Company History “Apple Computer”

Apple Inc. Executive Summary

Company History

The company started off as “Apple Computer” by Steve Jobs and Steve Wozniak, a pair of 20-something college dropouts in 1976. Despite a strong brand, rapid growth and high profit in the late 1980s, Apple almost went bankrupt in 1996. Jobs then went to work and transformed “Apple Computers” into “Apple Inc” with innovative and technologically sophisticated non-PC products in 2000’s. By 2010, the company also viewed itself as a “mobile device company”. Apple became the fourth –largest PC vendor in the US market with an 8% share by the end of 2009. Its market capitalization went to $220 billion in spring of 2010. Through multi-million dollar marketing campaigns such as the successful “Think Different” ads and catch slogan, Apple promoted itself as a hip alternative to other computer brands. It also highlighted its computers as the world “greenest lineup of notebooks”. The goal of Apple is to differentiate its products amid intense competition in the PC and mobile device industry.

Target Market

The target market for Apple falls into the following categories: Home users, small and medium sized business, education segment, younger generation and creative individuals call the “Mac users”. Apple retail store concept helped consumers to look at the eye-catching products as well as directly use and experience Apple’s software.

Products

The successful product line of Apple Inc. consists of Macintosh, iPod series, iPhone series, iPad, iMac. Apple had two notable products that failed to live up to expectation namely Mac Mini and Apple TV.

Competitors

Jobs viewed Apple’s control of both hardware and software as strength. Apple has a highly innovative product line that aims to deliver a cutting-edge, highly integrated user experience. Since Apple Inc. has a diverse product line, it faces competition from mobile industry as well as PC industry.

Products Competitors

Macintosh and iMac IBM, Dell, Lenovo, Acer, HP

iPod series Samsung, SanDisk, Creative, Microsoft’s Zune, Napster Amazon.com, Napster, internet radio sites like Pandora, Spotify

iPhone series RIM’s blackberry, Nokia, Google, Motorola

iPad Amazon’s kindle , Dell, HP, Samsung

Operating system Microsoft Windows, Google’s Android OS

Situational Analysis

Strengths

1. Pioneer of innovative and high-tech quality products like iPod, iPhone, iPad and Mac

2. Globally recognized brand name

3. Large segment of loyal customers of “Apple culture”

4. Strong Research & Development Department

5. Retail stores providing the eye-catching products and experience of Apple’s software

6. Strong presence in education segment

7. Visionary and charismatic CEO, Steves Jobs

Weaknesses

1. Failure of two notable products namely Mac Mini and Apple TV

2. Lower market share and higher price compared to Microsoft and other competitors

3. Decision to restrict iPhone to a single operator was unpopular in several markets around world

4. Steve job dependency, a risky tactic

Opportunities

1. Good relationship through joint venture with other big companies coupled to bring out new “hits”

2. Constant

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