1. Jordan Baxley Kyle Neal Kadell James Justin Copeland

2. General Sector of the External Environment Jordan Baxley

3. General Sector of the External Environment Five Primary Factors in the General Environment Economic* Social Political* Technological* Ecological

4. Technological Sector Analysis Advances in data sharing channels Advances in wireless networks Increases in wireless data transfer speed Increases in portable data storage capacity Increases in cell phone features/productivity tools Increases in battery life Advances in data compression technology

5. Technological Threat Cell phone providers developing ability to offer wireless downloads of music files 1.4 billion people already have a cell phone compared to 10 million people with an iPod Many phones can now store large amount of data (music/videos) and have increased battery life Data transfer speed improvements via wireless networks make downloading music faster than ever before Cell phones now allow users to send/check email, browse the internet, record/send videos, send text messages, view/edit documents, download/play music, play games, make phone calls

6. Economic Sector Analysis Economic slump in United States Global populations increasing (2.4 billion people currently live in China & India)

7. Economic Threat Bad economic conditions could put a strain on Apple’s operations Growth in Apple’s industry will slow Consumers will spend less especially on high-tech products Opportunity Huge populations in foreign markets China’s/India’s economies are among fastest growing in the world

8. Political Sector Analysis Music contract terms difficult to negotiate (particularly globally) Complications of copyright agreements Record label executives/representatives often difficult to deal with (legalities, greed)

9. Political Threat Presents a problem for Apple to implement/develop its iTunes music service especially in other countries Cooperation from record labels with Apple is essential to increase iTunes musical offerings

10. Industry Analysis Kyle Neal

11. Five Forces Model Barriers to Entry Bargaining Power of Suppliers Substitute Products Buyer Power Competitors

12. Company Profile Kadell James

13. Industry Characteristics Stable Firms have same basic components for parts and suppliers Majority of hardware and software sold at retail stores and firms’ websites Standardized product and demand

14. Apple’s Advantages Serves different markets than competition Education, design, music, and art High end product compared to competition Various product offerings (differentiated) Software, personal computers, iPhone, portable digital music players, etc. High product innovation

15. Apple’s Advantages Partnerships Created partnership with RIAA Allows for legal downloading of music First mover Hewlett Packard produces digital music players w/ iTunes services

16. Apple’s Advantages 2 year exclusive agreement with AT&T Value in consumers’ eyes Purchase commitment with suppliers (30 to 130 days)

17. Apple’s Weaknesses Inability to appeal to homeowners and non-graphic based businesses Microsoft operating systems Consumers do not want to learn behavior of learning to use Apple’s operating system

18. Competition Dell Sells computers, servers, storage boxes, etc. Products are sold online, customization for each purchaser Hewlett Packard Sells personal computers, digital cameras, television, printers Bought out Compaq

19. Competition Microsoft Operating systems Other computers come with Microsoft running system

20. Financial Analysis Justin Copeland