Case Study for Apple Computer

Everything you need for this case study will be listed below for the reading information of Apple company.  Do not used other outside information only the information that I provided you with. The Case Study have to between 1-2 pages (no more)  I need this information for the Apple Case Study listed below:

The General Environment

Demographic Segment:

Opportunities

Economic Segment:

Opportunities

Threats

Political/Legal:

Opportunities


Threats

Sociocultural Segment:

Opportunities


Technological Segment:  

Opportunities

Threats

Global Segment:  

The Industry Environment

Five Forces Model may be used to determine the attractiveness of the wireless communications industry.

Threat of Entry:  

Bargaining Power of Suppliers

Bargaining Power of Buyers

Threat of Substitute Products

Rivalry

Competitor Analysis

INTERNAL ANALYSIS

Apple tangible and intangible resources as a source of competitive advantage.

Apple's capabilities and core competencies.

Apple's sustainable competitive advantage

SWOT ANALYSIS

Strengths

Weaknesses

Opportunities

Threats

Competitive Rivalry (The Competitive Rivalry Model)



------------------------------------------------------------------------------------------------

Apple Company Information to help complete the case Study


Apple Computer, cofounded by Steve Jobs and Steve Wozniak, has had a tumultuous journey during its 25 years in the computer industry. With a mission of providing easy-to-use computers to everyday people, Apple grew to become stronger than IBM in the personal computer segment. In 1984, with the introduction of the Macintosh, Apple revolutionized the personal computer market by providing the first widely available graphical user interface (GUI) operating system (O/S).




The company continues to innovate with several new product offerings, such as the iPod, newer versions of the iMac, revisions of the iBook and PowerBook, and a new operating systems based on Unix technology. However, Apple is ranked number six among the competitors listed above, with a market share of only 3.48 percent. Worldwide, Apple fares worse; it is in ninth place with 2.4 percent market share.




Apple Computer has recently focused on its home consumer markets with software development including iTunes, iDVD, iPhoto, and iMove. A report suggests that Apple's "biggest opportunity for growth is in the horizontal market, which is basically consumers... The other big segment is content creation professionals and they [Apple] are pretty safe there. Those people pay a premium because they want the Mac hardware and software-- the whole universe of people that do work in that segment are Mac people.




As the computer industry dwindled in the post Y2K economy, Apple performed unprofitably once again in the second half of 2000. Apple performed unprofitably once again in the second half of 2000. Apple introduced the PowerMac G4 Cube in July 2000, a computer with a novel form and style for those who did not want a monitor included with the computer. However, the Cube was a complete failure, and production was halted a year later. The shortcomings of 2000 led Apple to reevaluate its position in the computer industry and address the needs of its constomers.




During the mid-1970s, industry pioneers such as Apple began marketing personal computers to the general public. They released machines that were capable of both word-processing and spreadsheet functions. Apple became the industry leader and remained on top until 1981, when IBM introduced its first PC. The 1980s saw computers invade homes, businesses, and schools at a staggering rate. The number of personal computers in use grew from 5.5 million in 1982 to 65 million in 1992.




Today, the personal computer has reached the status of a commodity and the battle for market share is all the more intense. Clearly, the market ha reached maturity and only the strong survive. The boom of the late 1990s is over, and weathering the storm has led all the players in the industry to reevaluate the way they do business.




Dell's direct-to-customer business model adds value in five ways. First, Dell customers aviod delays and price markups because there is no middleman. Second, Dell's model allows for customizations; customers get exactly what they want. Third, the direct model allows Dell customers to receive outstanding service after the sale that is tailored to their needs. Fourth, Dell is able to implement the latest technological advances in computer hardware and software quickly because the time between assembly and delivery is so short. Fifth, Dell's efficiency creates shareholder value.




Gateway believes that customer service is the key to success. From financing and consulting to training and support, we're here to help at every stage in the relationship, so you get the most from your investment. While advertising and promotions are a part of Gateway's strategy, the company hopes to attract many of its customers by word of mout, believing that no marketing technique is as effective as satisfied customers who promote Gateway to their friends and family. Gateway is most notably distinguishable from Dell in that it operates brick-and mortar stores. Customers who wish to use a computer or talk to a sales representative in person are able to do so at these locations.




The new entity resulting from the acquistion of Compaq by HP promises to distinguish itself from the pack through innovattion. Scientists at laboratories from both companies in the merged firm are eager to collaborate to expand current capabilities, particularly in area of handheld and wireless devices. Although HP/Compaq remains a dominant force in the PC market, the company's primary focus is currently on communication technology.




The goal at IBM is to faciliate the continued evolution of computing technolgy. [IBM's] worldwide research labs work in all areas of information technology, from physics and cognitive science to leading-edge application research. IBM work with the governmental and academic communities to provide customers with the most sophisticated products that technology will permit.




In the software market, the industry profile is radically different. Rather than being defined by rigorous competition, the market is dominanted by Microsoft. Its Windows operating system comes standard on nearly every PC that a consumer may purchase. While Apple offers its own operating system that comes standard on all Apple computers, the software is not compatible with PCs. The result is that Apple software sales are limited by the amount of Apple hardware sales.




Sun Microsystems is the other player worth noting in the software market for PCs. Sun's CEO, Scott McNealy, taking market share from Microsoft is not just a necessity for surviving in the software industry; it is a personal quest. Since 1982, Sun has attempted to distinguish itself by its vision. Rather than meeting today's computing needs in homes and work places. Sun attempts to thrust computing into the next generation with innovative products and services.




Apple's share of the worldwide desktop market in 2000 was just over 6 percent and in the portable market, just below 10 percent. HP/Compaq is the most established player in the industry. Before the acquistion, Compaq commanded over 10 percent of the portable market and nearly 15 percent of the desktop market, while HP was also a major player. Dell and Gateway occupy the direct marketing channel. Dell alone captured over 10 percent of the market for both desktops and portable computers in 2000. The most alarming fact is that between 1995 and 2000, Apple's share of the market for both products decreased by half.




Finally, Apple appears to be positioning itself to attack Microsoft in the software market. The company's new Switcher campaign aims directly at conventing Microsoft customers to Apple by promoting the ease of use that Apple products provide. Apple is also challenging the dominance of Microsoft Office on Mac OS by providing its AppleWorks office suite with the purchase of Apple hardware. The newest version of Mac OS X also includes applications that provide improved e-mail, calendar, and synchronization functionally previously provided by Microsoft Office.




The nature of competition in both the hardware and software markets has laid the groundwork for a discussion of the products and services that Apple now offers. Though the benefits of the Apple and the PC have been heavily debated, in reality there is little difference between the two when it comes to hardware. The primary differences lie in the operating system software and in applications that are unique to each system. Apple has also developed certain peripheral products that go beyond the computer and basic operating system.




Apple offers its computers in two categories: for beginners and for advanced users who will pay a higher price for higher performance. In the desktop computer segment, the iMac is the least expensive, aimed at the general computer user. PowerMac is Apple's high-end desktop computer and is generally marketed within the multimedia industry. Apple has also created a specially designed computer called the e Mac that fits on a school desktop and comes with applications for learning. The "e" stands for education, and this computer is sold to schools and other academic institutions, one of Apple's most important niche markets.




Apple also markets customizable servers, keyboards, mice, and other accessories, all of which are designed to coordinate with the CPUs and monitors. Apple computers offer great color choices and are artitically designed to interest customers who are conscious of aesthetic factors. Apple offers a variety of case designs for their monitors and CPUs that give their products a unique and elegant look.




Apple has developed innovate software applications that encourage digital creativity. The company's QuickTime Player is one of the leading media players. QuickTime is available for computers running Windows and offers compatiblity for digital media technolgy used on the Internet. Apple is steering its future software releases toward video (iMovie), music, and photo design and printing (iPhoto) for home users. For corporate and advanced users, the focus is on web publishing, network management, and Internet applications.




While the revamped distribution chain has been good for Apple, it hasn't been good for everyone. Since the debut of the Internet direct sales model, resellers have been experiencing lower sales. The situation worsened when Apple streamlined its distributors, which cut sources for resellers to get a better price. Resellers were concerned about whether they could remain profitable.




As a result, Apple developed online configuration programs for resellers to lesson the direct competition created by the build-to-order model.




Apple has hovered under 5 percent market share in the personal computer market for the past four years, and this shift to consumer electronics may be a sign of the company's aspiration to "think different."




Apple has also seen success in the consumer electronics market with the popularity of the iPod for both Apple and Windows users. The distribtion agreements with Dell, Target, and Best Buy seem likely to generate revenue. Apple is positioning itself to become the entertainment hub of the future with the development of such software applications as iMovie, iDVD, and iTunes, which make desktop video and music creation even easier.




Apple has a long history of innovation and tenacity in the personal computer market in the face of stiff competition. At previous Macworld keynote addresses, Jobs introduced Mac OS X and the iMac. The 2003 address also needed to provide exciting news to reinvigorate the Apple faithful and restore investor confidence in Apple's future.