Apple.Inc Introduce.ppt

AppleComputers JessicaBourgoinAmyKakukBethTheriault04 25 2005 Outline BriefHistoryofHDWherewearenowVisionandMissionExternalAnalysisCPMEFESummaryInternalAnalysisIFEFinancialratioanalysisNetWorthAnalysisSummary StrategicAnalysisSWOTMatrixSPACEGrandStrategyMatrixIEmatrixBCGSummaryPossiblestrategiesQSPMRecommendationsStrategicimplementationanddesiredresultsObjectives Goals History1976 1978 WozniakandJobsformtheAppleComputerCompanyonAprilFool sDay WozniakandJobsfinishworkonapreassembledcomputercircuitboard Ithasnokeyboard case soundorgraphics TheycallittheApple I TheAppleIboardisreleasedforsaletohobbyistsandelectronicsenthusiastsatthepriceof 666 66 Apple sfirstformalbusinessplansetsagoalforsalestogrowto 500millionintenyears Asitturnsout thecompanywillpassthatmarkinhalfthetime AppleIcomputerboardsaresoldthrough10retailstoresintheU S ApplemovesfromJobs garagetoabuildingonStevensCreekBoulevardinCupertino California ThenewApple IIisunveiledatthefirstWestCoastComputerFair Itisthefirstpersonalcomputerabletogeneratecolorgraphicsandincludesakeyboard powersupplyandattractivecase TheApplelogoasseentodayisdesignedbyRobJanoff artdirectorforRegisMcKennaAdvertising RegisMcKennaAdvertisinglaunchesitsfirstadcampaignforApple Althoughadvertisingisinitiallyaimedatelectronicsenthusiasts Applewillsoonbecomethefirstcompanytoadvertisepersonalcomputersinconsumermagazines Monthlyordersreacha 1millionannualsalesrate http www apple History1978 Appleintroducesvariousinterfacecardsforconnectingtomostprinters Apple sDiskII isintroducedattheConsumerElectronicsShow Itistheeasiesttouse lowestpriced andfastestmini floppydiskdriveeverofferedbyacomputermanufacturer Itwillmakepossiblethedevelopmentofserioussoftware Productionatfirstishandledbyjusttwoemployees turningout30drivesaday Inonlyitssecondyear AppleisoneofthefastestgrowingcompaniesinAmerica Saleshaveincreased anditsdealernetworkhasgrowntoover300 History1979 1981 Apple sfirstprinter theSilentype isintroduced AppleopensamanufacturingplantinCarrollton TX ApplefacilitiesnowoccupymorethanhalfamillionsquarefeetoffloorspaceintheU S andEurope Applegoespublic MorganStanleyandCo andHambrecht Quistunderwriteaninitialpublicofferingof4 6millionsharesofApplecommonstockatapriceof 22pershare Everyshareisboughtwithinminutesoftheoffering makingthisthelargestpublicofferingsinceFordwentpublicin1956 Apple semployeecountbreaks1 000 Apple sdistributionnetworkisthelargestintheindustry 800independentretailersintheU S andCanada plus1 000outletsabroad Apple sfirstmassstoragesystem the5MBProFile tm harddiskisintroduced pricedat 3 499 Applebecomesahouseholdname Surveysshowthatpublicawarenessrosefrom10percentto80percentin1981 History1982 1985 AppleDotMatrixprinterintroducedfor 2 195 Applebecomesthefirstpersonalcomputercompanytoreach 1billionannualsalesrate Itthrowsa BillionDollarParty foremployees AppleUniversityfoundedtoprovideemployeetrainingprograms AppleenterstheFortune500atnumber411inunderfiveyears EVA EmployeeVolunteerAction iscreatedtomatchtheskillsofAppleemployeeswithcommunityneeds AppleiselectedtotheConsumersDigestHallofFameforresponsivenesstoconsumerneeds AppleIIreceivesthe1984IndustrialDesignExcellenceAward IDEA sponsoredbytheProductIndustrialDesignersSocietyofAmerica Appleannouncesacomputertrainingscholarshipprogramforelementaryandsecondaryschooleducators The History1986 1990 Appleannouncesplanstocreateanindependentsoftwarecompany tobeknownlaterasClaris Forthefirsttime AppleusesitsHyperCardtechnologytodistributea1987HyperCardsupplementondisketteforMacintoshpersonalcomputers ApplefilessuitagainstMicrosoftandHewlett PackardtoprotectitsMacintoshaudiovisualdisplay Thelawsuitisseenashavingindustrywideimplicationsregardingcopyrightlaws Applereportsfirstbilliondollarquarterinitshistoryasnetincomerises108percent Applereportsnetsalesof 4 07billionandnetincomeof 400 3millionforfiscalyear1988 AppleacquiresCoralSoftwareCorp whichmarketsprogramminglanguagesandartificialintelligencetoolsforMacintoshcomputers Appleintroduces32 BitQuickDraw tm thatallowsMacintoshpersonalcomputerstoprocessanddisplayphoto qualitydocuments imagesandvisualizationswithexceptionalcolorclarity Appledonates 2millionincomputersto23schoolstohelpat riskstudents Fiscal1990revenuessurpass 5 5billion History1991 1995 Appleannouncesitwillrestructurethecompanyoverthenext12monthstoreduceoperatingexpenses Apple sworkforceisreducedapproximately10percent AppleandIBMsignaletterofintenttocooperateonmajortechnologyinitiativesforthe1990s Apple IBM andMotorolafinalizemilestonetechnologyalliance AppleannouncesanewTokenRing4 16NBCard fortheMacintoshproductline ItisthefirstproducttoemergefromAppleandIBMalliance AppleandKodakannouncethattheyareworkingtogethertointegratesupportforPhotoCDimagesintofutureversionsofQuickTime TheU S EnvironmentalProtectionAgencyofficiallyreleasestheEnergyStaremblemfordisplaywithenergy efficientcomputersandperipherals Applehasmorethan20productsthatmeettheEPA sthetechnicalrequirements Apple sMacintoshcelebrates10thbirthday AsofJanuary2005ApplehasintroducedtheMiniMacandtheiPodShuffle Applein2005 TheAppleMiniMacisacompactdesktopcomputer Itis2inchestallandweights2 9lbs TheMiniMacstartsat 499andcomesstandardwithiChatAVdesktopvideoconferencing Mail AddressBook QuickTime iSync andaDVDPlayer Graphicsfrom MiniMac iPodShuffle TheiPodshuffleisasmallerversionoftheoriginaliPod ItismuchsmallerandlighterandcandoubleasaportableUSBflashdrivewithupto1GBofstoragespacetobackuppersonalfilesandexchangethembetweencomputers For 99youcanpurchasethe512MBholdingupto120songsorthe1GBholdingupto240songsforjust 149 Graphicsfrom MacOSXTiger OnApril29 2005 theMacOSXTigerwillbereleased ThisisanadvancedoperatingsystemthatrequiresaMacintoshcomputerwithaPowerPCG3 G4orG5processor Built inFireWire 256MBofRAM and3GBofavailableharddiskspace Itcost 129forasingleuserand 199fora5licensefamilypack AppleintheMarket asof4 22 05 LastTrade 35 50 52WeekLow 12 75 52WeekHigh 45 44 Applehada2 1Stockspliton02 28 05 VisionStatement proposed Tobecometheworldwideleaderincomputerandmp3playersales MissionStatement actual Appleignitedthepersonalcomputerrevolutioninthe1970swiththeAppleIIandreinventedthepersonalcomputerinthe1980swiththeMacintosh Appleiscommittedtobringingthebestpersonalcomputingexperiencetostudents educators creativeprofessionalsandconsumersaroundtheworldthroughitsinnovativehardware softwareandInternetofferings TheApplecommitmenttoexcellenceisitsmissiontoprovidecomputersandservice 2 forpeople 1 thatmeetthehigheststandardsofvalueandreliability Appleisoneofleadersinthecomputerindustryandmakesthebest sellingcomputersintheworld 7 3 Appleprovidesthehighestlevelofqualityandvalueforourcustomers Thosearetimelessfundamentals Wealsoapplyinnovativetechnologytoourcorebusiness 4 todifferentiateourselvesandmakeourproductsirresistibletoourcustomers beneficialtosociety andprofitabletoourcompany 5 Westrivetoprovideadditionalopportunitiesforgrowthandenrichmentofcompanypersonnelwhilemaintainingaworkenvironmentforallemployees 9 thatencouragespersonalcommitmentandparticipationinsupportofachievingexcellence Wearecommittedtobeingagoodcorporatecitizen andbeingopenlyhonestwithallofourstakeholders 6 Wesupportactivitiesthathelptobuildcommonunderstanding enhanceexcellence andenablepeopletoimprovetheirlivesandreinforcetheircommitmenttosociety 8 MissionStatement Proposed ExternalAudit OpportunitiesIncreaseinwormsandvirusesonPCs Largepopulation GenX Y whichareextremelyindividualisticandnamebrandconscious WeaktieswithMicrosoftproducts DownloadablemusicandMP3playersarehighlymarketable Increasesalesofcomputersonlineby25percent Increasesalesoflaptopsby20percent ThreatsCompaniesnotseeingAppleascompatiblewiththeirsoftware DellandHParemajorcompetitors Increasingcompetitionwithmusicdownloads Delldoesnotinventbutprovidescomputersatamorecosteffectiverateforcustomers Recession priceofApplecomputersarehigher Intel sfuturePentiumrelease CPM CompetitiveProfileMatrix ExternalFactorEvaluation EFE Matrix ExternalSummary ApplehasratedtheIncreaseinwormsandvirusonPCs Largepopulation GenX Y whichareextremelyindividualisticandnamebrandconscious andtheCreatingmoretieswithMicrosoftproductsastheirthreehighestopportunities ApplehasratedthatthefactofDellandHPbeingsuchhugecompetitorsastheirtopthreat InternalAudit StrengthsiTunesMusicStoreisagoodsourceofrevenue especiallywiththeiPodandtheavailabilityonWindowsplatform Developingownsoftwareandhardware Apple snicheaudienceprovidesthecompanywithsomeinsulationfromthedirectpricecompetition Revampingdesktopandnotebooklines Webtechnologycanbeusedtoimproveproductawarenessandsales Lowdebt moremaneuverable Goodbrandloyalty WeaknessesWeakrelationshipwithIntelandMicrosoft Weakpresenceinbusinessarena Dependencyonnewproductlaunches Weakpresenceinmarketsotherthaneducationandpublishing Slowturnaroundonhighdemandproducts InternalFactorEvaluation IFE Matrix FinancialRatioAnalysis March2004 FinancialRatios cont FinancialRatios cont NetWorthAnalysis SE Additionalpaidincapital retainedearnings4 095M 119M 2 325 6 5B9 28 02Netincomex565Mx5 325MShareprice 10 17 03 EPS 10 17 03 income 3years 22 75 0 49 x275M 12 7BNumberofsharesoutstandingxshareprice358 958 989x22 75 8 1BMethodaverage 6 9B InternalSummary ApplehasratedtheiriTunesMusicStorebeingagoodsourceofrevenue especiallywiththeiPodandtheavailabilityonWindowsplatform theirlowdebt moremaneuverable andtheirWebtechnologybeingusedtoimproveproductawarenessandsalesastheir3higheststrengths Appledidnotrateanyoftheirweaknesseshigherthana2 theyshouldworkonbeingabletodirectmoreattentiontothoseareasandespeciallyconcentrateonthetwoareasofdependencyonnewproductlaunchesandtheweakpresenceinbusinessarena SWOTMatrix S OStrategiesIncreaseawarenessthroughtheweboftheimmunityofMacproductstowormsandviruses S5 O1 AdvertiseusingindividualsthatwilllinkGenerationX YtotheiTunesandotherrelatedproducts S1 O2 O4 O5 O6 UsingmoviesandmusicgroupsthataregearedtowardsGenXandYtopromotecomputersandlaptops S3 S5 O2 O5 O6 S TStrategiesIncreaseandpromotethecompatibilitytoWindowoperatingsystem S5 T1 PromotetheoriginalityofApplecomputersandthedifferentstyleandstablesystemthatisslightlymorebutworththepricedifferenceinstyle stabilityandspeed S2 S5 T2 T4 T5 W OStrategiesIncreasetieswithMicrosoftandIntelandtheirproducts W1 W2 W4O2 O3 PromotetobusinessthesafetyofhavingawormandvirusfreecomputerbyusingMac W2 W4 O1 O5 O6 W TStrategiesImproverelationshipwithMicrosoftandIntelsothatcompanieswillseethemascompatible W1 W2T1 IncreaseproductivityandturnaroundofhighdemandproductstocompetewithDellandHP W5 T2 SPACEMatrix Competitive Defensive Aggressive SpaceMatrix GrandStrategyMatrix AppleComputer TheInternal External IE Matrix GrowandBuild BostonConsultingGroup BCG Matrix Low 20 High1 0 Medium 50 Low0 0 International Domestic CashneedHighvs cashflowlow MarketPenetrationMarketDevelopmentProductDevelopmentSell MatrixAnalysisSummary QSPM QSPM Recommendations Strategy1Opensixcomputerretailstores notjustperipheralandaccessories ApplecurrentlyhasstoresopenedthroughouttheUnitedStateswithonlyperipheralandaccessoriesfortheircomputers Addingthehardwareshouldgeneratemorehands onawarenessandusealreadyestablishedlocations ThiswillincreaseproductaccessibilityforthosewhowishtoviewitemsotherthanjustaccessoriesandincreaseawarenessoftheoriginalityofApple sproducts 2percentincreaseoverthenext2yearsinsalesrepresentativesforthecomputerhardware Strategy2Contractmusicspokespersontoattracttheupcominggenerationwhoareattendinghighscho