Apple Case Study

Executive Summary

Apple Computers has maintained an image synonymous with stunning modern design, appealing usability and durable functionality. As the present trend is shifting away from the dated look of technology of the past, and moves towards a sleek fashionable design, the consumer is becoming more tech savvy and more conscious of their physical appearance. As a result, Apple’s appeal has grown greater in recent years. A leader is design and functionality, Apple can take advantage of the consumer’s desire to be stylish while marketing a new line of trendy products that appeal to the market’s shift towards healthy living as well. In an attempt to combine the sleek elegant design of their current products and blending it with the trendy look of Lululemon’s stylish fitness clothing, Apple, has created a garments line that will appeal to the Stylish and active consumer while merging it with the functional design of fitness devices. Since the bridge between fitness and technology has already been built, Apple can expand on both to integrate them into one product. Using a sophisticated look and incorporating health monitoring systems into a hip and modern concept sure to please tomorrow’s consumer.

Company Description

Apple inc. (formally Apple Computers Inc.) Is a Manufacturer, Designer and Seller of various consumer electronics including personal computers, media devices (including the iPod, iPhone and many other devices), accessories and peripherals as well as the sales of media (including music, video and many other entertainment mediums) and software to support the previously listed items, including operating systems, music and video applications and various other resources. It also offers connectivity and wireless services. The company has (as of September 2007) 197 retail stores in the United States, Canada, Japan, Italy and the United Kingdom. In December 2007, Apple posted revenue of 9.6 billion. Apple shipped 2.3 million Macintosh computers and 22.1 million iPods in their first quarter. In their past quarter Apple reported the highest revenue and earnings in their history.

Strategic Focus and Plan Mission/Vision

“Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market with its revolutionary iPhone.”

Goals

Financial

It is suggested that Apple Inc. increase sales from 9.6 billion in 2008 to 11.2 billion by 2010.

Non-financial

to create a new combined brand loyalty using the exsiting apple and lululemon markets as the base market holdings, thus increasing the new products profit adding 30% to the current profit over the next 2 years.

Competitive Advantage

Apple’s advantage in creating this new product, is based on its already present loyal market, by currently offering high quality simple and intuitive design and make it accessible to the average consumer, without compromising its elegant and attractive exterior. Their high quality products are of the utmost calibre and are extremely reliable pertaining to security and durability. Apple’s products are already a status symbol and have an association with the “cool”, and their new products will continue to uphold this representation.

Situation Analysis

Internal Analysis

Management:

Steve Jobs is the co-founder and present CEO of Apple Inc. In 1984 he resigned from the company due to tension between Jobs and then CEO John Sculley (formally of Pepsi). In 1997 he returned launching Apple Inc. into a widely recognized and successful company on the world stage. Jobs, whose resume includes such achievements as co-founding Oscar winning Pixar Animation Studios was officially, obtained the title of CEO in 2000. With his creative and innovative ideas Jobs has proven his strength as head of Apple Inc.

Offerings:

Apple is already known for its high quality products and elegant designs. Starting with the Apple II they have a long list of revolutionary and lucrative products and services as well as a powerful and loyal consumer base. That means that Apple customers stay Apple customers and are also the company’s biggest advocates. With the launch of the iTunes Music Store, Apple held 82% of all legally down loaded music in the U.S. The can be regarded as a tremendous success.

Their intuitive and minimalist graphic user interface, while acclaimed by many, it can be seen by some as too simple and offering less control in comparison to their competition, Windows.

Often in the consumer world a higher price will reflect a quality as well as been a status symbol. In contrast many consumers cannot afford or are unwilling to pay the high prices Apple set for their products.

However several of Apple’s products, including the Apple III or Lisa, have had some major drawbacks. For example, the first generation iPod Nanos had faulty screens.

Marketing

Since their debut with the Apple II Apple ad campaign have been very avant-garde. Their ad “1984” for the Apple II was considered to be revolutionary and misunderstood. This ad was a satirical attempt to compare George Orwell’s novel 1984 to the hope Apple offered with there catch phrase “Apple will introduce Macintosh and you’ll see why 1984 wont be like вЂ?1984’.”

From that ad on they have managed to peek people interests with clever adverts. For example, their popular Mac and PC television commercials which were so well received that they have be come viral videos, in the sense that people will seek them out and share with their friends. These videos are streams on Apple site, Youtube and virtually any other streaming media resource. In the campaign Apple computers are personified but a hip, down-to-earth, young