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Slide 4

The first Apple logo was designed in 1976 by Ronald Wayne, sometimes referred to as the third co-
founder of Apple. The logo depicts Isaac Newton sitting under a tree, an apple dangling precipitously
above his head. The phrase on the outside border reads, “Newton… A Mind Forever Voyaging Through
Strange Seas of Thought … Alone.”

The Rainbow Logo: 1976-1998

Not surprisingly, the above logo only lasted a year before Steve Jobs commissioned graphic designer Rob
Janoff to come up with something more modern. Janoff’s eventual design would go on to become one of
the most iconic and recognizable corporate logos in history.

According to Janoff, the “bite” in the Apple logo was originally implemented so that people would know
that it represented an apple, and not a cherry tomato. It also lent itself to a nerdy play on words
(bite/byte), a fitting reference for a tech company.

The Monochrome Logo: 1998 – Present

The current logo, the one everyone knows, wasn’t made simply because Steve Jobs is always looking to
change things up. When Jobs returned to Apple in 1997, the company was bleeding money, and Jobs
and Co. realized that the Apple logo could be leveraged to their advantage.

If the shape of the Apple logo was universally recognizable, why not put it where people could see it?

When Apple released their first ever iMac, the Bondi Blue, the logo was changed and its rainbow colors
disregarded. The rainbow-colored logo would have looked silly, childish and out of place on the sky-blue
computer.

Slide 5
Objective 1- Continue to create groundbreaking products. Apple has made a name for itself becoming a
trend setter in the market with every one of their products introducing something new and exciting to
the world.

Strategy- To create groundbreaking products Apple will need to have a great team building culture along
with a strong research and development team. Too they will have to operate with a sense of no
complacency and not let current success limit future potential.

Objective 2- Innovate and dictate the movement for future technology


Technology is forever changing and even the biggest companies can get left behind. The consumer will
always buy the next big thing and brand loyalty is hard to come by. This is why Apple must continue to
lead the serge of the innovative world.

Strategy- To continue success of having the best products, Apple must study the market to understand
what consumers want next while improving their current products from listening to customer feedback.

Place

You can find an Apple product in most areas of the world and that is certainly the overall goal for global
business. However where there is product demand there must be supply.

Objective 1- Expand nationwide chain of Apple stores globally.

The Apple store accounts for the majority of the company’s sells. Therefore there must be more stores
to increase sells substantially.

Strategy- Begin placing stores in all large markets and expand outward based on population and demand
of products.

Objective 2- Make products available in every other possible retail channel, ex. Online, Big Box retailer

Even though the Apple store leads in sells, Apple must make sure it’s products are accessible to every
consumer since their demand is so high.

Strategy- Place products in every retail store that carries electronic devices, all e-commerce web sites,
and make sure mobile devices are featured on every large mobile carrier.

Price

With every premium branded product there will come a premium price. It’s to be expected that the big
name brands that present superior quality will bring the highest price.
Objective 1- Enter and sustain premium pricing while attempting to gain market share.

As long as their products are cutting edge consumers will have no problem paying more for them. It’s
important this trade off does not subside in order for the premium pricing to be sustained.

Strategy-Strategically price all products at the top of the market base price relying on brand and quality
to offset the price differential.

Objective 2- Increase profit margins.

Even with a high or low share of the market it’s your margins that make or break you. Apple has great
margins but a low market share across the board due to competitors low price points.

Strategy- Continue push to lower cost to make products while sustaining the same retail price in the
market.

Promotion

Building a brand may be the toughest challenge in all of business. To start at absolutely nothing and
build something that persuades millions of consumers to buy your products. Success like this is not built
without excellent marketing and promotion strategies which Apple has certainly demonstrated they
have.

Objective 1- Build hype and anticipation for new upcoming products.

No better promotion than getting consumers to anticipate your next release. Every great product’s next
version will always do great despite its functionality based solely on the anticipation from its previous
version. Ex: If you liked the iPhone 5 why would you not like the 5S with newly added features and
design?
Strategy- Use annual conference and events to announce release and information on each new product
before it hits the market. This allows the consumer to build a demand for the product before it ever hits
the shelf.

Objective 2- Sustain and expand on strongly branded name.

There is no bigger name in the tech world and it can only get bigger as we go. Apple has changed the
way we look at phones and tablets. Who says the word tablet anymore, most associate the device with
iPad.

Strategy- Be a trend setter, enter new product markets before competition, and deliver current products
at an unreachable standard of quality.

Slide 11

Strengths:

Apple is benefiting from an effective innovation process and a strong ability to renew its products.

The company launched a wide range of products as phones, computers, tablets (iPad), headphones and
watches. Their strong brand image is accompanied by a real infatuation for the release of new products,
considered as “events”. The brand is consumer-driven and make high profit margins.

Moreover, the brand appeal of the company makes of it one of the only one in its field to be considered as
a luxury brand –being offered by the richest Chinese men and women according to the Chinese group
Hurun research, beating Hermès and Louis Vuitton.

Customers of Apple are very loyal to the brand.

The direct competitor of Apple is Samsung. However, the Korean telecommunication company
encountered some problems related to their last product, the Samsung Galaxy S7. Several explosions of
the phone caused by the battery of the devices have been reported. Thus, Samsung had to call its
products back. This confirms the position of Apple products as the most secure and reliable products on
the market.

The company permanently renews itself. In a constant willing of progress, their next iPhone will have a
new design that will improve quality control’s stability while enabling cheaper costs for Apple (Digitimes).
The next iPhone could skip the traditional “S” version that follows each release of new phones by Apple
and might be the iPhone 10 instead of 8 (Apple Stock News: A Look into iPhone 8).
The company even started to anchor its business into Corporate Social Responsibility –CSR and thus
develop harmless solutions. They are also committed to environmental issues, and more particularly in
the recycle process.

Finally, Apple is particularly known for being at the cutting edge of technology. Added to a specific design
and a leadership position on the market, the strengths of Apple seems infinite.

Weaknesses:

However, prices of Apple products are really expensive compared to its competitors. Its main one is
Samsung, using the system of Android. As an example, the iPhone 6 with 16 GB storage was as
expensive as the Samsung Galaxy S6 which is enjoying a 32 GB storage. Furthermore, Apple products
are not compatible with the products of other brands, but only with the other products of the brand itself.

Apple’s products are distributed through Apple website, Apple stores, electronic shops either physical –
Darty, or online –Amazon.com. The exposure to Apple product is pretty low even though their presence
on the media seems effective.

Apple has developed a lot of products and used its customers to highly qualitative products. With the
technology advances and the rapid renewal of products, the expectations of Apple’s customers became
particularly high and meet them is a challenge for the company as well as a weakness. There’s a risk of
stagnation for the company and one of its competitors played on it in its last advertising, drawing attention
to the stagnation of the market: core products stay the same and there are only incremental changes.
Many products have been already developed by the brand and there’s a risk of stagnation.

Opportunities:

That’s why the company should take advantages of the opportunities it has, firstly regarding the
diversification of products.

Even though the product portfolio of the company is already well filled, it’s a necessity for the company to
keep the attention and the loyalty of its customers by offering them the products they want. The market of
connected objects is growing rapidly and is planned to represent 21 billion by 2020 according to the
research company Gartner. And the smart watches of Apple received a particularly good welcoming from
consumers: they already represent 50% of the market share of smart watches in the US.

One track for Apple could be to develop the watch, but also other connected devices in home automation
and sport. Another one could also be to develop its partnerships.

The company encountered many critics regarding its current pace of innovation. However, the brand
already enjoys valuable business partnerships with prestigious brands as AT&T –an American
telecommunication conglomerate, Foxconn Technology group –world’s largest electronic manufacturer or
TPK Holding –world’s largest touch-panel suppliers. According to the New-York Times, Apple’s products
are the preferred devices for corporations. Thus, companies represent important customers of Apple
(New York Times).

Recently British Airways bought 17,000 iPads for its staff, IBM developed 100 enterprise apps for over 2
000 companies. iPhones and iPads are used by companies because it’s seen as more secure than the
system of Android. Among the different qualities of the Apple’s products, its good management of
hardware and software is particularly appreciated. With new partnerships, Apple would not only benefit
from better exposure; alliances are also a way for them to improve their products both on the
management and the security of the devices.

Threats:

Apple does not only have to deal with criticism regarding its pace of innovation. It also faces a certain
amount of threats as a really tough competition on its market. They differentiate themselves quite well for
the moment and, as stated before, the recent scandal toward the last Samsung should help them to
strengthen their leadership position on the market.

Competition is also accompanied by imitation of the company. As an example, Apple filed a lawsuit
against Samsung for infringement of design patents. This case was judged by the Supreme court and
proves the tension of the market.

Last but not least, Apple has to tackle the rise in labor costs in the countries in which they relocate their
plants.

Slide 12
Potential Impact of Political Factors on Apple

 Apple is one of a number of American technology companies that has accumulated a large
amount of cash. It had $34.7 billion in the bank on June 30, 2015. This is generating calls for
higher corporate taxation in the United States, where income inequality has become a major
political issue.

 Apple is heavily dependent on lower cost manufacturing in China. Social and political unrest in
China could disrupt manufacturing or increase manufacturing costs in that country. There have
been also been calls to restrict Chinese imports in the United States in an effort to boost
American manufacturing.

 The cost of finding alternatives to Chinese manufacturing could be high for Apple. This could
lead to increased prices for Apple products.

 Apple’s dependence on Chinese manufacturing and markets makes it vulnerable to political


unrest in that country.
 Apple could become the target of growing nationalism and anti-Americanism in China, which
could reduce its market share.

 Apple’s close association with China could become a political issue in countries like the United
States and Japan if China were to be perceived as a threat.

 Apple’s dominant position in fields like music could lead to antitrust concerns and political
pressure to break the company up or limit its market share.

Potential Impact of Economic Factors on Apple

 Increased labor costs in China could take away the cost advantage of some Apple products.

 Stagnating middle-class incomes in some developed countries, including the United States,
could shrink the potential market for higher-end consumer goods such as those marketed by
Apple.

 A strong U.S. dollar could increase exchange rates, making it more expensive for Apple to do
business in key markets like Europe and China.

Potential Impact of Social Factors on Apple

 The biggest growth in consumer spending in coming decades will be in areas of the world such
as Africa where people are unfamiliar with Apple products.

 Consumers in those markets and younger people in Apple’s established markets, such as the
United States, lack the strong emotional attachment to Apple products that drive sales.

 There is a backlash against expensive and stylish products among some customers in the United
States and Europe.

 Ethical concerns about Apple’s manufacturing in China could limit its products’ appeal among
socially-conscious consumers.

 Apple’s close association with China could offend some potential customers in other regions,
such as North America and Europe, particularly if tensions with China rise.

 Apple’s music marketing strategy has created resentment and led to public criticism from major
recording stars that could tarnish the brand’s image.

Potential Impact of Technological Factors on Apple

 Competitors such as Google and Samsung have demonstrated a strong ability to duplicate
Apple’s products and services. It took less than a year for Google to roll out a payment app;
Android Pay, with the same capabilities as Apple Pay. This means that many of Apple’s signature
services and products are no longer unique.

 The number of new consumer products Apple can bring out is limited. Many of its new offerings,
such as Apple TV, will have a limited market.

 Growing use of smartphones and tablets will lower demand for Apple’s popular personal
computers.
 Apple’s proprietary operating system can limit the variety of applications available to
smartphone users.

 The growing capabilities of cyber criminals make Apple’s systems less secure and take away one
of its strongest competitive advantages: its reputation for high levels of security and safety.

Potential Impact of Legal Factors on Apple

 Apple has recently entered the highly regulated financial services sector via Apple Pay. This
could increase the level of regulation and government oversight it faces.[2]

 By offering financial services, Apple could face increased levels of litigation.

 News reports indicate that Apple is planning to enter another highly-regulated sector:
automobile manufacturing.[3] Entering the auto business could increase regulatory, insurance
and litigation costs at Apple.

 Apple depends on a variety of products covered by intellectual property laws, such as software
and music, for much of its income. This leaves the company highly vulnerable to both piracy and
litigation.

Potential Impact of Environmental Factors on Apple

 The biggest environmental issue facing Apple is the disposal of used or nonworking electronic
devices. The expense of disposing of devices, particularly those containing lithium batteries,
could be high. Apple could be forced to assume that expense because of concerns about such
devices in landfills.

 Pollution and other environmental side effects from manufacturing facilities in China are a
growing concern. This could lead to increased regulation and higher manufacturing costs at
some point in the future.

 China’s efforts to cut greenhouse gases and limit fossil fuel use could increase electricity rates
and manufacturing costs for Apple in that country.

 Climate change created by global warming could disrupt transoceanic shipping and Apple’s
supply chain.

 Concern about energy use and other side effects from data centers could lead to increased
regulation and costs.

 Apple is highly vulnerable to increases in electricity costs because of its dependence on data
centers and other Internet infrastructure.