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Competitive Analysis: Apple Inc.

Competitive Analysis: Apple Inc. Group 2 - 10 AM Emilye Webb Maddie Campbell Christian Todd. Apple Inc. Industry: Electronic Computer Manufacturing Industry Biggest Competitors: Dell Technologies and Intel Corporation. Strengths. Apple Strong brand image High profit margins

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Competitive Analysis: Apple Inc.

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  1. Competitive Analysis: Apple Inc. Group 2 - 10 AM Emilye Webb Maddie Campbell Christian Todd

  2. Apple Inc. Industry: Electronic Computer Manufacturing Industry Biggest Competitors: Dell Technologies and Intel Corporation

  3. Strengths Apple • Strong brand image • High profit margins • Effective rapid innovation processes Dell Technologies • Large portfolio • A strong customer foundation • Unique customization options Intel Corporations • Brand recognition • Constant innovation

  4. Weaknesses Apple • Limited distribution network • High selling prices • Dependence of sales on high-end market segments Dell Technologies • Offshore customer support • Low spending on research and development Intel Corporations • Decreasing profit • No diverse products

  5. Opportunities Apple • Expansion of distribution network • Higher sales volumes based on rising demand • Development of new product lines Dell Technologies • More diversity in their products • Branch out and be involved in more than hardware Intel Corporations • Potential to go into smartphones, drones, and automatic cars

  6. Threats Apple • Aggressive competition • Imitation • Rising labor costs Dell Technologies • Booming smartphone and tablet industry Intel Corporations • Competition

  7. Present Strategy • Based on total assets and revenue, Apple Inc. is the largest information technology company in the world. • Apple’s business strategy is based on its capability to create and develop unique hardware and operating systems that are constantly being innovated to provide consumers with both products and solutions. • premium pricing and product differentiation

  8. Present Strategy • Apple created a business acquisition of Beats Music, LLC., and by doing this, the two companies created a music streaming service • Vertical integration • Apple Inc.’s competitive advantage comes from staying one step ahead of competing companies.

  9. Present Strategy • Apple’s service revenues, the app store, icloud, and apple music, have created a new level of revenue for the company. • Being a huge factor of their business strategy, service revenues have constantly increased within the past several years.

  10. Present Strategy- Financial • 2018: reached its highest annual revenue ever accomplished generating an impressive 265.6 billion dollars. • iPhone sales: 82 percent of the company’s annual revenue of 2018, generating about 218 billion dollars. • Apple Inc. still leads the smartphone industry in sales

  11. Present Strategy - Marketing • “one of the most elegant advertisers” in the IT world (marketing91). • To this day, Apple Inc. continues to uses Steve Jobs’ marketing philosophy. • Marketing strategy: based on the idea that the customer does not know what he/she wants • Goal is to make customers want Apple instead of finding the wants/needs of customers

  12. Present Strategy-HR • Upper management of Apple has highlighted the importance of both innovation and creativity. • Bases success on strength of employees • Hire skilled professionals in hopes of learning from them and their talents/creativity • Has become the most innovative firm in the consumer electronics industry due to its human resources approach

  13. Competitive Strength - Brand Strength • #1 in the world 8 years in a row • Brand strength currently worth $182.8 billion in 2019 • 8% higher than in 2018 Intel brand strength = $34.1 billion Dell brand strength = $3.5 billion

  14. Competitive Strength - Brand Strength • Exceptional customer service • Reliable products • Sleek designs • Features • ICloud • IMessaging • User friendly interface (IOS) Customers don’t buy Apple products such as the Apple Iphone because it has the a Liquid Retina HD display or because it has 4GB of ram, they simply buy it because it is an Apple.

  15. Cost Position • High cost position compared to others in the market • Offering a small number of products. • Focusing on the high end products • Give priority to profits over market share • Create a halo effect that makes people starve for new Apple products • Unique • Ahead of the curve

  16. Strategies For Maintaining High Cost Position • Minimum Advertised Price (MAP) • Prohibits resellers and dealers from advertising their products below a certain minimum price • Wholesale discounts for retailers • Slight savings • Not enough to lower their prices and compete with Apple’s stores

  17. “We never had an objective to sell a low-cost phone. Our primary objective is to sell a great phone and provide a great experience, and we figured out a way to do it at a lower cost.” -Tim Cook

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