INDUSTRIAL EXPOSUREPROJECT

On

“APPLE MACINTOSH”

Submitted in Partial Fulfillment of the requirements for the Award of

Degree of Bachelor of Business Administration (BBA)

2016-2019

Submitted by: SUMIT BANSAL

Under the guidance of: MR. Shakti Sharma

BHARATI
VIDYAPEETHUNIVERSITY

SCHOOL OF DISTANCE EDUCATION,

Academic Study Center – BVIMR, New Delhi

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 (A Constituent Unit of Bharati Vidyapeeth University
,Pune)AnISO9001:2000CertifiedInstituteNAAC Re-Accreditation Grade “A” University

ACKNOWLEDGEMENT

This project is a result of dedicated effort. It gives us immense pleasure

to prepare this project report on marketing strategy of “APPLE
MACINTOSH” We would like to thank our project guide MR. SHAKTI
SHARMA, for consultative help and constructive suggestions on the
matter on this project. We would like to thanks our parents and
colleagues who have helped us in making this project a successful one.

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 DECLARATION

This is to certify that I have completed a project titled “APPLE Macintosh” Under the
guidance of Mrs. SHAKTI SHARMA in the partial fulfillment of the requirement for
the award of Bachelors of Business Administration of BharatiVidyapeeth University,
New Delhi. This is the original piece of work & I have not submitted it earlier elsewhere.

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SUMIT BANSAL

PREFACE

It is designed in such a way that student can grasp maximum knowledge and can get
practical exposure to the corporate world in minimum possible time. Business schools of
today realize the importance of practical knowledge over the theoretical base. The
research report is necessary as it provides an opportunity to the researcher in
understanding the industry with special emphasis on the development of skills in
analyzing and interpreting practical problems through the application of management
theories and techniques. It is a new platform of learning through practical experiences.

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CONTENTS
Chapter 1: Introduction to Company
1.1 Nature of business/history
1.2 Type& ownership pattern
1.3 Organizational Structure
1.4 Production Layout
1.5 Organization policies

Chapter 2: Industrial Analysis

2.1 Porter’s Five Forces Model of Competition – Michael Porter

2.2 Environmental Scanning – PEST Analysis
2.3 Key Competitors
2.4 Current Issues
2.5 Industrial Overview

Chapter 3: Marketing Strategies

3.1 Marketing Strategies

3.2 4 P’s
3.3 Products
3.4 STP
3.5 Distribution Channels

Chapter 4: Financial Analysis

4.1 Source of finance

4.2 Balance sheets
4.3 Ratio Analysis

Chapter 5: Key Learning’s from the Company and Recommendations

5.1 SWOT Analysis

5.2 Reasons for the diversification of the company
5.3 Comment on Organizational Leadership
5.4 Performance Analysis of the company
5.5 Market Share / Growth Rate of the company

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Chapter 6: Findings
Chapter 7: Conclusion and Suggestions
Bibliograph

CHAPTER 1 - INTRODUCTION TO COMPANY

1.1INTRODUCTION

Apple Inc. is an American multinationaltechnology company headquartered in Cupertino,

California, that designs, develops, and sells consumer electronics, computer software, and
online services. Itshardware products include the iPhonesmartphone, the iPadtablet
computer, the Macpersonal computer, the iPodportable media player, and the Apple
Watchsmartwatch. Apple's consumer software includes the OS X and iOSoperating
systems, the iTunesmedia player, the Safariweb browser, and the iLife and iWork
creativity and productivity suites. Its online services include the iTunes Store, the iOS
App Store and Mac App Store, and iCloud.

Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1, 1976,
to develop and sell personal computers. It was incorporated as Apple Computer, Inc. on
January 3, 1977, and was renamed as Apple Inc. on January 9, 2007, to reflect its shifted

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focus toward consumer electronics. Apple joined the Dow Jones Industrial Average on
March 19, 2015.

Apple is the world's largest information technology company by revenue, the world's
largest technology company by total assets, and the world's second-largest mobile phone
manufacturer. On November 25, 2014, in addition to being the largest publicly traded
corporation in the world by market capitalization, Apple became the first U.S. company
to be valued at over US$700 billion.The company employs 115,000 permanent full-time
employees as of July 2015 and maintains 453 retail stores in sixteen countries as of
March 2015. it operates the online Apple Store and iTunes Store, the latter of which is the
world's largest music retailer.

Apple's worldwide annual revenue totaled $233 billion for the fiscal year ending in
September 2015. The company enjoys a high level of brand loyalty and, according to the
2014 edition of the Interbrand Best Global Brands report, is the world's most valuable
brand with a valuation of $118.9 billion. By the end of 2014, the corporation continued to
receive significant criticismregarding the labor practices of its contractors and its
environmental and business practices, including the origins of source materials.

HISTORY

1976–1984: Founding The Company

Home of Paul and Clara Jobs (Steve Job’s Parents), on Crist Drive in Los Altos,
California.Steve Jobs formed Apple Computer in its garage with Steve Wozniak and
Ronald Wayne in 1976.

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.
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Apple was established on April 1, 1976, by Steve Jobs, Steve Wozniak and Ronald
Wayne to sell the Apple I personal computer kit. The Apple I kits were computers single
handedly designed and 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 was less than what is now considered a complete
personal computer.

1984–1991: Launching Macintosh

In 1984, Apple launched the Macintosh, the first personal computer to be sold without a
programming language at all. Its debut was signified by "1984", a $1.5 million television
commercial directed by Ridley Scott that aired during the third quarter of Super Bowl
XVIII on January 22, 1984. The commercial is now hailed as a watershed event for
Apple's success and a "masterpiece".

The Macintosh initially sold well, but follow-up sales were not strong due to its high
price and limited range of software titles. The machine's fortunes changed with the
introduction of the LaserWriter, the first PostScriptlaser printer to be sold at a reasonable
price, and PageMaker, an early desktop publishing package. It has been suggested that
the combination of these three products were responsible for the creation of the desktop
publishing market. The Macintosh was particularly powerful in the desktop publishing
market due to its advanced graphics capabilities, which had necessarily been built in to
create the intuitive Macintosh GUI.

1991–1997: Decline, restructuring, acquisitions

The success of Apple's lower-cost consumer models, especially the LC, also led to
cannibalization of their higher priced machines. To address this, management introduced several
new brands, selling largely identical machines at different price points aimed at different markets.
These were the high-end Quadras, the mid-range Centris line, and the ill-fated Performa series.
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This led to significant market confusion, as customers did not understand the difference between
models.

By the early 1990s, Apple was developing alternative platforms to the Macintosh, such as
A/UX. The Macintosh platform itself was becoming outdated because it was not built for
multitasking and because several important software routines were programmed directly
into the hardware. In addition, Apple was facing competition from OS/2 and UNIX
vendors such as Sun Microsystems. The Macintosh would need to be replaced by a new
platform or reworked to run on more powerful hardware.

1997–2007: Return in profitability

The NeXT deal was finalized on February 9, 1997, bringing Jobs back to Apple as an
advisor. On July 9, 1997, Amelio was ousted by the board of directors after overseeing a
three-year record-low stock price and crippling financial losses. Jobs acted as the interim
CEO and began restructuring the company's product line; it was during this period that he
identified the design talent of Jonathan Ive, and the pair worked collaboratively to rebuild
Apple's status.

At the 1997 Macworld Expo, Jobs announced that Apple would join Microsoft to release
new versions of Microsoft Office for the Macintosh, and that Microsoft had made a $150
million investment in non-voting Apple stock. On November 10, 1997, Apple introduced
the Apple Online Store, which was tied to a new build-to-order manufacturing strategy.

2007–2011: Launching mobile devices (iPhone)

During his keynote speech at the Macworld Expo on January 9, 2007, Jobs announced
that Apple Computer, Inc. would thereafter be known as "Apple Inc.", because the
company had shifted its emphasis from computers to consumer electronics. This 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. Apple would achieve widespread success with its iPhone, iPod Touch and
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iPad products, which introduced innovations in mobile phones, portable music players
and personal computers respectively. Furthermore, by early 2007, 800,000 Final Cut Pro
users were registered.

In an article posted on Apple's website on February 6, 2007, Jobs wrote that Apple would
be willing to sell music on the iTunes Store without digital rights management (DRM),
thereby allowing tracks to be played on third-party players, if record labels would agree
to drop the technology. On April 2, 2007, Apple and EMI jointly announced the removal
of DRM technology from EMI's catalog in the iTunes Store, effective in May 2007.
Other record labels eventually followed suit and Apple published a press release in
January 2009 to announce the corresponding changes to the iTunes Store.

1.2 Type& ownership pattern

Holder's Name No of Shares % Share Holding

Promoters 117803409 14.63%

ForeignInstitutions 185580848 23.06%

ForeignPromoter 177682187 22.07%

GeneralPublic 134712856 16.74%

NBanksMutualFunds 73308763 9.11%

Others 63005757 7.83%

FinancialInstitutions 41396000 5.14%

GDR 11454870 1.42%

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1.3Organizational Structure

For an organization to be successful it needs a strong organizational structure. How the

organization is set up will directly impact the success or failure of said company. They
need to be structured and organized in a way that will best meet their goals and needs.
Even though the organizational structure is focus on the company’s goal it also dictates
how to report priorities and strategies of upper management.

Apple Inc. is knows as the company that changed everything by creating the
original Macintosh computer in 1984. At the time most people did not even know how to
use a computer or what a computer was, but the design was simple and easy to
understand. One click of the mouse and you could do the unthinkable. Steve Jobs founder
of Apple Inc said: “We are just in the beginning stages of what will be a truly remarkable
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breakthrough for most people – as remarkable as the telephone” (Apple.com, 1984).
Apple has stand out because is an incredibly collaborative company, there are no
committees and employees share their opinion and ideas for the progress and success of
the company.

Apple functions under a collaborative structure. A collaborative business structure

is designed to bring parties together in a long-term relationship to achieve a common goal
(George, R. 2012). A collaborative work environment supports people in their individual
and cooperative work. In a collaborative work environment professionals’ work together
to achieve goals independent of their location, and such practices enables an efficient and
effective collaboration among different talents. Collaboration leads to more ideas and
innovation, like the saying “two heads think better than one”, by attaining to this new
structure Apple has open the doors for innovation and new ideas from their employees.

Microsoft another leading computer company founder by Bill Gates in 1975

(Microsoft.com, 2013) originally had a functional organization structure, the company
started with only 11 positions and expanded throughout the years. Functional
organizational structure usually is better for small companies or those that focus on one
product or service because it is not designed to change quickly and it works well in a
stable environment not inclined to constant changes. Microsoft as of 2010 has a
divisional organization, where each division or product focuses on a specific line of
goods and services. Their approach is very different from Apple, where everyone
collaborates to ideas to each division focusing in one thing and not being able to
collaborate in other products or goods.

Some of the advantages of a division structure can include easier cross-product

coordination, more customer focus and reduce functional duplication. Also some
disadvantages include cost, difficulty coordinating between corporate and division
objectives and redundancy among groups.

One example of a big corporation that still uses functional organizational structure
is Dell. Founded in 1984 by Michael Dell the company encourages different departments
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and functional components to contribute ideas to strengthen the organization. This
structure is very similar to collaborative; it provides more learning availability to all
members or the organization as the decisions comes from various levels (Essays, UK.
2013).

Apple’s marketing organizational function focus on mainly three points

 Empathy - they will truly understand their customer needs better than any other
company.
 Focus – In order to do a good job of the things we decide to do, we must eliminate
the unimportant opportunities.
 Impute – The way the products are presented will make them attractive to the
customers. They will be presented in a creative, professional manner so they will
impute the desired qualities (Forbes.com, 2012).
Apple’s success can be associated also to its Human Resources department. Not many
people think of this but HR does a particularly good job at organizational development.
Some of these strategies include:

 Know your roles – At Apple’s Inc. each employee knows their role. They wear
different t-shirt colors to identify what they are supposed to do. Everyone one
from the greeter to the genius crew knows exactly what his or her role is.
 Free up your leadership – The workforce is deployed effectively which makes
managers and supervisors have more time to focus on what is really important
such as leading, inspiring and providing great customer service without the need
to micro-manage every single employee.
 Make work meaningful – When employees know what they are doing matters
they will do their best. If the employee is satisfied with his or her job they will
deliver the same level of work ethic and do a good job.
 Retain with growth opportunities – Companies struggle to retain great talent, but
Apple offers great opportunities such as promoting from within and allowing
employees to advance within the organization (Suzanne, C., 2012)

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 The operational plan is the key to run an entire organization; this includes all areas
such as finance, human resources, manufacturing, marketing, etc. Apple is knows for its
lenient business thinking (Essays, UK., 2013). The operation of Apple is managed in
geographic basis such as America, Europe, Japan, retail and others. The people are group
together on the basis of their expertise and resources, that way it enables to learn from its
functions. Also managers have greater power over decisions that way there are not so
much bureaucracy when a problem needs to be fix and this avoids the hierarchies.

1.4Production Layout

Apple's new MacBook and MacBook Pro feature precision unibody enclosures
milledfrom an extruded block of aluminum, allowing them to get even thinner
whileretaining rigid durability and a stronger, cleaner, and more polished design. Here's
adetailed overview of the process.Jonathan Ive, Apple’s senior vice president of
Industrial Design, noted that,"Traditionally notebooks are made from multiple parts. With
the new MacBook,we’ve replaced all of those parts with just one part—the unibody. The
MacBook’sunibody enclosure is made from a single block of aluminum, making the
newMacBook fundamentally thinner, stronger and more robust with a fit and finish
thatwe’ve never even dreamed of before.”

CNC Unibody Fabrication :-

The previous MacBook Pro uses a thin, bowl-shapedshell that has an internal skeleton to
hold the internal parts together. The top bezellays on top and is screwed in place on the
sides and back edge. These pieces allow for some tolerance, requiring plastic gaskets to
fit the components together snugly.The new 15" MacBook Pro, along with its nearly
identical 13.3" MacBook version, start with an extruded block of aluminum that is carved
out using CNC or "computer numerical control" machines in a process used by the
aerospace industry to build mission critical, high precision components.The process starts

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with raw aluminum, selected for its favorable strength toweight ratio and the flexibility it
offers in processing and the flexibility it offers in processing.

Extruded aluminum sheets are cut into blocks that undergo 13 separate
millingoperations.

 Apple uses CNC to precision cut keyboard holes from the face of the slab (belowtop),
mill out the "thumbscoop" that provides enough of a recession to open thedisplay lid
comfortably without putting too much pressure on the lid, machine outcomplex patterns
from the inside (below middle) and perforate the speaker grill holesusing lasers (below
bottom).

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16
A portion of the front edge is milled thin enough that a laser can be used to
micro- perforate the metal to allow light from the sleep indicator LED to pass through
themetal. When the sleep indicator is off, the metal appears to be solid. Apple hasalready
used this process on the MacBook Air and the Bluetooth Keyboard thatshipped last fall
alongside the aluminum iMac.Once the inside is precision cut (below top) leaving a
design that is, as Ive observed,"in many ways more beautifully internally than
externally", the edges are rounded and polished (below bottom).

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 The environmentally-friendly recycled bits :- The material machined from

thealuminum block is collected and recycled. Jobs noted that the new MacBooks "are
theindustry’s greenest notebooks.”

Apple says the entire new MacBook line meets stringent Energy Star 4.0,EPEAT Gold
and RoHS environmental standards, and leads the industry in theelimination of toxic
chemicals by containing no brominated flame retardants, usingonly PVC-free internal

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cables and components, and using energy efficient LED- backlit displays that are
mercury-free and made with arsenic-free glass.

Glass-faced, LED backlit display :- The environmentally-friendly LED backlitdisplay

also offers other advantages; it turns on instantly when the display is openedas there is no
warm up time required by a conventional cold cathode fluorescent lamp backlight.It also
requires less energy, allowing for 30% better efficiency while providinga brighter, more
vivid display, or in the words of Bob Mansfield, Senior VicePresident of Mac Hardware,
"what you notice as a customer is that the color has a lotmore pop."Unlike the existing
MacBook Pro, which houses the display recessed into analuminum frame, the new design
fits the display into a thinner lid and the entire insideface of the panel is covered with a
single glass panel similar to the face of the iPhone, with a black margin around the
display (below).

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1.5 Organizational policies

Technology and Product Design

This component represents the true core (no pun intended) of Apple’s capability.From
being the first platform to run an electronic spreadsheet (VisiCalc on theApple II Plus) to
the first to establish a “digital lifestyle” hub (the Macintosh product lines), Apple’s
history is rich with cutting-edge technology development.Apple drives to be the best, no
simply the first. The Apple operating system isuniversally regarded as more stable and
reliable than Windows, while the
desktop publishing software bundles (iMovie, iPhoto, iTunes, etc.) are the mostcomprehe
nsive available to end users. Ives best summarizes the entrepreneurialculture within
Apple by saying that “it’s very easy to be different, but very difficultto be better.”

Production

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Because Apple had long refused to license its operating system to external
entities,the bundled packages of Apple-developed hardware and software became thecorn
erstone of Apple’s production process. Apple achieved unparalleled performance via 64-
bit architecture, integrated distinctive styling with the multi-colored translucent iMac

cases, and redefined intuitive operation with the iPod. While every product

introduction has not been a success (Lisa, Newton, etc.),Apple treats component
production as a natural extension of the design process.

Sales and Marketing

We could simply title this section “Steve Jobs”. Since his return as CEO in
1997,Jobs personally unveils all new product introductions, reviews correspondingmarket
ing campaigns, and approves new product development guidelines. In adeparture from
their turbulent history, Jobs “entered into patent cross-licensing
andtechnology agreements with Microsoft.” (Linzmayer, 290) After years of unimpressiv
e market share growth and cannibalization of a loyal consumer base,the door to the
expansive PC market was now more accessible to Apple than ever  before. Apple
continued to command a market premium for producing a “better mousetrap” throughout
its history.

Customer Service

How has Apple retained substantial cash reserves during the explosive growth
anddominance of PCs worldwide? Apple created a virtual love affair with their customer
base by delivering technically superior products (iPods vs. other MP3 players, Macs vs.
PCs, etc.), and aggressively pursuing hardware and softwareupdates. Apple integrated
their primary activities so well that it is transparent tothe consumer where one activity
begins and the other ends. A perfect example of this is Apple’s willingness to develop
software to run Windows XP on its newIntel-based iMac and then post it online free to
iMac users. (Wingfield) In such anenvironment, customer service merely becomes the
realization of receiving a littlemore than expected.Although Apple employs many
resources and capabilities tosupport their primary activities (human resources, supply
procurement, etc.), themost strategically relevant would be Legal Services.

Legal Services

In a market climate of constant change and innovation, it is inevitable that the driveto
expand product and service offerings will subject Apple to patent and
copyrightinfringement claims. The dispute over the Apple logo on its iTunes Music

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Store,for example, continues despite a previously reached settlement with
Beatles’ AppleCorps Ltd. in 1991. (Dow Jones Newswires) While such litigation as
Microsoft’sWindows infringement on Mac OS patents has been highly publicized, use of
legalguidance to drive acquisition versus internal development strategies for such product
s as GarageBand and iMusic have proven highly valuable. Intellectual property is sacred
to Apple. There was a recent attempt to uncover the identities of internal “sources who
leaked confidential information about an unreleased productto online media outlets in
2008.’’

CHAPTER 2 – INDUSTRIAL ANALYSIS

2.1 Industry Overview

 Contribution to Indian GDP

The market capitalisation of iPhone maker is 20 per cent of India’s GDP (in PPP terms)
and it is 27 times bigger than Reliance Industries Limited. Only 23 countries in the
world have economies, which are larger than Apple’s m-cap and the rest of 173
countries are worth less than this American company.

Apple’s shares rose after it said that it will spend nearly $850 million on a solar energy
project that will generate enough power for the computer giant's new corporate
headquarters, retail stores and other operations in California. The tech company will be
the biggest single consumer of energy from the new solar facility. It is being constructed
on 2,900 acres in rural Monterey County, south of the San Francisco Bay Area. Apple
CEO Tim Cook, who announced the project at an investment conference in San
Francisco, Apple said that it is concerned about climate change. 

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 Growth Rate

 Revenue Growth

 EPS Growth

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2.2 Current Issues

 Apple has Permenantly Disabled some iPhones that had their ‘Home Button
Replaced’ by Unauthorized Repair Shops.

 Apple to Set up Tech Centre in Hyderabad, India.

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 Apple is Trying to Make it Harder to ‘Hack iPhones’

2.3 Key Competitors

The key competitors of Apple inc.are :-

 SAMSUNG

Samsung is a South Korean multinationalconglomerate companyheadquartered in

Samsung Town, Seoul. It comprises numerous subsidiaries and affiliated businesses,
most of them united under the Samsung brand, and is the largest South Korean
chaebol (business conglomerate).

Samsung was founded by Lee Byung-chul in 1938 as a trading company. Over the
next three decades, the group diversified into areas including food processing,
textiles, insurance, securities and retail. Samsung entered the electronics industry in
the late 1960s and the construction and shipbuilding industries in the mid-1970s;
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 these areas would drive its subsequent growth. Following Lee's death in 1987,
Samsung was separated into four business groups – Samsung Group, Shinsegae
Group, CJ Group and Hansol Group. Since 1990s, Samsung has increasingly
globalized its activities and electronics, particularly mobile phones and
semiconductors, have become its most important source of income.

 MICROSOFT

Microsoft Corporation is an American multinationaltechnology company headquartered

in Redmond, Washington, that develops, manufactures, licenses, supports and sells
computer software, consumer electronics and personal computers and services. Its best
known software products are the Microsoft Windows line of operating systems,
Microsoft Officeoffice suite, and Internet Explorer and Edgeweb browsers. Its flagship
hardware products are the Xbox game consoles and the Microsoft Surface tablet lineup. It
is the world's largest software maker by revenue, and one of the world's most valuable
companies.

Microsoft was founded by Paul Allen and Bill Gates on April 4, 1975, to develop and sell
BASICinterpreters for Altair 8800. It rose to dominate the personal computeroperating

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system market with MS-DOS in the mid-1980s, followed by Microsoft Windows. The
company's 1986 initial public offering, and subsequent rise in its share price, created
three billionaires and an estimated 12,000 millionaires among Microsoft employees.
Since the 1990s, it has increasingly diversified from the operating system market and has
made a number of corporate acquisitions. In May 2011, Microsoft acquired Skype
Technologies for $8.5 billion in its largest acquisition to date.

 GOOGLE

Google Inc. is an American multinationaltechnology company specializing in Internet-

related services and products. These include online advertising technologies, search,
cloud computing, and software. Most of its profits are derived from AdWords, an online
advertising service that places advertising near the list of search results.

Google was founded by Larry Page and Sergey Brin while they were Ph.D. students at
Stanford University. Together they own about 14 percent of its shares and control 56
percent of the stockholder voting power through supervoting stock. They incorporated
Google as a privately held company on September 4, 1998. An initial public offering
followed on August 19, 2004. Its mission statement from the outset was "to organize the
27
world's information and make it universally accessible and useful," and its unofficial
slogan was "Don't be evil". In 2004, Google moved to its new headquarters in Mountain
View, California, nicknamed the Googleplex.

2.4 Environmental Scanning - PEST Analysis

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 Aim of the Analysis

 Find out the current external factors affecting an organization.

 Identify the external factors that may change in the future.

 Exploit the changes (opportunities) or defend against them (threats) better than
competitors would do.

1. Political Factors

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 It is reported that more than a half of sales of their products come from countries
other than America.

 Apple Inc manufactures a number of its parts and products from outside the US, like
Czech Republic, Ireland, China, Korea and Cork.

 The bad political relations between US and the other world have bad outcomes for the
company.

2. Economic Factors

 Inflation, recession and currency are three important economic factors that Apple
noticed.

 Since Apple Inc products were viewed as luxury products, therefore customers started
pending less on them.

 US dollar value keeps fluctuating, however the company has purchased itself foreign
currencies and thus, the economic effects on the company are minimized

3. Social Factors

 As the world cannot be imagined without the gadgets, thus Apple products have
marked their presence on the international market.

 As the purchasing power of the common has risen in various markets across the world
the purchasing of luxury products have gone up.

 Possessing these items are considered as status symbols in many societies which have
also increased the sales of Apple Inc products.

4. Technological Factors

 Technology has a short lifetime. That is why Apple needs to upgrade their product
more often so they will outdo their competitors easily.

 Apple Inc has invested largely in its product research and development field and thus
its products are at the top of the new innovative products ranking.

 One of the most innovative and technologically advanced products is the iPod which
marked the demise of walkman.

5. Legal Factors

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 Apple Inc has been a participant in various legal proceedings and claims since it
began operation.

 In October 2009, Nokia Corporation sued Apple for Apple's infringement of Nokia's
patents relating to wireless technology

 Apple has been in a number of patent cases with players like HTC and Samsung.

6. Environmental Factors

 From reporting the entire carbon footprint to finding ways to reduce that footprint,
Apple takes a comprehensive approach to environmental responsibility.

 Apple’s commitment to the environment includes properly disposing of electronic

equipment at the end of its useful life. It responsibly recycle your computers and
displays.

 On track towards achieving an ambitious goal: to power every Apple facility entirely
with energy from renewable sources — solar, wind, hydro and geothermal.

2.5 PORTERS FIVE FORCES MODEL OF COMPETITION – MICHAEL

PORTER

As Porter's 5 Forces analysis deals with factors outside an industry that influence the

nature of competition within it, the forces inside the industry (microenvironment) that
power the way in which firms compete, and so the industry’s likely profitability is
conducted in Porter’s five forces model. A business has to be aware of the dynamics of
its industries and markets in order to compete effectively in the
marketplace. Porter (1980a) defined the forces which drive competition, competing that
the competitive environment is created by the interaction of five different forces acting
on a business. In addition to rivalry among existing firms and the threat of new entrants
into the market, there are also the forces of supplier power, the power of the buyers, and
the risk of substitute products or services. Porter suggested that the intensity of
competition is determined by the relative strengths of these forces.

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Main Aspects of Porter’s Five Forces Analysis

The new competitive forces representation, as proposed by Porter, identified five

forces which would impact on an organization’s presentation in a competitive market.
These include the following:

 The rivalry between existing sellers in the market.

 The power exerted by the customers in the market.

 The impact of the suppliers on the sellers.

 The potential threat of new sellers entering the market.

 The threat of substitute products becoming available in the market.

Considerate the nature of each of these forces gives organizations the necessary insights
to enable them to formulate the appropriate strategies to be successful in their market
(Thurlby, 1998).

 Force 1: The Degree of Rivalry

The strength of competition, which is the most clear of the five forces in an industry,
helps determine the amount to which the value created by an industry will be dissolute
through head-to-head rivalry. The most valuable donation of Porter's “five forces”
framework in this matter may be its proposal that rivalry, while important, is only one of
several forces that determine industry attractiveness.

 This force is located at the centre of the diagram;

 Is most probable to be high in those industries where there is a threat of

replacement products; and existing power of suppliers and buyers in the market.

 Force 2: The Threat of Entry 

Both possible and obtainable competitors influence average industry profitability. The
threat of new entrants is usually based on the market entry barriers. They can take diverse
forms and are used to prevent an influx of firms into an industry whenever earnings,
adjusted for the cost, rise higher than zero. In contrast, entry barriers exist whenever it is
difficult or not economically feasible for an outsider to replicate the incumbents’ position
(Porter, 1980b; Sanderson, 1998) the most ordinary forms of entry barriers, except
intrinsic physical or legal obstacles, are as follows:

 Economies of scale: for example, benefits connected with bulk purchasing;

32
  Cost of entry: for example, investment into technology;

 Distribution channels: for example, ease of access for competitors;

 Cost compensation not related to the size of the company: for example, contacts
and expertise;

 Government legislations: for example, opening of new laws might weaken

company’s competitive position;

 Differentiation: for example, a certain brand that cannot be copied (The

Champagne).

 Force 3: The Threat of Substitutes 

The threat that substitute products pose to an industry's profitability depends on the
relative price-to-performance ratios of the different types of products or services to which
customers can turn to please the same essential need. The risk of substitution is also
affected by switching costs – that is, the costs in areas such as retraining, retooling and
redesigning that are incurred when a client switches to a different type of manufactured
goods or service. It also involves:

 Product-for-product substitution (email for mail, fax); is based on the substitution

of need;

 Generic substitution (Video suppliers compete with travel companies);

 Substitution that relates to something that people can do without

(cigarettes, alcohol).

 Force 4: Buyer Power 

Purchaser power is one of the two horizontal forces that pressure the misuse of the value
created by an industry (refer to the diagram). The most important determinants of buyer
power are the size and the concentration of customers. Other factors are the extent to
which the buyers are informed and the concentration or separation of the competitors.
Kippenberger (1998) states that it is often useful to differentiate potential buyer power
from the buyer's willingness or incentive to use that power, willingness that derives
mainly from the “risk of failure” associated with a product's use.

 This force is comparatively high where there a few, large players in the market, as
it is the case with retailers an grocery stores;

33
  Present where there is a large number of undifferentiated, small suppliers, such
assmall farming businesses supplying large grocery companies;

 Low cost of switching among suppliers, such as from one fleet supplier of trucks
to another.

 Force 5: Supplier Power 

Supplier power is a mirror image of the buyer authority. As a result, the analysis of
supplier power typically focuses first on the relative size and attentiveness of suppliers
relative to industry participants and second on the amount of separation in the inputs
supplied. The ability to charge customers different prices in line with differences in the
price shaped for each of those buyers usually indicates that the market is characterized by
high supplier power and at the same time by low buyer power (Porter, 1998). Bargaining
power of suppliers exists in the following situations:

 Where the switching costs are high (switching from one Internet provider to
another);

 High power of brands (McDonalds, British Airways, Tesco);

 Possibility of forward integration of suppliers (Brewers buying bars);

 Fragmentation of customers (not in clusters) with a limited bargaining power

(Gas/Petrol stations in remote places).

The nature of competition in an industry is powerfully affected by the suggested five

forces. The stronger the power of buyers and suppliers, and the stronger the threats of
entry and substitution, the more strong competition is likely to be within the industry.
However, these five factors are not the only ones that determine how firms in an industry
will struggle – the structure of the industry itself may play an significant role, Indeed, the
whole five-forces structure is based on an financial theory know as the “Structure-
Conduct-Performance” (SCP) model: the structure of an industry determines
organizations’ competitive activities (conduct), which in turn determines their
profitability (performance). In concerted industries, according to this replica,
organizations would be predictable to compete less fiercely, and make higher profits, than
in fragmented ones.

However, as Haberberg and Rieple (2001) state, the histories and cultures of the firms in

the industry also play a very important role in shaping competitive manners, and the
predictions of the SCP representation need to be customized accordingly.

34
 CHAPTER 3 – MARKETING STRATEGIES

3.1 PRODUCTS

CURRENT MODELS OF MACINTOSH :-

 MacBook (Ratina) :-

 MacBook Air :-

 MacBook Pro :-

 i Mac :-

CURRENT MODELS OF I POD :-

 I Pod Shuffle :-

 I Pod Nano :-

 I Pod Touch :-

CURRENT MODELS OF IPHONE

 I Phone 5s :-

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 I Phone 5c :-

 I Phone 6 / 6 Plus :-

 I Phone 6s / 6s Plus :-

 I Phone SE

CURRENT MODELS OF I PAD

 I Pad Air :-

 I Pad Mini :-

 I Pad Pro :-

3.2 4 Ps (Product, Price, Promotion, Place)

 Product
iPad, iPhone, iMac, Macbooks, Online Marketing, Accessories, AppleTV, iPod. Unlike
its competitors,Apple provides its own operating system software and applications,
gaining the ability to maximize hardware andsoftware efficiency and quality. Apple
products have unique feature of connecting with other apple products,encouraging

36
Appleproduct consumers to buy more of the other Apple products(some refer to as the
“Apple cult”).

 Price
One of the benefits of being at the edge of innovation is that Apple is able to set price
points across theirindustry. It’s important to note that because of their cultlike
following and strong USP, Apple’s customers areextremely brand loyal and are not price
sensitive; in fact, being an Apple user can become an integral piece of
aconsumer’spersonal identity. It’s absolutely true that one can purchase a comparable
quality product from competitorsfor a lower cost, but Apple users generally do not stray.

 Promotion
Apple primarily promotes their products through television advertisements, online ads,
and on billboards.In addition, they leverage “secret” marketing tactics through creating
buzz and suspense in the blogosphere, newsmedia, and rumor websites about Apple’s
next big product. To keep the buzz alive post product launch, Apple investsin media
campaigns that appeal to their target markets. While Apple does not offer “sales,” they
provide great customerservice, which further drives a premium experience. For instance,
they have user training at their aptly named GeniusBar. Apple wants new users to feel
smart when they purchase their products and Apple does what it needs to keep their
premium image intact.

 Place
In 2001, Apple opened its first Retail Store (direct channel), and this allowed consumers
to have a veryspecific and unique experience when purchasing Apple products. Since
Apple has expanded its distribution channels toinclude retailers such as WalMart
and Costco (indirect channels), they needed to come up with a way to differentiate

37
their products from the others in the store. Apple designed large displays to create a
unique buying experience.Customers can also shop online at apple.com to have access to
Apple’s full product line.

3.3STP (Segmentation, Targeting and Positioning)

Apple segmentation, targeting and positioning represents the core of its marketing efforts.
Segmentation involves dividing population into groups according to certain
characteristics, whereas targeting implies choosing specific groups identified as a result
of segmentation to sell products. Common set of characteristics shared by Apple target
customer segment include appreciating design, quality and performance of technology
products and services over their prices. Positioning refers to the selection of the
marketing mix the most suitable for the target customer segment.
Apple uses mono-segment type of positioning and makes a positing appeal towards a
single customer segment. The multinational technology company positions itself as a
premium brand offering products and services with advanced functions and capabilities
for additional costs. Accordingly, Apple target customer segment comprise well-off
individuals who are willing to pay extra for technology products and services with
advanced design, functions and capabilities.
Apple segmentation, targeting and positioning is illustrated in the following table:

38
 Apple  target customer segment

Services: iTunes Operating Accessories:

  and the iTunes system & Apple TV,
  Store, Mac App software: Apple Watch
Type of Segmentation Devices: iPhone, iPad, Store, iCloud, iOS, OSX, and related
segmentation criteria Mac, iPod Apple Pay, iLife, iWork accessories

US and US and US and

Region US and international international international international
 
Geographic Density Urban Urban Urban Urban

Age 20 – 45 18 – 30 20 – 35 20 – 45

Males & Males & Males &

Gender Males & Females Females Females Females

Bachelor
Bachelor Stage
Bachelor Stage Stage Newly
Newly Married Bachelor Stage Newly Married
Couples Newly Married Married Couples
Life-cycle Full Nest I Couples Couples Full Nest I
stage Full Nest II     Full Nest II

Income High earners High earners High earners High earners

Professionals, Students Professionals,

  managers and Professionals, managers and Professionals,
Demographic Occupation executives managers executives managers

Behavioural Degree of ‘Hard core loyals’ ‘Hard core ‘Hard core ‘Hard core
loyalty ‘Switchers’ loyals’ loyals’ loyals’

39
 ‘Switchers’ ‘Switchers’ ‘Switchers’

Sense of achievement
and belonging
Self-expression Recreation
Speed of service, Efficiency Self-
Benefits advanced features and Speed of service Speed of expression
sought capabilities Efficiency service  

Determined and Determined and Determined Determined

Personality ambitious ambitious and ambitious and ambitious

Users
Users Non-users, Non-users,
Non-users, potential Non-users, potential potential
User status users potential users users users

Middle and upper Middle and Middle and

Social class classes upper classes upper classes Upper class

Resigned
Aspirer Aspirer Aspirer
Succeeder Succeeder Succeeder Aspirer
Psychographic Lifestyle[1] Explorer Explorer Explorer Explorer

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3.4 Distribution Channels

 Distribution Structure

41
 B2B Channels

42
 B2C Channels

43
 3.5 Promotion Strategies
Apple's overall marketing strategy aligns very closely with its corporate mission of
"bringing the personal computingexperience by constantly innovating its hardware,
software and internet offerings". Its marketing strategyfocuses on building a premium
brand that customers associate with:
(1) innovation
(2) simple design
(3) superior customersupport.
Apple leverages its marketing strategy through its unique STP (Segmentation
Targeting Positioning) and robust USP(Unique Selling Proposition).

Apple's overall marketing strategy is fueled by context and four key players:
customers, competition, collaborators, company:
 Customers
Its customers are tech savvy people who want a simple user experience across
multiple platforms that exist within one ecosystem. Apple customers are very brand
loyal, nonpricesensitive, and associate the Apple brand with high quality
and superb customer service. In the early 2000s, Apple’s initial customers were fairly
new to the brand, young, andtech savvy. Today (2014), Apple appeals to many
demographics of all ages, statusseekingpeople, and Appleenthusiasts.

 Competitors
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 Its competitors are other tech giants such as Samsung, Microsoft, Google, and
Amazon. Microsoft has been a longtimerival of Apple, and in the 1990s, it was able
to capture the dominant market share of the personal computer (PC) withWindows
OS. The collaboration between Google and Samsung to leverage the Android OS in
Galaxy smartphones hascreated competition and threatened Apple's market share in
the smartphone space. In recent years, Amazon has beenattempting to develop its own
robust ecosystem for media consumption through its Prime subscription offering.
Between all four competitors, each has their own product line of smartphones and
tablets: Galaxy, Galaxy Tablet, MotoX, Nexus Tablet, Nokia Windows Lumia,
Surface Tablet, Fire Phone, Fire Kindle.

 Collaborators
Its collaborators are music label companies, FoxConn (a manufacturing plant in
China) as well as a couple competitors,Microsoft and Samsung. To develop its iTune
ecosystem, Apple partnered with music label companies and artists tolaunch a unique
sale model of music a la carte. Apple’s competitive pricing is due to its ability to
reduce production
costs through outsourcing to FoxConn in China. Samsung also serves as one of
Apple's suppliers for chips andtechnology used in the iPhone. In the past, Apple has
also collaborated with Microsoft to integrate Microsoft OfficeSuite with Apple iOS.

 Company
As a company , Apple leverages its human capital by promoting a culture of
"innovation and calculative risk." This hasled Apple to advance and disrupt current
markets with products such as the iPod, iPhone, and iPad. Apple's dedicationto
perfection pushes its employees to deliver innovative, welldesigned,and
usercentricproducts.

 Context
Within its context , Apple's growth is tied with its ability to cut costs and stay
innovative in a competitive market. Tocut production and manufacturing costs, Apple
has been outsourcing production since Jobs’ return in 1997. Thislimitation poses
ethical and social impacts that Apple has been trying to address in recent years. In
order to stay
competitive within its industry, Apple must continue to deliver innovative, simple,
and usercentricproducts thatcustomers have always associated with the Apple brand.

Overall, Apple’s marketing strategy focuses on establishing a brand of innovation,

high quality, and simplicity. Apple owes itssuccess to its tremendous relationship
45
with its customers and suppliers. Through its robust distribution channel of Apple
RetailStores (i.e. Genius Bar), Apple continuously delivers superior customer
relationship management (CRM). Apple’s relationshipswith its suppliers enable it to
even partner with its rival, Samsung, to supply parts for its iPhone. Similarly, Apple’s
closerelationship with its manufacturer, FoxConn, enables it to cut costs.
Key Strategies That Apple Use For Marketing
1. Ignore Your Critics
As an entrepreneur, you’ll hear a lot of people tell you that you need to reach out and
figure out what people want, which means listening to your critics, often times more
patiently than you’d like.
Apple decides to flip the script and instead focus on building what they want to build,
no matter the perceived cost. When Steve Jobs debuted the iPad, the critics stood in
line, throwing every insult they could muster. The critics said that the iPad would fail.
The numbers say otherwise.
Each and every time Apple decided to innovate, they were laughed at. They prevailed
anyway.
“Great ideas often receive violent opposition from mediocre minds.”
– Albert Einstein
2. Turn the Ordinary into Something Beautiful
For quite some time, PC fans enjoyed the work of buying their own parts and building
their own tower systems. At the same time, PC makers were building standard
hardware for standard applications.
Apple would have none of that.
They’ve been pioneering not only the features of standard operating systems and
computer systems, but simultaneously reinventing the design standards as well. As a
result, we have the gorgeous iMac, the beautiful new Macbook Air, and who could
forget, the amazing iPhone 4.
Where others focus on one aspect of the equation, Apple focuses on the entire
product, and it shows.
3. Justify Your Price
We’re in a time when pricing strategies are all over the place. People don’t know
what to charge, and in many cases, prefer to race to the bottom instead of pricing
strategically to a market that can bear the cost.
Once more, Apple ignores the standard by not only pricing their technology more
than 2x what their competitors charge, but doing so without blinking. How can they
get away with it?
Well, the answer is twofold:
1. They build beautiful products for an audience that loves them passionately.
2. They justify their price with features and benefits that can’t be matched.
46
Since we’ve already hit point 1, let’s work on #2.
No other computer can match the display of a 27” iMac…it simply can’t be done.
No other software can match what iTunes brings to the table.
No laptop is as thin as the Macbook Air.
No software is more intuitive, no product more valuable than the Apple product. Any
other smartphone looks like it was developed by rookies when compared to an iPhone
4. You simply cannot compare the two.
Critics will play on the fact that the core features are the same, and they might be, but
that’s not the point. The point is that Apple is the Rolls Royce of the technology and
design world, and their customers will gladly pay a premium because of it.
4. Communicate in the Language of Your Audience
It makes no sense to talk about things like megabytes, gigahertz, and processing
power to customers that simply don’t care about technical jargon.
Take a look at any Apple product page and you’ll find that though they do discuss
product specifications and technical information, it’s hidden behind the benefits that
their audience is truly after.
Instead of display resolution, you’ll see phrases like “edge to edge glass,” “retina
display,” and “LED backlighting.”
Sure, the jargon is there for those that need it, but it’s presented in a way that makes
you want to learn about megapixels, rather than shy away from them. The art is in the
copy, not in the features.
5. Extend the Experience
Have you ever heard of an unboxing? I hadn’t either until recently, when I learned
that not only was I not the only one keeping Apple packaging post-sale, but that there
are legions of people that record the actual process of unwrapping their newly
purchased Apple products.
Do a search on YouTube and you’ll find hundreds of Apple unboxings, each from
different users from across the globe. It’s pretty crazy right?
No one tells these people to video their experience, but they do it because the process
is so Zen that you can’t help not to.
Apple does this by making sure that the experience doesn’t end at the cash register.
They take great care in designing a user experience from browsing to unwrapping,
which relies on incredible packaging and installation procedures.
By reducing installation to the lowest common denominator, they make buying new
products a snap, and by spending as much time on designing packaging as they do on
the products themselves, they’ve ensured that the box matches what’s inside.
As a result, they’ve built an experience that is nearly impossible to match.

47
6. Build a Tribe
It’s no secret that Apple has built one of the most hardcore fan bases of any product
and of any time. There’s a reason they’re called “fanboys.”
But who cares, right? Most of the chatter is out of jealousy more than anything, but
Apple doesn’t really care. They know that they serve an elite audience, and rather
than back away from that fact, they embrace it.
7. Become “The Name”
You don’t buy tissues, you buy Kleenex.
You don’t buy MP3 players, you buy an iPod.
You don’t buy a smartphone, you buy an iPhone.
Have you noticed what they’re doing here? Apple isn’t content with being a leader in
sales alone, they want to own the market itself, which explains why they’ve
engineered iTunes as the major music provider that it is, and why the iPad, having the
luxury of being the first, has now set the trend for future tablet devices.
From here on out, everything will be compared to the iPad, iPhone, iPod, and iTunes.
Sadly, this sort of thing is tough to duplicate, but it’s not impossible. You need to
have one of two things:
1. A clear head start in terms of being first to market.
2. A USP that differentiates your product in a way that makes people wish it were
first.
The iPhone wasn’t the first phone, but they engineered it to be so unique that you
couldn’t help but think it was. The iMac isn’t the first all in one, but it became the
only one that mattered.
It’s not so much the marketing angle that matters as it is the way that people identify
with that angle. Take a look at any Steve Jobs product release and you’ll watch as he
tells you why every other product in the market pales in comparison to what he’s
created.

48
 CHAPTER 4 – FINANCIAL ANALYSIS

4.1 Sources of finance

Holder's Name No of Shares % Share Holding

Promoters 117803409 14.63%

ForeignInstitutions 185580848 23.06%

ForeignPromoter 177682187 22.07%

GeneralPublic 134712856 16.74%

NBanksMutualFunds 73308763 9.11%

Others 63005757 7.83%

FinancialInstitutions 41396000 5.14%

GDR 11454870 1.42%

4.2 RATIO ANALYSIS

Annual Income Ratios (values in 000's)

49
Period Ending: Trend 9/30/2017 9/24/2016 9/26/2015 9/27/2014

Liquidity Ratios

Current Ratio 128% 135% 111% 108%

Quick Ratio 123% 133% 108% 105%

Cash Ratio 74% 85% 52% 40%

Profitability Ratios

Gross Margin 38% 39% 40% 39%

Operating Margin 27% 28% 30% 29%

Pre-Tax Margin 28% 28% 31% 29%

Profit Margin 21% 21% 23% 22%

Pre-Tax ROE 48% 48% 61% 48%

After Tax ROE 36% 36% 45% 35%

50
4.1Balance Sheets

51
CHAPTER 5 – KEY LEARNING’S FROM THE COMPANY
AND RECOMMENDATION

5.1:- Performance analysis of the comany

Performance vs Mission and Vision Statements
Apple’s controversial mission statement that captures the format of a presentation that
mentions the product portfolio has met criticism due to the unconventional design.
However, the emphasis of the clear areas of focus by the corporation in its business
seems logical when the sharp performance on the various production lines generates the
kind of results witnessed. In the items highlighted in the mission statement, production
and concentration in the core business of the corporation stands out conspicuously as its
guiding principles. Performance in terms of hitting production numbers as well as
distribution to meet the ever-growing demand leaving an understandable gap of supply
enough to generate a rare form of suspense for its products. Apple has built a market
presence with a very strong brand name over the years, breaking several records
including the most successful and most valuable company of all time. A decade ago,
nobody would have imagined that a company would dislodge Microsoft from the top
brand in the world, with a unique product attraction among the consumers but Apple is
doing that every day (Jiang et al., 2009).
Production of the most recognized electronic device backed by its own software system
including operating system and other applications defied the odds of the market such as
experienced by Microsoft on a strong software front. Through a commitment on bringing
the best computing package to specific consumer groups, the company takes care of its
vision statement in several ways. The company captures the needs of scholars,
professionals, ordinary consumers with innovative solutions to different needs. Perhaps
one of the most complete and trendy products in the market that Apple specializes in,
52
computer hardware capable of interacting with internet usage present the company as a
pacesetter.
Strategic Goals vs Mission and Vision Statements
Apparently, Apples mission and vision statements collapse into the presentation of
quality technology in the product portfolio dealt in the current operations and into the
future. The two strategic statements complement each other in the sense that the highlight
of the actual product scope in the mission statement obtains assurances of unquestionable
quality in the vision statement. For instance, the mission statement lists the products lines
ranging from computers including Macs (desktops) and laptops, software including
operating systems and professional applications, entertainment products including iTunes
and iPods as well as hand-held device technologies including iPads, iPhones and
associated App Store solutions. Providing the precision that the overall market
presentation of each of these products with impeccable quality has enabled Apple to
deliver and surpass its strategic goals in sales and market presence (Bielak et al., 2010).
By hitting financial figures of revenues of over US$ 8 billion per operating quarter
illustrates the compatibility and applicability of strategy in realizing market dominance as
outlined in coverage and quality commitment in the strategic statements. Apple is
perhaps one of the most complete business packages in the market by providing hardware
and software products ready for the market, coupled with an exciting touch of sleek
innovation and delivery of unmatched quality. In the wake of a market revolution leading
to adaptation to needs of a high-end technology demand, Apple continues to find its
mission and vision relevant than they would be without the technology hype in the
market today. Keen leadership in the person of Steve Job and his successor Tim Cook
prove to be an intangible strength translating strategy into results in a perfect way
(Kaplan, 2009). It is a common opinion that the role of leadership at Apple since its
inception is as invaluable as the valuation of the company in an industry where only
quality players gain the attention needed.
Financial Figures vs Mission and Vision
In view of the recent available financial reports, it is evident that Apple handles
significant and momentous revenues worth noting for a company with such growth
53
patterns witnessed in the recent several operating periods. For the last operation period
ended on 30th OF June 2012, Apple attained sales of US$120,542,000,000, a growth of
50.7 per cent from the previous period whose sales stood at US$79,979,000,000. From
the same period of operation, net income reported amounted to US$33,510,000,000 up
from US$19,299,000,000 from the previous period. In view of the balance sheet figures
for the corporation for the past nine-month period from June 2011 and June 2012, total
assets grew from US$116,372,000,000 to US$162,896,000,000, which is a representation
of 40 per cent growth. Total shareholders’ equity also grew from US$76,615,000,000 to
US$111,746,000,000, making a representation of 46 per cent growth. International sales
for the corporation represented a huge proportion of the sales, which is a representation
of about 62 per cent, indicating success in diversifying the market (Apple, 2012).
The above given financial information illustrates a clear reflection of the corporations’
mission that highlights a commitment to present quality innovation through a wide
product portfolio including Macs, OS X, iLIfe, iWork, iTunes, iPods, iPhones, iPad and
App Store. The vision of dominating the technology market is gradually but surely taking
shape at Apple as backed by its market successes in the recent operations and
performance details. With a successful experience in providing a variety of quality
products to the market as captured in the mission statement, Apple finds it possible to
realize the growth figures recorded. Being a leader in the highlighted mission objectives
explains the kind of success that the corporation enjoys in hardware, software and
entertainment products characterized by a specialized higher-end market (Arthur, 2010).
Competitive Analysis
In terms of the competitive environment that Apple finds in its operations, a number of
players with a gigantic market presence make it a tough experience over the years. From
hardware to software production, Apple finds substantial competition than many
successful companies today. It therefore implies that the current state of success at apple
is hard won through tough strategic approaches and spirited commitment to deliver what
the consumers want. Among the most dominant competitors in the tough market, the
software market presents Apple with Microsoft and Google whose images would be
worth of notice from any global player among many others. From the hardware front, the
54
market presents apple with competition from IBM, Dell and HP among many others from
around the world. Tough software and hardware competition in emerging product
segments such as Samsung and Huawei partnership with Google’s Android systems and
applications cast a shadow of the extent to which competition would lead the market. As
an illustration, Samsung and Apple have had a series of court cases in different continents
with different outcomes indicating how confusing the competition continues.
Apple’s strengths to cater for the steep competition perhaps have enabled the company to
record growth over the years despite the discouraging nature of such an environment.
Withstanding the recent global and current European financial challenges requires extra
effort since growth would appear like a gamble. However, Apple manages growth in
these difficult times due to a number of strengths including uncontested brand name.
Customer loyalty at Apple is monumental in several perspectives, such as witnessed in
the following of developments at the corporation, particularly with its pricing strategy
and new product launch that attracts a popular and impressive following. A unique
attachment to engineering of products that respond to market interests of high-end
innovation for the electronics industry, making it possible to obscure performance that
was traditionally reserved for companies such as Sony and Matsushita.
Accurate and competitive management functionalities for the company props up the
development agenda in ways that few companies would struggle to attain. Consistent
innovation breakthroughs that correspond with the market trends of sleek technologies,
making the company unbeatable in providing the technology frenzy in the market with
products beyond expectations. As an illustration, Apple’s unique product launch attracts a
rare attention around the world with anxiety and expectation that the product will hit a
new level of innovation. As illustrated before in the product portfolio at Apple, it enjoys
the strength of vertical integration and complementarity of different product packages,
which make it self-sufficient. Presentation of Apple’s products assumes a stylish and
attractive design that amasses a rare consumer interest to back up its growth.
In view of the weaknesses at Apple that cast a shadow of doubt on its sustainability with
a market full of competition. Apple’s products are not compatible with other products
from rivals, locking out interoperability channel that would increase market performance.
55
Stiff competition launched by rivals targeting market segments in which Apple performs
poorly appears to block a significant growth opportunity from the corporation. Perhaps its
low interest on the education market that presents a bright future for the industry shows
lack of preparedness to venture into new markets. The nature of incompatibility that
Apple’s products have makes it difficult for the company to launch sales numbers across
networked systems. Lack of concentration in a specific segment such as the professional
or education segments makes Apple’s marketing concept ambiguous in the long run.
Overreliance on research and development for continued innovation for various products
at Apple makes the company’s growth a function of R&D outcomes, which would impact
growth if delivery fails (Appeldorn, 2008). The pricing strategy of Apple leaves many
customers out of reach of its products, while growth trends in the modern economics
targets the middle and low markets where numbers make the difference.
Niche Operations Strategy
In order for Apple to ensure that sustainable operations remain achievable for the long-
term projections, it must embrace a particular strategy in capturing the operations
strengths achieved so far. The application of niche market operations strategy will
facilitate the elimination of the vague product presentation to markets that do not match
its valuation and pricing. As an illustration, Apple must concentrate in the high market
end for corporate computing solutions that correspond with its expensive units that would
revolutionize corporate computing in a perfect way. Alternatively, continuing with the
current product portfolio requires a sharper market characterization for a more accurate
product presentation using accurate pricing and compatibility. As illustrated in the
weaknesses of the company, a wide market with a wide spectrum of products makes it
hard for such a characterization. It therefore implies that a niche operations strategy
targeting appropriate market segmentation for different products must facilitate
maximization of opportunities available for the company. The strong brand name and
market presence across the world must also be complemented by efficient supply channel
to cater for the niche market that has evolved over the several operating periods. Paying a
specific attention to the high end market niche with unique pricing and a tighter supply
network to achieve more market success would enhance quality strategies.  
56
5.2 Reasons for the diversification of the company
 From one, to two, to four strong legs to stand on: Above all, this chart tells us
that Apple today is a much more diversified company than it was just five years
ago. It has twice as many strong legs to stand on, and compared to 10+ years ago,
four times as many. You can also see this by studying Apple’s financial reports,
examining where the money is coming from.
 Product popularity, in order: By mid 2011, the most popular Apple devices
would seem to be, in order: 1) iPhones, 2) Macs, 3) iPads and 4) iPods. In other
words, iPhones, iPads and Macs are all stronger product lines these days than the
iPod, even though the iPod (in its various incarnations) was, and still is, a hugely
popular device.
 iPod, the gift favorite? This is kind of a side note, but iPods are clearly very
popular Christmas gifts (big spikes every Holiday season).
 The growth of Mac computers: If you look closely, the interest in Macs is
growing, albeit nowhere near as fast as interest in Apple’s iOS devices. That the
Mac is growing as a platform, even relative to other non-Apple operating systems,
is also supported by data from other sources, like OS statistics from StatCounter.
One factor is certain to be the knock-on effect by the ever-increasing number of
iOS devices, which are bound to be pulling more users into the Apple ecosystem.
 In the news: The iPhone and iPad get significantly more attention by the news
media than Macs or iPods (see the “news reference volume” part of the chart).
 What about Apple TV? In case you’re wondering, Apple TV hardly makes a
blip on this chart so we didn’t include it. Maybe things will be different down the
line, but as of now, it’s a minuscule product by Apple standards.
From 0 to 300 Apple Retail Stores in a decade
Another thing that has happened with Apple in the past decade is that it has established
its own physical retail presence. The first Apple Retail Store was announced on May 15,

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2001, and opened a few days later. That’s almost exactly 10 years ago (ok, plus one
month).
Today there are more than 300 Apple Stores around the world. This gives Apple its very
own retail chain where it can highlight products on its own terms as they are launched,
not having to depend on other retailers or just selling online.
Diversified, but not unfocused
Apple has a much more diverse product line now than it had a decade ago. This could
have lead to a certain lack of focus, but is hasn’t. Apple may be called many things, but
unfocused isn’t one of them. All these new products have only served to make the
company stronger and much more profitable, not to mention more valuable.
Will Apple be adding more legs to stand on in the future? They have gotten into the habit
of surprising the tech industry with something brand new every couple of years, so it
seems very likely. We’re looking forward to seeing what’s next.

5.3Comment on Organizational Leadership

 Since replacing the legendary Steve Jobs, Cook has led the
iBehemoth to even greater financial success. Along the way he’s
changed the culture of the company—and found his public voice
as a leader.

Tim Cook assumed he was ready forthe harsh glare that shines on Apple’s CEO. He had,
after all, filled in for Jobs three times during the Apple founder’s medical leaves of
absence. Cook ultimately became the company’s chief executive six weeks before Jobs
died, in October 2011.
What Cook found out instead is that there is no preparation for the scrutiny that comes
with succeeding a legend. “I have thick skin,” he says, “but it got thicker. What I learned
after Steve passed away, what I had known only at a theoretical level, an academic level
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maybe, was that he was an incredible heat shield for us, his executive team. None of us
probably appreciated that enough because it’s not something we were fixated on. We
were fixated on our products and running the business. But he really took any kind of
spears that were thrown. He took the praise as well. But to be honest, the intensity was
more than I would ever have expected.”

5.4 :- Market Share / growth rate of the company

Amid an ongoing decline in worldwide PC shipments, Apple's Mac shipments also
experienced a decline in the third quarter of 2017 according to new PC shipping estimates
shared this afternoon by Gartner. In Q3 2017, Apple shipped an estimated 4.6 million
Macs worldwide, down from 4.89 million in the year-ago quarter, marking a 5.6 percent
decline in growth. 

Apple's market share for the quarter comes in at 6.9 percent, down from 7 percent in the
third quarter of 2016. Apple was ranked the number five worldwide PC vendor after HP,
Lenovo, Dell, and Asus. Apple was also the number five worldwide PC vendor in 3Q
2016, but the company has dropped from number four since Q2 2017. 

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Gartner's Preliminary Worldwide PC Vendor Unit Shipment Estimates for 3Q17
(Thousands of Units)

Aside from HP, all PC vendors saw a drop in shipments. HP shipped an estimated 14.6
million PCs during the quarter for 4.4 growth and 21.8 percent market share, while
Lenovo shipped an estimated 14.4 million PCs for 21.4 percent market share. Dell
shipped an estimated 10 million PCs for 15.2 percent market share, while Asus shipped
4.9 million PCs for 7.7 percent market share. Acer trailed after Apple with 4.3 million
PCs shipped and 6.5 percent market share. 

According to Gartner, ongoing DRAM shortages worsened during the third quarter of
2017, impacting sales and leading to an overall PC shipment decline of 3.6 percent.
Worldwide PC shipments totaled 67 million across vendors, down from 69.5 million in
Q3 2016, marking 12 consecutive quarters of declining PC shipments.
"The component price hike impacted the consumer PC market as most vendors generally
pass the price hike on to consumers, rather than absorbing the cost themselves," Ms.
Kitagawa said. "We expect the DRAM shortage to continue to the end of 2018, but it will
not be reflected in the final PC prices immediately."
Apple's U.S. numbers mirror its worldwide numbers. In the United States, Apple shipped
an estimated 1.9 million Macs, a 7.6 percent decline from the 2 million shipped in Q3
2016. 

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Gartner's Preliminary U.S. Vendor Unit Shipment Estimates for 3Q17 (Thousands of
Units)

U.S. PC shipments totaled 14.7 million units during the quarter, down from 16.4 million
for an overall decline of 10.3 percent. Apple was ranked the number three PC vendor in
the United States with 12.8 percent market share. HP and Dell both beat out Apple with
shipments of 4.7 and 3.8 million PCs, respectively. 

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Apple's Market Share Trend: 1Q06–3Q17 (Gartner)

IDC also released its own shipment estimates this afternoon, noting a smaller 0.5 percent
decline in overall worldwide PC shipments. IDC's worldwide shipping estimates are quite
a bit different than Gartner's this quarter, with IDC estimating worldwide Mac shipments
of 4.9 million, up slightly from 4.89 million in the year-ago quarter for a growth increase
of 0.3 percent. 

IDC ranks Apple as the number four PC vendor, above ASUS and below HP, Lenovo,
and Dell. IDC and Gartner's data often varies due to the different ways each firm makes
its shipment calculations. 

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It's important to note that data from Gartner and IDC is preliminary and the numbers can
shift, sometimes dramatically and sometimes less so. Last year, for example,
Gartner estimated shipments of 4.95 million Macs, but the actual number was 4.89
million. 

Apple last refreshed its Mac notebook and iMac lineup in June of 2017, and the company
has plans to release a new iMac Pro in December, which could lead to an uptick in
shipments if it proves popular with pro users.

5.5 SWOT Analysis

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 Strengths
Apple is known for being able to stay ahead of the fast paced technology curve. Apple
continues to drive consumer interest byfostering a culture of innovation and continuous
improvements. Apple also has an undeniable strength in their rocksolidfinances. After the
reveal of the iPhone in 2007, Apple market capitalization has increased to the highest in
the world. In fact, ithas amassed about $38 billion in cash assets and $127 billion in
longtermmarketable securities (Hellman). Not only does thisgive tremendous capabilities
of investing in profitable longtermsecurities, it gives room for Apple to spend on
ambitious capitalreturn programs and strategic acquisitions, such as the recent $3 billion
deal for Beats Electronics. Apple, under pressure to be abit more shareholder friendly,
has upped the quarterly payout of cash dividends in addition to begin paying a cash
dividend sinceearly 2012, incentivizing shareholder investments.

 Weakness
A majority of Apple products are priced at premium rates, which makes it difficult for
price sensitive people to buy into Apple’s “coolness.” This luxury positioning also makes
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it difficult to increase sales overseas, especially with countries, which have
pricecompetition. The higher price points renders the company to be vulnerable to price
competition with Samsung and other risingequipment manufacturers, such as China’s
Xiami, which has shown tremendous growth recently.

 Opportunities
Apple has shown recordbreaking
historic growth spurts time after time, and there is still plenty of room for Apple to extend
itsshare in its current markets, and make moves into other product markets. As markets in
various countries begin to emerge, Applehas the opportunity to extend its influence and
make moves to establish Apple as a standard in those societies. The wearabletechnology
space has great potential, and many tech companies are headed in that direction quickly
to try to achieve first moversadvantage.

 Threats
The main threat to Apple will be its premium pricing structure. Apple is working within
highly competitive markets throughoutthe world, and other companies, suchas Samsung
and Google, have increasingly captured more market share by focusing
onpricesensitiveconsumers. It is worth noting that Apple aims to high profit margins with
its premium products, and hence, thegross margin concerns lead to pressures as
competition grows. The growth in competition leads to a loss of product pricing
power, as consumers may try cheaper and similar quality products from competitors.
Moreover, the industry has beenexperiencing product shortages in addition to rising in
component prices. This unfavorable mix shifts away from Apple’sadvantage in
maintaining high price margins. However, Apple is broadening its suite of highmargined
software and service oriented offerings, mitigating loss in margins for its main product
lines.

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 CHAPTER 6 – FINDINGS

After assessing the overallscenarious what came in representation was as follows:

 Consumer response suggests that ‘Apple inc.’ is the best manufacturer among all
itsclose competitors in the Smartphones, Tablet Computers, iPods and Softwares.
 Apple inc. is chasing its place most aggressively so now it requires maintaining its
place with new stuff.
 APPLE INC. has been most important competitor For SAMSUNG, GOOGLE and
MICROSOFT.
 The new stuff of the APPLE INC. is attracting the consumers more which lead
APPLE INC. at the top spot in the bunch in coming economic year.
 Celebrities also affect the sale of brand Apple’s Products promoted.
 72% respondents take their buying decision after considering the advertisement of
brand.
 Most of respondents favor to buy Mobile, Computers & Tablets from Online Shops
and exclusive showrooms.
 Businessman, serviceman and professionals favor to use Apple products because of
position and students like to use branded Mobile Devices.

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CHAPTER 7 - CONCLUSIONS AND SUGGESTIONS

CONCLUSIONS

 Entering Technology sector Apple became mainly favored brand worldwide

 Redefining company structure lead to original image, now able to compete with
market leaders.

 Apple’s innovation leads them to the top position.

 Outside of that, the MacBook Air does not have the port selection to make for a viable
everyday machine, and those looking for a portable companion device should check out
the iPad Air first and save a few hundred dollars. It’s surprising how productive one can
be with an iPad coupled with a Bluetooth keyboard and Office apps.

SUGGESTIONS

 Retail stores are the prime sales and advertising channel for Apple’s Product. In
addition, store decorations and product displays should be designed to generate a
strong primary impression.
 Seasonal promotion campaigns, like special discounts and advertisements, could
be employed; new offers should be introduced for festivals.
 The prices of pc devices must be concentrated to raise sales
 For that very specific Apple user, this is an excellent pc with a world-class technology
and user friendly. True, competing Windows 8.1 Ultrabooks can now match the
MacBook Air point for point, but none are so much better to entice Apple users to make
the Microsoft switch..

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 BIBLIOGRAPHY

1.) WEBSITES REFERRED :

 www.apple.com
 https://en.wikipedia.org
 www.slideshare.com
 www.NASDAQ.com
 http://fortune.com

2.) SEARCH ENGINES

 www.google.co.in
 www.bing.com

3.) NEWPAPERS

 THE ECONOMIC TIMES

16 February 2016 (pg. no. 5)
17 February 2016 (pg. no. 21)

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26 February 2016 (pg. no. 21)

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