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APPLE Inc.

APPLE Inc. Meghan Driscoll Cassie Rosano Kristen Salierno. Steve Jobs Discusses Apple. http://www.youtube.com/watch?v=qjxacrSCYRE. Overview. In 1976: Founders Steven Wozniak and Steve Jobs First mass produced personal computer, called the Apple I

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APPLE Inc.

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  1. APPLE Inc. Meghan Driscoll Cassie Rosano Kristen Salierno

  2. Steve Jobs Discusses Apple • http://www.youtube.com/watch?v=qjxacrSCYRE

  3. Overview • In 1976: Founders Steven Wozniak and Steve Jobs • First mass produced personal computer, called the Apple I • iMac, iBook, the iPod, iTunes, and the iPhone • 2002, $65 million.

  4. iMac, iBook, the iPod, iTunes, and the iPhone • 2002, $65 million. • Gil Amelio of National Semiconductor 1996 • transformed the company’s structure by dividing it into 7 divisions • $33 million in the second quarter of ’96, generating $30 million in profit by the third quarter.

  5. Steve Jobs • 1985- Jobs returns to Apple Inc. functioning as the CEO, and in 2000 was recognized as permanent CEO of the company. • Alliance with Microsoft • 2001-Online Store, Mac Store • 2003 – Itunes • 2004, the company was able to relieve itself of all long term liabilities, paying of $300 million in debt. • 2007- 51.6 million Ipods • By 2007- $24 billion and sales and in 2008 received gold awards from the Industrial Designers Society of America for the iPhone, MacBook Air, and the Apple Wireless Keyboard.

  6. Issues • 1985 - Company’s first quarterly loss forcing the company to lay off one fifth of their employees. • Legal battle with Microsoft that resulted in the company’s loss of exclusive rights to their graphical user interface. • 1995- Apple dealt with a huge financial issue estimated at $1 billion • due to back orders and insufficient parts to build the Mac OS. • 2008- Economic crisis “Back to School Spending”-key revenue sources. Job’s health

  7. Strategy • Core Competencies: • strategic effort for design • Their products tend to exceed comparable brand’s products in overall quality, sound quality, and reliability. • Customer Satisfaction • “Halo Effect” • Mac store locations, as well as their online store

  8. SWOT

  9. PC Industry Competition • Dell – “low-cost” provider • Dominant, controlling 31.9% • Base price of product off features • HP – 2nd leader with coverage of 25.3% • Also base price on features • Acer – manufacturer • Lost 3rd ranking to Apple • Was first to design a mass-produced computer

  10. MP3 Industry Competition • Creative – revolutionize pc audio • Bought user rights to Apple’s Zen • ScanDisk – worldwide supplier of flash memory systems • Microsoft – entered late • Produced Zune to directly compete with iPod

  11. Industry Analysis PC Industry • 5 key competitors • Control 79% of domestic • Control 55.2% of international • Growth expected to reach double digits in regards to units shipped.

  12. Industry Analysis MP3 Industry • Industry made up of 100 manufacturers • Apple controls 72% • 62% lead over 2nd leader, ScanDisk

  13. KSF • Company values clearly enforced • Vibrant “ecosystem” • Security of Intellectual Property • Versatility

  14. Financial Performance

  15. Recommendations • International expansion • Customer service and satisfaction • Expand on interconnectivity • Broaden market strategy

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