Introduction This paper is going to talk about the multinational company Apple.inc.Apple is the world's second-largest information technology company by revenue after Samsung Electronics, and the world's third-largest mobile phone maker after Samsung and Nokia and they are famous for their designs, develops, and sells consumer electronics, computer software and personal computers. Its best-known hardware products are the Mac line of computers, the iPod media player, the iPhone smartphone, and the iPad tablet computer.
Its consumer software includes the OS X and iOS operating systems, the iTunes media browser, the Safari web browser, and the iLife and iWork creativity and productivity suites and we will find out how can this company become so successful in technology market right now and how can business economic apply on this company by using SWOT analysis ,4Ps of marketing ,Porter’s five force model
History of Apple Inc. 1976–80: Founding and incorporation The Apple I, Apple's first product, was sold as an assembled circuit board and lacked basic features such as a keyboard, monitor, and case. The owner of this unit added a keyboard and a wooden case. Apple was established on April 1, 1976, by Steve Jobs, Steve Wozniak and Ronald Wayne to sell the Apple I personal computer kit, a computer single handedly designed by Wozniak. The kits were hand-built by Wozniak and first shown to the public at the Homebrew Computer Club. The Apple I was sold as a motherboard (with CPU, RAM, and basic textual-video chips), which is less than what is today considered a complete personal computer.
The Apple I went on sale in July 1976 and was market-priced at $666.66 ($2,763 in 2014 dollars, adjusted for inflation). Apple was incorporated January 3, 1977, without Wayne, who sold his share of the company back to Jobs and Wozniak for US$800. Multi-millionaire Mike Markkula provided essential business expertise and funding of $250,000 during the incorporation of Apple. 1981–89: Success with Macintosh
See also: Timeline of Macintosh models Apple's "1984" television ad, set in adystopian future modeled after the George Orwell novel Nineteen Eighty-Four, set the tone for the introduction of the Macintosh. Apple began working on the Apple Lisa in 1978. In 1982, Jobs was pushed from the Lisa team due to infighting. Jobs took over Jef Raskin's low-cost-computer project, the Macintosh. A race broke out between the Lisa team and the Macintosh team over which product would ship first. Lisa won the race in 1983 and became the first personal computer sold to the public with a GUI, but was a commercial failure due to its high price tag and limited software titles. The first Macintosh, released in 1984
In 1984, Apple next launched the Macintosh. Its debut was announced by the now famous $1.5 million television commercial "1984". It was directed by Ridley Scott and was aired during the third quarter of Super Bowl XVIII on January 22, 1984. It is now hailed as a watershed event for Apple's success and a "masterpiece". 1990–99: Decline and restructuring
During this time Apple experimented with a number of other failed consumer targeted products including digital cameras, portable CD audio players, speakers, video consoles, and TV appliances. Enormous resources were also invested in the problem-plagued Newton division based on John Sculley's unrealistic market forecasts. Ultimately, none of these products helped, as Apple's market share and stock prices continued to slide.
Apple saw the Apple II series as too expensive to produce, while taking away sales from the low-end Macintosh. In 1990, Apple released the Macintosh LC with a single expansion slot for the Apple to migrate Apple II users to the Macintosh platform. Apple stopped selling the Apple IIe in 1993. 2000–06: Return to profitability
Mac OS X, based on NeXT's OPENSTEP and BSD Unix was released on March 24, 2001, after several years of development. Aimed at consumers and professionals alike, Mac OS X aimed to combine the stability, reliability and security of UNIX with the ease of use afforded by an overhauled user interface. To aid users in migrating from Mac OS 9, the new operating system allowed the use of OS 9 applications through Mac OS X's Classic environment. On May 19, 2001, Apple opened the first official Apple Retail Stores in Virginia and California. On July 9, they bought Spruce Technologies, a DVD authoring company.
On October 23 of the same year, Apple announced the iPod portable digital audio player, and started selling it on November 10. The product was phenomenally successful — over 100 million units were sold within six years in 2003, Apple's iTunes Store was introduced, offering online music downloads for $0.99 a song and integration with the iPod. The service quickly became the market leader in online music services, with over 5 billion downloads by June 19, 2008. 2007–10: Success with mobile devices
Apple achieved widespread success with its iPhone, iPod Touch and iPad products, which introduced innovations in mobile phones, portable music players and personal computers respectively. In addition, the implementation of a store for the purchase of software applications represented a new business model. Touch screens had been invented and seen in mobile devices before, but Apple was the first to achieve mass market adoption of such a user interface that included particular pre-programmed touch gestures.
Delivering his keynote speech at the Macworld Expo on January 9, 2007, Jobs announced that Apple Computer, Inc. would from that point on be known as Apple Inc., because computers were no longer the main focus of the company, which had shifted its emphasis to mobile electronic devices. The event also saw the announcement of the iPhone and the Apple TV The following day, Apple shares hit $97.80, an all-time high at that point. In May, Apple's share price passed the $100 mark. 2011–12: Steve Jobs's death
Apple store in Yonkers, New York On January 17, 2011, Jobs announced in an internal Apple memo that he would take another medical leave of absence, for an indefinite period, to allow him to focus on his health. Chief operating officer Tim Cook assumed Jobs's day-to-day operations at Apple, although Jobs would still remain "involved in major strategic decisions for the company."
Apple became the most valuable consumer-facing brand in the world. In June 2011, Steve Jobs surprisingly took the stage and unveiled iCloud, an online storage and syncing service for music, photos, files and software which replaced MobileMe, Apple's previous attempt at content syncing This would be the last product launch Jobs would attend before his death.
It has been argued that Apple has achieved such efficiency in its supply chain that the company operates as a monopsony (one buyer, many sellers), in that it can dictate terms to its suppliers. In July 2011, due to the American debt-ceiling crisis, Apple's financial reserves were briefly larger than those of the U.S. Government. 2013–present: Acquisitions and expansions
In March 2013, Apple announced a patent for an augmented reality (AR) system that can identify objects in a live video stream and present information corresponding to these objects through a computer-generated information layer overlaid on top of the real-world image.
At the Worldwide Developer's Conference on June 10, 2013, Apple announced the seventh iOS operating system alongside OS X Mavericks, the tenth version of Mac OS X, and a new Internet radio service called iTunes Radio.iOS 7 and OS X Mavericks are both expected to be released during fall 2013, while the iTunes Radio Service, which will be integrated with Apple's personal voice-assistant software program Siri, is scheduled for release in the second half of 2013. The radio service features more than 200 stations according to company's statement (http://en.wikipedia.org/wiki/Apple_Inc.) Background of Apple Inc.
Founder of the company Apple Inc. the main founder are Steve Jobs, Steve Wozniak, and Ronald Wayne since 1976, before Steve jobs’s death he is the main founder of the company, also now Apple Inc. have 3 subsidiaries FileMaker Inc., Anobit ,Braeburn Capital. Product
The product they mainly focus on IPhone, IPad and MacBook Headquarter The headquarter is located in Cupertino, California
Business resources are anything and everything that helps a company operate and do business. This can include the use of human capital, natural resources, tangible resources such as property or production machinery, intangible resources such as brand image and knowledge, financial resources and anything else a particular business may use to make a profit. Every business resource used to produce goods or to serve customers has an economic value.
The Apple Inc. have its own factory right in America let’s take Iphone as an example, they will firstly produce some of the part of iPhone in USA such as the processor, the screen and the camera, and then they will transfer to some of the country which will cost them lower labor cost than the labor of USA like China and India these are the country which will is famous for low labor cost and nowadays technology company are used to produce their product is these low labor cost country, also when they transfer the product they can lower the transportation cost from transferring in USA to entire world, like China it is the country which locate in the middle of Asia and they can transfer the product with lower transportation and low labor cost. Who are the business competitor?
Apple Inc. mainly focus on Electronic appearance such as smart phone, tablets, notebook and TV Various market are participated, nowadays technological company the competition were usually high and the competition were usually oligopoly and the main competitor are Samsung they produce same kind of product like smartphone(IPhone and Samsung Galaxy S),tablet(IPad and galaxy tab),they are the two mainly competitor the entire market. Which kind of market the company operate?
The company are operate under oligopoly competition (mainly compete with Samsung), an oligopoly is a market form in which a market or industry is dominated by a small number of sellers (oligopolists). Oligopolies can result from various forms of collusion which reduce competition and lead to higher costs for consumers. With few sellers, each oligopolist is likely to be aware of the actions of the others. The decisions of one firm therefore influence and are influenced by the decisions of other firms by oligopolists needs to take into account the likely responses of the other market participants. Where can Apple Inc. expand their business?
For expanding their business Apple Inc. Porter Five Force Analysis (Porter five forces analysis is a framework for industry analysis and business strategy development formed by Michael E. Porter of Harvard Business School in 1979.) The following are the five force (Threat of new entrants, Threat of substitute products or services, bargaining power of customers (buyers), Bargaining power of suppliers Intensity of competitive rivalry)
Threat of new entrants Profitable markets that yield high returns will attract new firms. This results in many new entrants, which eventually will decrease profitability for all firms in the industry. Unless the entry of new firms can be blocked by incumbents (which in business refers to the largest company in a certain industry, for instance, in telecommunications, the traditional phone company, typically called the "incumbent operator"), the abnormal profit rate will trend towards zero (perfect competition).
Apple Inc. as an example their market are mainly focus on smartphone and tablet, but the market right now is oligopoly nearly no that much technology company (Acer, Lenovo) can have enough market share like Apple and Samsung even for those who are just emerging the market is impossible to join the market, so Apple Inc. won’t have a threat of new entrant for the market.
Threat of substitute The existence of products outside of the realm of the common product boundaries increases the propensity of customers to switch to alternatives. Apple are facing threats of substitute because Apple are promoting their product with higher price and for middle class customer, unlike Samsung they have some smartphone and tablet for people who can afford low price. Samsung and Apple they used to produce same kind of product and Samsung which segment their market with high price market or low price market and Samsung is the substitution for Apple which cost people a high price.
Bargaining power of customers (buyers) The bargaining power of customers is also described as the market of outputs: the ability of customers to put the firm under pressure, which also affects the customer's sensitivity to price changes. Firms can take measures to reduce buyer power, such as implementing a loyalty program.
But the customers for Apple Inc. they won’t have chance to ask for lower price for the product because of the price were set officially and it won’t have discount until the new version of the product is launch or the official have announce they have discount for some special day such as Christmas and the company they don’t have to face the pressure from bargaining of the customer. Bargaining power of suppliers
The bargaining power of suppliers is also described as the market of inputs. Suppliers of raw materials, components, labor, and services (such as expertise) to the firm can be a source of power over the firm when there are few substitutes. Apple’s smart phones and tablets they usually use the processor from their main competitor Samsung until apple now they found a new supplier (Intel), because Samsung who are the one can provide stable amount of processor of Apple and Samsung they get used to sell it on high for the processor,that’s why Apple changed their processor producer Intensity of competitive rivalry
For most industries the intensity of competitive rivalry is the major determinant of the competitiveness of the industry.