Apple Inc.ContentsI. Company Overview II. Strategic Analysis - Porter's Five Forces Analysis - SWOT Analysis - BCG Matrix Analysis - Three Horizon Analysis III. Competitiveness Analysis - Apple, Microsoft, IBM, HP Dell IV. Future of Apple V. ConclusionI. Company OverviewHistory of Apple1980's1980 – $117,000,000 in sales IPO 1983 – Wozniak quits Jobs hires John Sculley From Pepsi Co. to become President of Apple 1984 – Macintosh PC launch 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 IBM1990's1993 – Apple release Newton, the first PDA Earnings Plunge, Apple restructures, Sculley Resigns 1997 – Apple CEO Gilbert Amelio buys NextStep from Steve Jobs Earnings Plunge, Apple restructures, Amelio Resigns 1998 – Steve Jobs returns as iCEO Jobs restructures Apple along two products lines (“i”Mac, “Power”Mac)1970's1976 – Apple started in a garage in Santa Clara, CA by Steve Wozniak and Steve Jobs firm's major products? Markets: Geographically, where does the firm compete? Technology: Is the firm technologically current? Concern for survival, growth, and profitability: Is the firm committed to growth and financial soundness? Philosophy: What are the basic beliefs, values, aspirations, and ethical priorities of the firm? Self-concept: What is the firm's distinctive competence or major competitive advantage? Concern for public image: Is the firm responsive to social, community and environmental concerns? Concern for employees: Are employees a valuable asset of the firm?Source : www.apple.comContentsI. Company Overview II. Strategic Analysis - Porter's Five Forces Analysis - SWOT Analysis - BCG Matrix Analysis - Three Horizon Analysis III. Competitiveness Analysis - Apple, Microsoft, IBM, HP Dell IV. Future of Apple V. ConclusionII. Strategic AnalysisPorter's Five Forces AnalysisCompetitive Rivalry within an Industry : - Most bitterly contested industry - Aaggressively by pushing bptionsII. Strategic AnalysisSWOT Analysis – Strategic OptionsImprove relationship with Microsoft and Intel so that companies will see them as compatible. Produce Wintel Compatible products.Increase and promote the compatibility to Windows operating system. Promote the originality of Apple computers and the different style and stable system that is worth the price difference in style, stability and speed.W-T StrategiesS-T StrategiesIncrease ties with Microsoft and Intel and their products. Promote to business the safety of having a worm and virus free computer by using Mac. Expand production into Asia.Increase awareness through the Web of the immunity of Mac products to worms and viruses. Advertise using individuals that will link Generation X Y to the iTunes and other related products. Use movies and music groups that are geared towards Gen X and Y to promote computers and laptops.W-O StrategiesS-O StrategiesII. Strategic AnalysisBCG (Boston Consulting Group) Matrix – ProductsSource : , the revenue scale is lower than his competitors. - Need to increase their sales volume in order to get dominance and stability in the market. - It's innovative but small !* Financial results in 2006III. Competitiveness Analysis - Comparison to Key CompetitorsComparison of Profitability and ProductivitySource : www.reuters.com* Data based on the current 12-month results from Apr. 06 to Mar. 07. Unit of revenue per employee is 1,000 US $.Profitability : - Microsoft's operating margin is remarkably high. But, it's difficult to compare profitability an apple to an apple because Microsoft is a software company. - Excluding Microsoft, Apple keeps highest operating margin comparing with his major competitors. Productivity : - Apple's employee productivity is the highest. - Innovative corporate culture led by S. Jobs, high value-added product and creating vogue in products can secure the productivity and profitability. - FYI) Employee number of each company : Apple 17,800 / Microsoft 71,000 , maintain price - Versioned iPods for price-sensitive segment Distribution : - Restricted availability to Cingular* and Apple stores - New iPhones will open channels drive sales Promotions : - Cingular iPhone discounts unlikely - Expect iPhone voice / data plans* Cingular : Cingular Wireless LLC, Currently AT T Mobility LLCIV. Future of Apple - iPhoneEconomic Forecast on iPhoneDevices Sold in 2006Mobile phone market is biggest. See below. Apple expects to sell 10,000,000 phones by June 2008. Apple estimates that the popularity of their product will generate this kind of revenue. - Huge sales : $5,500,000,000 ($550/Unit) - 1% of the cell phone market Apple controls 63% of MP3 marketWhen iPhone sales of $ 5.5 Bil. add to existing revenue of 2006 and apply to same PS Ratio*, Apple's market cap. will be similar to IBM's. - iPhone's share in total revenue will be up to about 30%. Expect to increase business stability by product mix diversification and reduced operating risk.Bil$* PS Ratio how}