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APPLE INC.PREKSHA KACHHRA 36HETAL MEHTA 53HIRAL MEHTA 54URVI MOTANI 58PRACHI MUDRA 59JINAL PANCHAL 63

BackgroundApple Inc. is an American multinational corporation headquartered in Cupertino, California.Founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1, 1976.Incorporated as Apple Computer, Inc. on January 3, 1977.Renamed as Apple Inc. on January 9, 2007Industry - Computer hardware, Computer software, Consumer electronics, Digital distribution.Products - Mac, iPod, iPhone, iPad, iPad Mini, Apple TV, OS X, iLife, iWork, iOSServices Apple Store - Apple Store online, Mac App Store, iOS App Store, iTunes Store, iBooks, iCloud

The first five years of operations, revenues doubled every four months, an average growth rate of 700%.In May 2013, Apple entered the top ten of the Fortune 500 list of companies for the first time.Rising 11 places above its 2012 ranking to take the sixth position.Apple is the world's second-largest information technology company by revenue after Samsung Electronics.The world's third-largest mobile phone maker after Samsung.As of June 2014, Apple maintains 425 retail stores in fourteen countries.Employees - 98,000 (2014)

Logos

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After three years at the top, Apple slipped to No. 2 on the back of a 20 per cent decline in brand value, to $148 billion.

From where apple is making money

APPLE IN INDIA

Apple is the world's second-largest information technology company by revenue after Samsung Electronics, and the world's third-largest mobile phone maker after Samsung and Nokia.

India was special to Apple co-founder Steve Jobs. Mr. Jobs said India and Eastern thinking had a huge influence on his work at Apple. "The people in the Indian countryside don't use their intellect like we do, they use their intuition instead," he said in the book. "Intuition is a very powerful thing.

Dhir joined Apple India three years ago from AOL Inc, where he was the global head for international business, and changed the way Apple was doing business in the country.

He hired Kaul from BlackBerry India, expanded the team threefold to more than 150 executives, strengthened the Apple exclusive stores network, shortened the gap between the launch of new models overseas and in India and spearheaded the company's thrust on iPhones.

Apple CEO also acknowledged the importance of India for the first time in July while announcing the April-June results, declaring that iPhone sales in the country grew 400% during the quarter. The company also reported double-digit growth in India's iPad sales.

Apple accounts for just 5% smartphone shipments to India, compared with 40% for market leader Samsung. And even Apple in India doesn't allowed to open its own retail stores or directly sell iPhones on the Web.

Despite his affection for India, Apple made slow progress in the country even as it invested heavily in other emerging markets.

Now, Apple began working directly with two national distributors. The company now tightly controls everything about advertising, the amount of inventory entering the country and which cities are targeted and when, a person familiar with the strategy says.

MARKETING STRATEGYS

There are three strategies that Apple has used in India:

Incentives by mobile operators, to customer who buy an iPhone.

Sales off-the-shelf via distributors and retailers who then offers EMI payments.

Extensive advertising and marketing campaign in India through partners.

SEGMENTATION

The company improved its marketing and distribution and also improved affordability by offering cashback through exchange offers.

The company appointed two large technology wholesalers (Redington India and Ingram Micro) to increase its reach in the Indian market.

Distribution of products in India is not easy, given that the geographic area is large and volumes are low.

The company wants to grow upwards of 30% year-on-year in India and feels the smaller markets would play a critical role.

TARGETING

After the market has been separated into its segments the marketer will select a segments and target it.

Thus the main target consumer for Apple company are the consumer who belongs to the age group of 16 to 56 years old consumer.

And income wise they target the upper middle class and upper class income people.

POISTIONING

Apple is positioned as a premium brand in the mind of the customers that demands and earns a price premium.

This price premium spans the entire Apple product line up encompassing the Macintosh, iPod, iPhone, software and accessories.

Therefore, Apples has positioned them to target less price sensitive customer.

Modes of entryStrategic Alliances carrier: AT&T and VerizonDirect distribution

Indirect distribution

Apple

ConsumerApple

Distributor

Wholesaler

Retailer

Consumer

Apple in USAProduct strategy: Apple position itself as a niche player in the market and focuses on premiere class.Pricing strategy: Skimming pricingPromotional strategy: Advertising & PR

Apple Products in USA:-

ContinueIpad Mini, AirMac Mac Book Air,Pro,Mini,imac,Mac proIpod ipod shuffle,Nano,Touch

Share price of Apple in USAApple Inc. 100.920.81(0.81%)12:21AM- Nasdaq Real Time PricePrev Close:100.11Open:100.77Bid:100.83x800Ask:100.84x7001yBeta:0.83Day's Range:100.53-101.5452wk Range:68.33-103.74Volume:38,716,535Market Cap:604.59BP/E(ttm):16.28EPS(ttm):6.20Div & Yield:1.88 (2.00%)

Major competitorsSmartphone's:-HTCSamsungLGComputers:-HPDellSonyTablets:-Amazon(Kindle fire)GoogleSamsungHP

Competitor comparison

SWOT ANALYSIS OF APPLE INC. StrengthCustomer loyalty combined with expanding closed ecosystemApple is a leading innovator in mobile device technologyStrong financial performanceBrand reputationStrong marketing and advertising teams

WeaknessHigh priceIncompatibility with different OSDecreasing market sharePatent infringementsFurther changes in managementDefects of new productsLong-term gross margin declineSWOT ANALYSIS OF APPLE INC.

OpportunitiesHigh demand of iPad mini and iPhone 5Emergence of the new provider of application processorsGrowth of tablet and smartphone marketsDamages from patent infringementsStrong growth of mobile advertising marketIncreasing demand for cloud based services

SWOT ANALYSIS OF APPLE INC.

ThreatsRapid technological change2013 tax increases.Breached IP rightsPrice pressure from Samsung over key componentsAndroid OS growthSWOT ANALYSIS OF APPLE INC.

Porters five force analysis

APPLE IN CHINA.The fact that the Chinese market is one that Apple simply cannot afford to ignore shouldnt surprise anyone. Chinas population and its subsequent potential market is booming. And Apples not ignoring it.Yet as a product, the iPhone has yet to successfully crack the China market.

APPLE IN CHINA (Cont.)In order to find success, Apple has two options: lower the price point of its iPhone or use its powerful brand to draw in consumers that are willing to pay more.Apple seems to be combining the appropriate price point with a strong brand identity.

COMPETITORS

COMPETITORS (Cont.)Xiaomi biggest competitor -All the features of apple -Solicited customers input and incorporated -their thoughts -Cheaper than I phoneAndroid models more popular in china due to its low cost , high performance stratergy etc.

PESTLE ANALYSIS

POLITICAL AND LEGAL ENVIRONMENTNot open when it comes to laws ,legal polices , privacy etc.Closed market.Prohibited govt. agencies from purchasing apple inc.Trade mark dispute

TECHNOLOGICAL ENVIRONMENTLeading position in electronic IT industryApples position in china market is too high because of its technology.

ECONOMIC ENVIRONMENTEconomy developing in chinaEntered Boom timeApple increased its capital flow

SOCIO-CULTURALENVIRONMENTLifestyle of the people is changing.Apple is popular among the Chinese young people

MY TAKE My instinct is that Apple will find a way to succeed in the Chinese market. What Im not sure about is the extent of its success. Will they continue to rank low on the smartphone charts? Will they be beaten by competitors with less trendy brands, but better prices or bigger screens? Or will Apple find the right price with the right brand, and take China by storm?

Human Resource ManagementRecruitingOnlineUniversitiesInternshipApple store leader program

Hiring Online Applications Interview processEqual employment

Cont..Training New technology Career advancement

RetainingFun innovative work environmentPossibility of career advancement Great benefits Health and life Insurance

Supply Chain Management

Supply Chain of an iPhoneSamsung (Singapore): CPU + Video chips

Infineon(Singapore): Baseband Communications

Primax Electronics (Taiwan): Digital Camera Modules

FoxconnInternational (Taiwan): Internal circuitry

Entery Industrial (Taiwan): Connectors

Supply Chain of an iPhoneCambridge Silicon (Taiwan): Bluetooth

Umicron Technology (Taiwan): circuit board

Catcher Technology (Taiwan): Casings

Broadcomm (US): Touch Screen Controls

Marvell (US): 802.11 Specific Parts

Apple Shenzhen (China): Assembling+ Inventory

Benefits Apple got from its Supply Chain CostReduced inventories Reduced waste Reduced total manufacturing costs

Service: Establishment of a collaborative frameworkNear real time information flow

Conclusion

For more than 35 years apple has been a trends set company able to foresee the future of domestic computers and consumers electronics, it will continue this as apples other name is innovation and apple knows,How to THINK DIFFERENT

Thank you