Apple Inc. in 2010 King Abdul Aziz University Faculty of Economics and Administration Executive Master of Business Administration Contemporary Marketing BUSE603 Prof. Moahmmed Al Habib Project Team Abdulwahab Y. Al Qahtani Nasser A. Al Shehri Attieh B. Al Matrafi Safar M. Al Shahrani Abdullah H. AlNahdi April 2012

History of Apple Apple Inc. SWOT Analysis Recommendations Conclusion Overview

History of Apple

1976  Apple started in a garage in Santa Clara, CA by Steve Wozniak and Steve Jobs  A easy to use PC for small computer users 1980  $117,000,000 in sales  IPO 1983  Wozniak quits  Jobs hires John Sculley From Pepsi Co. to become President of Apple 1984  Macintosh PC History of Apple

Cont. History of Apple 1985 –Jobs and Sculley have a “falling out” –Jobs fired –Sculley becomes CEO –Bill Gates wants to buy Mac O/S, Sculley says No, Gates buys DOS from IBM, 1993 –Apple release Newton, the first PDA –Earnings Plunge, Apple restructures, Sculley Resigns 1997 –Apple CEO Gilbert Amelio buys Next Step from Steve Jobs –Earnings Plunge, Apple restructures, Amelio Resigns

Cont. History of Apple 1998 – Steve Jobs returns as CEO – Jobs restructures Apple along two products lines Consumer “i”Mac – “i” for internet Professional “Power”Mac – “power” for power user – Sales return, Brand emerges, Innovation rules USB, Firewire, Airport iPod and iTunes – Stock price takes off like a rocket!

Apple Inc.

Apple’s shift towards a digital hub strategy was initiated by the debut of:  iPod in 2001  iPhone in 2007  iPad in These product lines set Apple on a path toward becoming a full-fledged digital convergence company. The change in the company’s name from ‘Apple Computer’ to “Apple Inc.” in 2007 marked the official repositioning of the company

SWOT Analysis

Strengths : – Brand Marketing – Ecosystem of Products – Retail Strategy – Horizontal Integration – Vertical Integration – Research and Development Weakness: – Business Strategy – Reliance on Steve Jobs – Apple’s Product and Expectations – Corporate Social Responsibility

Cont. SWOT Analysis Opportunities : – Shift from the PC to Mobile – Emerging Markets – Consumer Digital Lifestyle Threats: – Intense Competition – Risk of International Operations – Risk of Imitations, Unauthorized Modifications

Recommendations

Leverage on Innovation and Consumer Feedback. Leadership. Target Emerging Markets. Launching a New Product Line. Expand on Its Current CSR Initiatives

Conclusion

We conclude that Apple can increase market presence by developing simple but adequate products specifically for emerging markets through leveraging on its expertise in research and innovation, as well as its strong balance sheet to obtain bulk discounts from suppliers to drive costs down. It will enable the products to be relatively more affordable to consumers of these markets.