SUBMITTED TO, Dr. VANDANA BHARTI SUBMITTED BY,UTKARSH VISHAL ABHISHEK KUMAR KHUSHBU RUCHEE SRI KRISHNA SINGHIIPM SS 11-13 A2*

IIPM SS 11-13 A2

A PRESENTATION BASED ON IT INDUSRTRY

April 1st,1976 - Founded

January 3rd,1977 - Incorporated

Headquarters - Cupertino, California

Co-founders - Steve Jobs, Steve Wojniak

CEO - Steve jobs

Industry - Computer software, computer hardware, consumer electronics.

Revenue - US$ 19.3 Billion

OBJECTIVES:-To Study and understand the PC Industry and market share of Apple Inc in it.To study the Value Chain supply and S.W.O.T analysis of Apple Inc.To determine the performance of the company.

INDUSTRY PROFILE:-The PC Industry

We can glean Insight into the history and composition of the PC Industry from its eponymous title. In the late 1970s, as Wozniak and Jobs were starting Apple computer, personal computers were an emerging product. The following chart (Reimer) gives an overall view of the major market players since the mid-1970s. By 1983, the market share of the Apple II fell to 8% while the PC had 26%. Market share of Macintosh peaked at slightly more than 10% in the early 1990s and has since tapered to between 2-3%. The IBM PC and its clones became the standard due to the success of the open nature of the PC. This allows product developers to offer vastly more products for the platform.Some argue that not licensing the Mac OS was a mistake. Bill Gates and Microsoft were encouraging Apple to license their OS in the early 1980s, because they were developing software for Apple and had much riding on the success of the company. When Apple did not license, Microsoft began developing their operating system, Windows.

The Online Music Industry

While Apple clearly dominates the online music industry, the battle for domination is not over. Although digital music sales are growing rapidly, the Recording Industry Association of America (RIAA) states that digital sales account for only 4% of all music sales. (Borland) Analysts at Forrester (Bartiromo) and Gartner (Bruno) validate this. Apples sales are between 66% and 75% of downloads and 80% of music players. (Bruno) Apple is part to a suit alleging monopolistic practices concerning their market share dominance of players and downloads. The other players in the download market are (the revised) Napster, Yahoo Music, Rhapsody, and illegitimate file-sharing services. Portable music players competing with the iPod include those made by Creative, Samsung, iRiver, and Sony. A major point of contention between these services and player manufacturers is the control of a variety of incompatible Digital Rights Management (DRM) schemes.

COMPANY PROFILEAPPLE INC.

TypePublic S&P 500 ComponentIndustryComputer hardware Computer software Consumer electronics Digital distributionFoundedApril 1, 1976(1976-04-01)Founder(s)Steve Jobs Steve Wozniak Ronald WayneHeadquartersApple Campus 1 Infinite Loop Cupertino, California, U.S.Number of locations317 (October 2010)Area servedWorldwideKey peopleSteve Jobs (Chairman and CEO) Tim Cook (COO and Acting CEO)

COMPANY PROFILEAPPLE INC.

ProductsProducts ListMaciPodiPhoneiPadApple TVMac OS XiLifeiWorkiOSServicesServices ListApple StoreApple Store OnlineApp StoreiTunes StoreiBooksMobileMeEmployees49,400 (2010)WebsiteApple.com

RESEARH METHEDOLOGY:-Data has been collected from secondary sources:Secondary- website of the organization, Company records, and hand book.Information so collected has been put in to draw logical conclusion.All findings are presented unambiguously and all conclusions be justified by sufficient evidence.Issues and problem have been found by personal discussion with seniors from an organization and through practical experience of working in the organization.Finally report has been written.

DATA ANALYSIS:-

MARKET SHARE :-IN RESPECT OF MOBILES:-

PRODUCTS AND FIGURES:-Hardware - Mac(personal computer series),Apple Remote Desktop

Software - Mac OS X, Mac OS X Server ,Quick Time, i Life, i Work, Logic pro, Cinema Display etc.

Consumer Electronics - i pod, i pod hi-fi, i phone, Apple TV

Employees - 19,787 full-time ; 3,399 temporary (March 31,2007)

Retail stores - 183( 1st in Manhattan, New York)

Competitors - HP, IBM, DELL

Personal ComputerLaptopsMusic PlayersOperating SystemVideo playersServersTelevision

iMAC, consumer all-in-one desktop computer introduced in 1998Mac Pro, workstation-class desktop computer introduced in 2006, replacing the Power Macintosh

MacBook Air, ultra-thin, ultra-portable notebook introduced in 2008

iPad -touch interaction with multimedia formats including newspapers, magazines, ebooks, textbooks, photos, movies, TV shows videos, music, word processing documents, spreadsheets, video gamesPRODUCTS:-

iPOD- World class music and vedio players with huge storage capacity. The original iPhone combined a 2.5G quad band GSM and EDGE cellular phone with features found in hand held devices, running scaled-down versions of Apple's Mac OS X (dubbed iOS, formerly iPhone OS), with various Mac OS X applications such as Safari and Mail. It also includes web-based and Dashboard apps such as Google Maps and Weather. The iPhone features a 3.5-inch (89mm) touch screen display, 4, 8, or 16GB of memory, Bluetooth, and Wi-Fi (both "b" and "g"). The iPhone first became available on June 29, 2007 for $499 (4GB) and $599 (8GB) with an AT&T contract. On February 5, 2008, Apple updated the original iPhone to have 16GB of memory, in addition to the 8GB and 4GB models.

iPHONE-APPLE TV-The device links up to a user's TV and syncs, either via Wi-Fi or a wired network, with one computer's iTunes library and streams from an additional four.

VISION AND MISSION:-VISION Man is the creator of change in this world. As such he should be above systems and structures, and not subordinate to them. MISSION Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and internet offerings.

SWOT ANALYSIS:-STRENGTHSOne of the oldest hardware manufacturers.

Control over the product.

High quality product.

Easy to carry products

Huge consumer base loyal to apple

Product diversification

WEAKNESSESFocusing on internal engg. more than marketing

High price

Consumer faced problems with faulty batteries

Had difficulties on some of its products quality control

Not issued dividends

SWOT ANALYSIS:-OPPORTUNITIESLess expensive new product lines with quality.

Product line is functional and attractive.

Flexibility to its users.

ipods are able to communicate.

New car models with ipod connectivity.

THREATSPressure from competitors.

Substitution effect

Technology changes at a rapid rate.

Forced to develop new products.

Existing rivalry in the industry

INDUSRTY ANALYSIS USING PORTERS 5 FORCES MODEL

POLITICAL ANALYSISECONOMIC ANALYSISSOCIAL ANALYSISTECHNOLOGICAL ANALYSIS

RECOMMENDATIONS:- FOR COMPANY:Lowering the cost of products and maintaining the same quality standards

Can form joint ventures

Knowledge Management

More number of retail stores for easy access

Continuous innovation to expand

RECOMMENDATIONS:- FOR OTHERS:Do not compromise on price for quality

Choose the products based on individual needs

Be unique and different

We feel that Apple must focus on several key aspects to continue to grow and succeed. They must continue a stable commitment to licensing, push for economies of scope between media and computers, and become a learning organization.Apple apparently made a commitment to licensing. Although it should continue, Apple may want to consider other forms of strategic alliances. An equity strategic alliance may offer Apple the opportunity to obtain additional competencies. An effective way for a company like Apple to accomplish this would be in the form of a joint venture.Apple should continue pushing the new line of media-centric products. Meanwhile, Apple should not lose focus on its computers. Macintosh computers were 39% of Apples sales in 2005. (Burrows) This very innovative company exploits its second-mover position. In the future, they will need to continue innovating to expand the boundaries of both media and computers.One persistent element of both competitive advantage and risk is Steve Jobs. He is both synonymous with Apples success and has a large equity interest in Apple and Disney. If he were to divest his leadership position, the reaction of both the market and consumers would be uncertain. Given his position within the organization as well as the history of the company when he was gone, Apple must find a way to learn as an organization. This will allow the company to withstand a departure by Jobs. Based on the actions of the organization, we feel that the mid-term performance of Apple will be strong. This period allows Apple time to overcome their challenges if they move swiftly. For this reason, we feel that they will continue to succeed and will continue to outperform their peers.CONCLUSION:-

THANK YOU

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