Apple Inc.
Presented by
Wei Ping
Sirin
Taskin
John
Contents
Company background Name | Apple Inc. | Industries served | Computer hardware, Computer software, Consumer electronics, Digital distribution | Geographic areas served | Worldwide | Headquarters | U.S. | Current CEO | Tim Cook | Revenue | $ 156.508 billion (2012) | Profit | $ 41.733 billion (2012) | Employees | 72,800 (2012) | Main Competitors | Samsung Electronics Co, International Business Machines Corporation, Cisco System Inc., Google Inc., Microsoft Corporation, Dell Inc., LG Electronics, Lenovo Group Limited, Hewlett-Packard Company, Sony Corporation and many others. |
Apple Inc. is an American multinational corporation, which designs,
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Apple’s retail stores ensure high quality customer experience; provide direct contact with knowledgeable staff and increases brand awareness. Customers can also purchase the products online in Apple 's official website. Best Buy, one of Apple 's partners, also sells Apple products and also has a large retail footprint in the Australia. Amazon, one of the largest online retailers, also carries Apple products. Apple should gauge consumer demand and produce enough in order to satisfy the market.
Promotion
In the past two decades, Apple has become well known for its advertisement. Its most significant ad campaigns include the "1984" Super Bowl commercial, the 1990s Think Different campaign, and the "iPod people" of the 2000s. Other than that Apple Inc. also held press conference to before each products launch debut the products. Several of the major techblogs, forums and websites also invited to cover the event. Given Apple 's track record of heavy promotion and advertisement of its marquee products, the future apple new product has a high probability of getting the same advertising treatment. The Mac, Iphone 5 and iPad is already highlighted on the front page of Apple website and the hour long keynote by Steve Jobs regarding the Mac, IPhone 5 and iPad are also available on the website.
Swot Analysis -------------------------------------------------
Strengths * Apple is leading innovator in
"Pcs Industry Profile: United States." Pcs Industry Profile: United States (2012): 1-39. Business Source Premier. Web. 8 Oct. 2013.
Image–Apple’s advertisements usually portray their products as being for younger customers and don’t present an image of compatibility in a corporate scenario.
The technology portion of their company has grown tremendously which has caused so much of their growth. In addition, they found the perfect formula to appeal to and retain customers. Most of their customers are loyal to their company and insist on sticking to their products. Their market capitalization, $639,922 million, is extremely high compared to other companies in their industry They returned about $8 billion to shareholders during their quarter. Also, their gross margins, currently at 38.01%, are high at passed by
Apple retail stores are located in different CBDs of different states in Australia. Using specialty store concept Apple provides distinctive and brand value for the customers in their specialty stores.
Marketing Report - The Marketing Mix Introduction Apple Inc. is an American global organisation that designs and sells consumer electronics, computer software and personal computers. Examples of Apple Inc.'s products include the iMac, iPod, the OS X operating system, and the iTunes media browser. (RED) is an AIDS charity who's aim is to raise awareness and funding to help eliminate AIDS in Africa. To help achieve their aim 'Product (RED)' was introduced, which is a brand licensed to partner companies, such as Apple Inc., who create a product with the Product (RED) logo on. In return for increased sales a percentage of the profits from the products in question goes to the Global Fund to help fight AIDS/HIV in Africa. In 2007 Apple Inc. and
As of late Apple decided to execute a vertical development methodology and started extending their own particular retail locations. The organization likewise offers its item by means of outsider merchants, or through web through their own particular site or through the iTunes.
With new products Apple appears to allow their brand and culture to be there advertisement. An event is generally set up to announce the next captivating and innovating new product from Apple. A release date is giving and a percentage of the public anxiously waits for the pre-order date or release date to purchase the next level of technology.
Apple Stores are one of the most important sales channel, customers interact with Apple. According to Apple, "Not just for those who are already customers but potential customers--sometimes more than 50 million customers visit through Apple's doors every three months, and half of them who visits and purchases are first-timers". The retail stores are the key element of Apple’s strategy expansions through the locations internationally. Apple has forty store openings planned and is spending $900 million on new stores in Germany, Spain, France, Australia, Canada and China (Kahn, 2012).
The impact of Apple products in the electronic business market and what makes them more superior from their competitors? The role of marketing management to target the consumers, critically analyse?
Apple incorporation manages its business practices based on geographical location. The operating segments include North and South America, China, Japan, and the Asia Pacific (Australia, India, Hong Kong, etc.). However, each operating segment is managed separately according to the location of its customers and distribution partners. Majority of the customers are either in the consumer, small business, government, or education sector. Through the use of online and retail stores, Apple products and third party products are sold to consumers and small businesses. During 2015, approximately 26% and 74% of the total net sales was accounted for through direct and indirect distribution.
Apple’s Retail Strategy: Location plays a significant role in this. The fact that they are in malls helps because consumers are already in shopping mode. The fact that consumers can go in and get support or repairs for their products and then get some other shopping.
Apple Inc. has been able to continuously stay one step ahead of its competition by creating innovative and unique products that customers enjoy. Looking at the industry environment, stiff competition poses a large threat to Apple at this time, as well as rising labor costs in China, and third the ability of a company to imitate an Apple product. The main competitors to Apple are Samsung, Microsoft, and Google. One important external factor that is favorable for Apple at this time would be the continued growing popularity of digital devices as well as the increased use of social media. Apples brand recognition in the industry is very high, meaning its reputation is very good among its customers. In addition existing substitute products to Apple’s are relatively weak and do not come with as many features. As a result Apple can raise and lower its prices without the threat of losing many customers, which is in part why the company has a lot of market power at this time.
Motivation can also be in form of training. Beach House is in the IT sector, hence, faces a lot of competition as regards to coming up with advanced and trendy technology. Most IT companies subject their employees to continual training in order to improve their skills and make them innovative. Top IT companies like Apple Incorporated have an elaborate internal training program, called Apple University, which inculcates Apple employees into Apple business culture and educate the about the company’s history (Chen 2014). This is partly one of the reasons why Apple Inc. has been performing well in the last decade. Beach House needs to have a training program that indoctrinates its personnel into a culture of high performance. The company’s management can remind both teams of past achievement, and seek to make both groups want to attain such feats. Additionally, the company needs to realise that each individual prioritises needs differently, for instance, some employees aspire for ascribed achievement. This concept is explained by the McClelland’s acquired needs theory, which argues that some needs are acquired during an individual’s lifetime, people do not inherit them, but learn about them through life’s experiences (Daft 2014). It would generally be assumed that individuals working in Beach House want to achieve personal goals. The company can provide an enabling environment where people are guaranteed of forms of achievement such as awards.
Apple utilizes direct distribution channels, most notably, retail stores, to deliver products to customers. Upon the end of 2013, Apple, Inc. controlled 254 retail stores in the U.S. The stores generate $4,032 per square foot, the highest among all brick and mortar retailers (Apple.com, 2014). The
In 1984 Apple launched the Macintosh and the advertisement that was launched before it was highly inspired by the novel 1984 by George Orwell and read a caption at the end stating, ‘Apple computer will introduce Macintosh and you’ll see why 1984 won’t be like 1984’. The advertisement that was directed by Ridley Scott was hated by the board of directors at that time. However, Macintosh went on to sell 72,000 computers in 100 days and was a massive success for the company. In 2004, Apple relaunched the same campaign by adding the iPod in the advertisement and keeping it exactly identical to the original one.