Apple Inc. (Apple or “the company”) was incorporated in 1977.It was co-founded by Steven Wozniak and Steven P. Jobs. They introduced the first Apple I computer in 1976. The Apple I was a failure but Apple II launched in 1980 was successful. The company offered its initial public offering (IPO) in the year 1980.
Apple offers a portfolio of products comprising Macintosh (Mac) computing systems, iPods line of portable digital music and video players, iPhone handsets and iPad portable multimedia and computing devices. The company designs, manufactures and markets a range of personal computers (PCs), mobile communication and media devices, and portable digital music players. Apple also sells a variety of related software, services, peripherals, networking solutions, and third-par ty digital content and applications. In addition, the company sells a variety of third-par ty Mac, iPhone, iPad and iPod compatible products, including application software, printers, storage devices, speakers, headphones and various other accessories and peripherals. Apple sells its products worldwide through its retail stores, online stores, direct sales force, third-party cellular network carriers, wholesalers, retailers, and value-added resellers.
Apple’s operations span across eight product lines which include: iPhone and related products and services; iPad and related products and services; Mac portables; other music related products and services; Mac desktops; iPod; software, service and other net sales; and peripherals and other hardware.
The company offers the products across five operating segments: Japan, Americas, Europe, Asia-Pacific and retail. Each operating segment provides similar hardware and software products and similar services.
The following companies are the major competitors of Apple Inc.
International Business Machines Corporation
Samsung Electronics Co., Ltd.
|Research In Motion Limited
LG Electronics, Inc.
Apple Inc. is engaged in design, development and marketing of personal computers, media devices, and portable digital music players. Through the integration model, both horizontally and vertically, the company was able to build nonreplicable and sustainable competitive advantages.
The company’s strong product offerings and the strong growth potential in the emerging market will dive the demand for Apple’s smartphones and tablets in these markets.
Apple is facing challenges in its overseas markets. In China, the government has announced plans to build its own Linux-based processor to reduce reliance on Apple’s computers. In India, which is one of the largest addressable consumer markets in the world, Apple has also been facing trouble to establish its stores because of stringent local market laws. Further, the company is shrouded by legal battles across the world.
The company recorded revenues of $156,508 million during FY2012, an increase of 44.6% over FY2011. For FY2012, the US, the company’s largest geographic market, accounted for 38.9% of the total revenues. Apple conducts its business through a single operating segment. However, the company generates revenues through eight product lines: iPhone and related products and services (51.4% of the revenues in FY2012); iPad and related products and services (20.7%); Mac portables (11%); other music related products and services (5.5%); Mac desktops (3.9%); iPod (3.6%); software, service and other net sales (2.2%); and peripherals and other hardware (1.8%).
Myanmar – Country Overview
Myanmar is rich in natural resources research such as arable land, forestry, minerals, as well as freshwater and marine resources, gems and jade. The economy is expected to grow 5.5% in the fiscal year ending 31 March 2014 (FY13) compared to 5.0% in FY12, driven by higher investment in hydropower, natural gas and oil and commodity exports.
GDP composition by sector in 2012 consisted of services (41.8%), agriculture (including livestock, fisheries and forestry) (38.8%) and industry (19.3%), with services the largest contributor to the economy for the second year running (the FY11 composition of GDP was services 43.6%, agriculture 38.2% and industry 18.2%). However, the distribution of the labour force is still largely skewed towards agriculture relative to services and other sectors, reflecting Myanmar’s primarily agricultural economy.
While the Myanmar government continues to enjoy good economic relations with neighbours such as China and Thailand, significant ongoing improvements in the business and political climate and economic governance will be required to attract serious, long- term investment, particularly from economies beyond Asia. The government continued its reform programme during FY13, focusing strongly on economic expansion and attracting foreign investment.
Inflation in Myanmar has been rising, with the official consumer price index increasing by 1.5% in FY12. Consumer prices increased by 6.6% (year on year average) in the first quarter of 2013 due mostly to rising food costs. The expansion of local credit and growing domestic demand is expected to continue the upward pressure on costs in Myanmar in the coming years.
This case is based on a real life organisation, but details have been changed for assessment purposes and do not reflect the current business and management practices. Students are encouraged to search the internet and liaise with staff for cross references in answering this assignment.
You are a member of the market analysis reporting to the Product Manager for Apple Inc.. You are asked to look into the product range marketing aspects (choose one selected product segment) on the following and to be table for discussion:
Prepare 20 to 30 presentation slides with accompanying notes to new members addressing the following tasks:
Provide a brief report for members of the product team:
Merit Identify and apply strategies to find appropriate solutions
Characteristics / Possible Evidence – Using effective approach to study marketing processes and based on research information identify market segmentation of two products in different markets, and targeting strategies.
Select and apply appropriate methods/techniques
Characteristics / Possible Evidence – A range of methods and techniques have been applied to macro and micro-environmental scanning. Also to be included are marketing activities in two different buying situations and a range of information system sources used widely related to set tasks.
Present and communicate appropriate findings
Characteristics / Possible Evidence – An appropriate structure and approach has been used to write a clear marketing report and a range of methods of presentation like charts, diagrams, graphs are used.
Distinction Use critical reflection to evaluate own work and justify valid conclusions
Characteristics / Possible Evidence – Creation has been used to generate and justify valid comments and also evaluation has taken place using defined criteria on marketing viability of the company’s products.
Take responsibility for managing and organising activities (D2)
Characteristics / Possible Evidence – Substantial investigations have been planned, managed and organized in the process of marketing, environmental scanning, segmentation, targeting and positioning of the products in the desired markets.