Apple Marketing Report

Strategic Management
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EXECUTIVE SUMMARY
Apple Inc. is a technology company, which designs, produces and sells goods of
the Computer, Music and Mobile-phone Industries. It is differentiated by its brand-
perception and identification. Over the last couple of years, Apple has become a cult-
brand, thanking its iLife, iTunes, QuickTime and iMac lines. Apple Inc.s short-term
goals is currently increasing the sales of the just launched iPad (the most innovative
web=browser in market). In the long-run, Apple aims for the top of the market, becoming
the number one leader.
Apple Inc. has incorporated numerous features that are unique and well known in
the market today. We consider that there are several Apple products with several
appealing features such as: iMac, iPod, iPhone and iPad. These products represent a
revolutionary era for the development of Apple. By placing such products in the market,
Apple Inc. has attracted a lot of customers in one way or another. Highly advanced
technology, simplicity and design, and the sense of luxury are the main features
integrated in these products. Moreover the comfort and convenience that these products
provide are very crucial.
Think Different
One of the main reasons which inspired any one to choose Apple products is its
unique, simple and luxurious image that Apple has created in the market over the years.
Think differently which is an inspiring motto, made us believe that simplicity and
creativity combined with luxury can lead to a successful and profitable company, such as
Apple. Another component that we found to be challenging for us was to understand
Apples goals, objectives and their secret of being successful. A very important fact about
Apple products today is that these products are globally spread. This has created among
us the idea that Apple products are no longer luxuries but real necessities due to the
technological developments. Moreover, what has motivated us most to select Apple Inc.,
is the way we relate ourselves with its products. Each of us being an Apple consumer has
build trustworthiness relationship with the products that this company offers. Owning an
iPod or iPhone today definitely will make your life easy and simple.

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Introduction
When we think of innovative computer and cellular phone technology that is
constantly ever-changing, worldwide success, and brand and customer loyalty like no
other, what company usually comes to mind? Apple Inc. Now called Apple Inc., the
company began as a manufacturer of personal computers and it was first called Apple
Computer, Inc. The company we now know as Apple was not as internationally
successful as it is today, but after a few bumps in the road and under the leadership of its
founder and former CEO Steve J obs the company was back on its feet. Steve J obs
managed to rebuild the company and Apple began to make its return in 1998 with the
introduction of some of its early hardware products including iMac, iBook, and the
Power Mac G4. The year 2001, however, was a very important year for the company. It
was the year that Apple introduced the iPod line and Apple products started to become
increasingly popular worldwide. From that year forward, the company not only changed
people's perception of music through the introduction of the iTunes music store but also
changed the way people communicate with one another since the release of the I-Phone.
The release of the I-Pad has helped consumers stay organized and entertained while also
offering mobility. Furthermore, without Mac desktops and laptops there would be no
"mac users" and media professionals wouldn't have the option of using a computer that is
more reliable than its competitors.
Aside from being a top technology company worldwide, Apple has also paired up
with the (RED) charity to enhance its marketing strategy. The goal of this collaboration
with (RED) is "to fight for an AIDS-free generation by 2015". In order to do this, Apple
has created red products and every time a consumer purchases one of the red products,
the profits go to AIDS programs in Africa. The charity has collected more than $50
million from Apple. In addition to using cause marketing, the company has shown
considerable interest for its effect on the environment, specifically its environmental
footprint. One of Apple's main goals is to create environmentally friendly products.
Apple aims to do this by designing products that require less material and not only lessen
carbon emissions but eliminate common toxic substances that are used in manufacturing
products. Additionally, Apple also reduces greenhouse gas emissions by running several
of their data centers on 100% renewable energy.
Apple's aim has been to provide consumers, businesses, students, and educational
institutions with the best personal computing experience. Not only has Apple Inc.
redefined how consumers use computers at home, school, and work but has also given
consumers a whole new perspective on the mobile phone and music industry all while
exemplifying social responsibility and environmental sustainability for its stakeholders.
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Apple's worldwide success is evidence that the company has succeeded in accomplishing
its mission in being one of the world's top innovative companies.
Historical Background of company
Apple is probably the most well-known company when it comes to the making of
technology that is cutting edge and something that everyone wants to have in their
possession. Apple Computer first came to be a company in 1976 when Steve J obs and
Steve Wozniak when they released the Apple I and was located in Cupertino, California.
These two young men dropped out of college, and were often viewed as outcasts in most
of the places that they were at, including schools, which could have been the reason that
they dropped out of college. As most people have heard, Apple really started in the
basement or garage, depending on who the person talks to rather than at some expensive
business location. Which is perhaps the reason so many people were first intrigued by the
brand and could be the reason that the computers were such a success, they were created
by guys that knew what they wanted and passed this on to the rest of the world. And what
they wanted was something that other people wanted as well.
Until the nineties, the company produced some of the best personal computers that
could be found on the market, including the Apple brand, Macintosh and Power Mac
computers. However, they saw a downfall in their sales after nineties as the competition
began to increase and the company was then trying to figure out what to do differently to
keep their company running. The year 2001 was a banner year for the company since this
was the year that they introduced the Apple iPod, which is one of those devices that have
many other companies copying, though none can be as good as the original.
The first order that the two built is somewhat of an amazing feat that was the
beginning of the company. After being introduced to one another, they made a working
model of their computer and took it to a nearby computer store in order to try to make it
onto the market. The owners of the store ordered fifty of the machine that was to be fully
assembled and ready to go, which seemed to be an impossible feat. However, they did
succeed as they bartered and promised many IOU's to companies to get the parts that they
would need since they had no money to buy these on their own. They finished all fifty
machines in thirty days and took them to the store to sell, which they received around
five hundred dollars a piece for these machines. They were a hit with those that came to
the store.
The company continued to stay on top of their game and improve upon their
technology; they produced such things as the iMac, which really did help to propel the
company in the eyes of many consumers. Now, Apple is a brand that most people
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automatically know all over the world. They are known for their innovative technology
that is usually the first of its kind on the market and something that all people love to own
and make their lives a bit easier with the advancements that they gave people.
Evolution Stages of Company
Apple Inc., Formerly Apple Computers Inc, is a multinational corporation that
creates consumer electronics, computer software and commercial services.
Apple was established in Cupertino, California on April 1, 1976 and incorporated
in J anuary 3, 1977.
The companys best-known hardware product includes Macintosh computers, the
iPod, the I-Phone and the I-Pad.
For reasons as various as its philosophy of comprehensive aesthetic design to its
distinctive advertising campaign. Apple has established a unique reputation in the
consumer electronic industry.
This includes a customer base that is devoted to the company and its brand,
particularly in the United States.
Fortune magazine named Apple the most admired company in the United States.

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Purpose of Report
The purpose of this report is to give an understanding about the strategic thinking
of Apple Inc. that how this company made renowned place globally in the field of
technology especially in IT sector and how this company keeps identical features than
other giants in this sector through out the world. This report contains:
Vision
Mission
Strategies formulated by Company
How they implement strategies
Analysis of performing strategies
Outcome evaluation after implementing strategies
The purpose of this report which is simply to understand the strategies applied in
this company and how to analyze and create a massive stake in the market in the presence
of different business giants.

How ever the beautiful is the strategy, you should occasionally look at the results.
-Winston Churchill

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VISION STATEMENT
It is especially important for managers and executives in any organization to agree
on the basic vision that the firm strives to achieve in the long term. A vision statement
should answer the basic question,
What do we want to become?
A clear vision provides the foundation for developing a comprehensive mission
statement.
Vision Statement of APPLE
We believe that we are on the face of the earth to make great products
and thats not changing. We are constantly focusing on innovating.

Explanation of APPLEs Vision
Apple lives this vision through the technologies it develops for consumers and
corporations. It strives to make its customers masters of the products they have bought.
Apple doesn't simply make a statement. It lives it by ensuring that its employees
understand the vision and strive to reach it. It has put systems in place to enable smooth
customer interaction.
It has put objectives in place to continuously move forward; implemented
strategies to fulfill these objectives; and ensured that the right marketing, financial and
operational structures are in place to apply the strategies.
MISSION STATEMENT
What is our business? is synonymous with asking the question What is our
mission? An enduring statement of purpose that distinguishes one organization from
other similar enterprises, the mission statement is a declaration of an organizations
reason for being. It answers the pivotal question What our business? A clear
mission statement is essential for effectively establishing objectives and formulating
strategies.
Mission Statement of APPLE
Apple designs Macs, the best personal computers in the world, along with OS X,
iLife, iWork, and professional software. Apple leads the digital music revolution with its
iPods and iTunes online store. Apple reinvented the mobile phone with its revolutionary
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iPhone and App Store, and has recently introduced its magical iPad which is defining the
future of mobile media and computing devices.
Mission Statement Analysis for APPLE Inc.
Apple is mainly focusing at the following components of mission statement:
Apple may not be important to elaborate on its concern for its employees or
to thoroughly outline its customers and targeted market. Apple is a trendy
technology company which prides its self in providing easy to use
electronics and efficiently run software systems. Because of this it is most
important for Apples mission statement to focus on components like
company philosophy, self-concepts, and current technologies. These
aspects of Apple are what make it popular and successful today.
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 desktop and notebook computers, OS X operating system, and
iLife and professional applications. Apple is also spearheading the digital
music revolution with its iPod portable music players and iTunes online
music store.
Apples mission statement only includes descriptions of products and
services and past and present technologies.
The mission statement from Apple is somewhat unconventional. Its more
of a brief history rather than a summary of the corporations overall purpose.
It does however paint a picture of where Apple came from, how far it has
come, and where its continuing to go. But for such a popular company it
may be beneficial divulge into points like its self-purpose and their concern
for public image.

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Scope of Apple Inc.
The scope of apple is much diversified according to their services and products.
The apple gives a new and complete different experience to their users which every
person desire to have. Apple offers in:-
Apple medical devices
Apple Laptops
Apple I Phones
Apple Software (IOS, etc)
Apple Id Services
Apple mainframe computer
Apple music system for
o Car
o Home
o Remote control
Home Appliances Like
o TV
o Music System
o Tablets
o DVD player
o Printers
o Small gadgets
Products
Apple offers a complete range of products. Some of the main products are as
follows.

MAC
o MacBook Air: Consumer ultra-thin, ultra-portable notebook,
introduced in 2008.
o MacBook Pro: Professional notebook, introduced in 2006.
o Mac Mini: Consumer sub-desktop computer and server, introduced
in 2005.
o iMac: Consumer all-in one desktop computer, introduced in 1998.
o Mac Pro: Workstation desktop computer, introduced in 2006.

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Apple sells a variety of computer accessories for Macs, including Thunderbolt
Display, Magic Mouse,Magic Trackpad, Wireless Keyboard, Battery Charger, the
AirPort wireless networking products, and Time Capsule.
On October 17, 2013, Apple announced a recall of both the 64GB and 128GB
MacBook Air flash storage drives that are installed in Air systems purchased between
J une 2012 and J une 2013.
iPad:
On J anuary 27, 2010, Apple introduced their much-anticipated
media tablet, the iPad, running a modified version of iOS. It offers multi-
touch interaction with multimedia formats including newspapers,
magazines, ebooks, textbooks, photos, movies, videos of TV shows, music,
word processing documents, spreadsheets, videogames, and most existing
iPhone apps. It also includes a mobile version of Safari for web browsing,
as well as access to the App Store, iTunes Library, iBookstore, contacts,
and notepad. Content is downloadable via Wi-Fi and optional 3G service or
synced through the user's computer. AT&T was initially the sole US
provider of 3G wireless access for the iPad.
On March 2, 2011, Apple introduced the iPad 2, which had a faster
processor and a camera on the front and back. It also added support for
optional 3G service provided by Verizon in addition to the existing offering
by AT&T. However, the availability of the iPad 2 has been limited as a
result of the devastating earthquake and ensuing tsunami in J apan in March
2011.
On March 7, 2012, Apple introduced the third-generation iPad,
marketed as "the new iPad". It added LTE service from AT&T or Verizon,
the upgraded A5X processor, and the Retina display (2048 by 1536
resolution), originally implemented on the iPhone 4 and iPhone 4S. The
dimensions and form factor remained relatively unchanged, with the new
iPad being a fraction thicker and heavier than the previous version, and
minor positioning changes.
On October 23, 2012, Apple's fourth-generation iPad came out,
marketed as the "iPad with Retina display". It added the
upgraded A6Xprocessor and replaced the traditional 30-pin dock connector
with the all-digital Lightning connector.
[176]
The iPad Mini was also
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introduced, with a reduced 7.9-inch display and featuring much of the same
internal specifications as the iPad 2.
On October 22, 2013, Apple introduced the fifth generation iPad
marketed as the 'iPad Air' It added the new 64 bit Apple-A7 processor. The
iPad mini with Retina Display was also introduced, featuring the Apple-A7
processor as well.
Since its launch, iPad users have downloaded three billion apps,
while the total number of App Store downloads is over 25 billion.
iPod
On October 23, 2001, Apple introduced the iPod digital music
player. Several updated models have since been introduced, and the iPod
brand is now the market leader in portable music players by a significant
margin, with more than 350 million units shipped as of September
2012. Apple has partnered with Nike to offer the Nike+iPod Sports Kit,
enabling runners to synchronize and monitor their runs with iTunes and the
Nike+website. Apple currently sells four variants of the iPod.
o iPod Shuffle: Ultra-portable digital audio player, currently available
in a 2 GB model, introduced in 2005.
o iPod Nano: Portable media player, currently available in a 16 GB
model, introduced in 2005. Earlier models featured the
traditional iPod click wheel, though the current generation features
a multi-touch interface and includes an FM radioand a pedometer.
o iPod Touch: Portable media player than runs iOS, currently available
in 32 and 64 GB models, introduced in 2007. The current generation
features the Apple A5 processor, a Retina display, and dual cameras
on the front (1.2 megapixel sensor) and back (5 megapixel iSight),
the latter of which supports HD video recording at 1080p.
o iPod Classic: Portable media player, currently available in a 160 GB
model, first introduced in 2001.
iPhone
At the Macworld Conference & Expo in J anuary 2007, Steve J obs
introduced the long-anticipated
]
iPhone, a convergence of an Internet-
enabled smartphone and iPod. The original iPhone was released on J une 29,
2007 for $499 (4 GB) and $599 (8 GB) with an AT&T contract. On
February 5, 2008, it was updated to have 16 GB of memory, in addition to
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the 8 GB and 4 GB models. It combined a 2.5G quad
band GSM and EDGE cellular phone with features found in handheld
devices, running scaled-down versions of Apple's Mac OS X (dubbed
iPhone OS, later renamed iOS), with various Mac OS X applications such
as Safari and Mail. It also includes web-based and Dashboard apps such
as Google Maps and Weather. The iPhone features a 3.5-inch (89 mm)
touchscreen display, Bluetooth, and Wi-Fi (both "b" and "g").
At Worldwide Developers Conference (WWDC) on J une 9, 2008,
Apple announced the iPhone 3G. It was released on J uly 11, 2008, with a
reduced price of $199 for the 8 GB version, and $299 for the 16 GB
version. This version added support for 3G networking and assisted-
GPS navigation. The flat silver back and large antenna square of the
original model were eliminated in favor of a curved glossy black or white
back. Following customer complaints, the previously-recessed headphone
jack was changed to a flush jack for compatibility with more styles of
headphones. Software capabilities were improved with the release of the
App Store, providing applications for download that were compatible with
the iPhone. On April 24, 2009, the App Store surpassed one billion
downloads. At WWDC on J une 8, 2009, Apple announced the iPhone 3GS.
It provided an incremental update to the device, including faster internal
components, support for faster 3G speeds, video recording capbility, and
voice control.
At WWDC on J une 7, 2010, Apple announced the iPhone 4, which
the company describes as the "biggest leap we've taken" since the original
model. It features an all-new design, a 960x640 display, the Apple
A4 processor also used in the iPad, a gyroscope for enhanced gaming, 5MP
camera with LED flash, front-facing VGA camera and FaceTime video
calling. Shortly after its release, reception issues were discovered by
consumers, due to the stainless steel band around the edge of the device,
which also serves as the phone's cellular signal and Wi-Fi antenna. The
issue was corrected by a "Bumper Case" distributed by Apple for free to all
owners for a few months. In J une 2011, Apple overtook Nokia to become
the world's biggest smartphone maker by volume.
On October 4, 2011, Apple unveiled the iPhone 4S, which was
released in the United States, Canada, Australia, United Kingdom, France,
Germany, and J apan on October 14, 2011, with other countries set to follow
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later in the year. It features the Apple A5 processor, and is the first model
offered by Sprint (joining AT&T and Verizon Wireless as the United States
carriers offering iPhone models). On October 19, 2011, Apple announced
an agreement with C Spire Wireless to sell the iPhone 4S with that carrier
in the near future, marking the first time the iPhone was officially
supported on a regional carrier's network. Another notable feature of the
iPhone 4S was Siri voice assistant technology, which Apple had acquired in
2010, as well as other features, including an updated 8MP camera with new
optics. Apple sold 4 million iPhone 4S phones in the first three days of
availability, making it the most successful launch of any mobile phone to
date.
On September 12, 2012, Apple introduced the sixth-generation
iPhone, the iPhone 5. It added a 4-inch display, 4G LTE connectivity, and
the upgraded Apple A6 chip, among several other improvements. Two
million iPhones were sold in the first twenty-four hours of pre-ordering and
over five million handsets were sold in the first three days of its launch.
A patent filed by the corporation, published in late J uly 2013,
revealed the development of a new iPhone battery system that uses location
data in combination with data on the user's habits to moderate the handsets
power settings accordingly. Apple is working towards a power management
system that will provide features such as the ability of the iPhone to
estimate the length of time a user will be away from a power source to
modify energy usage and a detection function that adjusts the charging rate
to best suit the type of power source that is being used.
Media reports emerged in early August that announced that Apple
would be launching its next iPhone model on September 10, 2013, but
further details were not available. Brian Barrett, Managing Editor of
the Gizmodo publication, speculated that either an upgraded version of the
iPhone 5 or a budget version will be released.
In March 2012, one of the largest cellular phone companies in the
United States, T-Mobile, announced that it would begin selling the iPhone
5 on April 12 of that year. This news came as a surprise to some but many
had predicted that it was approaching. Before the iPhone became available
for direct purchase, ready made for T-Mobile's service, millions of their
users used unlocked devices. The announcement of the iPhone came with
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the announcement that the company would begin implementing 4G cellular
service for its users, making it even more compatible with the 4G iPhone 5.
Apple announced on September 1, 2013 that its iPhone trade-on
program would be implemented at all of its 250 specialty stored in the US.
For the program to become available, customers must have a valid contract,
and must purchase a new phone, rather than simply receive credit to be
used at a later date. A significant part of the program's goal is to increase
the number of customers who purchase iPhones at Apple stores rather than
carrier stores.
Upon the launch of the iPhone 5S and iPhone 5C, Apple sold over
nine million devices in the first three days of its launch, which sets a new
record for first weekend smartphone sales. This was the first time that
Apple has simultaneously launched two models and the inclusion of China
in the list of markets contributed to the record sales result.
On October 15, 2013, U.S. Cellular, the United States fifth largest
cell phone provider, announced that it would in fact begin to carry the
iPhone. It is the last of the five major carriers,
including AT&T, Verizon, Sprint, and T-Mobile to acquire the phone. The
phone went on sale on November 8 at U.S. Cellular stores around the
country.
Apple TV
At the 2007 Macworld conference, J obs demonstrated the Apple TV,
(previously known as the iTV), a set-top video device intended to bridge
the sale of content from iTunes with high-definition televisions. The device
links up to a user's TV and syncs, either via Wi-Fi or a wired network, with
one computer's iTunes library and streams from an additional four. The
Apple TV originally incorporated a 40 GB hard drive for storage, includes
outputs for HDMI and component video, and plays video at a maximum
resolution of 720p. On May 31, 2007 a 160 GB drive was released
alongside the existing 40 GB mode and on J anuary 15, 2008 software
update was released, which allowed media to be purchased directly from
the Apple TV.
In September 2009, Apple discontinued the original 40 GB Apple
TV and now continues to produce and sell the 160 GB Apple TV. On
September 1, 2010, alongside the release of the new line of iPod devices for
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the year, Apple released a completely redesigned Apple TV. The new
device is 1/4 the size, runs quieter, and replaces the need for a hard drive
with media streaming from any iTunes library on the network along with 8
GB of flash memory to cache media downloaded. Apple with the Apple TV
has added another device to its portfolio that runs on its A4 processor along
with the iPad and the iPhone. The memory included in the device is the half
of the iPhone 4 at 256 MB; the same as the iPad, iPhone 3GS, third- and
fourth-generation iPod Touch.
It has HDMI out as the only video out source. Features include
access to the iTunes Store to rent movies and TV shows (purchasing has
been discontinued), streaming from internet video sources, including
YouTube and Netflix, and media streaming from an iTunes library. Apple
also reduced the price of the device to $99. A third generation of the device
was introduced at an Apple event on March 7, 2012, with new features such
as higher resolution (1080p) and a new user interface.
Softwares
Apple develops its own operating system to run on Macs, OS X, the
latest version being OS X Mavericks (version 10.9). Apple also
independently develops computer software titles for its OS X operating
system. Much of the software Apple develops is bundled with its
computers. An example of this is the consumer-oriented iLife software
package that bundles iMovie, iPhoto and GarageBand. For presentation,
page layout and word processing, iWork is available, which
includes Keynote, Pages, and Numbers. iTunes, QuickTime media player,
andSoftware Update are available as free downloads for both OS X
and Windows.
Apple also offers a range of professional software titles. Their range
of server software includes the operating system OS X Server; Apple
Remote Desktop, a remote systems management application; and Xsan,
a Storage Area Network file system. For the professional creative market,
there is Aperture for professional RAW-format photo processing; Final Cut
Pro, a video production suite; Logic Pro, a comprehensive music toolkit;
and Motion, an advanced effects composition program.
Apple also offers online services with iCloud, which provides cloud
storage and syncing for a wide range of data, including email, contacts,
calendars, photos and documents. It also offers iOS device backup, and is
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able to integrate directly with third-party apps for even greater
functionality. iCloud is the fourth generation of online services provided by
Apple, and was preceded by MobileMe, .Mac and iTools, all which met
varying degrees of success.
MARKET SCAN
Competition
Apple creates computers, phones, tablets, music players, operating systems,
television set- top boxes, lifestyle, productivity software, professional media software,
wireless routers, and also sells movies and music. Products created by Apple are intuitive
and easy to understand and learn. Apple offers great customer service and in- store
service experiences. Further, Apple stays at least two years ahead of its competitors,
having geniuses in design, software, and retail; Apple has the cash to invent components,
and manufacturing processes.
Apples direct competitors are Google, Samsung, HP, and RIMM. Apple by
forging the modern Smartphone layout first and patenting its screen-centric design, Apple
now finds itself in the position of being able to force competitors to tread warily in their
layout of Smartphone elements. Apple has perfected the precision and responsiveness of
screens, the iPhone showed the potential of new screens by increasing their size, given
the screens a hard glass surface that responded to light finger gestures. Majority of other
technology companies have fewer design patents than Apple, design has become an
advantage in consumer choice as weak design patents will have to catch up. Competitors
have fewer design patents because they are less driven by design, unlike Apple much of
the industry has produced predictable standard computer boxes, laptops, and phones and
make a minimal investment in design. Apple ignored the competition and remained
convinced that the original iPhones 3.5 inch screen was sufficient and stuck with it,
however when Apple finally embrace a larger screen size with the iPhone 5, it did not
follow directly in its competitors footsteps, rather it implemented the new phones larger
screen in a way that clung to the original iPhones design goal of being usable with one
hand. When Apple unveiled the iPad, competitors released knockoff tablets with different
screen sizes. Apple responded to the iPads competitors by releasing the iPad mini which
is $329, while the Kindle Fire costs $159 and the Google Nexus 7 starts at $199.
Target Market
Apples products and software target numerous markets as each offers an
assortment of features specifically catering to the needs of each individual. Apple targets
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users who are typically between ages 14 and 55 plus. Apple's computers all target home
users, schools, and media and design professionals. The newest iMac computer that will
be released in November gives home users the option of conveniently having an all-in-
one desktop with faster performance capabilities and a new storage option called fusion
drive. This form of storage helps to manage files in order to expand performance. iMac
computers are aimed towards education institutions. Apple offers iMacs to schools at a
discounted price.
Graphic designers, television, movie professionals are also a target of Mac
computers. Graphic designers tend to use Mac computers for several reasons: Mac OSX
is open source friendly, Mac computers typically come with built in tools made with
designers in mind, and Apple builds their computers with all media professional
consumers in mind. Even though you can't really customize Mac OSX like you can in
windows, Apple picks the right software making the computers easier to use. Programs
built in Mac computers are targeted directly at television and movie professionals called
Final Cut Pro. The program is used mainly for video and audio editing. Apple's iPhoto
software is available on Mac computers which lets those who are photo enthusiasts
browse, edit and share photos.
College, High School students and faculty and staff of K-12 and higher education
institutions are another group targeted by Apple's Education store. College, High School
students and faculty can receive discounts if the Apple devices are purchased through the
institution. College students are also a major target because universities are now working
with wireless carriers in order to make these phones more accessible and affordable for
students. Small to large sized businesses are now providing their employees with
iPhones in order for them to be mobile and stay in contact with the company. The
iPhone attracts teenagers, high school students and college students by its sleek design
and availability of applications. Their peers all have the advantage of being owners of the
device so having one is a way of "fitting in" with the crowd. The phone also has a stylish
design and it targets those who want to make it a fashion statement. Loyal iPhone users
are known for staying up to date with the latest technology so the device also targets
those who are tech-savvy.
Through the integration of iTunes in Mac computers, iPod devices, iPad devices,
iPhone, and Apple TV, Apple targets music enthusiasts. The iPod line in general targets
music, video, and photo enthusiasts. Consumers can store their collection of music and
photos into certain iPod devices. In addition, depending on the amount of storage
available on the specific iPod, the device can store a certain number of hours of video.
The iPod shuffle targets consumers on a tight budget because of its affordable cost. The
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iPod Nano specifically targets athletes because of its Nike plus integration. Athletes are
now able to track the distance they have ran and can use wireless headphones when
working out. Older generations are now being targeted more by Apple because the
devices are not difficult to use. Students can purchase keyboard docks for their iPad
devices conveniently in order to take notes during class. Instead of having to carry a
heavy laptop around, travelers can view movies on iPad devices during their flights.
Consumers who are avid users of iTunes, Netflix, Hulu Plus, and YouTube are the main
target for the Apple TV device. The Apple TV device allows users to seamlessly connect
to these streaming services. Consumers must own a widescreen HDTV to use the Apple
TV device.
Segmentation of target market
Apple incorporates the use of geographic, demographic, psychographic, and
product related-segmentation into its marketing strategies.
Geographical segmentation
Geographically, Apple's retail stores are located in highly populated
cities around the world. Specifically, retail stores are located in large
shopping centers and highly populated streets in these major cities.
Demographic Segmentation
Apple uses demographic segmentation widely when marketing its
various products. Apple devices are most commonly segmented by
consumer and business income levels and resources as most of its products
are priced significantly above its competitors. They are also segmented by
age levels. Its age levels vary from teenagers to adults ages 55 and older.
Certain iPod models offered by the company could be segmented by gender
as they come in a variety of colors.
Psychographic Segmentation
There are both masculine and feminine colors available for
consumers to choose from. Apple's household target seems to be mainly
middle to upper class households who have that extra income to spend on
these "luxury" products although about 28 percent of households earning
$30,000 a year or less are the exception. In addition to middle and upper
class households, Apple now targets teenagers as parents are now finding
the need to purchase family plans through wireless carriers which allows
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the teens to own an iPhone. The touch model of the iPod product line also
conveniently allows teenagers to have almost the full power of the iPhone
without having to spend a monthly cost to own it. Apple doesnt
specifically say that it targets its products for business professionals or
media professionals but the products are segmented demographically
according to occupation.
Product Related Segmentation
Product related segmentation is another major marketing strategy
used extensively by the company. Every Apple device is targeted
specifically to different groups of consumers and businesses and features in
the products are built around their needs. A few examples include Apple's
just released iPod Nano which includes the Nike plus software targeted
directly towards athletes and with its dual-core A5 chip gamers can enjoy
faster and more realistic graphics on the touch model of the iPod line.
Apple is popularly known for its integration of video editing software in its
Mac computers. This is another area the company excels in. Apple not only
integrates its Mac computers with the iMovie software but also offers a
variety of editing software targeted mainly at Media Professionals. Besides
coming up with products that meet specific consumer needs, Apple uses a
range of methods to create and build their reputable customer loyalty.
Apple's retail stores are dedicated to serving the needs of all new and
existing customers and are considered "friendly" places where consumers
can look at and test out the company's products. The staff in these retail
locations that are well educated on these products and are there to assist
customers with whatever need they have. By selling products to new
consumers that are on their lower end on price range, they effectively
promote their higher end products because consumers who become
satisfied with their iPod or iPhone, for example, will most likely buy a Mac
computer in the future. The company focuses mainly on "building" that
customer loyalty by using these and other strategies. Apple doesn't really
offer loyal customers any discounts or rewards. Sometimes offering loyal
customers rewards for being loyal is not really necessary if you are a
company who is known for having top quality products that stand out above
the rest. Customers will generally be loyal if there are only a few
competitors out there offering the same product and your product offers
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better quality overall. These are just a few examples of what the company
does in order to segment their products.

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ENVIRONMENTAL SCAN
It is very necessary to consider environmental trends to know the organizational
ins and outs, which normally every company should keep in mind and evaluating these
environmental trends time to time.
Political-Legal (laws that impact the industry)
Large companies like Apple can financially support the political process in several
ways. They may give direct contributions at the state and local level. Companies like
Apple engage in political spending indirectly by supporting trade associations. Since
2002, Apple has been a moderate political spender; the company has contributed
approximately $580,000 in corporate funds to political activities. The debate over Net
Neutrality has been an ongoing problem for large technology companies like Apple.
Congress and the FCC want to impose regulation if need be. Net Neutrality changes the
way the Internet operates.
The push for modernization of the American healthcare system would provide
government money for infrastructure development and implementation for health care
providers. The adaptability of Apples key products in innovation health centric ways
could bring new sources of revenue, because Apple creates new and innovative
technologies it could raise the future value of Apple.
Economic Impact
Apple has created entirely new products and entirely new industries, by focusing
on innovation. Apple Innovations as a result have created or supported more than
500,000 jobs for U.S. workers. With the different products that Apple has available to
sell, consumers buy a lot of supplies which brings money into the economy. Apple
products are the first things someone can name as being a want. Technology is something
that is always modern, and everyone wants to stay up to date with. Apple has always
comfortably beats its revenue estimates; originally when the iPhone was unveiled it was
universally revered. Apples release of its products can impact US gross domestic
product (GDP), Apples shares have risen 50% this year, making Apple the most highly
valued company on the American stock market. In the past 11 years Apple has launched
three products- the iPod, iPhone, and iPad that have created brand new markets, fulfilling
desires that consumer did not even know they had. Apple has proven that it is possible to
earn high margins with brilliant designs and by offering consumers ways to access the
internet effortlessly wherever they go. Apple shows that, even in a period of recession,
consumers are willing to pay for the must-have gadgets. Innovation has been widely
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touted as the key to long term economic prosperity. Apple and the U.S. tech industry
have successfully coordinated global value chains to develop and manufacture their
products while focusing their own efforts on design, marketing, branding, and
distribution. Innovative products such as American technology products are designed and
marketed by U.S. companies; they create valuable jobs for American workers even if the
products are manufactured offshore. Apples tremendous success with their innovative
products in recent years has driven growth in U.S. employment.
Social-Cultural Trends
Internet and connectivity to the social world is driving a demand for access
everywhere, using high-speed wireless technologies. Smart phones, and other ultra-
portable connected devices, allow users to carry and have access to the Internet
everywhere they go these are fast-growing compared to traditional personal computers.
Apple and other manufacturers face a loss of relevance in the new technological
landscape, driven by consumer preference. Apples substantial investment in research and
development in highly popular devices, and is at the forefront of this transition. The
production and shipment of Apples devices use considerable sources of carbon
emissions and pollution, which may come under scrutiny as a consumer concern for the
environment, which continues to grow. Apple has already made commitments to green
manufacturing practices as well as implementing the use of eco-friendly components, and
packaging. This proactive step can be used as a marketing tool to harvest greater respect
from concerned customers. Further, the Chinese economy continues to grow despite
worldwide economic contraction. The Chinese economy becomes more and more
developed, increased wages nationwide will increase the costs of production for Apple
and its OEM partners. Strict Carbon emissions regulations impose a considerable
financial burden on the production of Apples products, driving up costs and shrinking
margins. Apples initiative in implementing green practices sets them apart from many
competitors who will also feel the burden of regulation.
Technology & Industry Trends
Technology will always be an ever growing industry and the demand for efficient
and smart technological advancements has become more apparent. Everything is
changing, consumer products such as phones and tablets to the way your home computer
accesses the Internet. Dual core and Quad core processors have become the norm in
smart technology; as a result people should expect more powerful devices, smart devices
in our pockets are far more powerful than the desktop computers people dreamed of in
the 1980s, as a result they could soon replace our wallets as well. Smart phones also
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bring computing power in the palm of our hands, (NFC) or Near Field Communications,
which is already part of many smart phones. Imagine tapping your phone to a receiver at
a register, instantly paying for an item without fumbling for your wallet, or being able to
load your transit card onto your phone, using a simple tap to deduct money for every trip
on the train. All things you can do now with a Smartphone would have seemed like
science fiction only a decade ago. Because of Technology & Industry Trends, it has also
become easier and cheaper to add Internet connectivity over a mobile network than to
build physical telephone lines. Cheap tablets will bring changes in education, health care,
retail, automobiles.

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MARKETING MANAGEMENT ANALYSIS
It is very much important to conduct an analysis of 5 Ps of marketing when we
analyze or consider marketing management it is one of the components in strategic
management.
Product
Apple is a computer company that specializes in the production of personal
computers and computer accessories. Apple has produced many different types of
products and is primarily known for the advancement of multimedia personal computers.
Most people that are involved with video, music, pictures, and sound use Apple
computers for their projects because of the quality of the equipment that Apple uses. "The
Group's principal activities are to design, manufacture and market personal computers
and related software, peripherals and personal computing and communicating solutions".
Apple has many different products other than the personal computer.
It is widely recognized that Apple is a premium brand that demands and earns a
price premium. This price premium spans the entire Apple product lineup encompassing
the Macintosh, iPod, iPhone, software, and accessories. Apple's positioning is aligned
with targeting a less price sensitive customer. As a result, Apple's culture and internal
activities are structured to meet the needs of these customers; strategists call this needs-
based positioning. Apple has created a culture and a set of activities to differentiate itself
from rivals in order to meet the needs of their target customers.
Positioning
Apple's positioning, brand image, and loyal following have created an entry
barrier that PC vendors must cross in order to enter the premium computer market, a
market that the Macintosh has exploited for years. Customer loyalty, advertising, lower
price sensitivity of target customers (relatively inelastic demand), sunk costs, patents and
innovation speak to this point. Apple products appeal to buyers who are not price
conscience and therefore, price elasticity is not a major concern.
Pricing
The different types of pricing strategies Apple uses is that they set their products
and offers different price ranges for each product based on the amount of storage
(gigabytes) the product offers. Apples strategic pricing of their products has helped the
company succeed, because whenever a new Apple product comes out, many customers
are already waiting in a never ending line to buy this hot new product. After a quarter or
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so, Apple lowers the price of the product for example, when the original iPhone was
released one quarter later, Apple cut the retail price by $200 each (gave $100 rebate
coupon to all of the earlier buyers.
David Bui CEO and Founder of Saleschase.com said The most potent weapon in
Apples pricing strategy is differentiation. Differentiation is what allows Apple to price
its products at a premium and compel customers to compare Apple products with other
Apple products, rather than with lower-priced products from other reputed marketers.
Apple products look, feel and seem very different from competitors products. This
shows that Apple is a stronger competitor in comparison with some of the other
technological companies who are companies out there.
The similarities of the iPod, iPhone, iPad, iPod Touch, iMac, is that for each
product one can purchase a product with the capacity varying from as little as 2G, to as
much as 64GB from all of the different models and products Apple offers. In fact, they
all have versions that you can purchase with more capacity capability. It is interesting
because people want to pay that extra money to get the best features on their product,
whereas the oldest versions would just be less extravagant and less cool than the hottest
version out.
Recently Apple released the iPhone 5 that everyone has been raving about. The
price that is set based on the capacity of the phones is 16GB for $199, 32GB for $299,
and 64GB for $399 (Apple). Due to the iPhone 5, Apple lowered the prices for both the
iPhone 4S and the iPhone 4 models. Both phones are significantly lower priced than
when they have first come out, the iPhone 4S now stands at $99 for the 16GB, and the
iPhone 4 is now free for the 8GB (Apple). Based on Apples quality of their products
and exemplary customer service it is easy to say that they are pricing their products at
reasonable prices, because of their well-known products all over the world, Apples profit
margin does not cease to continue to rise each year. The extent of Apples products is
that an average person would be able to purchase at least one of their products if not
more.
Promotion
An average customer would most likely find out about the firms products through
friends and just the people around them. Due to high demand for their products, there is
a vast majority of people who own and prefer their products over companies products,
therefore this is one of the ways Apple is able to advertise their products which is through
consumers. As seen in some of Apples advertisements in the back of our packet; since
the iPod had come out there have not been a vast amount of advertising done in the media
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to promote their products. In all of the examples that we provided for each of the
individual Apple products, their advertising method always displays simplicity and
uniqueness
When it comes to Apples Promotions, they offer many different promotions that
allow many people to purchase their products. The largest promotion is that each year
before the school year starts Apple offers a Back to school promotion in which a
student or a teacher decides to purchase an iMac or MacBook (desktop or laptop), they
would get a $100 for applications along with their purchase. They also offer students and
teachers the option of buying an iPad and get $50 for applications. Apple also has an
Apple Educational Discount where throughout the year students and teachers are also
able to save up to $200 on a new Mac. A few years ago Apple had the same promotion
but offered students only to give a free iPod Touch when a MacBook laptop was
purchased. But that offer no longer stands.
Some of the other promotions that Apple also offers year round is for their iPad
mini, if it is bought online then customers will be able to get free shipping and receive a
free engraving as well. When it comes to ordering online from Apple they offer free
shipping on $50 or more, which is almost every single product from Apple product,
unless someone were to buy a iPhone case or something small like so. Many high end
companies often offer the option of having the product shipped to ones house, or buying
it online and picking it up in the store, Apple offers this to their customers.
Apple despite having such a vast amount of products at different price ranges from
as little as $20 iPhone cases, to the iMac for $1,299, Apple is still able to lower existing
products and continue to offer reasonable prices to their customers based on each version
and the capacity of the product. When it comes to advertising, Apple used to do a lot of
advertising for their iPods when they were first introduced. Recently, Apple has almost
been doing no advertising on their products. But even though almost no advertising is
done anymore, the Apple store is almost always consistently packed on a daily basis.
Most of all their advertising is done through their customers and their well -known
products; Apples image is also branded based on their sleek, most trendy items in the
technology world.
When Apple announced that they would finally be coming out with the long
anticipated iPhone 5, just by hosting just one conference to introduce the iPhone 5,
thousands of people lined up to purchase the iPhone , on the opening day to purchase
their new iPhone 5, many people even pre-ordered their phones. Because Apple products
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are sold worldwide and Apple is such a well-known brand, it is easy to publicize their
products though their store fronts and their customers only.
Placement (Distribution)
Apple spends certain resources to expand its stores so that it can get its prospects
undivided attention. Apples 372 stores collectively generated $4.1 billion in revenue.
Thats a vast sum, and one that might lead you to believe that Apple sells most of its gear
through its own stores. But thats not the case, according to a new study by Consumer
Intelligence Research Partners (CIRP).
Between December of 2011 and August of 2012, CIRP surveyed 1,227 U.S.
consumers who purchased an iPhone, iPad, or Mac, and found that while Apple Stores
sold by far the most Macs and iPads during the period, they didnt sell nearly as many
iPhones as the companys retail partners.
In the U.S., Apples retail stores, along with the companys online storefront, sold
47 percent of the Macs and 40 percent of the iPads purchased by the survey sample
during December 2011 and August 2012. But they only sold 21 percent of the iPhones.
AT&T and Verizon stores both sold more than Apple, with 28 percent and 26 percent
shares of sales, respectively. And Best Buy and Amazon (via fulfillments) together sold
nearly as many iPads as Apple itself.
Apple has around 250 stores in the U.S., while Best Buy and Best Buy Mobile
total 1,300, and AT&T, Sprint, and Verizon have over 5,000 combined, CIRP partner
Mike Levin told AllThingsD. Clearly, the Apple stores are much more productive on a
per-unit basis, but their relatively low store count keeps them reliant on the carriers and
Best Buy, not to mention Walmart, Target and others, for the vast majority of their retail
sales
Ultimately, Apples retail partners are as critical to the companys success as its
own stores. Sure, the typical Apple Store might cater to 17,000 visitors per week, but that
foot traffic translates to a smaller-than-expected share of the companys overall business.
As CIRP co-founder J osh Lowitz told AllThingsD, Everyone who lives in an Apple
Store city thinks that is where everything happens, but you cant sell 40 million plus
iPhones in a year through just 250 stores.
S.W.O.T Analysis
It is very much important to analyze your internal strengths and weaknesses and
external threats which enables any company to make strategic decisions according to
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compatibilities. So we analyze Apple inc. strengths and weaknesses and then their
external challenges or threats and opportunities which contribute in attaining their
objectives in this regard.
Strengths
The first and foremost strength of Apple Inc. is its technological edge over
its competitors.
IPhone have turned out to be a great success and has been associated with
status in many of the countries.
ITunes has turned out to be a wonderful revenue generating source and
since it also sells with its own tool i.e. the iPod, thus, revenue has
multiplied for Apple Inc.
Another strength for the organization is that for every software that Apple
Inc. produces, it introduces its hardware with it too, which leads to its
expertise in both the industries. Apple Inc. products are classified as luxury
items, thus its products provide enough room for it, so that the competitor
products are no longer a competition.
The another strikingly advantage over competitors products, is the design
of the Apple products, and which are also simple to use.
The brand loyalty of its product and its super dedicated research and
development department are also its major strengths.
Weaknesses
Weaknesses are the disadvantages that are hindrance in obtaining the
business goals for the organization. The poor relationship with the market
than Microsoft is surely a disadvantage to Apple Inc.
Another point could be that the products introduced by Apple Inc. have
very short life cycle, which concludes that the research and development
department has to be constantly maintained, which requires huge capital.
Apple Inc. has very low presence in the advertisements.
Apple also has very small market occupation as compared to its main rival
Microsoft. Thus, all this leads to the fact that Apple Inc. gets very less
business from its home country US, and major of its business is from
outside the US.

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Opportunities
Opportunities can affect both the present as well as the future condition of
an organization. Apple Inc. opportunities are the introduction of more and
more PC viruses, on which Apple Inc. can capitalize on.
The second opportunity is the population of the world is growing at a rapid
pace and thus, this opens the front for many new markets, also the
purchasing power of a common man has increased drastically, who can be
pursued or impressed to buy the luxury Apple products.
The online sales of the organization are increasing and also, the bonds and
the partnership with the other organizations have been on the rise in the
past few years. Products such as iPhone have create a new set of potential
customers altogether which can be targeted in the future i.e. the young
population who have a craze for any new technology gadget.
Threats
In the past few years, many competitors have come up for Apple Inc.,
especially in the field of laptops, like Dell, Sony, HP, and Toshiba. Another
threat could be that many of the customers have started downloading the
music for free instead of purchasing at iTunes.
The product expensiveness is itself a threat to the product, as substitutes at
a lower price are always available. Long lasting recession could also be a
threat to its products.
Windows 7 software is gaining more market place after vista flopped and
last but not the least, the technological advances that have been taking place
every single day, is a big threat to Apple Inc.
TOWS Matrix for Apple Inc.
The TOWS (threats, opportunities, weaknesses, strengths) matrix is a two-cell by
two-cell matrix that assists companies in determining strategic alternatives by examining
external opportunities and threats and how they compare to a companys existing
strengths and weaknesses. The TOWS matrix is used for strategic planning and helps
marketers identify opportunities and threats and measure them against internal strengths
and weaknesses.

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The TOWS Matrix of Apple inc. is:-
S.No S-O Strategies S-T Strategies
1.

2.

3.
Increase awareness through the
web of the immunity of Mac
products to worms and viruses.

Advertise using individuals that
will link Generation X & Y to the
iTunes and other related products.

Using movies and music groups
that are geared towards Gen X
and Y to promote computers and
laptops.

Increase and promote the
compatibility to Window
operating system.

Promote the originality of Apple
computers and the different style
and stable system that is slightly
more but worth the price
difference in style, stability and
speed.
S.No O-W Strategies W-T Strategies
1.

2.
Increase ties with Microsoft and
Intel and their products.

Promote to business the safety of
having a worm and virus free
computer by using Mac.
Improve relationship with
Microsoft and Intel so that
companies will see them as
compatible.

Increase productivity and turn
around of high demand products
to compete with Dell and HP.

Porters Five Forces Model
Porters Five-Forces Model of competitive analysis is a widely used approach for
developing strategies in many industries. The intensity of competition among firms varies
widely across industries.

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Porters Five Forces Model for Apple Inc.
Porters Five force Model is a very powerful tool to understand the core of the
power in a business or in a company. The Porter Five Force Model for Apple Inc. is
shown below:-

Model: Showing Porters Five Forces Model at APPLE Inc.
BCG Matrix
When a firms divisions compete in different industries, a separate strategy often
must be developed for each business. The Boston Consulting Group (BCG) Matrix is
designed specifically to enhance a multidivisional firms efforts to formulate strategies.
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BCG Matrix for Apple Inc.

Model: Showing BCG Matrix for APPLE Inc.
Findings
During my report I assess different websites and reports and different research
papers and I found many things regarding to Apple inc. my findings are:-
Apples Brand Name is the most valuable brand name in the world.
Some of Apple's products experience technical problems and consumers
complain that there's a lack of customer care and having to purchase the
AppleCare package in order to resolve any problems.
There is a High level of Brand loyalty among customers.
Apple is financially solid, no debt, and $37.037 million net income in Dec
2013 quarter.
Apple has not come out with a revolutionary product in several years.
Patent litigation is one of the important finding because the litigations
between companies not only waste the time of the company but it also been
threat to company.
Apple works for the satisfaction for the consumer, to satisfy their needs,
and demands which leads to the long term profitability.
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We found Apple strategies customer oriented rather than profit oriented.
Adoption of latest technology makes you more advance in your field, same
thing Apple did.
Apple gives a complete solution for making easy & strong connectivity.
Society wants change and Apple give them it through innovation & new
ideas.
Apple gives more than expectations of their customers.
Conclusion
It is concluded from the strategic management analysis at APPLE Inc. that
technological industries are never easy to compete with. They have a lot invest at R&D
and have to be proactive in order to compete with their competitors in the industry. As for
APPLE is concerned they have been working so well as it is shown form their products.
As Apple Inc. is increasing also, those other businesses are increasing and trying to do
something interesting for their own good. APPLE needs to make a drastic change. They
dont need to wait for people buy their products only when they are on sale but they need
to focus more on the customer support and improve the areas they already have problems.
Recommendations
Apple is an innovative company that does not mean that everything done by the
company is perfect. Every company has room for improvement and Apples future of
innovations is definitely one of them. Implementing some, or even all, of the following
recommendations, Apple could greatly increase it sales worldwide, and become an even
better company than it currently is.
There are several ways Apple can promote their products yet they go by
simple strategies such as personal selling, word-of-mouth, and product
differentiation. The late co-founder of Apple, Steve J obs, was greatly
known for his speeches and how he promoted Apple without using a lot of
their marketing budget, through public relations. Though these are all great
ways to promote Apple, there are still many ways they can improve or work
on to attract new customers or gain the customers of their competitors.
Although Apple is considered a shopping product, where people plan to
buy it after considering competitors prices, it is priced as a prestigious
product in the technology industry. They are considered the technology
industrys high price leader, which simply means they sell their products
at a higher end value, knowing that their loyal customers will pay this price.
They should market to sell their products at a slightly lower price, to still
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make profit but also to synchronize with customer satisfaction. It is known
that once Apple comes up with a new product, or expands the depths of
their products, they lower the prices of the least up-to-date product. There
are consumers who appreciate this because they do not need the new, big
thing, but Apple has customers who like to keep up-to-date, especially with
Apples innovative products. Apples loyal customer base is one of the
largest in the industry and strategizing in a way that makes them feel they
are an exclusive member might make them happy to spend more. Ways that
Apple can do this is by starting an Apple Loyalty membership. If they are a
member in this Loyalty program, they get perks that do not apply to non-
members. For example, if the member spends a certain amount, $500,
annually, (not including a laptop that already costs a thousand dollars), they
can get a product in store for free, or for a lesser price than valued, such as
head phones or an iPhone case. It is easy to buy a laptop cover, or phone
case elsewhere, especially at a lower price than Apple sells it for, but if
Apple had this incentive; consumers might have more initiative to buy from
them.
Apple can or should also promote their iTunes Application by providing
customers in the Loyalty Program ten dollars worth of iTunes services for
every $250 they spend. This type of CRM (Customer Relationship
Management) would definitely increase customer satisfaction while
promoting Apples products. They should also organize little events that
only Loyalty members are invited to, where they can explore new
technologies or let the members be the first to know of the new products
they are working on. This would be a great way to keep the customers on
their toes, excited about the upcoming products but also making them feel
special and important to the company.
Apple is a leader in the technology industry because they are unique in
what they do and they stick to their originality. Whether it be product
differentiating, where all their products, inside and out, are cluster free, or if
it is the way they advertise their products, which is not very often. You
might sometimes see an ad for the iPod and a girl or boy dancing to it, or
different colored backgrounds with the Apple brand mark centered in white.
Apple recently came out with a commercial that introduced the new Apple
headphones, a never before seen headphones which are shaped to fit your
ear hole, instead of the custom round earpiece. Apple would also do great
in product placement, as many celebrities already use their products. But if
it were seen on more television shows or movies, it would be attract more
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consumers and other target markets. These simple strategies are a great way
for Apple to save money on their budget but they should definitely consider
making more advertising through the television. As an innovator of
technology, maybe they can find a way to use their new feature,
holographic, through the television to promote such a neat service.
When deciding what other promotions Apple can undergo, we
automatically thought of guerilla marketing as that is a fast and easy way to
go viral, especially for Apple, which is already the topic of conversations.
We researched and found that there was not much guerilla marketing that
Apple already used so that type of promotion would definitely be one to
consider. We did, however, find one way they managed to have marketed
seamlessly through their consumers. With each product bought from
Apple, they provide you with a sticker with their brand mark, and people
would stick that on in their house, computers, cars, backpacks, notebooks
or anywhere they pleased (Vertigo). Regardless where it was stuck, it was
easy advertising for Apple to have come up with, that other competitors
have not yet achieved. More tactics like these would be beneficial for
Apple to remain the leader in innovation and in technology, in
remembrance of the greatest guerilla marketer and innovator himself, Steve
J obs.
It is easy to buy a laptop cover, or phone case elsewhere, especially at a
lower price than Apple sells it for, but if Apple had this incentive;
consumers might have more initiative to buy from them. This would also
help stabilize sales throughout the year, and not just during the beginning of
a school year.
One way to create product diversification is to create a "Phablet" to
compete with Samsungs note II. The tablet will be smaller than the iPad
mini but bigger than the iPhone. Specifically a 6 inch tablet with the
availability of a phone. This will also add product length to Apple's tablet
line which includes the iPad and iPad mini. Creating this "Phablet" will
allow Apple to target a whole new market which would include consumers
that want a mobile device larger than a Smartphone but smaller than an
actual tablet like the iPad or iPad mini ("Phablet."). With the creation of
this "Phablet" device, price should be a big concern. Apple should try a new
pricing strategy and maybe make the price of their product lower than its
competitors but still higher than what it costs the company to make the
product in order to make a profit. In order to lower its product cost;
however, apple must reduce production costs. This can be done by
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increasing its use of recycling in its products and cutting down energy
costs. Energy can be cut down by using energy efficient computers,
lighting, and machinery.
Another example of product diversification is if Apple creates a music
streaming service similar to other streaming services such as Spotify and
Rdio. The new streaming service would allow users who do not want to buy
music on the iTunes store a chance to listen to music unlimitedly without
downloading it. Users would be able to listen to whole albums and even
new releases would be available the same day albums come out. The
would be relatively comparable to other streaming services such as Spotify
and Rdio but instead of offering it for free to consumers, Apple could
charge a fee but one that is less than competitors.

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APPENDIX
Appendix A
Organization

Board of
Directors
President
Kyle
Kimball
Senior Vice
President
John
Cicerell
Senior
Vice
President
Dmitri
Konon
Senior Vice
President
Zachary
Smith
General
Counsel and
Secretary
Meredith
Jones
Assistant
Secretary
Mark
Silversmith
Senior Vice
President
Kim Vaccari
Treasurer
Spencer
Hobson
Assistant
Treasurer
Bulent Celik
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Appendix B
Apple Three-Year Financial History
Results of Operations
($ millions, except shares in thousands and per
share amounts)
FY 2013

FY 2012 FY 2011

Net sales:
Domestic $66,197 $60,949 $41,812
International 104,713 95,559 66,437
Total net sales 170,910 156,508 108,249
Cost of sales 106,606 87,846 64,431
Gross margin 64,304 68,662 43,818
Operating Expenses:
Research and development (R&D) 4,475 3,381 2,429
Selling, general and administrative (SG&A) 10,830 10,040 7,599
Total operating expenses 15,305 13,421 10,028
Operating income 48,999 55,241 33,790
Other income/(expense), net 1,156 522 415
Income before provision for income taxes 50,155 55,763 34,205
Provision for income taxes 13,118 14,030 8,283
Net income $37,037 $41,733 $25,922
Diluted earnings per share

$39.75 $44.15 $27.68
Shares used in computing diluted earnings per
share 931,662 945,355 936,645
Cash dividends declared per common share $11.40 $2.65 $0.00

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Financial Position
($ millions)
September 28,
2013
September
29, 2012
September 24,
2011

Cash, cash equivalents and marketable
securities $146,761 $121,251 $81,570
Accounts receivable, net $13,102 $10,930 $5,369
Inventories $1,764 $791 $776
Property, plant and equipment, net $16,597 $15,452 $7,777
Total assets $207,000 $176,064 $116,371
Current liabilities $43,658 $38,542 $27,970
Non-current liabilities $39,793 $19,312 $11,786
Shareholders' equity $123,549 $118,210 $76,615
Other Data (Unaudited)
September 28,
2013
September
29, 2012
September 24,
2011

Regular employees 80,300 72,800 60,400
Temporary employees and contractors 4,100 3,300 2,900
Total headcount 84,400 76,100 63,300

FY 2013

FY 2012

FY 2011

International net sales as a percentage of total
net sales 61% 61% 61%
Gross margin as a percentage of net sales 37.6% 43.9% 40.5%
R&D as a percentage of net sales 3% 2% 2%
SG&A as a percentage of net sales 6% 6% 7%
Operating income as a percentage of net sales 28.7% 35.3% 31.2%
Net income as a percentage of net sales 21.7% 26.7% 23.9%
Price range per common share
$385.10 -
$676.75
$354.24 -
$705.07
$275.00 -
$422.86

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Appendix C
Apple Trademarks and generic Terms
Apples Trademarks Generic Terms
AirDrop software feature
AirMac wireless hardware/software solution
AirPlay software feature
AirPlay Logo
AirPort wireless hardware/software solution
AirPort Express wireless hardware/software solution
AirPort Extreme wireless hardware/software solution
AirPort Time Capsule wireless hard drive/Wi-Fi base station
AirPrint software feature
AirPrint Logo
AirTunes application program
Aperture application program
Apple computers, computer software, computer peripherals, etc.
Apple logo
Apple Cinema Display computer monitor
AppleLink communication network/computer software
Apple Media Series training materials
Apple Remote Desktop remote desktop software
AppleScript application program
AppleScript Studio development software
AppleShare server software
Apple Studio Display computer monitor
AppleTalk network system
Apple TV digital media extender
AppleVision computer display
AppleWorks application program
App Nap software feature
Aqua user interface
Audio Units logo
Back to My Mac software feature
Bonjour networking technology
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Bonjour logo
Boot Camp application program
Carbon software technology
Charcoal computer font
Chicago computer font
Cinema Tools application program
Claris Software
Cocoa software technology
Cocoa Touch software technology
ColorSync application program
ColorSync logo
Cover Flow application program
Dashcode developer software
DVD@CCESS software feature
DVD Studio Pro application program
EarPods Headphones
Educator Advantage marketing program
eMac Computer
EtherTalk interface card/network
Expos computer software
FaceTime video calling
FairPlay software technology
FileVault application program
Final Cut application program
Final Cut Pro application program
Final Cut Studio application program
Finder operating system software
FireWire serial bus
FireWire compliance logo
FireWire logo
FireWire symbol
Flyover software feature
GarageBand application program
Geneva computer font
Guided Access operating system feature
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HyperCard application program
HyperTalk application program
iBeacon location and proximity detection technology
iBook Computer
iBooks application program
iCal application program
iChat application program
iDVD application program
iFrame Logo video format
iLife suite of application programs
iMac Computer
ImageWriter Printer
iMessage software feature
iMovie application program
Inkwell application program
Instruments developer software
iPad mobile digital device
iPad Air mobile digital device
iPad mini mobile digital device
iPhone mobile digital device
iPhoto application program
iPod mobile digital device
iPod classic mobile digital device
iPod Hi-Fi Speakers
iPod nano mobile digital device
iPod shuffle mobile digital device
iPod Socks holder for computer hardware and consumer electronics
iPod touch mobile digital device
iSight Camera
iTunes application program
iTunes Logo application program
iTunes Pass online store
iTunes U feature of online store
iWeb application program
iWork suite of application programs
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Jam Pack computer software
Keychain operating system feature
Keynote application program
LaserWriter Printer
Launchpad operating system features
Lightning Connectors
Live Listen operating system feature
LiveType application program
LocalTalk computer cable system/network
Logic application program
Logic Studio application program
Mac Computer
Mac logo
MacApp application program
MacBook Computer
MacBook Air Computer
MacBook Pro Computer
MacDNS application program
Macintosh Computer
Mac OS operating system software
Mac Pro Computer
MacTCP application program
Made for iPad logo
Made for iPhone logo
Made for iPod logo
MagSafe power adapters
MainStage application program
Mission Control operating system feature
Monaco computer font
Multi-Touch touchscreen interface
NetInfo computer software
Newton operating system software
New York computer font
Numbers application program
Objective-C computer software
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OfflineRT software feature
Open Directory logo
OpenCL software technology
OpenPlay application program
OS X operating system software
Pages application program
Passbook application program
Photo Booth application program
Photocasting digital content delivery service
Pixlet compression application program
Podcast Logo application feature
PowerBook Computer
Power Mac Computer
ProDOS operating system software
Quartz graphics and display technology
QuickDraw application program
QuickTime application program
QuickTime Broadcaster application program
QuickTime logo
Retina Display
Rosetta application program
Safari application program
Sand computer font
Shake application program
Sherlock application program
Siri voice recognition software
Skia computer font
Smart Cover protective cover and stand
Smart Instruments application feature
Smart Strings application feature
SnapBack application feature
Soundtrack application program
Spaces operating system feature
Spotlight software utility
StyleWriter Printer
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SuperDrive computer media device
Textile computer font
There's an app for that Slogan
Think different Slogan
Time Capsule wireless hard drive/Wi-Fi base station
Time Machine application program
Touch ID fingerprint identity sensor
Touch Instruments application feature
TrueType font technology
Tubes cases for computer hardware and consumer electronics
Ultrabeat software feature
Velocity Engine vector processing unit
WaveBurner application program
WebObjects software
WebScript computer software
Works with iMovie logo
Works with iPhone logo
Works with iPhoto logo
Xcode developer software
Xgrid application program
Xsan application program
Xserve Server

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David, F, Strategic Management Concepts 13 edition, Pearsons, 2011.
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distribution-strategy-revealed/
https://www.apple.com/legal/contact/#apple-trademark

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