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a) ANALYSIS OF THE SITUATION - COMPANY

i. Historical review summary.


Apple Computer, Inc., is an American computer technology company founded in
1976 by Steve Jobs and Steve Wozniak, at the age of 21 and 16 respectively. Steve
Wozniak attended an exhibition in San Francisco of computers, where he discovered
that a small semiconductor manufacturer sold microprocessors for $ 20, because of
this Woz began to create his own Apple I computer, although it was not fully
assembled. Despite this, he amazed his friends at the Homebrew Club (computer
lovers club). At the beginning of 1976 Woz and Jobs were considering starting a
company, initially the original Apple logo showed someone under an apple tree,
finally the company came out with the apple as a tribute to Alan Turing, one of the
great gurus of Artificial Intelligence, who committed suicide by biting an apple
poisoned with cyanide. Apple's logo was the rainbow apple, since Turing was gay.
In that same year they established the company in Jobs's garage. The first "Apple I"
machine with features limited by the little money available to Woz and Jobs. The
machine sold for $ 666.66 and they sold 175 units. In mid-1976 Woz was willing to
create the "Apple II" proposal, features: belt weight kilograms, keyboard, more
elegant design, video memory to manage color display, expansion cards so that
users could expand The capabilities of the computer. The final Apple II model was
introduced in April 1977, Apple changed its logo (someone under the apple tree) for
the famous colored apple logo. In 1979 Apple introduced the Apple II +, an
evolution with more memory (48 kb expandable to 64 Kb) and with BASIC
language, but Apple II sales were stronger, it would be necessary to think about the
successor as soon as possible. In 1980 Apple III went on sale, but it had many
failures since they did not incorporate a fan, therefore, several equipment
overheated even before being supplied. Thousands of Apple III had to be replaced.
Months later, Apple released a new version of Apple III (Apple III +) that corrected
the problems with the initial version. But I can't beat the millions he made with
Apple II, only 65,000 computers sold in Apple III. In 1985, however, serious
problems began for the Apple company. Jobs and Sculley began to have frequent
discussions, which ended with the resignation of Jobs in May of that same year. In
1993 with a sharp decline in Apple's profitability, Sculley was forced to resign.
Being replaced by Michael 'Diesel' Spindler. Spindler remained until 1996, after his
resignation, Gil Amelio became the CEO. At the end of 1996 Apple maintained
losses of billions.
Facing the crisis, Amelio at the end of 1996 had the brilliant idea of bringing back
Steve Jobs who in 1997 became President of Apple and with this the arrival of
integrated iMac, computer and monitor and the price of $ 1,299.00 dollars. With the
return of Jobs, Apple has experienced a spectacular revival, not only because of the
design of its new range of computers, but also because it has been able to obtain
continuous benefits since the sale of the iMac, something especially valuable in an
era of crisis like the one that the sector has experienced in recent years. In early
1999 and with the strong sales of iMac, Apple shares reached their highest level in
many years. Apple launched the iPhone on June 29, 2007, a mobile phone that
includes a music player. The sophisticated device, which combines mobile phone,
multimedia player and mobile navigation device, will be priced between $ 499 and
$ 599 depending on their configuration and equipment. The iPad: Apple announced
the arrival of the "post personal computer era" in April 2010 with the launch of the
iPad table, which is about the size of a sheet of paper. [ CITATION his \l 9226 ]

ii. Mission and Vision statement

Mission:

Apple tries to offer the best personal computing experience to students, educators, creative
professionals and consumers around the world through its innovative hardware, software
and Internet solutions. In addition to promoting healthy lifestyles as well as continuing to
train to constantly renew the company.

To be a company of contests and raffles of competitive excellence worldwide, for its high
quality and reliable products.[ CITATION app15 \l 9226 ]

Vision:

As vision; be considered by its customers and strategic allies as a viable option that offers
solutions and services based mainly on innovation, advanced technology, service and
quality that exceeds their expectations, in addition to the creativity they pose when creating
new products distinguishing themselves from the competition, so that its added value is
unique.[ CITATION app15 \l 9226 ]

iii. Corporate Objectives.

Product

Apple offers high quality products at premium prices, obtaining high profit margins.
The objective of this is to focus on the innovation of its products in order to remain
a trend in the market.

Location
Apple is located in many areas worldwide, the idea of this company is to be global
and recognized, the objective of this is the expansion of the company worldwide.
Apple stores get the most sales. Therefore, there must be more stores to increase
sales.

Price

taking into account that apple generates high-end products to its customers, their
prices are also high, they do so in order to have market share and maintain that
standard price.

iv. Actual Corporative strategies.

Product
for innovation in its products a strong area in research and development is needed.

Place
Expansion in markets and more stores selling in more places in the world

Price
Strategically accommodate products at the top of the base market price assessed on the
brand and quality to compensate for the price difference.

Promotion
carry out campaigns and events that announce new products, advertising campaigns
supported by marketing in order to demand the product and make the consumer want to
have it instantly when it is taken to the sales store.

v. Actual Company position in the market share.

Apple has developed a branding strategy in which a clear positioning is sought:


Apple sells design, simplicity, usability and innovation compared to the style of its
great competitor, Microsoft.

All Apple products try to stand out for their usability and cleanliness. This is the
axis and the key to understanding all your Marketing actions and all your forms of
communication: your website stands out for a clear and clean design; The format of
the icons of their own applications clearly evoke their function and are easily
identifiable and memorable; Even its classic Get a Mac ads or the tutorials of its
programs are surrounded by that aura of cleanliness and simplicity.

Direct communication, face to face, with customers through Apple Stores, is another
of the strategies that Apple carefully takes care of: ample spaces, in which the
consumer can move to their liking, clean, with a current and minimalist design,
without complications, where the consumer can use and test the different products:
computers, iPhone, iPod, etc.

Apple has also achieved the most difficult for a brand: among its followers, Apple
fanboys, the feeling of belonging to a community reigns, they are strong advocates
of the brand and they spread it. In this way, according to the Brandjunkie awards,
Apple is the brand that most inspires and with which the public identifies the most.
According to this survey, many respondents indicated that they identify with it
because "think differently," "is a bit freaky, but very elegant."[ CITATION TKB10 \l
9226 ]

v. Products.
Apple Watch
Apple Watch sales have not been as expected by the company, but something that did
succeed was to overcome the competition despite being late. It is not the best gadget that
Apple has created so far, but it could not be out of the top 10, in addition it is considered
the first fashion product of the company.

Macbook Air
One of Steve Jobs's spoiled. In his presentation it was hidden inside a manila envelope, in
this way, Jobs wanted to demonstrate the portability of the computer. The laptop is a
representation of efficiency and portability, which is why it has won many buyers thanks to
its aesthetics, functionality and weight.

OS X
The operating system of Apple computers plays an important role in the history of the
company, because many users prefer to buy a Mac for the operating system rather than
the machine.

App Store
Before the App Store existed there was Cydia, this is a library of unofficial applications for
iPhone that had ‘jailbreak’. From Cydia the App Store was born in 2008, Apple's digital
platform to download applications on iOS devices, over time the App Store has become
the main source of income for many developers
Macintosh (1984)
The Macintosh Apple's most tortuous project became Steve Jobs' obsession during his
first period at Apple. This computer sought to change the perception of people at that time,
because computers should be for all people. It was announced during the 1984 Super
Bowl, with one of the most epic commercials in history.

Ipad
The iPad was the next step after the launch of the iPhone in 2007. Originally the iPad was
the project on which the iPhone was based, since at the time it was more important to
launch a smartphone. Despite being about to turn 6, the iPad has failed to find a massive
market in terms of sales, at least with the expectations that Steve Jobs had.

Apple II
It all started here: it was the first computer produced in series by Apple. From this
computer, the Cupertino managed to position themselves as one of the most important
companies of the time, thanks to the innovation with which this device was presented. It
was Apple's main source of income for a long time.

iPod
The iPod is the second hit of Steve Jobs during his return to Apple. This device became
one of the main innovations of the time. During his presentation, Steve Jobs was hiding
the device in his pocket, this was to prove its portability and generated a revolution in the
music industry. Initially, the device only had compatibility with Apple computers, until finally
the company launched a version of iTunes for Windows supporting the product for users
who did not have Mac.

Imac
The iMac is the improved version of the original Macintosh (1984) was the first project
Steve Jobs worked on when he returned to Apple. This computer achieved what Steve
Jobs wanted from the beginning: to be an easy-to-use, portable, visually pleasing and
efficient function. With this computer he started the ‘death’ of the floppy disk.

iPhone
The iPhone is the most important device in Apple's history. This device has become a cult
product for fans of the company, which every year make endless lines to have it in their
hands on launch day. On January 27, 2015 Apple managed to sell 74.4 million iPhone
units, achieving the most successful fiscal quarter in the history of mankind. Since its
launch in 2007, the iPhone has not disappointed, at least in sales, for many is the memory
of Steve Ballmer, then CEO of Microsoft, mocking the price of the device.[ CITATION
ENT19 \l 9226 ]
vi. Distribution and Salesforce.

Apple's business model takes advantage of both direct and indirect channels. Apple sells its
products directly through its Apple Stores. This allows us to offer a high quality shopping
experience for your products that emphasize service and education. That is why Apple
continues to expand its stores worldwide. However, Apple has full control over the
customer experience and control over a distribution strategy requires massive resources.
viii.Communication.
Apple's communication team knows how to function in social networks. One of the best
known campaigns of this brand was in September 2015; with the presentation of the then
iPhone 6S and 6SPlus, the iPad Pro and the new Apple TV. By the time the new iPhone
came on the scene, they were already circulating through the media accompanied by their
motto: "The only thing that has changed is everything." This claim traveled at the speed of
light through all social media from the moment it came out of the mouth of Tim Cook
(current president). Meanwhile, Apple emphasized it in its press release and website.

When he announced the iPad Pro, they released the following message: «the most
important news about the iPad from the iPad». Once again, they obtained the effect called
result; The viewers have circulated the message all over the USSR. With the introduction of
the new Apple TV, you could not expect less. Cook the presentation with the phrase: "Be
the future of television is in the applications." This statement was cited in more than 35
thousand articles and entries about the product.

This example shows us the great expansion that the media offers us if the strategy is well
done.[ CITATION Can18 \l 9226 ]

ix. Competitive advantages.

The main differentiating value of Apple materializes in its products, in the power that they
have created around their own brand, this is today their main competitive advantage.
Innovation is its main distinguishing feature. The company has tried to detect unmet needs
and niches in the technology market and to anticipate the consumer, being pioneers in the
launch of various electronic devices. In this way, these products and the Apple brand are
associated as the precursors for the consumer. As for the originality, it can be seen in the
peculiar design of the company's hardware, and in its own particular operating system.
[ CITATION Gui15 \l 9226 ]

b) SWOT
Swot analysis is an strategic technique used by every company or organization to
define what are their strengths and weaknesses, and at the same time to identify
their opportunities or the threats they face. The swot analysis allows us to uncover
external opportunities by understanding our strengths as a company and to be able
to eliminate threats by identifying our weaknesses, this way we can analyze both
internal and external factors that affect us.

Strengths
-Innovation Weaknessses
-Brand strength Opportunities
-Incompatibility Threats
-Leadership -Few products -New products
position -Costumer development -Rising competition
-Design and expectations -Upgradeable -Lower price
technology -Higher prices softwares competitors
-Distribution -Higher demand
-Quality-Price -Lack of marketing
relationship

i) STRENGTHS
One of Apple´s key to success has been always looking to cover almost
everything the consumer desires- This is why they´ve launched hit after hit through
the years such as Macbook, then the Ipod, later the Iphone, followed by the
innovative product line they have, turning them into the most innovative company
in software there is. They have managed to create expectation for costumers, where
every one of them is always hoping to see the next product.
On the other hand, Apple is one of the most reliable company when it comes to
personalized advanced computers and smart technology devices being the leading
technology company with the highest revenues, the second biggest smartphone
producer, being as to 2016 the number 1 valued company worldwide, the leadership
position and brand strength Apple has, stablish them as the highest and most desired
brand by users, leaving product doubts behind.
Also, Apple uses a MacOs software, known for its efficiency that offers costumers
softness, easy management and elegance being the perfect combination for the
ultimate performance. Although Apple prices are high, they are well known for
quality-price relationship. Clients are willing to pay higher prices for innovation,
high technology, pleasant design and guaranty that it is a good product.
Last, one of apple´s biggest strength is their distribution channels. They own 470
stores all over 17 countries, beside their virtual platform making it very easy for
everyone to buy one of their products.

ii) WEAKNESSES
But not everything are strengths. Apple also have many weaknesses, being
the first, the incompability with other company software/accessories. Therefore,
they force the costumer to once they enter the Apple world, continue only with it.
This makes a huge impact when the clients decide to enter the Apple world, since as
we´ve already stablished, this company have high prices, that although people are
willing to buy quality, they are now forced to buy expensive accessories also, not
only the product itself, such as earphones, chargers, etc. Apple products are priced
for middle and high-income consumers. Low-Income consumers can’t simply afford
Apple products.
On the other side, expectation from the costumers is not only a strength but a
weakness as much. Apple has managed to get the costumers used to see innovative
products all the time and is not always easy to fulfill costumer´s desires, therefore
they might disappoint a certain part of their clientele, forcing them to try new
companies.
Also, Apple has created a solid ground based in their loyal consumers, so they don´t
have the drive to attract new customers, therefore they feel no motivation into
directing funds to marketing strategies. People hear nothing from Apple except if
they release a new product.

iii) OPPORTUNITIES
Being Apple the leader in innovation, they have all the possibilities to step
into a new sector, and the creation of new products, which might also be a great
strategy for the company given their dependency on a few products. Apple released
an interview we´re they revealed the possible release of the Apple Car by 2020.
Given how many Apple competitors have expanded their sectors, we expect for
Apple to do the same, and there is no doubt it would succeed. Such as the Iwatch
that with no more than three years in the market it already owns 50% of the
smartwatch market.
Plus, given the fact this is a technology company, software upgrade is always a
possibility to innovate and increase sells.

iv) THREATS
Smatphone competition is one of the threats Apple must be ready to face.
Actually, the most used software used worldwide is Android, being Google´s (2 nd
most valued brand), is the software every possible competitor wanting to penetrate
this market is using, leaving MacOs behind. And this not only goes directed to
smartphones but to laptops as well. And added to this, Android is getting better each
day, offering lower prices and also high quality, making the costumers doubt if they
should buy Apple products.

Bibliografía
Alegre, G. (2015). Apple inc y su ventaja competitiva. Obtenido de
https://www.guillermoalegre.es/apple-inc-y-su-ventaja-competitiva/
appleesicmalaga. (9 de abril de 2015). Obtenido de
https://appleesicmalaga.wordpress.com/2015/04/09/8/
Digital, C. (2018). Estrategias de mercado de Apple. Obtenido de https://canarias-
digital.com/estrategias-de-mercado-de-apple/
ENTER.CO. (2019). Obtenido de https://www.enter.co/chips-bits/gadgets/los-10-
productos-mas-importantes-en-la-historia-de-apple/
historia de apple computer, Inc. (s.f.). Obtenido de
http://www.cad.com.mx/historia_de_apple_computer_inc.htm
TKBLOG. (2010). Obtenido de http://blog.toolkom.com/2010/03/marcas-el-
posicionamiento-el-caso-de-apple/
MARKETIN91 (2019). Obtenido de: https://www.marketing91.com/swot-analysis-apple/
Business Strategy Hub. Obtenido de: https://bstrategyhub.com/swot-analysis-of-apple-
apple-swot-2018/

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