in
the copy, not in the features.
Extending the experience:-
Apple does this by making sure that the experience doesnt
end at the cash register. They take great care in designing a
user experience from browsing to unwrapping, which relies
on incredible packaging and installation procedures.

Dell on the other hand, have a mission Who we are and What
we do To be the most successful computer company in the world
at delivering the best computer experience in the markets we serve.
The strategies that Dell is using are:

Place-Distribution
1. Sells mostly on the internet- direct to customer
2. Customized laptop- just in time
3. since 2007 started distribution through retailers- just
customer products
Pricing strategy
1. prices comparatively low
a)Just in time production
b)Low inventory costs
c)Direct distribution

2. Dependent on supplier price

3. Dell financial services

4. Customization

a) No price tag effect

b) Pricing strategy based on customer needs

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Promotion and Positioning
1. TV, Newspaper and Magazine Advertising
2. Limited period sales on website
3. Dell malling list
4. Product placement
5. Social networking
6. Buzz marketing

Branding

1. Traditionally, a direct to customer brand

now 80% of revenue in IT services and solutions for SMB

the power to do more campaign increased overall brand


health.

2. Implementing a social media listening command to


enhance brand experience.

3. Several corporate citizenship initiatives.

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OBJECTIVES OF STUDY

1. To study 4ps of marketing of Apple and Dell laptops.


2. To study the liking of consumers between Apple and Dell
laptops.
3. To study consumer expectation while purchasing laptops.
4. To study measures taken by companies to build brand
loyalty.

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CH-1
RESEARCH
METHODOLOGY

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RESEARCH METHODOLOGY

The study was based on primary and secondary data. Data is


collected through survey method by using a structured
questionnaire. Each respondent was interviewed through a
questionnaire.

1. RESEARCH PROBLEM

To conduct a study to understand marketing strategies


adopted by Apple and Dell in a comparative study.

2. SCOPE OF STUDY

Content wise the scope of study include

The study of products both the companies are using?


To study the types of markets in which they are operating.
To examine the types of respondents.
Exemplifying the competition among these companies.

The study is useful to students, researchers , customers of


laptops and people associated with the understudy companies.

3. RESEARCH DESIGN

The study utilized the descriptive-survey in order to achieve


the purpose of this study which is to determine and describe
the marketing strategies of Apple MacBook and Dell laptops.

4. SAMPLING METHOD AND TECHNIQUES


Sample plan: The sampling method used in this research is
Convenience sampling method. It is a non-probability sampling
technique. The convenience factors were the availability and
approachability of the respondents.
Sample frame : Customers dwelling in Delhi/NCR
sample size: 50 customers

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5. SOURCES OF DATA

Primary sources: The Primary data was collected through questionnaires.


They were filled using the scheduled method of data collection.
Secondary sources: The secondary sources used for this project are articles,
books and magazines, net articles, company website.

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CH-2
LITERATURE
REVIEW

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LITERATURE REVIEW

APPLE PRODUCT GROWTH AND VALUATION

Apples 1997 thinks different marketing campaign was one of


its most memorable ever. Billboards and banners featured huge
black-and-white portraits of performers, artists, scientists, and
political leaders whose out of the box ideas eventually became
mainstream. The implicit message was that Apples insanely
great products were quickly rebels who would one day dominate
the world. The photo of Steve jobs on the cover of his posthumous
biography would have the right in.

The Apple of today is turning black on that creative class. Apple


no longer designs for creators of digital media, who tend to be
very demanding about product quality. Instead, Apple builds for
consumers in both senses of the word: people who spend their
own money, rather than their companies, and people who
consume digital media, as opposed to people who produce it.
Focusing on digital consumption has made Apple wildly profitable
but the companys products have trended downwards in quality,
flexibility and even reliability.

Apple appears to be suffering from growing pains. The company--


which declined to comment for this article seems increasingly
overwhelmed by the wide range of products and services that it
has created, and is responding (quite logically) by spending
significantly less effort on items that appeal to a shrinking
percentage of its customer base a group that unfortunately
includes digital creators. The danger is that focusing on
consumption, rather than production, Apple will jeopardize the
very essence that first made its products insanely.

The Good Apple

From one perspective, Apples world could not be rosier and its
future shinier. Rising from the rubble of a disintegrating company

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in 1997, Apple has reached the pinnacle of success in 15 short
years. With a market capitalization of over $500 billion, Apple is
amongst the most valuable and highly profitable companies in the
world.

Its remarkable success lies in the companys ability to create truly


innovation products with vast appeal. Apple flouts the
conventional wisdom of the consumer electronics industry, which
emphasizes low cost,me-too products, and a continuously
shortened product life. Instead Apple has opted for constant and
discrete product innovation, resulting in fanatic consumer loyalty
and a high level of profitability.

The Bad Apple

So why does Apple treat its customer and workers by two different
standards? When iut comes to customer, Apple is a bold
innovator that leads the industry into new direction and forces
other to follow. However, when it comes to the management of its
supply chain and treatment of workers in the Chinese factories
that make its product, it hides behind the constraints of prevailing
industry practices. What is even more disconcerting is the fact that
these practices are in violation of not only local and national law,
but also of Apples own voluntary self-imposed code of conduct. It
is important to note that this voluntary code of conduct breaks no
new ground. It is at best a modest attempt to ensure that workers
will be treated fairly and provided with a safe work environment.

Yet the violation continue, despite years of monitoring factories


where Apples own audits show persistent non-compliance and
despite these factories repeated broken promises to improve.

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Apples Strategic Profit- Value Culture vs. Cost Culture

In my view, apples good and bad sides both emanate from the
same business philosophy: adroit exploitation of market power for
the sole benefit of the company and its investors. This model does
not consider what is fair but what is competitively achievable in
higher prices for products sold and lower costs for products made.

Value Culture: When it comes to customers, Apple applies the


notion of value, i.e., a pricing strategy that is driven by it focus on
the value--real and perceived to its customers. The customer is
willing to pay a price that is equal to the products perceived value
to the customers. Hence, as long as the customers are satisfied,
Apple is under no obligation to reduce its prices.

Why Apples growth is set to continue?

Apples increased profits have once again confounded sceptical


analysis, who expected the companys latest results to disappoint.
Shane Richmond says there is no little sign of an end to Apples
rise. When Apple launched the iPhone 4S, in October last year,
there were some analysts who called it a disappointment. It wasnt
fast enough or thin enough or magical enough, they argued. In
fact, many complaints seemed to be based on the fact that wasnt
called iphone5. A few days later the phone went on sale and
Apple sold four million in three days.

That didnt stop many of the same experts queuing up to express


their disappointment in Apples third-generation iPad last month.
Once again, it was considered to b sufficient as an upgrade on the
previous model and once again, the new gadget flew off the
shelves; Apple sold three million in the first three days.

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Despite two enormously successful launches in six months,
investors were concerned as Apples second-quarter results
approached this week. The companys share price reached a
record high on April 9 but fell by 10 per cent over the two weeks
that followed. Though shares were still up 40 per cent this year,
investors were said to be worried about whether Apples
phenomenal growth could continue.

In typical fashion, Tim Cook, Apples chief executive, confounded


sceptics and announced a 94 per cent increase in profits on the
same quarter last year, powered by iPhone and iPad sales.

The company sold more than 35 million iPhones in the second


quarter an 88 per cent increase, year-on-year and almost 12
millions iPads an increase of 151 per cent. Tim Cook said: Just
two years after we shipped the initial iPad, we sold 67 million. It
took us 24 years to sell that many Macs, and five years for that
many iPods and over three for that many iPhones.

In other words, Apples current boom is being driven by its post-


PC devices, the iPad, iPhone and iPod touch. Those products
contribute a huge proportion of Apples products and all of them
are less than five years old.

Colin Cieszynski, an analyst with CMC Market Canada, said that


there were indication that Apple is probably in a bubble and
vulnerable but that many investors clearly believe the company
can continue for a while.

He said: The Companys ability to enter new markets and


continue to successfully launch new products may determine

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whether or not the shares are able to maintain investor support
over the longer term.

According to one insider, Apples share price is the dominant topic


among staff at the companys headquarters in Cupertino,
California. Employees stock option will make plenty of staff very
rich indeed, especially if shares hit $1,000 (620) next year, as
some Wall Street Analysts have predicted. The share price
currently stands at a title over $600 (372).

Apple plans to initiate a quarterly of $2.65 per share later this year
its first since 1995. The move is one of several changes made to
the way the company operates since Mr Cook became chief
executive last year.

In his first month in charge, Mr Cook instituted a charitable giving


programme for employees and visited the foxconn factories in
China, where Apples products are made. Foxconn, which also
make products for Sony, Microsoft and dell, among others, has
been criticised for its labour conditions. In response, Mr Cook
raised the profile of Apples Supplier Responsibility programme
and commissioned the fair Labour Association to audit the
companys suppliers.

Apple, like much o the technology industry, has been embroied in


patent lawsuits as manufactures and developers sue and counter-
sue one another. Steve jobs, Apples co-founder and former chief
executive, who died last year, had declared thermonuclear war
on Googles mobile operating system, Android. He told his
biographer, Walter Isaacon, that Android was an a stolen
product and he would go to any lengthily to destroy it.

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This week, Mr Cook took a more conciliatory tone, saying that
Apple would rather settle its patient lawsuits wit rivals such as
Motorola, Samsung and HTC. He told analysts: Ive always acted
litigation. We just want people to invent their own stuff.

Those who believe Apples\s success is temporary argue that its


rivals will inevitably catch up. The company has taken a lead in
smart phones and in tablets computers, the sceptics say, but
rivals have seen the opportunity and will produce better- or simply
chapter- versions and erode Apples lead.

If that is true, its taking a long time to come about. Though the
growth of Android has been rapid, the question o that is in the
lead depends very much on what you measure. In terms of
handset profitability, for example, Apple is very much ahead.
When it comes to the tablet market, such a thing barely exists.
There is an iPad market and, two years after Apple launched its
device, no sign of significant competitors.

This week Tim Cook echoed comments he made at the launch of


the new iPad last month. He said Across the year youre going to
see a lot of the kind of innovation that only Apple can deliver.

Whether that is bravado or a hint of big things to come to be seen


but on past form it should make Apples rivals nervous.

Not only growth up like that, in this day Apple inc. is the big
superstar of the 2011 Top 100 Global Brands list was an Apple.
Oot only did Apple get designated as one of the top ten brands in
the world, its brand value rose 58% more value able in 2011 than
it was in 2010.

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Research papers

Apple is the responsible for the largest technological revolution in


history. The company has changed the way society operates
daily. The constant gadgets that are developed by Apple continue
to be the staple of our pop culture on a technological basis.
Apples corporate strategy to show case special individuals
products has proven itself time and time again. Whether it was the
unveiling of the original Ipod or the Iphone 4, our culture is always
anticipating the next product by Apple. Steve jobs, the original
founder of Apple, is responsible for the innovative thinking of the
company. The development of Apple has changed music,
communication, media, and technology. Apple changed popular
culture by creating a technological revolution that changed the
way of society operates daily.

Apple has long established itself as the leader in a variety of


modern technology. Apple has made the case of having endless
technological power due to its control on the market. Research
shows that Apple is able to stay in control of new technology due
to the amount of money in their current possession. Apple is able
to research and develop new technologies due to its amount of
liquid assets. Apple will continue to be successful company due to
the systematical process that controls it. An article by Britain
Caulfield discusses how apples system will continue to be
successful and drive other competition out of business:

When new component technologies (touchscreens, chips, LED


displays) first come out, they are very expensive to produce, and
building a factory tat can produce them in mass qualities is even
more expensive. Oftentimes, the upfront capita; expenditure can
be huge and the margins are small enough (and shrink over times
as te component is rapidly commoditized) that the companies who
would build these factories cannot raise sufficient investment
capital to cover the costs. What Apple does is use its cash hoard
to pay for the construction cost (or a significant fraction of it) of the
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factory in exchange for exclusive rights to the output production of
the factory for set period of time (may be 636 months) and then
for a discounted rate afterwards. (Caulfied).

The surplus of money allows Apple to keep making advancement,


while others have setbacks. Apple is one of the few companies
that have survived the recession because os the on-going cycle it
has developed. The cycle allows Apple to always have a surplus
of liquid assets.

Apple is able to gain two crucial advantages using this


technique: Apple is able to gain control of that new component
technology months or years before its rivals (Caulfield). Also,
Apple can produce products at a lower cot once competitors catch
up due to the contract between Apple and the factory. Essentially,
Apple is able to gain a head start on any competitors due to a
surplus of liquid assets. Apple is able to release these
technologies due to its ability to gain access to the specific parts.
An example taken from Caulfields article shows the dominance
Apple has not just on software. the aluminium machining
technology used to make Apples laptops remain a trade secret
that apple continues to have exclusive access to and allows them
to make laptops with ( for now ) unsurpassed strength and
lightness (Caulfield). Much of society can look to the iphone
introduction as a prime example of Apples dominance on
electronic parts. Competitors strived to create a clone with the
same capabilities as the iPhone but the attempts failed for
prolonged time. It was due to the fact that Apple has access to
certain components on a massive consumer scale before any
other companies (Caulfield). Eventually, its competitors catch up
in component production technology, but by then Apple has their
contact in place whereby it can source those parts at a lower cost
due to the discounted rate they have negotiated with the (now)
most-experienced and skilled provider of those parts who has
probably also brought his production costs down too (Caulfield).
Special pricing is In place for Apple compared to the other
companies. Apple is able to produce the same high quality
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product for less than the competition. The two-part process,
masterminded by Steve Jobs, leads to never-ending cycle of
apple success.

The issue of Apple being categorized as a monopoly arises


when researching the company. However, the benefits Apple
provides outweigh the negative monopolistic views from the
company, the company is constantly looking to improve
technology and make the world a smarter place. Daniel Lyons
argues against Apple, believing that Apple is a monopoly:
Apples tactics might seem like smart business: why not
squeeze too hard, some partners may go out of business,
harming the ecosystem (Lyons). Some other business may gp
out of business due to apple but because Apple is now creating
the most technological advanced material in the world. Society
may feel guilt with the amount of resources Apple possesses. One
has tp think about the negative impact on Apples constant
advancement if restriction were placed upon the company.

Steve Jobs is ultimately the mastermind behind this simple but


brilliant technique. Some could compares Jobs as the modern
Henry Ford but the two have different ideals to their success. Ford
wanted to make the automobiles affordable for ebery Americans
by mass production. However, Jobs and Apples main focus
is producing the most advanced technologies without
considering affordability towards society. Jobs interest in the
electronic world came at a young age as described in the
following quote.

Jobs introduction to the world of electronics came during High


School with the discovery of electronics hobby kits, Jobs realized
that the electric world was nonics was an interesting filed. It
quickly became his passion. E began attending lectures
conducted by the Howlett Packed Company (HP). As a result, this
further fuelled his appetite for the field and eventually he found
summer employment at HP. It was here that he met future co-
founder and co-adventure Steve Wozniak. (Finkle)

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Jobs passion for electronics was evident and the right resources
would bring him success. Surprisingly, Jobs dropped out of
college after on semester (Finkle). The reason for dropping out
was not due to academics reasons. Jobs realized that he was
wasting his time in school because his mind was beyond a typical
collegiate level jobs personality was the driving force behind the
revolution that is Apple. Most people are not found of jobs pf
his exuberant self-confidence. However, this trait allowed
jobs to take Apple to where it is today.

The cultural revolution of Apple did not take off until the reveal of
the original iPod. The iPod turned Apple into the technological
mecca it is toduya. However, Apple would not be the same
grandiose corporation if it were not for its branded image. Apple
turned from another computer company, such as Dell or Gateway,
into its own separate category. Apple, with the help of Steve Jobs,
built the companys image separate from any influence. Our
society in intrigued by what Apple product will amaze us next in
thanks to the company branding. Apple advertised the iPod nano
with a commercial featuring the music video 1,2,3,4 by feist.
According to Nielsen BuzzMetrics-which monitored such search
terms as 1234,iPod, Nano and campaign Web discussion
is increasing by triple-digit percentages weekly. In the days
following the singers Aug. 27 appearance on Late How With
David Letterman, where she performed 1,2,3,4, online buzz
increased 190%. On the heels of labor Day weekend, discussion
of the iPod Nano ad soared 402%. One week later, there was a
166% spike in discussion (paoletta). This demonstrates the
power os the apple brand. It has sominated our culture for the
last decade especially in my age group. Anything apple relared is
considered cool and a must have for any American. Children are
pleading their parents for whichever Apple product is going to be
released next. Apple has changed the consumer market single
handily.

The world of music and media were forever changed with the
evolution of Apple. iTunes and iPods became synonymous with
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music in general. Lawsuits were beginning to be filed against
illegal downloading such as LimeWire. iTunes led the way in legal
music downloading with Apple reaping the benefits from other
artists. However, iTunes helped unknown musicians become
popular quickly with the instant downloads of singles. Word of a
good song spread fast through the list of top downloaded songs in
iTunes. Programs such as iMovies allowed average people to
create professional movies. I even learned how to play the guitar
off of the program Garage Band. Apple has benefited the
academic world and the lives of many through their technology.

Apple has drastically changed the way humans


communicate. Walking to class, I see more than three quarters of
people on their smart phones and about two quarters of those
people are using an iPhone. Apple has developed functions such
as facetimes, which allows you to video chat from anywhere. The
author living stone discusses the marketing strategy behind
apple, utilizing the methods of close reading and ideological
criticism, this study considers the north America Get a Mac
television campaign as a popular culture text with embedded
implications about consumption, identity, and class
(Livingstone). This approach has been very successful, as
people want to feel like they have the best available product.
Society bought into the idea if one does not have a Mac than one
does not have the best. This strategy can be very critical on class
associations.

Apple will continue to be the worldwild leader in media. The


companys innovative thinking has changed all of technology and
communication. Apple products do have flaws with its appeal to
high class but their unique products make up for that set back.
Apple changed the musical world forever, making any song
accessible by its software. Media has changed due to programs
such as iMovie, where anyone can make a professional movie.
Apple is a cultural revolution that many will continue to have
permanent success as long as the company keeps its mission the
same.

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Apple, Inc.s vision
As found on the companys website, Apple, Inc.s vision is the
following: 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 (Apple,
Ic.,2012).

Apple, Inc.s Mission


As found on the companys website, Apple, Inc.s mission is the
following: Apple designs Macs, the best personal computers in
the world, along with OSX, iLife, Iwork and professional software.
Apple leads the digital music revolutionwith its iPods and iTunes
online store. Apple has reinvented the nobile phone with its
revolutionary iPhone and App Stores, and is defining the future of
mobile media and computing devices with iPad (Apple, Inc.,
2012).

Apple, Inc.s Values


We believe that were on the face of the Earth to make great
products.
We believe in the simple, not the complex.
We believe that we need to own and control the primary
technologies behind the products we make.
We participate only in markets where we can make a
significant contribution.
We believe in saying no to thousands of project so that we
can really focus on the few that are truly important and
meaningful to use
We believe in deep collaboration and cross-pollution of our
groups, which allow us to innovative in a way that others
cannot.
We dont settle for anything less than excellence in every
group in the company, and we have the self-honesty to
admit when were wrong and courage to change.( Apple,
Inc., 2012).

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Apple, Inc.s Business Strategy and Goals
Apple Inc. has a clear strategy and set of gioals. Apple, Inc. defind
their strategy and goals in their last annual report as the following.
The company is committed to bringing the best user experience to
its customers through its innovative hardware, software,
peripherals, and services. The companys business strategy
leverages its application software, and services to provide its
customers new products and solutions with superior ease-of-use,
seamless integration, and innovative design. The company
believes continual investment in research and development and
marketing and advertising is critical to the development and sale
of innovative products and technologies. As part of its strategy,
the company continues to expand its platform for the discovery
and delivery of third-party digital content and application through
the iTunes Store. As part of the iTunes Tore, the companys App
Store and iBook store allow customers to discover and download
applications and book through either a Mac or Windows-based
computer or through iOS devices, namely iPhone, iPad and iPod
touch. In January 2011, the company opened the Mac App store
to allow the easily discover, download and install applications for
their Macs. The company also supports a The Innovative Success
that is Apple, Inc. 4 community for the development of third-party
software and hardware products and digital content that
complement the companys offerings. The companys strategy
also includes expanding its distribution network to effectively
reach more customers and provide them with a high-quality sales
and post-sales support experience (Apples Annual Report,
2011). Now that Apple Inc.s strategy and goals have been shown,
a look at what effects the decision of the executive staff in regards
to the general environment is needed.

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Apple, Inc.s General Environment
There are many factors associated with trhe general nvironment
of a company. The following are details of certain segments that
have a profound effct of Apple, Inc. as a whole:

Technological segment
In the computer hardware industry, technology is the top factor
that influences the success of a company. The innovation of
technical progress provides better, faster and cheaper electronic
products every year as it also creates a market segment as new
products and markets are created. Therefore, the innovation in
technology makes the industry fiercer as a whole each and every
year.

According to the Garter website, worldwide demand of te Pc


market is declining 0.1 percent from the second quarter of 2011
(refer to exhibit 2) (2012). In the U.S., PC shipments totalled 15.9
million units in the second d quarter of 2012, which was a decline
of 5.7 percent from the same period last year (refers to exhibit 3)
(Gartner,2012). In the IDC press release, the worldwide tablet
shipments for the second quarter of 2012 are estimated at 25
million units, an increase of 66.2 percent from 15 million units in
the second quarter of 2011 (IDC group, 2012). This large increase
reflects consumers shiftiu ng theor onterest to smart phones and
tablets from PCs. Global tablets sales will reach 232 millions units
in 2016, according to the last Tablet Technology and markets
report from Future Source Consulyting (eMarketer, 2012)

Threat: New products from rivals firms could lead to Apple


products being less in demand. Acer and ASUS are starting to
unveil mini notebooks and might move quickly into the high-end
tablet market.

Technological change occurs very fast and if apple cannot keep


up with changes in technology, Apple will be left behind their
rivals.

Bhai Parmanand Institute of Business StudiesPage 26


Demographic segments:
Home access to the internet has increased dramatically over the
last decade, along with the dramatic increase in the use of
computers, tablets, cell phones, and electrnic books. The United
States population from 2012 census data was estimated at
314,440,891, while more than 110 million people in the U.S.
owned some type of smartphones in June 2012 and 43.2 million
U.S. consumer ages 18 to 34 logged on to the mobile web this
year alone.. the U.S. tablet users are estimated to reach 89.5
million

(an increase 35.6 percent) in 2014 (eMarketer, june 2012). The


number of younger people accessing the internet by pone is
increasing drastically. In 2010, almost six out of ten children ages
3-17 used the internet at home, an increases of 22 percent in
1997 to 57 percent in 2010 (Child Trends, 2012).

According to new media trend wach USAs demographic profile


ofU.S. smartphones users who have used a QR cide, February
2011, the gender ratio is 51% male and 49% female; the age
ratio is 39% from 18 to 34, 48% from 35 to 54, and 13% above 55;
the household income ratio is 6% for less than $25k, 23% from
$35k to $50k, and 71% for more than %50K; the education level
ratio is 11% high school, 26% college or associate and 63%
University (eMarketer, April 2011).

Opportunity: The increasing use in internet access, especially


with smartphones and tablets, will lead to n increase in demand
for the devices. Apple could be expanding its sales through these
opportunities and maintain its leader position.

Socio-cultural segment: The socio-cultural factor is


important to companies that develop worldwide because
culture could be restrictive to companies profitability. It is
not easy to adapt to the different cultures and be
Bhai Parmanand Institute of Business StudiesPage 27
successful with the international segment. Apples faces
difficulty when it comes to selling their products in the
Asian market because the 3G & 4G technology have not
been popular there yet (woratall,2012). Furthermore, the
habit of trading in cash in Asia is still a problem for a high
initial ciost of the computer industry. People in China
would like to see stuff when they purchase it, it somehow
they do not prefer to accept credit card transactions
(worstall, 2012).
Apple, Inc.s Industry

According to the apple Inc. annual report, apple is engaged in


designing, manufacturing and marketing and marketing mobile
communication and media devices, personal computers, and
portable digital music players and sell a variety of related
software, services (2011). The company had been previously
known as Apple Computer Inc.; however, apple Inc. removed the
word computer in 2007 to reflect the companys focus towards
consumer electronics and digital distribution (Apple, Inc., 2012).
Apple Inc. now ia in the computer hardware, computer software,
consumer electronics and digital distribution industries (Apple,
Inc.,2012). In these industries, the key factor is undoubtedly
technology. The popularity of technological innovation can help a
top company by creating competitive advantages, but also bring
more competitors to the market. Most of the products in the
industry are based on technological innovation. Companies in
these industries have to introduce new products or services
frequently due to there being numerous active competitors.
Besides leadership that can address the strategy which creates
the competitive advantage of a company, investing in research
and development (R&D) is also very important. The product
lifecycle in these industries is shorter than any products from other
industries (Gross, 2012). One product can be out-of-date in less
than one year without an improvement from technology (Gross,

Bhai Parmanand Institute of Business StudiesPage 28


2012). All the fact show that technological innovation is a key
aspect of the industries that Apple Inc. is in. due to the constant
growth of technology, the industries that apple is in are some of
the most unpredictable industries nowadays. Before 2007, there
was no touch screen phone that people could use by hand and
Apple, with its technology, changed the definition of a smartphone
with the introduction of their first iPhone (Copeland, 2010).
Furthermore, Sony had created the first portable music player in
1979 and more than eleven years later, the japanese company
changed the music industry again by introducing a Discman in
1990 (Bertolucci, 2009). A mere eleven years after the
introduction to the Discman, Apple made a big change in the
industry with the first generation of iPods (Bertolucci, 2009). It
shows that through technology, an industry can change very
quickly and no one can know what will be the next level of
technology or the next great technological breakthrough. In these
industries, several different strategic groups exist. Due to the
popularity of technology and the supply chain, most of the
products in the industry can be provide globally; therefore, price is
the most frequent aspect to analyze strategic group in the industry
(Hess, 2006). Besides prices, technology companies can defines
can define their core value by targeting different levels of
customers, such as consumer or business customers (Hess
2006). They also can develop their strategy based on their core
product, such as digital or physical asset (Hess, 2006). Following
s strategic group analysis, Apple targets to consumer in the high-
tech market, providing both digital and physical assets (fast
company, 2011). The company defines itself as a high class
technology company by high-tech company not only sells
hardware, but also develops its own software to support its line of
products (AppleInsidestaff, 2007). In short, Apple Inc.s strategy in
the industry is clearly well defined and this helps the company
stand out from other competitors.

Bhai Parmanand Institute of Business StudiesPage 29


The Target Market/Customers
There is no point o having products if there is no target market for
those products. Apple Inc., focuses on marketing to people eith
few different characteristics. Middle and upper class income
people are a primary focus for Apple because these
demographics are usually willing to pay slightly more for a better
user experience because $500 for a laptop is not a stretch for
them (www.patentlyapple.com, 2010). Obviously, technological
innovators like Apple are going to focus on people who like to
have fun with technology; Apples extensive line of entry level
devices and tools is beginning to appeal to people of all ages and
not just the coveted 18 to 34 years old demographics that seems
to be thoroughly enthralled by the company and its products
(www.patentlyapple.com, 2010). Thanks to iPods and iTunes (and
their impressive compatibility with all other Apple products), Apple
is able to get music enthusiasts from a large age demographic
(www.patentlyapple.com, 2010). Additionally, thanks to their
cutting-edge technology, apple is also able to target professionals
that work in media and design (www.patentlyapple.com, 2010).
While Apples prices are generally higher (a new iPhone could be
$800 or a new iPad almost $2000), they are able to appeal to
people of all ages and demographics due to their reputation of
impressive technological breakthroughs, while still managing to
focus on targeting the customers that were just discussed.

Apple Inc.s Suppliers


Besides popular products, Apple Inc. has been known worldwide
as being superior when it comes to supply chain management. In
the annual Supply Chain Top 25 report in 2010, ARM research
ranked apple INC. a top place in a list of retail and manufacturing
heavy weights (refers to exhibit 4)(wailgum, 2010). Apple Inc.
scored 8.21, which was significantly higher than the second place,
Proctor & Gambler (P&G, which scored a 5.91 (wailgum, 2010).

Bhai Parmanand Institute of Business StudiesPage 30


Also according to AMR, Apple dominates because it consistently
brings both operational and innovation excellence to bear in some
of the most competitive markets in the world. From a supply chain
perspective, the companys ability to ramp volumes both in
hardware impressive (Wailgum, 2010). In order to archive an
effectively supply system, Apple Inc. has contracts with many
different suppliers in the world. In the Apple Supplier
Responsibility re[port in 2012, Apple Inc. release that it has 229
audits that connect with the company, more than 100 of these are
in manufacturing, which the company never had before 2012
(Apple Inc., 2012). Most of their important manufacturers are in
china for low cost purposes. Their LCD panel suppliers are from
Korea, which is explained as a quality control issue (Wailgum,
2010). All of this shows that the Apple Inc supply chain is very
active, effective and efficient.

Apples branding strategy


According to Marketing minds (2012), Apple Inc. uses the Apple
brand to compete across several highly competitive markets,
including the personal computer industry with its Macintosh line of
computers/laptops and related software, the consumer electronic
industry with products such as the iPod, digital music distribution
through iTunes Music Store, the smart phone market with the
Apple iPhone, computing device and movies and TV content
distribution with Apple TV. The company is also establishing a
very strong marketing presence relative to the rival (Google) in the
advertising market, via its business Apps and iAd network.

Steve jobs, the co-founder of Apple, described the company as


being a mobile devices company, largest in the world as their
revenues are bigger than Nokia, Samsung or Sonys mobile
devices business.

Bhai Parmanand Institute of Business StudiesPage 31


Brand awareness
It is when the consumer are familiar about the life pr availability of
the product. It is the degree to which consumers associate your
brand with a specific product/service.

As indicated Management study guide (2012) in their article what


is brand awareness?, brand awareness may include of:

Brand recognition-is when the consumers have good knowledge


of brand when they are asked questions related to a specific
brand and they are able to differentiate a brand on the basis of
having noticed or heard about earlier.

Brand recall- it allows customer to recover brand from his memory


when given the product class/category, needs satisfied by that
category or buying scenario as a signal, i.e. if they are able to
recall to brand from their memory.

Apples brand personality


As stated by About.com (2012), What is branding and how
important is it to your marketing strategy?, a good brand helps a
company to achieve these objectives:

Helps to deliver the message clearly


It confirms your company credibility
It connects your target prospects emotionally
It motivates the buyer
It strengthens user loyalty

Apple has a branding strategy that focuses on the emotion. Apple


brands personality is about lifestyle, imagination, liberty regained,
passion, hopes, dreams and aspirations and power-to-the-people
through technology. The Apple brand personality is also about
simplicity, making life easier for people as they have people-
driven product design and is a humanistic company with a
heartfelt connection with its customers.

Bhai Parmanand Institute of Business StudiesPage 32


Apples brand equity
According to Investopedia , it is the premium that the company
realizes from a product with a recognizable name as compared to
its generic equivalent firm. Companies can create brand equity for
their products by making them memorable, easily recognizable
and superior in quality and reliability. Also, mass marketing
campaigns may help to create brand equity. Brand equity is said
to be positive if the consumers are willing to pay more for a
branded product than for a generic one.

Brand awareness plays a key role in building brand equity. Create


reliable brand image, slogans, and taglines, helps to strengthen
brand awareness which therefore improves brand equity.

Marketing minds (2012) also states, Since Apple has a strong


brand awareness, it has high sales and high market share, and
the consumers are well acquainted and familiar with the brand
and its products. They are also willing to pay premium price for
their products, relative to the competitors brand due to Apples
positive brand equity. Apple is not just intimate with their
consumer but there is real sense of community among users of its
main product lines. Therefore, this also helps to create
consumers brand loyalty (where brand loyalty is when the
consumer become committed to your brand, choosing it over
competitors and making repeat purchase over time).

STP process
It consist of set of three strategies namely ( Segmentation,
Targeting, and positioning) that is created after branding and
further helps in developing marketing strategies for Apples brand.

Segmentation- As stated by University of Southern California


(2012), when the market is divided into sub groups, known as
market segments in order to create product diifferntiation
strategies and to exploit these segments to the firms own use.
these are several segmentation techniques that can be used, like:

Bhai Parmanand Institute of Business StudiesPage 33


Demographic segmentation: it is when the market is segmented
on the basis of age gender education, income, occupation, etc.

Geographic segmentation: its is when is segmented on the


basis of city, state, region or country.

Psychographics segmentation: it is when the market is


segmented on the basis of life style, Social class (Upper class,
middle class, lower class, blue collar and white collar), behaviour,
opinions (liberal/conservative), values or ethics.

Targeting: it is second stage of the STP process. After the market


has been separated into segments, the marketer will select a
segment or series of segments to target at, and then resources
and efforts will be targeted the segment

Positioning: according to Switchtomac, 2009 understanding


Apples positioning, positioning is the third and final part of STP
process. Positioning is one of the simplest and one of the most
useful tools of marketers. After segmenting a market and then
targeting a consumer, you would proceed to position a product
within that market.

Positioning is all about the perception, and it may differ from one
person to another. E.g. What you perceive as quality, value for
money, etc, may be different to another persons perception about
it.

Apple is positioned as a premium brand in the mind of the


customers that demands and earns a price premium. This price
premium spans the entire apple line up encompassing the
Macintosh, iPod, iPhone, software, and accessories. Therefore,
Apples has positioned them to target a less price sensitive
customer, thus which has created a culture and a set of activities
through which apple differentiates itself from competitors to meet
the needs of their targeted customers.

Bhai Parmanand Institute of Business StudiesPage 34


4 Ps (marketing mix) of Apple
Product:

According to Boseng (20112), products are the goods and


services that a business provides for sale to target the market.
Apple like any other company began with the products. At first
Apple computers (MAC) were considered as an overpriced niche
products with a low market share. Only communications segment
considered it as a great took for design and Av applications, but
the rest of the people remained loyalty the traditional PCs; but
people continued to build their base of brand advocating through
design, combining unprecedented features and innovative styling.
In the recent years, Apple diversified it product mix by introducing
new line of products, keeping up with the competitive consumer
electronics market. Some of their well known products such as
the ipod, a portable music player what the first product range that
was launched to compete in the portable media player market and
not after long came the iPhone (the most innovative device that
has several features like mobile phone capabilities, music player,
small personal organizer and portable computing, all put in a one
tiny hand held which dominated the phone market). What makes
iphone unique is that it allows customization to be done suiting the
individual needs accordingly, making it relevant to its target
market. Other famous products of Apple comprises of ipad,
another hand held touch form of mini-computer and apple TV.

Price

According to CJ(2011), price concerns with the amount of money


that customers should pay in order to purchase the companys
products. Apple has never considered pricing as one of the
competitive advantages. They only use their best resources to
make a great final product first, and competitive advantages. They
only resources to make a great final product first, and then only
worry about the costs. The only buck to this trend we have seen
now is with iPad. Apples competitors release their own tablet

Bhai Parmanand Institute of Business StudiesPage 35


devices, but none of them are coming any closer to ipads entry
price of $499 even when everything is equal in regards of the
hardware and component quality. It is clearly seen that Apple is
leveraging some of the supply chain advantages earned from the
iPhone and iPod with regards to materials like touchscreens and
flash memory in order to keep iPads pricing down, which will
prove very difficult for the major competitors to approach in the
near term. Rival firms such as Samsung operate in many different
business segments that ties together the multiple component
suppliers, would probably come close over time, but it assuredly is
an uphill battle for even the best of them to compete in the short-
term. Therefore, the high price charged for its products also
portrays the high quality of its products, for which customers are
willing to pay for.

Promotion
According to Villing and company (2011), promotion refers to the
act of communicating the benefits and value of your companys
product to their consumers. Apples commercial spots are
instantly recognizable by everyone whether you are a fan of their
products or not. It is easy to identify their commercials
immediately because of the use of the simplistic approach of the
layout of their product featured on a while background, with catchy
music playing in the background, using the approach Less-is-
more products, meets less-is-more advertising. Everything in
their advertisements are visual and visually plentiful, but not
overpowering as some ads can be. When a new product gets
launched, along with the pass conference, several major tech
blogs and websites also take part in converting the event. Apple
spends half billion dollars annually on paid media, which is
actually lesser than rival brand Microsoft and Dell. However, given
the memorability of Apples advertisements, it seems to be more
pervasive than it actually is. In addition, if there was a poster child
for the powers of word-of-mouth marketing and brand loyalty, it
would be Apple.

Bhai Parmanand Institute of Business StudiesPage 36


Place
Villing and company (2011) states, place is related to the
distribution, location and methods of getting the product to the
customers. Apple has adopted a hybrid distribution channel
involving an online store, physical outlets and the retail point of
the exclusive mobile service provider and its online store. Apple
recognized that by getting their products used by the students,
could influence brand preferences more in the development years
of a new generation of computer users. The most dramatic Jobs-
led initiative involved the 4th element of marketing mix place,
which was the opening of its now iconic Apple retail stores. Apple
expanded its consumer reach by building numerous new retail
outlets, owing and operating around the world in the last ten
years. It has also placed their products from iPods, iPads and
iPhones in about every store that sells electronics these days.
Also, from numerous retail outlets to a great e-commerce
websites like Amazon, Apples website, making their products as
easy to buy for consumers as anything out there today.

SWOT ANALYSIS OF APPLE


It is a method of analyzing a business, its resources and its
environment. To evaluate the progress, success, and faults of
Apple Inc, Swot analysis is being used. Swot analysis is strategic
planning tool which to evaluate the strength, weaknesses,
opportunities and threats of an organization. I help in identifying
the internal and external areas that needs improvement and
internal and external areas that can be proved successful.

Strengths

Strength relates to the resources and capabilities that can be used


in developing a competitive advantage.

Bhai Parmanand Institute of Business StudiesPage 37


Apple has positioned itself to be a pioneer of producing
high tech and innovative products in the computer
(MAC), mobile (iphone) and electronics (ipad, ipod)
industry
It is one of the original hardware producers in the market
that controls both the manufacturing of its products as well
as they create their own internal components for the core of
its computers.
Apple has a set of standards for high quality products in
order to meet customer satisfaction.
It has a strong and dedicated Research and Development
departments which helps in creating of new efficient,
innovative, compact, user friendly and feasible to use
products.

A company known having the most brand loyal customers who


buy their products for quality, regardless of the high price. Such
powerful loyalty of customers means that apple has a strong
positioning of their brand and they no only creates new
customers but retain them, as they keep coming back to avail
the companys products and services, which also motivates the
company to extend their product line with the recent
introduction of the tablet (iPad).

They have a strong presence in the corporate and


education segment, with a brand name known globally.
They do smart marketing, that is cover and which takes
advantage of customers frustrations with other brands
products.

Weakness

According to knowledge Wharton high school (2012),


weakness relates to the absence of the strength.

Increasing competition in the market, many similar


producers of tablets, smart phones and computers,

Bhai Parmanand Institute of Business StudiesPage 38


therefore it may be difficult task of ensuring consistency
and equality for its products.
Failure of nobility and lack of promotion of two of their
products Apple TV and Mac mini.
Decision to restrict iphone to a single mobile operator
(non jail break phones) was an issue in many countries.
Pressure on Apple to increase the price of their music
download files on itunes as many of the music industry
artist make more money from iTunes (i.e. downloadable
music files) than from the CD sales. The company is
resolute, ad if they start giving it in to for the music
producers, it may be perceived as a commercial
weakness.
Premium pricing for all products lose a potential customer
base that are price conscious

Opportunities

According to muller (2010), opportunities are the external factors


that helps in achieving the objectives of the firm.

Constant growth of the computer, mobile and technology


market, allows room for apples products demand in the
future.
Growing market of green and energy saving products.
Joint venture, to maintain good relationships with the
companies and to eliminate competition.
More international expansion into the Asian countries.
Market gap, filling it in by introducing nw feature and
technology. Eg:- iphones being used by business
professionals more often now due to its new features and
functions

Bhai Parmanand Institute of Business StudiesPage 39


To introduce new line of products related to the same
mobile, computers and electronic market but aimed at the
price conscious customers.
The use of Intel chip allow new machines of Apple to be
compatible with Windows Operating System which can be
used to develop itunes and music player technology to be
applied to a mobile phone. Apple should continue to create
such opportunities through new and innovative software
markets in order to strive to introduce its groundbreaking
hardware into these markets.

Threats

Threats are the external factors that do not support in achieving


the objectives of the company.

High completion in the market with mass existence of


technology giants like Microsoft, Dell, Samsung, HTC, HP,
Nokia, etc making the market highly saturated.
Shifts in consumers tastes from Apple products to other
firms products.
Emergence of substitute products like Samsung Tablet,
which has a potential to kill the need of having a phone as it
allows making calls along with the tablet features.
Increasing trade barriers and introduction of new
regulations.
Premium pricing for its products, may not be affordable by
all therefore losing vast number of potential customers.

Apples marketing
According to Rob Enderele (2004), apple really stands out in its
marketing. The company simply seems to u8nderstand what will
get people excited about its products and services, then only it
executes on its version. They dont talk about features or
technology, but about how the computers will make your life

Bhai Parmanand Institute of Business StudiesPage 40


better. Apple has also not been afraid of in-your-face campaigns.
The company steamrollers. Also, the place where Apple puts its
logo on its products is unique; on laptops the logo is right side up
when the screen is open. As Apple believes that the logo is not for
the person who bought the computer but for the person who is in
the market for one. It is good advertising placement which should
not be a throw-away design element. Apple also does the best
placement which should not be a throw-away design element.
Apple also does the best placement in the TV shows which really
showcases a logo. Even when the other vendors get a spot, their
logos are quite hard to se, as their logos on laptops do not light.

Apples hardware and software

According to Ben Benjarin (2011), the rest of the PC industry is


struggling with differentiation, Apple has had it since day one.
Apple is as good of a software company than a hardware
company. Apple makes extremely good hardware as they are the
only ones who can make hardware worthy to run their software.
Steve jobs once stated that, People who are serious about great
software need also be serious about great hardware. This is why
Apple makes software that allows to makes hardware decision in
order to maximize the value of their software. Not only do they
make a great Operating system which sets them apart but also
they create extremely good core software named as iLife.
Apples iLife software is far better than most of the third party
softwares used for creating movies, music, DVDs, etc. therefore
most of electronics companies are either hardware or software
companies only, they are not both like Apple which makes Apple
to stand out among competitors.

Bhai Parmanand Institute of Business StudiesPage 41


Apple is organized differently from all other
competitors
As indicated by Andrea Regnette (2011), All the consumer
electronics companies are organized as Business units, which
tend to be fully integrated with their own R&D and P&L. usually
these business Units are in competition with each other and may
carry a high risk of weakening the brand equality and lowering
loyalty to any company. Apple o the other hand is organized as
big a company that manages products, not categories. Apple has
one R&D base that is common across most products and looks at
one P&L, despite its huge turnover. As a result, Apples products
are fully compatible with one another, accessories can be used on
multiple products and in short, and consumers enjoy a great brand
experience. This approach allows customers to have great trust in
the brand.

Apples retail strategy

Apple has their own retail stores, though many of the companies
failed miserably at having their own stores. However, for Apple
this has been one of the most brilliant moves they made. The
reasons that why some other companies tired owning their own
stores and failed was due to location or a lack of priority, but
Apple got both of those correct.

Apple had been very careful about how people buy their products,
authorized retailers with small shops that carried Apples products
and accessories, also they provided an outlet for support and
repair. They later decided to control the retail experience
themselves instead if investing heavily in external retail
experience.

Ben Benjarin (2011), also adds that location plays a significant


role; they have their stores located in malls, as the customers are
already in shopping mode. The location plays well into supporting

Bhai Parmanand Institute of Business StudiesPage 42


Apples strategy. The fact that customers can go in and get
support or repairs for their products and then get some shopping
done while they wait is a bonus. Primarily its is a priority that
Apple places focus on their retail strategy which has set them
apart from those who have tried retail and other outlets in the
past. Apple spends top dollar on the look and the in-store
experience and it shows. However, there is always room for
improvement in Apple stores, they have assembled a strong team,
experiment heavily, and listen to customers.

Bhai Parmanand Institute of Business StudiesPage 43


DELL
Dell Inc., out of the worlds largest computer manufacturers in the
world, has developed its business in a unique way, by selling
equipment directly to customers around the globe. The company
was founded in 1984, and has grown from its original base in
Texas, USA, into a key international player in the computer
industry.

Dell Computer Corporation has been extremely successful


generating a 13 billion empire only within 13 years of operation in
computers market.

Direct Business Model has enabled the company to be that


successful within short period of time. This strategy, as
implemented by the founder of Dell Company Michael Dell, let the
company to configure computers and sell them directly to
customers or final users at incredibly low prices. This was due to
eliminating the mark-ups by intermediaries and the risks of
carrying slow-moving, large inventories in the warehouses.

Direct model turned out to be a success factor for the company as


it not only helped to produce and offer computers and services in
lower prices, but also enabled the company to interact with
customers and satisfy their needs and wants through producing
customer-build computers for them.

Most importantly Dell proposed the idea of Virtual Integration


that gave a competitive edge and comparative advantage for the
company over its competitors.

Market positioning

Bhai Parmanand Institute of Business StudiesPage 44


Gupta (2005) mentions the after the organization have selected
their target market, the next stage is to decide how they want to
position themselves within that choose segment.

As Dell produces and sells computer and computer related


products to all levels of customers, starting from individual
customers to government and corporate clients, the chosen
market for the company is really huge and diverse.

However, the company always tries to keep its products as low


priced, well designed and reliable. Therefore, the company has
benefited hugely from this strategy and market focus. Moreover,
the company differentiates its products as part of its stated
obligation to the customers.

Customer Relationship Management in Dell

Kotler al (1999) state that relationship marketing involves creating,


maintaining and enhancing strong relationships with customers
and other stakeholders. And te reason for the development of
relationship marketing has been the moving away of marketing
from a focus on individual transactions and towards a focus on
building value laden relationships and marketing networks.

They further indicate that the relationship marketing is a long term


goal of the company and its main focus is to deliver long-term
customer satisfaction.

In case of Dell, the company has been successful due to


implementing the direct selling strategy by building strong
relationship with the final users and customers.

Parvatiyar and Sheth (2001), defined relationship marketing as a


method of acquiring, retaining and liaising with targeted

Bhai Parmanand Institute of Business StudiesPage 45


customers to provide better value for both the organization and
the customers. The combination of marketing, sales and customer
service and the distribution elements of the organization in an
integrated manner enable higher efficiencies and improved
effectiveness, which lead to better value for the customers.

1. Partnership: the company works continuously with the


customer and with other customers to discover ways to deliver
better value.

2. Basic: the company sells the Product but does not follow up in
any way.

3. Reactive: the salesperson sells the product and encourages


the customer whenever there is an issue or question.

4. Accountable: the sales person sells the product and phones


the customer in a short period of time out of if the product is
meeting their expectations take note of product improvements.

5. Proactive: the salesperson or someone from the company


phones to customer time to time to suggest about improved
products and services.

It can be seen from the case provided that Dell has a partnership
approach with its customers as it not sell PCs, but also manages
their large customer PC

As mentioned by M. Dell in the case, they sell and amange the


total purchase of PCs of large customers by selling them a
standard product. And if the customer has any problems with PCs,
the Dell technicians would not spend first 30 minutes figuring out
what configuration the customer has, but straight away fix the
problems as they already know all specifications of customers
PCs. And that way Dell becomes the IT Department of large
companies by charging less for maintenance as they can even

Bhai Parmanand Institute of Business StudiesPage 46


place their own technicians in the customers company as it was
seen in Boeing Company.

The need for two-way communication


Relationship marketing heightens the need for more effective two-
way communication between the marketer and customers. In case
of Dell the company has close relationship with its customer due
to its direct Selling strategy where it can easily identify the needs
and wants of customers which is a main part of marketing
concept.

As mentioned by M. Dell, the salespeople find out the need of


customers over the phone when taking the order and even the
founder of Dell, Michael Dell spends his 40% of time with
customers.

Furthermore, Platinum Council also gives a very good chance for


the company to review and analyse the needs of its customers as
the ratio of attendees for the platinum Council rally appreciates
the customers presence for upgrading its systems and products.

However, there is a lack of communication between small and


public consumers as the company mainly focuses on large
customers who make up 90% of its total revenue.

Customer often leads the whole of the marketing process

This part reminds the marketing concept as the company has to


put customers in the heart of its operation and decision making
and build its marketing process around customers needs and
wants.

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This can be seen in Dell, as its almost all production are based on
customer orders.

International strategy
Dells operation in international markets have been well arranged
by choosing vitally important locations for manufacturing,
distributing and selling. The company manufactures its computer
products in six locations, which basically cover the whole potential
markets where Dell can sell its products.

By having six locations, company can reach all its potential


customers with less distribution costs. This gives the company
another benefit to keep its product prices low and deliver them as
quick as possible. This way, the company can treat all its
customers in the same way as it treats its domestic customers in
the US where it gained its first huge market share and competitive
advantages over its competitors can give the comp any
international advantage over its competitions.

However, dell has to consider different segments of international


market where customers and corporate clients may have different
tastes for computer and other computer related products.
Therefore, it is advisable for the company to do through marketing
research to identify differing market segments and their
preference before penetrating into those markets.

Main reason for move


The main reason for move to go into alliance with other
enterprises has been to keep its market share and consistent
growth both in sales and market leadership.

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Moreover, the company didi not want to lose out to other
competitors such as IBM and others as those companies have
already been offering range of products such as handheld
systems and other portable gadgets used by medium and large
businesses.

Strategic alliances
Dell went into alliance with EMC which created huge value and
strong relationship that resulted in more than 1500 Dell/EMC in
installation by the partnerships first anniversary in October 2002.

In the first year of a partnership between the two companies, more


than 1,500 customers purchased Dell/EMC storage systems.
Demand for related enterprises products and services grew
strongly and it is expected to be consistently growing in the future
as well.

Moreover, the company was also a leading provider of Linux


based clusters during the first half of the year which made about
40% of the whole world market.

Furthermore, Dell also signed a deal with Lexmark to produce Dell


branded printers and ink cartridges. This helps the company to
further develop by diversifying its product lines which gives extra
advantage over its competitors.

The possible strategies by Dell against merger


Dell can use attack and defence strategies in order to survive,
maintain and develop its existence in the market against new
merger.

The possible strategies for Dell are the following:

Online presence

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As long as Dell has competitive advantage over all its competitors
by selling its products online, the company still can use online
sales platform as tool for aggressive marketing by promoting its
newly diversified product ranges such as printers and servers.

Customer relationship marketing

Dell has been establishing good customer relationships both pre


and post sales, therefore, the company may benefit by winning
the both individual and corporate customers loyalty by selling the
products and offering complimentary products such as printers
and storage devices, and provide them with technical support that
makes customers stick to Dell.

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Dells Segmentation, Targeting and Positioning (STP):

The formula of segmentation, targeting and positioning is the base


for strategic marketing. Companies realize that they cannot
appeal to all customers but have to identify the customers they
are able to serve best and profitably. According to Kotler, A
company must indentify the parts of the market that it can serve
best and most profitably.

The computer market has various products which can basically be


classified into software and hardware categories where each are
sub-divided into various products segments. It is clear that Dell is
focused on the computer hardware market where it started with
the desktop personal computer as its initial product segment.
Further product segments such as notebooks, servers and
computer peripherals have been added to its marketing mix as
revenue increased. In addition, Dell has partnered with major
corporations such as Microsoft to ensure their products are
equipped with the latest software as per customers needs.

Dell mainly uses customer segmentation in its market strategy


along with the product segmentation where it is targeting several
market segments and designing separate products or offers for
them. On one hand, geographically, Dell has segmented the
market into US/Americas, EMEA and Asia Pacific-japan where
each area has different pricing and marketing strategies. On the
other hand, demographically, there is no age, gender or race bias
but income, occupation and education play a role in deciding the
customer needs and hence the product offer.

It is also worth nothing from a behavioural view, Dell focuses on


the benefits sought by consumers such as low price and good
quality and services. It also carefully selects customers with
relatively predictable purchasing patterns and low service costs,
allowing itself an opportunity to develop a core competence in
targeting and keeping a specific database for target customers.

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Dell targets two classes of customers

a) Relationship customer:

The first is the relationship customer such as large corporations,


government and education sectors. These customers provide the
largest portion of profit and are therefore supported by dedicated
sales representatives or account managers. A large share of
Dells business stems from long-term corporate relationship
accounts for which Dell has developed tailored customer-specific
we sites such as premier pages with predetermined custom and
budgets, giving them access to product design, order status and
product support and service information.

b) Transactional Customer:

The second is the transactional customer who is price-sensitive


looking for low cost, more reliable, quality service and added
value products. These are mainly individual customers who are
more likely to access, choose and buy online as a mean to fulfill
their product requirements and customer needs. To obtain stable
demand in this segment, dell used the latest technology products
to target buyers who had regular upgrade purchase patterns,
required little technical support, and paid by credit card.

This report suggests that Dells customer segmentation is the


main factor in their market strategy as it is able to use these
segments to understand the market needs and demands, this can
consequently influence its product segmentation strategy and the
customized product offers that Dell can introduce. Clearly it makes
sense that Dell does not target a product segment until demand
and development standards have been established so it does not
affect its brand image and value proposition.

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Dells value proposition is offering equivalent quality computers at
a lower price for performance. As many large corporations, Dell
had to alter its positioning to maintain its competitive advantage
as well as its main value proposition. Therefore in the early days,
Dell positioned itself as a premium computer company through an
easy and convenient internet-based sales medium and
outstanding service. Gradually this further growth and increased
advertising managed to establish Dells position in

consumers minds and presented its as an aggressive, value-


oriented computer manufacturer.

Even when later this initial advantage has disappeared as more


competitors caught up with online marketing and price strategies.
It is clear that Dells flexibility in extending its product segments
while maintaining its brand image and positioning towards its
targeted customer segments have enabled the company to
maintain revenue and market share growth.

Dells marketing mix


Dell is one of the leading consumer durables brand. The
marketing mix of dell talks about the way in which dell has
improvised to gain a competitive position.

Product:

Dell provide that, Marketing is not about providing products


or services it is essentially about changing benefits to the
changing needs and demands of the customers.
Dell provides a wide variety of both business class and
home/consumer class products and services.

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Dell designs, develops, manufactures, markets, sell, and
support a wide rang of products that in many cases are
customized to individual customer requirements.
A few examples of products for individual and professional
customers are Dell Precision workstations, OptiPlex
desktops, Dimension desktops an inspiron and latitude
notebooks.

Pricing:

Pricing strategies usually change as the product passes


through it life cycle, because there is constrains on the
companys freedom to price a product at different stage.
The main objective of Dell is to produce the low price and
profitable PC for the customers.
For the above reason Dells product pricing reflects the
affordability of the local consumers.
Because Dell products are so customizable, the price is
largely dependent on the options and services added to the
product.
Dell is undercutting competitors in price to rapidly gain
market share.

Place:

Place is also known as channel, distribution or intermediary.


It is the mechanism through goods and services are moved
from the manufacturer/service provider to the user or
consumer.
Dell has been able to affect the location strategy aspect of
its marketing campaign.
As Dells products are always available at the nearest
dealers customers develop trust for the local Dell thereby
achieving the objective of gaining their trust in Dell products
and services, and forming a large and diversified consumer
base.

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Promotion:

Another one of the 4 Ps is promotion. This include all the


tools available to the marketer for marketing
communication.
Dell is the past have not concentrated on extensive
marketing campaigns but these revolutionaries in 1999
when Dell changed its tactics by engaging in extensive
marketing campaigns.
Dell markets its products primarily by advertising on
television and the Internet, advertising in a variety of print
media, and mailing or emailing a board range of direct
marketing publications, such as promotional materials,
catalogs, and customer newsletters.
Dell as recently started promoting its products through
retailers like Best Buy, Staples, WalMart, GOME, and
Carrefour.

Swot analysis of Dell


Strengths

1. Charismatic and effective leadership by Michael Dell

2. Market leadership in corporate usage.

3. Leadership in cloud

4. Leadership in healthcare sector

Weaknesses

1. Lack of patents for breakthrough innovations

2. Long purchasing process

3. Extensive dependency on suppliers

Bhai Parmanand Institute of Business StudiesPage 55


4. Limited differentiation of products

Opportunities

1. Investment in research and development

2. Engaging in mergers and acquisitions

3. Increasing presence in tablet and smartphone market

4. Concentrating in emerging markets

Threats

1. Data security

2. Competition from emerging economies

3. Economic crisis

4. Decline of desktop and laptop market

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ARTICLES
1. Marketing perspective: Dell vs. Apple
Sep 19th, 2008 by scott Hebert

Dell and Apple are competitors in the computer industry. These


competitors serve a similar general market, but have positioned
themselves quite differently with that market pace. The difference
of these two companies offer an excellent study of the different
uses of marketing mix.

For over twenty years, Dells marketing has been to provide


products directly to consumers through the internet and
telephones sales. Theyve relied on low prices to maintain their
market share. These low prices and low as active in thus area as
other competitors and has a much less innovative product
offering. Their marketing strategy for over twenty years been to
provide an inexpensive peroal computer directly to consumers at
the lowest possible price (Lee, 2006).

Apple has taken a different path than Dell. Apple cannot afford to
live on the same small profit margins that Dell can. Since its
market share in the home computer industry is much lower than
Dells, Apple has focused more money into Research and
Development and created an innovative MP3 player. As of july
2006, the Apple iPod enjoyed a 73 percent market share, putting it
stop the industry. Although Apple does offer its products online to
customers, they have store fonts across the country where
consumers can get a hands-on look at their innovative products.
Since it is unable to cp,pete toe-totoe with Dell in the home
computer market, Apple hs positioned itself in niche that identifies
itself with customers interested in Simplicity and innovation
(Green, 2008).

Interestingly, apple and Dell do not target each other specifically


ion their advertisimg. Apple focuses primarily on targeting
Microsofts windows operating system. This right in line with

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Apples marketing strategy to focus on simplicity. By convincing
users that the user experience of their operating system, Mac OS
X, is superior, they directly increase their sales. This is at the
expense of Dell and other PC vendors.

Dell, on the other hand, is focused on getting as many buyers as


possible. Therefore, their advertsing focuses on pricing. Unlike
Apple, Dell runs discount throughout the year (Lee, 2006). These
discounts are generally advertised in direct mailings which
coincides well eith their direct to consumer approach.

Dell and Apple share a similar market. Bith are computer


companies, but neither has chosen to market their products to the
same target segment. Apple had differentiated itself from Dell by
focusing on a niche market that values simplicity and innovation.
These differeing target segment influence each companys
marketing mix.

2. Dell vs. Apple: and Now for The MacBook Pro


Comparisons
Jan 15,2015 by Brooke Crothers

Dell is going after Apple AAPL +1.75% in promos for its new
mobile workstation, following favourable reviews for its XPS
products.

For laptop reviewers, Dell has become the new yardstick for
comparisons with Apple. Dells newest Xps 13 laptopo is getting
rave reviews and invariably just a positioned with the MacBook Air
(which Ive done too). Now, dell is weighing in and pitting its new
precesion M3800 bmobile workstation against the MacBook Pro
by way of Dell-commissioned perfromanve study, ehich ho[es to
demonstrate ways in which the M3800 outperforms the MacBook
pro for tasks like video edting, Dellsaid in a new post on Friday.
Dell cites new hardware, including a Nvidia Quadro K1100M
graphics card, for delivering the improved performance. The new
M3800 also boasts a 15.6 inch 4K(3,84022,160) display.

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Of ourse, coming fromDell favourable comparisons are expected.
The larger point is that Dell sees a window to promote its newest
laptop designs against aging MacBook pro designs. And,
nneedless to say, comparisons will likely be in Apples favour
when a new MacBook Pro 15 (or analogous product) comes out
later this year.

they set a nice arand our goal is to exceed it in any way we can,
Frank Azor, executive director and general manager pf Dells XPS
brand, told me in an interview this week, referrig soecially to Apple
comparison with the XPS laptop brand.

3. dell and Apple


Posted on September 24, 2008

Two companies that are pioneer in selling computers and other


electronics items in the world have completely opposite strategies.
Dell, with its onliue stroe nd customization engine, makes buying
a computer all about how much memory, Hard disk and USB slots
you need on your computer. Apple on the other hand sells you
much more than a computer or personal music system iPod. It
sells an experience primarily through those wonderfully designed
Apple stores. Unlike Dell, Apple provides customer with more pre-
customized boxed as compared to customizing that box.

If we look at dells model of sellibg computers, what Dell id doing


is delling an assembled box of all the different parts that makes a
computers. Customize-ability of the cpmputer plays a big role and
design takes a back seat. The distinguishing factor is pretty much
the price and support. Dells strategy, in simple words, is to
commoditize the computers. Making buying computers as simple
as buying any other home or office supplies. The strategy works
great corporate customers who care more about price and
support.

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Apple does not sell computers, it sells an experience, a
membership to an exclusive cult and an entry to the Apple product
ecosystem. Design plays the central role in all Apple products.
Apples strategy, opposite to Dell, can be stated in simple words
as de-commoditization of all the products it sells. As in any typical
case of decommoditization, price takes a back seat and
customers get attracted to the product itself. Apples strategy is
crisp and clear an Apple implement it with perfection in any
industry it enters, be it the computer industry, music industry or
mobile phone industry. These are two companies selling the same
things with completely different strategies and execution plans.
The debate will go on for ever on which company has a better
strategy, but the success of Dell and Apple asserts the point that
theres no one strategy that is good or bad for your company.
Your success depends on how crisp the strategy is and how well
you are implementing it.

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CH-3
Industry
PROFILE

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COMPUTER INDUSTRY
The global personal computer industry in US $215 billion and is
expected to grow at 3 to 4% in the next five years. The Asia
Pacific region dominates the industry with 34% market share. The
industry is significantly affected by factors such as income levels,
technological innovation, computer education and internet usage.
Introduction of notebooks and ultra-books have ed the grot of
industry in the last five years, with consumers demanding high
performance and latest technology.

Market
The market place is highly competitive and is characterized by
large number of competitors, aggressive pricing and reduction in
margins. The introduction of new product is frequent and products
have sort life-cycle making sustained cash-inflows very difficult.
Customers are price sensitive and seek continual improvement in
price and performance. It is also characterized by rapid advances
in software technology, hardware performance and new features.
PC industry as a whole is also moving towards consolidation and
there has been a lot of acquisitions and sell-offs. At present it is
also facing stiff competition from mobile devices like cell phones
and tablets.

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CH-4
COMPANY
PROFILE

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Company Profile (Apple)

APPLE INC. at a glance

Pros

Working for a top brand that helps influence people life

Working with the best and the brightest

Cons

Some employees say that promotion and finding a career path be


challenging

Negative press over supply chin issues in China and elsewhere

Demanding culture of perfectionism

The Bottom Line

You dont choose to work for Apple; the company chooses you-
small wonder given that Apple is widely recognized as one of the
most desirable companies in the world to wwork for.

About APPLE INC.

Apple has an i for revolutionary technology. Since release, the


companys iPhonewhich accounts for the largest portion of its
sales has spurred a revolution in cell phones and mobile
computing. Apple also continues to innovate its core Mac desktop
and laptop computers, all of which feature its OS X operating
system, including the iMac all-in-one desktop for the consumer
and education markets, the MacBook Air ultra-portable laptop,
and the high-end Mac Pro and MacBook pro for consumers and
professionals. The companys popular iPad tablet computer has
become another game-changer in the consumer market. It
generates nearly two-thirds of sales outside the US.

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Operations

Most of Apples revenue is phoned in from its line of iPhone. They


accounted for about $102 billion in sales for 2014 (ended
September), 56% of the total revenue. Sales of the companys
iPad and iPad Mini, which fill a market neche between notebook
computers, e-book readers and smartphones were just more than
$30 billion in 2014, a 5% decline from 2013. The companys
laptop and desktop computers posted a 12% sales increase to
about $14 billion in 2014, 13% of revenue. Revenue from iTunes,
the App store and software grew 13% year-to-year, coming in at
$18 billion. Sales of the iPod tailed off in 2014, down 48% to just
$2.3 billion. One of the factors that makes Apple products so
popular with some and less so with others is that makes Apple
products so popular with some and less so with others is that its
hardware and software products are tightly woven together for a
seamless experience. In 2014, the company added greater
cohesion, enabling users to go from device with little interruption.

Geographic Reach

Apple gets about 36% of sales from domestic customers. Its


international markets re Europe (22% of sales), China (16%),
Japan (8%), and the Asia/Pacific region (6%).

Sales and Marketing

Apple sells its product worldwide through its retail stores, online
stores, and direct sales force, as well as through third-party
cellular network carriers, wholesalers, retailers and value-added
resellers. In addition, it sells a variety of third-party iPhone, iPad,
Mac and iPod compatible products, including application software,
and various accessories through its online and retail stores.
Customers downloaded more than 85 billion items from Apples
app store in 2014. The company operated about 260 retail in the
US and 254 international retail stores. About 22% of sales come
through the doors of its stores.

Financial performance

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Apple posted increases of almost 7% in revenue and profit in
2014. Its overall sales reached almost $183 billion and profut
came in at almost $40 billion.

Double-digit growth continues to be the norm for most of Apples


product lines. Sales of the iPhone, MacBook ad related products
were up by 12 % for the year, which was off from the 71%
increases the previous year. Sales for the iPad slowed in 2014, off
5% from 2013. Sales of the iPod lie continued to fall, dropping
48% in 2014 after a 25% decline I 2013.

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COMPANY PROFILE (Dell)
DELL INC. at a glance

Pros

Many flexible work options, include ability to telecommute

Reputation as a top technology company

Cons

Employees may be constantly on call due to remote access and


cell phones.

The Bottom Line

Dell Inc. is a leading computer manufacturer that provides high


level of work/life balance.

About DELL INC.

Dells name rings from the desktop to the data center. The worlds
#3 supplier of PCs (behind #1 Lenovo and #2 hewlett-Packard)
dell provide a broad range of technology products for the
cusumer, education, enterprise and government sectors. In
addition to its line of desktop and notebook PCs, Dell offers
network servers, data storage systems, printers, Ethernet
switches and peripherals such as displays and projectors. It also
markets third part software and hardware. The companys
services unit provide asset recovery, financing, infrastructure
consulting, support, systems integration and training as well as
hosted IT services. Dell was taken private in 2013 in a deal valued
at nearly $25 billion.

Change in company type

In the largest leveraged buyout since the recession, yhe struggling


PC maker was acquired in October 2013 by company founder and
CEO Michael Dell and private equity firm Silver Lake Partners.
Away from the scrutiny of wall street, analysts say Dell might

Bhai Parmanand Institute of Business StudiesPage 67


stand a better chance of turning itself aroundsomething the
company has had trouble doing amid heightened competition from
the likes of HP, Lenovo, Apple, Google, Acer, and IBM.

Operations
Dell has traditionally been a desktop PC company and desktop
PCs have generated a quarter of the companys total revenue.
While there has been shrinking demand for PCs, Dell has posted
eight quarters of growth in that business.

The company is moving to bolster and expand its capabilities for


cloud computing and big data and information management.

Its mobility segment, which make notebooks, generates a


larger share of sales, has accounted for nearly 30% of
revenue. This segment also sells high-end gaming and
multimedia PC products come from Dells software and
peripherals segments, which consist of Dell-braded displays and
printers as well as third-party peripherals, software, digital
cameras, printers, and televisions.

Dell offers enterprise products, including servers and networking


equipments, as well as storage devices such as the power vault
product family. On the services side, Dell offers a broad range
of IT and business services, including infrastructure
technology, consulting and applications and product-related
support services.

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CH-5
DATA ANALYSIS
AND
INTERPRETATIO
N

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DATA ANALYSIS AND INTERPRETATION

1. Which brand comes in your mind when you think of laptop?

Apple 42%
Dell 38%
Samsung 12%
Others 8%

Apple
Dell
Samsung
Others

Interpretation

Out of this total respondent, 42% said Apple brand comes in their
brand when they think of laptop ad for Dell its 38%. In other
choices many respondent chose Samsung 12% and Others 8%.

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2. How often do you change your laptop?

Yearly 12%
Once in 5 year 12%
Once when needed 58%
Never 18%

Yearly
Once in 5 year
Once when needed
Never

Interpretation

Out of the total respondent, 12% said that they change their
laptop yearly, 12% said that they change their laptop within 5
years and 58% said that they change there laptop when they
needed and rest 18% said that they never change their laptop.

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3. Which brand of laptop do you own?

Apple 28%
Dell 38%
Samsung 16%
Others 18%

Apple
Dell
Samsung
Others

Interpretation

Out of total respondent, 28% said Apple, 38% said Dell, 16% said
Samsung and 18% said Others they are using the laptop brand.

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4. What do you think is the best feature of Macbook?

Configuration 26%
RAM 10%
Graphics 30%
All of the above 34%

Configuration
RAM
Graphics
All of the above

Interpretation

Out of total respondents, while buying the laptop 26% consider


Configuration, 10% consider RAM, 34% consider Graphics, and
30% says that they are interested in all of the above while buying
the laptop

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5. What do you think is the best feature of Dell?

Configuration 32%
RAM 22%
Graphics 18%
All of the above 28%

Configuration
RAM
Graphics
All of the above

Interpretation

Out of total respondents, while buying the laptop 32% consider


Configuration, 22% consider RAM, 18% consider Graphics, and
28% says that they are interested in all of the above while buying
the laptop.

Bhai Parmanand Institute of Business StudiesPage 74


6. Are you satisfied with the choice of your laptop?

Yes 76%
No 24%

Yes
No

Interpretation

Out of the total respondents, 76% said that they are satisfied with
their choice of laptop and 24% said that they are not.

Bhai Parmanand Institute of Business StudiesPage 75


7. Which company offers the best service to customers?

Apple 62%
Dell 24%
Samsung 8%
Others 6%

Apple
Dell
Samsung
Others

Interpretation

Out of the total respondents, 62% feel that Apple gives the best
customer services, 24% feel that Dell gives best customer
services, and rest respondents feel that Samsung and other
companies give best customer services.

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8. What is the basis on which you decide to buy a laptop in
the light of fierce competition between the big companies?

Shape 16%
Brand name 28%
Specifications 32%
Price 24%

Shape
Brand name
Specifications
Price

Interpretation

Out of the total respondents, 16% said that the shape of the
laptops matters while buying the laptop, 28% said that they are
interest in name of the company while purchasing the laptop, 32%
said specification are all they need to decide which laptop to buy
and rest 24% said that the price matters while purchasing the
laptop.

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9. Which company offers laptops in best design and colours?

Apple 70%
Dell 20%
Samsung 6%
Others 4%

Apple
Dell
Samsung
Others

Interpretation

Out of the total respondents, 70% said that Apple is the best in
terms of design and colours, 20% said Dell, 6% said Samsung,
and 4% said Others laptops are good in design and colours.

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10. Which laptop company is the best in terms of programs and
interior design?

Apple 62%
Dell 26%
Samsung 8%
Others 4%

Apple
Dell
Samsung
Others

Interpretation

Out of the total respondents, 62% said that Apple has best
programs and interior design, 26% said Dell, 8% said Samsung,
4% said Others.

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11. Which company uses modern technology in its service?

Apple 68%
Dell 14%
Samsung 12%
Others 6%

Apple
Dell
Samsung
Others

Interpretation

Out of the total respondents, 68% said Apple uses the best and
innovative technology, 14% said Dell uses modern technology in
its services, 12% said Samsung and 6% said Others.

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12. Which company offers expensive laptops?

Apple 74%
Dell 16%
Samsung 6%
Others 4%

Apple
Dell
Samsung
Others

Interpretation

According to respondents, 74% agree that Apple are most


expensive, 16% agree with Dell and 6% with Samsung
and 4% with Others.

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13. From where do you get to know about laptops?

Internet 48%
Newspaper 18%
Television 14%
Others 20%

Internet
Newspaper
Television
Others

Interpretation

Out of the total respondents, people got to know about laptops


from different sources like 48% from Internet, 18% from
Newspaper, 14% from Television, and 20% from Other sources

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14. Do you think Apple is better than Dell?

Yes 80%
No 20%

Yes
No

Interpretation

Out of the total respondents, 80% said that Apple is better then
Dell and rest 20% said that Apple is not better than Dell.

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CH-6
FINDINGS

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Findings
1. People prefer Apple more over Dell.

2. Advertisement plays an important role in choosing of brand.

3. Specifications of a particular product plays an effective role in


choosing of product among Indian consumers.

4. Quality came out to be most important for consumer in


preferring on a particular brand.

5. According to people, Apple is more expensive as compare to


other laptops.

6. Celebrities have a great effect on people consuming


electronics.

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CH-7
SUGGESTIONS

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Suggestions
1. Consumer like Apple but they expect more improvement to be
done wit the brand to be at par with Dell. They can change their
marketing strategy to boost sales and make their brand more
acceptable.

2. Good feature is the major factor, which influence to buy


electronics. Therefore the company should try to retain its quality.

3. Retailers are satisfied with sale of Apple but they also expect
better benefits like repairs charges, maintenance, etc.. so, that
they can sell more Dell provides better benefits and hence Apple
should also do to same.

4. As a major segment of consumers are students/teenagers,


sponsoring them for their educational assistance like scholarship
and prizes would increase the brand image.

5. Apple should also focus on age group 31-45 and 45-60 and not
only teenagers and students.

6. Consumer prefer Apple for different occasion and they dont


want to change brand. So in order to retain them the company
should maintain quality of the product.

7. Majority of the respondent feed that celebrities really influence


to buy a soft so company should concentrate on these aspects
ad continue on hanging the different celebrities that are popular at
different time periods.

8. Companies should increase brand extinction with different


models because Indian consumer mainly give the value to the
quality.

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CH-8
CONCLUSION

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Conclusion
Information Technology helps business, governments, and
individuals increase their efficiency and effectiveness. Rapid
improvement in hardware and processing ability forces consumers
to purchase new relevant technology. On a market level, this rapid
turnover creates demand. From a firms perspective however, this
can result in a lower customer retention rate. Regardless,
organization are continuing to demand innovative technological
solutions, leaving room for new entrants, particularly those with a
unique concept. Firms who are able to find a niche market or one
with low competition- will find this industry attractive. Barriers to
entry remain high when entering existing market though, therefore
most potential entrants will find the overall industry unattractive.

Not long ago, prior to technology further booming over the past
five years, Apple and Dell were very similar companies. In fact,
one wouldnt be going on a huge limb to say that Dell was a more
successful company. However, Apple poised themselves to
compete better in a dya and age where rapid technological
improvements occur. That seemed to be key discovery that was
made, although both companies are in the information technology
industry. Apple does a better job of competing in other industries,
whereas Dell is currently being hurt by the diminishing need for
PCs. Nevertheless, right now, as this report states, Apple is
thriving and competing at such a high level, that theres no
question theyre currently a more successful company than Dell.

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CH-9
BIBLIOGRAPHY

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Bibliography
>http://tech.firstpost.com/news-analysis/indias-ecommerce-
market-to-touch-260-bn-by-2025-report-2009901.html

>http://www.wsj.com/articles/SB100014240527023038165045773
08652286295634

>http://www.sooperarticle.com/business-article/e-business-
article/key-success-online-retailing-appealing-women-128808.html

>http://www.vcircle.com/news/technology/2012/02/15/grocery-e-
tailing-start-ups-dime-dozen-investors-wary

>http://traks.in/tags/business/2011/08/23/india-online-internet-
users-survey-report-2011/

>http://www.imediaconnection.in/article/806/Research/mobile-
commerce-in-india-buzzcitys-report.html

>http://informationmadness.com/blog/965-mobile-commerce-in-
india.html

>http://blog.dreamstarts.in/survival-of-e-commerce-startups-in-
india/#more-161

>http://www.boston.com/business/blogs/global-business-
hub/2012/03/the_sizzling_in.html

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CHAPTER-10
ANNEXURE

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QUESTIONNAIRE
PERSONAL INFORMATION

a) NAME:-

b) AGE

a) 15 to 20

b) 21 to 25

c) 26 to 30

d) 31 to 35

c) GENDER

a) Male

b) Female

d) PROFESSION

a) Working

b) Student

c) Other

e) INCOME

a) 1 to 2 lakh PA.

b) 3 to 4 lakh PA.

c) 5 to 6 lakh PA.

d) More.

1. Which brand comes in your mind when you think of laptop?

a) Dell

b) Apple

c) Samsung

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d) Other

2. How often do you change your laptop?

a) Monthly

b) Yearly

c) Never

3. Which laptop brand do you own?

a) Apple

b) Dell

c) Samsung

d) Other

4. What do you think is good in Apple?

a) Configuration

b) RAM

c) Graphics

d) All of the above

5. What do you think is good in Dell?

a) Configuration

b) RAM

c) Graphics

d) All of the above

6. Are you satisfied with your choice of your laptop?

a) Yes

b) No

7. Which company offers the best service to customers?

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a) Apple

b) Dell

c) Samsung

d) Other

8. Whats more interesting in it when you buy the laptop device in


the light of fierce competition between the big companies?

a) The shape

b) Company name

c) Specifications

9. Which laptop company is the best in terms of external design


and colours?

a) Apple

b) Dell

c) Samsung

d) Other

10. Which laptop company is the best in terms of programs and


internal design?

a) Apple

b) Dell

c) Samsung

d) Other

11. Which company use modern technology in its service?

a) Apple

b) Dell

c) Samsung

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d) Other

12. Which company is more expensive In terms of prices?

a) Apple

b) Dell

c) Samsung

d) Other

13. From where do you get to know about laptops?

a) Internet

b) Newspapers

c) Television

d) Others

14. Do you think Apple is better than Dell?

a) Yes

b) No

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BHAI PARMANAND INSTITUTE OF BUSINESS
STUDIES
FORMAT FOR PORJECT SUMMARY TO BE SUBMITTED TO PANEL AT
THE TIME OF PRESENTATION

1. Working title:-

2. Purpose of the study:-

3. Objective of the study:-

4. Methodology:

Research Design :
Data Collection Approach:
Sampling Method:
Measurement techniques:

6. Purposed Table of Contents of the project report:

7. Questionnaire (if any):

REMARKS:

1. project Summary/ Synopsis should be signed by the students & the


concerned supervisor of the student.

2. Supervisor can suggest the change in above format if required.

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BHAI PARMANAND INSTITUTE OF BUSINESS
STUDIES

EVALUATION SHEET FOR MINOR PROJECT REPORT

STUDENT NAME :

ROLL NO. :

EVALUATORS FEEDBACK :

DID THE STUDENT CINTACT YOUR REGULARLY FOR DISCSSION?

YES/NO (please tick)

REPORT IS APPROVED/ DISAPPROVED:

MARKS AWARDED :

SIGNATURE OF EVALUTOR

NAME:

DATE:

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ATTENDANCE FOR MINOR PROJECT REPORT

Name of the student : Kapil Kumar pal (40811401716)

Course : BBA(Gen)

Name of the supervisor : Mrs. Rahul verma

S.NO DATE TIME PROGRESS SIGNATUR SIGNATUR


OF REPORT E OF E OF
(REMARKS) STUDENT SUPERVISI
ON
1.

2.

3.

4.

5.

6.

7.

8.

9.
10.

Bhai Parmanand Institute of Business StudiesPage 99

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