Product: Apple Mac

With this presentation, I would like to pay tribute to Steve Jobs, the hero who
revolutionized the technology world and salute to the whole family of Apple Inc. for
whom our lives have become easy nowadays.

Report Done By

Abhishek Roy Choudhury

 Contents
Topics Covered Page No.

1. Sectoral Information 03-06

2. Company information 07-09
3. Marketing Strategy 09-19
4. Financial outlook 19-21
5. Human Resource Management 22-25
6. Conclusion 26
7. Bibliography 26
Sectoral Information
Since Apple.Inc manufactures and sells Electronic Gadgets mostly, therefore I choose to write the
recent naming of its sectoral details and classification as follows:

Television
Consumer electronics Audio & Video Player
(FMEG) DVD CD player
Consumer Durables
Computer
(FMCD)
Camcorder

Air Conditioner
Refrigerator
Consumer Appliances
(Brown and White Goods) Washing Machine
Micro Oven
Sewing Machine
Figure: 1.1

The product assigned to me is Apple Mac which categorizes under

Fast Moving Consumer Durables Fast Moving Electronics Goods Computers

Now, if we see what’s the market

Sectoral Contribution to World Economy
share of all the vital and main
Education Real Estate Durables
Telecom 5% 5% 4% sectors of business in the world,
8%
Clothing we’ll find that FMCD is one of the
Automobiles 4% growing and vital sector in the
11% BFSI technological era of this current
4% 21st century. Since Globalization
FMCG
34% has boomed in almost every
Figure:1.2 parts of the world, people are
more attracted to the
technological advancement in
FMCG Automobiles Telecom Education Real Estate their life. Therefore, our sector
Durables E-Commerce Clothing BFSI Others has a lot of opportunity of
continue its growth in a higher
speed. Consumer Durables covers 4% revenue of GWP in 2017 as mentioned in The Wall Street
Journal. Renowned Marketers and researchers continue to believe that Durables, mostly the part of
FMEG will continue to speed up its growth. Forecasted that the Contribution in GWP would be 6.9%
within 2022.
In this presentation, since I’m focusing more on FMEG sector, it will be more appropriate to give its
detailing. Revenue of the FMEG sector globally is
2017 Sectoral Part of FMCD $1.17,493.40 Trillion in 2017 **GWP Contribution
and this sector includes 1.56% of the world
39%
61%
revenue. The sector is growing speedily. FMCD a.k.a
Consumer Durables holds 4% of the global market.
And within this 4% Electronics Goods have a part of
1.56%.
Consumer Appliances FMEG

Figure: 1.3

Growth pattern in
50 FMEG Contribution: 2005-2020
Forecast In India
Electronics Durables
40 Sector: Indians’ love for consumer
electronics can be seen in the doubling
30 of imports to $57 billion in five years. It
Figure: 1.4 doesn’t mean that it’s contributing the
whole to India’s GDP but there’s a
20
flourishing growth in Indian Electronics
Market. India’s insatiable desire for
10 electronic goods is only going to rise
even more steeply. That’s why the
0 government is urgently looking for ways
2011
2005
2006
2007
2008
2009
2010

2012
2013
2014
2015
2016
2017
2020*

to capture a larger share of the

electronics manufacturing value chain.
FMEG Contribution in US Billions $
It’s framing a National Electronics Policy
expected to be unveiled in the near future that’s almost certain to prescribe an export-led
strategy. But there’s real problem in the execution of those policies.

Reasons for Growth/De-growth Pattern

There’s many factors which affect the growth pattern of a particular sector. Especially when we are
talking about the electronics market, few factors dominate the major part of the growth pattern.
 Global Environment: In the present times, trade war and its sanctions hurdles the growth field.
 Politics and Policy: In India, policies like GST and Demonetization affected the growth.
 Technological Advancement: People nowadays are sophisticated and try to upgrade
themselves with time, this factor gives a huge push to the electronics market in the world.
 Supplier and labor supply: Suppliers of third world countries give spaces for companies to take
a huge margin on products as labors in those countries are cheap.

There’s many more factors which can be discussed falling in parts of macro and micro environment
prevailing for this sector.
 Porter’s five forces for electronics sector in India

Potential Entrants Bargaining Power of

(Entry Threat) Suppliers

Intensity of
competitive rivalry

Bargaining power of customers Threat of substitute

Figure: 1.5
(buyers) products or services

The analysis of the above diagram is discussed below:

Potential Entrants (Entry Threat):-

The potential new entrant in the electronics market is Low due to following reasons.
 Huge capital requirement for a firm to enter in this segment.
 Rapidly evolving technology is another entry barrier as for a new entrant.
 Major firms like LG, Samsung, Apple, Xiomi, Sony etc. have efficiently built their supply chain
and hence it will be very difficult for a new entrant to compete with them on price.
 Major players have already developed their huge brand equity which will be very tough for a
new entrant to establish in this market.

The Bargaining Power of Suppliers:-

According to present market conditions, in electronics sector also the bargaining power of
supplier is on Low end because of following reasons.

 Product differentiation is very low. Since most of the companies are developing similar kinds of
products, therefore the power is very less. Like in the TV, each of LG, Samsung, Sony etc. have
similar product range in LCD, LED, Plasma and Smart TV’s; hence they have less power to
bargain.
 Since there is no or very negligible switching cost, hence this again makes the supplier power
to be on lower end.
 The Bargaining power of customers (buyers):-
The bargaining power of buyer is High because of following reasons.
“Customer is the king”

 Use of internet to get all the information: - Buyer has a power to go online and compare the
prices and features of various products online. Hence buyers are more informative and
educated regarding products and this leads to increase in their power.
 Mid to High price sensitivity of buyer. Since buyer are generally very price sensitive, so this also
leads to increase in buyer power.
 Feedbacks and suggestions available over internet. So they are more informed and also
influence buying decisions of other powers.

Threat of substitute products or services

Threat of substitutes are again from Mid to High.

 Due to changing technology, there is high threat of substitute products in this industry. E.g.
before 2010 consumer used to use CRT televisions. But after the innovation of Plasma, LED and
LCD TV’s consumers and shifted to the newer generation products.
 Buyer have huge propensity to substitute if any firm provide more technologically advanced
product.

Intensity of competitive rivalry

The competitive rivalry is again very High in this industry due to following reasons.

 There is continuous innovation in this industry making an intense competitive rivalry. Hence
innovation leads to sustainable competitive advantage.
 Powerful competitive strategy: - If Samsung is to be evaluated on the competitive strategy
then it will be that Xiomi is more focussing on product innovations and diversification and they
are quickly launching new products in market. Nokia is focussing on both quality and
technology. Hence every firm has a different strategy and core competencies which make their
rivalry even more intensive.
Company Overview
Company History

Three college dropouts Steve Jobs, Steve Wozniak and Ronald Wayne founded Apple Computers Inc.
on April 1, 1976. They had a vision of changing the way people viewed computers and technology.
Jobs and Wozniak wanted to make computers small enough for people to have them in their homes
or offices. Simply put, they wanted a computer that was user-friendly. They were the first to develop
the concept of Personal Computer aka PC.
When India was having death fights among its own citizens (1984 Sikh riot), three people in USA were
planning to shift the global view of looking at technology. The first Apple Macintosh was released in
January. Macintosh was not just a mere electronic product. It’s a revolution in Personal Computer
Design.

Key Information about the company

Founded: In April, 1976
Industries covered:
 Computer hardware (Mac, iMac, Mac Pro, MacBook, MacBook Air)
 Computer software (iOS, OS X, Safari, iLife, iWork, iMovie, iPhoto)
 Consumer electronics (iPod, iPhone, iPad, Apple TV and Mac products)
 Digital distribution (iTunes store, iCloud, App Store, Mac App Store)
Geographic area served: Worldwide (retail stores in 22 countries and online stores in 100 countries.
Headquarter: Cupertino, California, United States.
Revenue: 229.234 billion $ in 2017
Profit: 48.351 billion $ in 2017
Employees: 1,23,000 in 2017
Main Competitors: Samsung Electronics Co., Ltd., Amazon.com, Inc., International Business Machines
Corporation, Cisco Systems, Inc., Google Inc., Microsoft Corporation, Dell Inc., LG Electronics, Lenovo
Group Limited, Hewlett-Packard Company, Sony Corporation and many other computer hardware,
computer software, consumer electronics and Internet companies.

Recent Company Promoters

Apple, Inc. is one of the largest companies in the United States and the first ever company to achieve
a market valuation of $1 trillion. As of November 1, 2018, the company's market capitalization
continues to grow to $1.06 trillion. The global tech giant reported $62.9 billion in revenues this
quarter, nearly a 20% increase from $52.6 billion over the same period last year.
As per November 7th, the recent promoters are:

Figure: 2.1
Top Five Share-Holders:
 Arthur Levinson: 1.1 million shares
 Tim Cook: 8,78,425 shares
 Craig Federighi: 4,12,571 shares
 Jeffrey Williams: 1,08,085 shares
 Bruce Sewell: 1,72,265 shares

Market Share

Smartphone Market
Others
Target market of Apple Inc.
OPPO
 Teenagers are considered one of Apple Inc.'s
Xiaomi
target markets. Teenagers use iPods for many
Apple reasons.
 College and university students are also
Huawei targeted. They use Apple Inc. products such
Samsung
as iPad's, MacBook's, iPhone's etc. to quickly
record notes. these products are light which
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% makes carrying devices to and from school
2018Q2 2018Q1 2017Q4 2017Q3 2017Q2 2017Q1
much easier.
 Business persons are very intrigued
Figure: 2.2 by Apple products. All Apple devices
(iPhone's, iPad's, MacBook's etc.) have a
business quality that is very useful. These
Laptop Market devices are used to finish
work efficiently and to communicate with
clients easily. In addition, sending
Others documents is easy and organized.
Acer  Adults are also one of Apple Inc.'s target
markets. iPhones are useful to adults for their
Apple everyday needs such as phone calls, map
Asus
directions, internet connection, documents
and cameras.
Dell

Lenovo

HP

0 5 10 15 20 25 30
2018 2017 2016

Figure: 2.3
Products and Services Offered News Regarding Apple Inc. in
last 12 months
9th November, 2018: Amazon has signed a
deal to expand the selection of Apple
products on its sites worldwide. The world's
largest e-commerce company said Friday it'll
soon start selling more Apple products
directly and have access to Apple's latest
devices, including the new iPad Pro, iPhone
XR, iPhone XS, and Apple Watch Series 4, as
well as Apple's lineup of Beats headphones.

October, 2018: Apple Inc. lost the perception

game. It has been decades while Apple has
initiated its tagline “think different’’. But there’s a serious call on the perception of people while
viewing apple products. Survey suggests that people don’t see Apple Inc. as a path breaking company
as before. The innovation tagline is not creating disruption in the market as people don’t feel that
apple is innovating anymore.

2nd April, 2018: Apple has become the world's first public company to be worth $1 trillion.

Marketing Strategy

SWOT Analysis

Strengths in the SWOT analysis of Apple

 Innovative products – One of the key strengths of Apple over the years has been its
innovative product line up. Apple has presented hit products after hit products and that’s been
the major strength of Apple. Initially it came with the MacBook, then the iPod, the iPhone,
the iPad, the iWatch.
 Leadership position – As per Investopedia, Apple is the leading technology company in the
world with regards to revenue generated. It is also the second largest smart phone
manufacturer. It becomes the first US company to cross 1 trillion in April, 2018 was the largest
publicly traded company in the world. If that does not define leadership, then nothing else can.
Apple is far ahead in the leadership game.
 Design & Technology – The best part of Apple, and the reason for its fantastic brand equity is
its design as well as the technology it uses. Apple has always been suave and elegant in
its product design. And at the same time, beneath this exquisite design is a machine powered
 to give ultimate performance. All this runs on the Mac OS which is another software known for
its efficiency.
 Distribution – Apple has more than 500 of its own stores across 22 countries. Besides these
stores, it sells through trade partners, online channels as well as through other premium retail
stores. Entering an Apple owned retail store is a fantastic experience.
 Steve jobs – One of the key factors and the leader of Apple is also a loved person in the
technology Industry. He is an inspiration to all marketers in the way that he led his
own people and the way he carried his life and the brand Apple along with him.
 Consumer focus – Apple always designs its products with a focus on consumers while keeping
their mind in the future. They always try to imagine the things which even the consumer has
not imagined yet. As per Steve jobs “if you ask the consumer what he wants, by the time you
give him the same thing, he will want something else”. This ideology is the reason of success
for Apple.

Weaknesses in the SWOT analysis of Apple

 Perception game- Leading the perception war for two decades with the tool of innovation
and different concepts, Apple nowadays is slowing its power of innovating its electronics
gadget.
 Matching-Customer expectations – Being a leading company since 1980’s Apple has a major
market share and the consumer expectation is going through the roof. People expect great
things from apple year after year and maintaining these expectation levels is not easy for
anyone.
 Incompatibility-A key issue in Apple as a company is that many of its products are
incompatible with third-party software / accessories. So overall, when you buy a product of
Apple, you enter the Apple universe and you have to continue with Apple only. This makes a
huge impact on consumer decision making.

Opportunities in the SWOT analysis of Apple

 Apple cars- Naturally, with Facebook expanding with Instagram, WhatsApp and others and
Google expanding in 10 different ways, Apple wanted to find out some new products which
Apple could launch. Apple is now fixated on Apple Car which is supposed to be launched in
2020.
 Technological advancement-In the technology industry, technological advancement is always
an opportunity. And the one brand we can expect to leverage technology to its best is Apple.
We can expect even more advanced MacBook’s, iPhones, iPads and iWatch in the coming
years.
 Growing market – Apple is a growing company in a growing market. Equally important to the
company is the rising GDP of developing countries, thereby increasing consumption of such
premium brands like Apple. Any company which is growing needs a larger market base and
the market base is slowly being built via territory expansion for Apple.
 New Products like iWatch and Apple TV- Two products which can increase the presence
even further are these two, both of which are aimed at the future, for when the digital presence
increases. Apple iWatch already has a 50% market share of Smart watches in US.
Threats in the SWOT analysis of Apple
OS use as per 2016
Apple as a company does not have any threat. But as data
products, each of the products is facing strong threats
from the competition. Being the number 1 company in the
world is not easy and you are going to face competition
especially from other brands. iOS
Android 42%
47%
 Market penetration in Smartphones- One of the
key threats to Apple is the market penetration by
other brands in the Smartphone market. Android is
Java ME
eating market share like anything and currently has Others
Symbian
Kindle
Blackberry
Windows
4%
47.5% of the market share whereas iPhone is at 42% 0%
1%2%3%
1%

market share. Android is being used

by Samsung, HTC, Lenovo and practically everyone iOS Java ME Symbian Windows
who wants to enter the smart phone market.
Blackberry Kindle Others Android
Naturally Android being of Google (2nd most
valued brand), Apple has to be ready for Smartphone competition.

 Laptop competition- MacBook is obviously the best there is. But so is Dell, and so is Asus and
so is Lenovo. The competition is ever-increasing in the laptop segments. Dell has introduced
some beautiful models over the years including the Alien ware model. So, although Apple as a
brand is loved by everyone, MacBook is facing stiff competition from other brands as well.

 Smartphones replacing iPod – In 2014, iPod suffered a major decline of 52% in its sale over
2013. Overall, Smartphones have replaced music players altogether because of the various
ways that you can utilize music and carry it around. Hence the functionality of iPod is no more
unique. (Other “Only music players” are also finding it hard to exist in the market).

Segmentation, Targeting and Positioning

Apple’s segmentation, targeting and positioning represents the core of its marketing efforts along
with its marketing mix. While the content here will not only consist of Apple Mac but also of other
Apple Inc.’s products.
Segmentation involves dividing population into groups according to certain characteristics, whereas
targeting implies choosing specific groups identified as a result of segmentation to sell products.
Common set of characteristics shared by Apple target customer segment include appreciating design,
quality and performance of technology products and services over their prices. Positioning refers to
the selection of the marketing mix the most suitable for the target customer segment.
Apple uses mono-segment type of positioning and makes a positing appeal towards a single customer
segment. The multinational technology company positions itself as a premium brand offering products
and services with advanced functions and capabilities for additional costs. Accordingly, Apple target
customer segment comprise well-off individuals who are willing to pay extra for technology products
and services with advanced design, functions and capabilities.
 Apple Inc. Target Customer Segment
Types of Segmentation Devices: Services: iTunes Operating Accessories:
Segmentation Criteria iPhone, and the iTunes system & Apple TV, Apple
iPad, Mac, Store, Mac App software: iOS, Watch and
iPod Store, iCloud, OSX related
Apple Pay, accessories

Region International International International International

Geographic Density Urban Urban Urban Urban

D Gender Males and Males and Females Males and Males and Females
Females Females
E
Life Cycle Bachelor Bachelor Stage Bachelor Stage Bachelor Stage
M
Stage Stage
Newly Married Newly Married Newly Married
O Newly Couples Couples Couples
Married
G
Couples

R
Full Nest I

A
Full Nest II

P
Income High earner High earner High Earner High earner

H
Occupation Professionals Professionals, Professionals, Professionals,
, Managers, Managers, Students, Managers, managers
I
Students, Executives Students,

C Executives Executives

Hard core loyal Hard core loyal Hard core loyal Hard core loyal
Degree of
loyalty Switchers Switchers Switchers Switchers
Behavioral
 Sense of
achievement
and belonging
Self-expression
Benefits sought Speed of service Efficiency Recreation
Speed of
Efficiency Speed of service Self-expression
service,
advanced
features and
capabilities
Behavioral
Personality Determined Determined and Determined and Determined and
and ambitious ambitious ambitious ambitious

User status Non-users, Users Users Non-users, potential

potential users Non-users, potential Non-users, users
users potential users

Middle and Middle and upper classes Middle and upper Upper class
upper classes classes
Social class
Psycho-
graphic
Resigned Aspirer Aspirer Aspirer

Lifestyle Aspirer Success driver Success driver

Explorer
Success driver Explorer
Explorer
Explorer

Targeting and Positioning

“If you don't have an iPhone, well, you don't have an iPhone”
When a company can produce these type of taglines for a product, we may understand how powerful
the company is, in regards to its targeting and positioning strategy. Apple Inc. from its beginning has
beautifully targeted its customer base and positioned itself as the latest and customer chosen
technological brand of the world. It’s the future to every minds of its customer base. The slogan of
“think different” initiated has disrupted the market phase with its launch of Macintosh “the mac” and
other revolutionary products.

For Apple, the market targeting is clearly defined as:

 Age group: 22 – 55
 Gender: Male and Female
 Income: Being an affluent brand, Apple targets medium to high-income individuals
 Lifestyle: Income becomes synonymous with lifestyle and since Apple has medium to high-
income individuals as segments, the lifestyle they target is to Modern, young, open to change
etc.
  Behavior: Hardcore loyalists – Once an Apple user, always an apple user! These customer
groups become very loyal to a brand and hardly change their brand. And Apple has lot of
them.

Positioning of Apple as a brand and its product as premium and exclusive and its customer as socially
and technogically progressive and classy, is the manifesto of the company.

Marketing Mix of Apple Products

Apple Inc.’s marketing mix (4P) indicates how the company matches its business activities to
the conditions of the global market for information technology, consumer electronics, and
online services. My focus of this marketing mix is on the 4P variables, namely, Product, Price,
Place & Promotion. In developing its marketing mix, Apple Inc. uses an approach that focuses
on premium branding. This approach involves capitalizing on the premium brand, and
ensuring that all of the 4P elements support the maintenance of a strong brand image. For
example, Apple’s prices match its premium brand, as well as the corresponding consumer
perception that equates the company’s products with high value and high quality.

Products (Product Mix)

This marketing mix element determines the outputs of the business organization. In this case, Apple’s
product mix includes goods and services that are classified as, or involves information technology.
Apple Inc.’s main product lines are as follows:

 Mac
 iPhone
 iPad
 iPod
 Apple Watch
 Apple TV
 Digital content
 Software
 Accessories
 Cloud services

Mac product line includes desktop and laptop computers of various sizes for different market
segments. On the other hand, the iPad, iPhone, iPod, and Apple Watch are mobile devices with some
functions similar to those of Mac products. This element of the marketing mix shows that the
company operates in the consumer electronics products. In the company’s current strategic
management approaches, the Digital Content product line includes digital music, videos, e-books,
and games. Through digital content, Apple TV, and Software like mobile apps, among other products,
Apple Inc. operates in the digital content distribution industry. Moreover, the company’s 4Ps include
products based on cloud technology, which allows customers to store and access their data, and use
software as a service (SaaS), such as iWork for iCloud. The product lines in this 4P element are based
on the outputs of the product development growth strategy. This element of the marketing mix
reflects Apple Inc.’s evolution from a computer technology business into an increasingly diversified
business with focus on information technology.

Pricing Strategy

This element of the marketing mix sets prices, price points, and price ranges for the company’s
products. Apple Inc. uses the following pricing strategies:

 Premium pricing strategy

 Freemium pricing strategy

The premium pricing strategy involves offering products at a premium. In theory, a premium is an
amount that is applied in addition to the typical or common price. In this regard, Apple’s use of the
premium pricing strategy sets high prices for its products. For example, in general, iPhones are more
expensive than Samsung smartphones. Premium pricing maximizes profit margins. Even though the
SWOT analysis of Apple Inc. shows that such high prices are a weakness, the company utilizes
premium pricing in combination with premium branding and creative innovation. Such combination
ensures competitiveness. Creative innovation is supported through Apple’s organizational culture.
Aside from premium pricing, the company also uses the freemium pricing strategy. This strategy
involves “free” and “premium” pricing combined into a single strategy. In this freemium pricing case,
some of Apple Inc.’s products are free, but customers pay to access more, advanced, or better
features. For example, the company offers free 5-gigabyte iCloud storage. However, to add more
storage capacity, customers must pay a recurring fee. In this regard, Apple’s marketing mix is aligned
with premium branding and associated product design and development efforts.

Place

This element of the marketing mix involves the selection of appropriate places or venues through
which the company distributes its products. Apple Inc.’s business involves company-owned locations,
as well as other via parties that the company authorizes to distribute its products. The following
places are included in Apple’s distribution strategy:

 Apple Store locations

 Company-owned website and online stores for desktop and mobile
 Authorized sellers
 Telecommunications companies like tie up with Jio in India

Apple Store is a subsidiary of Apple Inc. that operates physical or brick-and-mortar stores that sell the
company’s products, along with related products from other manufacturers. For example, these
stores sell MacBook units, as well as peripheral devices from other companies. In addition, customers
can buy products through Apple’s website and online stores for desktop and mobile. Customers can
buy consumer electronics through the company’s website. Apps, music, movies, and other digital
content are available through online stores for desktop and mobile, such as the App Store and the
iTunes Store. In this element of the marketing mix, the inclusion of these online distribution channels
helps optimize international market reach. Also, Apple Inc. includes authorized sellers in its
distribution strategy. These sellers operate stores in various strategic locations, such as in shopping
malls in different markets around the world. The sellers include large retail firms like Walmart and
Best Buy. Some authorized resellers sell through their own stores as well as their seller accounts
on Amazon.com. Moreover, the company has agreements with various telecommunications
companies, such as Verizon, AT&T, and Sprint in US market, which offer iPhone units integrated into
some of their telecommunications service packages available to subscribers in local or regional target
markets. Thus, Apple’s marketing mix is comprehensive in taking advantage of online and non-online
distribution channels.

Promotions and IMC (Promotional Mix)

Also called the marketing communications mix, this element of the marketing mix determines the
communications tactics that the company uses to reach its target customers. Apple Inc. promotes its
products in various ways, involving different communications channels and parties. In addressing this
4P element, the company emphasizes the premium brand image and premium quality of its products.
The following communications tactics are in Apple’s promotional mix:

A. Extensive Advertising
B. Personal Selling
C. Sales Promotion
D. Public Relations

Apple Inc.’s marketing mix includes advertising, such as on Google’s digital advertising network and
on technology news websites. The company has agreements with various prominent websites to
advertise and promote Apple products. In addition, the company uses personal selling in the form of
Apple Store employees who provide product-specific information in the aim of convincing store
visitors to make a purchase. Also, among the 4Ps, this element involves sales promotion, which
usually happens at the Apple Store locations and authorized reseller locations. For example, some
locations offer old models at discounted prices when bundled with larger or more expensive
products. Moreover, the company uses public relations to optimize its corporate image. For instance,
Apple Events, leaks of new product features, press releases, and exclusive interviews are carefully
executed to maximize positive publicity. The company is also involved in various initiatives, such as
ConnectED, which aims to improve formal education outcomes, while promoting the business and its
products. These efforts are linked to Apple’s corporate social responsibility strategy and stakeholder
management efforts. The company uses such communications tactics to satisfy this element of the
marketing mix, pertaining to business needs in reaching more customers worldwide. Apple often
gives its promotional work to any external agencies, which looks upon its branding and marketing
communications.
 BCG Model

Question Mark
Star

Cash Cow Dogs

A. Cash cows are products which are existing since ages and which cannot be challenged in the
current market conditions and have a majority market share when the global data is referred –
These are Macintosh, iPhone, iWatch and iTunes (a solid support service to all Apple products)
B. Stars are iPad and iBooks where there is a lot of competition and Apple has to invest a lot to
keep these businesses on top.
C. Question mark is Apple TV which has low market share in an industry which is showing great
potential and might grow at a rapid pace in the future.
D. Dog is iPod, although it has a high market share in its own segment, the industry itself is
rapidly degrading because Smartphones have replaced iPods.

Sales Comparison of Last 3 years

For the first time in six years, PC sales are showing clear signs of growth. But the Mac is still lagging
behind in its growth of sales. Though Mac falls under Cash Cow category of BCG Model, yet Mac has
room to race with the competitive brands to topple in the market share of laptop. Leaving this line,
we can see that there's also the Windows 10 effect. It's a popular and well-loved platform, and it's
driving sales and upgrades in a big way. All the major OEMs, as well as component makers,
Researchers from several firms spoke to over the past year or give credit to Microsoft and the work it
has done with Windows 10 for helping to keep the market buoyant. But another key factor is the fact
that other PC brands and Macs appeal to different markets. While there's no doubt that a lot of
professionals rely on Macs to get their work done, the mainstay of the PC market consists of business
and enterprise buyers. And now we can also observe that businesses have been buying other PCs
again.
 Mac Sales Quarterly For Last 3 Years
FY 18 Q3
FY 18 Q2
FY 18 Q1
FY 17 Q4
FY 17 Q3
FY 17 Q2
FY 17 Q1
FY 16 Q4
FY 16 Q3
FY 16 Q2
FY 16 Q1

0 1000 2000 3000 4000 5000 6000

Apple Inc. Product Life Cycle (PLC till 2012)

Analysis of Promotional Strategy and its implementation
The company’s strategy is being researched, learnt and appreciated in b-schools around the world
but I would be critical to its strategy in the present situations. Due to recent trade war and conflicts
on economy around the globe, electronics goods are prevailing a much more cost than its actual.
And, already apple has its premium pricing structure. No innovation in its product has made it a dull
to its brand loyal as well as potential customers. Apple needs to check whether promotions are really
matching its high customer expectation as they are not concentrating on their innovating skills and
focus on “being Different”.

Financial Statement
Income Statement
Period Ending: 9/29/2018 9/30/2017 9/24/2016 9/26/2015
Total Revenue $265,595,000 $229,234,000 $215,639,000 $233,715,000
Cost of Revenue $163,756,000 $141,048,000 $131,376,000 $140,089,000
Gross Profit $101,839,000 $88,186,000 $84,263,000 $93,626,000

Operating Expenses
Research and Development $14,236,000 $11,581,000 $10,045,000 $8,067,000
Sales, General and Admin. $16,705,000 $15,261,000 $14,194,000 $14,329,000

Non-Recurring Items $0 $0 $0 $0
Other Operating Items $0 $0 $0 $0

Operating Income $70,898,000 $61,344,000 $60,024,000 $71,230,000

Additional income/expense items $2,005,000 $2,745,000 $1,348,000 $1,285,000

Earnings Before Interest and Tax $72,903,000 $64,089,000 $61,372,000 $72,515,000

Interest Expense $0 $0 $0 $0
Earnings Before Tax $72,903,000 $64,089,000 $61,372,000 $72,515,000
Income Tax $13,372,000 $15,738,000 $15,685,000 $19,121,000
Minority Interest $0 $0 $0 $0
Equity Earnings/Loss $0 $0 $0 $0
Unconsolidated Subsidiary
Net Income-Cont. Operations $59,531,000 $48,351,000 $45,687,000 $53,394,000

Net Income $59,531,000 $48,351,000 $45,687,000 $53,394,000

Net Income Applicable to Common $59,531,000 $48,351,000 $45,687,000 $53,394,000
Shareholders
Balance Sheet
Current Assets 9/29/2018 9/30/2017 9/24/2016 9/26/2015

Cash and Cash $25,913,000 $20,289,000 $20,484,000 $21,120,000

Equivalents
Short-Term $40,388,000 $53,892,000 $46,671,000 $20,481,000
Investments
Net Receivables $48,995,000 $35,673,000 $29,299,000 $30,343,000
Inventory $3,956,000 $4,855,000 $2,132,000 $2,349,000
Other Current $12,087,000 $13,936,000 $8,283,000 $15,085,000
Assets
Total Current Assets $131,339,000 $128,645,000 $106,869,000 $89,378,000

Long-Term
Assets
Long-Term $170,799,000 $194,714,000 $170,430,000 $164,065,000
Investments
Fixed Assets $41,304,000 $33,783,000 $27,010,000 $22,471,000
Goodwill $0 $0 $5,414,000 $5,116,000
Intangible Assets $0 $0 $3,206,000 $3,893,000
Other Assets $22,283,000 $18,177,000 $8,757,000 $5,422,000
Deferred Asset $0 $0 $0 $0
Charges
Total Assets $365,725,000 $375,319,000 $321,686,000 $290,345,000

Current Liabilities

Accounts Payable $55,888,000 $44,242,000 $59,321,000 $60,671,000

Short-Term Debt / $20,748,000 $18,473,000 $11,605,000 $10,999,000
Current Portion of
Long-Term Debt
Other Current $40,230,000 $38,099,000 $8,080,000 $8,940,000
Liabilities
Total Current $116,866,000 $100,814,000 $79,006,000 $80,610,000
Liabilities
Long-Term Debt $93,735,000 $97,207,000 $75,427,000 $53,329,000
Other Liabilities $45,180,000 $40,415,000 $36,074,000 $33,427,000
Deferred Liability $2,797,000 $2,836,000 $2,930,000 $3,624,000
Charges
Misc. Stocks $0 $0 $0 $0
Minority Interest $0 $0 $0 $0
Total Liabilities $258,578,000 $241,272,000 $193,437,000 $170,990,000
Stock Holders’
Equity
Common Stocks $40,201,000 $35,867,000 $31,251,000 $27,416,000
Capital Surplus $0 $0 $0 $0
Retained Earnings $70,400,000 $98,330,000 $96,364,000 $92,284,000
Treasury Stock $0 $0 $0 $0
Other Equity ($3,454,000) ($150,000) $634,000 ($345,000)
Total Equity $107,147,000 $134,047,000 $128,249,000 $119,355,000
Total Liabilities & $365,725,000 $375,319,000 $321,686,000 $290,345,000
Equity
Cash Flow Statement
g:Period Timings 9/29/2018 9/30/2017 9/24/2016 9/26/2015
Net Income $59,531,000 $48,351,000 $45,687,000 $53,394,000
Cash Flows-Operating Activities

Depreciation $10,903,000 $10,157,000 $10,505,000 $11,257,000

Net Income Adjustments ($27,694,000) $10,640,000 $9,634,000 $5,353,000
Changes in Operating Activities

Accounts Receivable ($13,332,000) ($6,347,000) $476,000 ($3,318,000)

Changes in Inventories $828,000 ($2,723,000) $217,000 ($238,000)
Other Operating Activities ($423,000) ($5,318,000) $1,055,000 ($283,000)

Liabilities $47,621,000 $9,465,000 ($1,343,000) $15,101,000

Net Cash Flow-Operating $77,434,000 $64,225,000 $66,231,000 $81,266,000
Cash Flows-Investing Activities
Capital Expenditures ($13,313,000) ($12,451,000) ($12,734,000) ($11,247,000)
Investments $30,845,000 ($33,542,000) ($32,022,000) ($44,417,000)
Other Investing Activities ($1,466,000) ($453,000) ($1,221,000) ($610,000)

Net Cash Flows-Investing $16,066,000 ($46,446,000) ($45,977,000) ($56,274,000)

Cash Flows-Financing Activities

Sale and Purchase of Stock ($72,069,000) ($32,345,000) ($29,227,000) ($34,710,000)

Net Borrowings $432,000 $29,014,000 $22,057,000 $29,305,000

Other Financing Activities ($2,527,000) ($1,874,000) ($1,570,000) ($1,499,000)

Net Cash Flows-Financing ($87,876,000) ($17,974,000) ($20,890,000) ($17,716,000)

Effect of Exchange Rate $0 $0 $0 $0

Net Cash Flow $5,624,000 ($195,000) ($636,000) $7,276,000

9/29/2018 9/30/2017 9/24/2016 9/26/2015

Working Capital $14,473,000 $27,831,000 $27,863,000 $8,768,000
Fixed Assets $41,304,000 $33,783,000 $27,010,000 $22,471,000

Ratios 9/29/2018 9/30/2017 9/24/2016 9/26/2015

Liquidity 1.123842692 1.276062848 1.352669418 1.108770624
Turnover 2.309740754 2.299295775 2.18872451 1.966713463
Profitability 38.34371882 38.46986049 39.07595565 40.05990202
Solvency 0.460449071 0.400800756 0.472370849 0.62452775
Human Resource Management

Organization Structure
• Retail
• Internet Software and Srvices
• CFO
Senior Vice President • Harware Enterprise
• Worldwide Marketing
• General Counsel
• Hardware Technologies

Chief Design Officer

Cheif Operating
Officer
Tim Cook • User Interface Design
CEO, Apple Inc. • Communications
• Industrial Design
Vice-President • Environmental Policy, Social initiative
• Marketing Communications
• Dean, Apple University
• Worldwide Human Resources

Job Description and Job Specification

UK-Technical Specialist
United Kingdom
Apple Retail

Posted: 11 Nov 2018

Role Number: 114438202

After customers purchase our products, you’re the one who helps them get more out of their new Apple
technology. Your day in the Apple Store is filled with a range of focused support and service tasks.
Whether you’re helping customers get started with the Mac or finding answers to their questions about
other Apple devices, you’re ready to share knowledge and provide exceptional assistance. You gain
satisfaction from bringing resolution and insight to each customer, elevating his or her relationship with
Apple to the next level.

Key Qualifications
 Ability to assess customers’ support needs when they arrive, then provide solutions or refer them to
other team members
 Flexibility to regularly rotate through different technical specialties and skill sets
 Ability to thrive on change as products evolve

Description
As a Technical Specialist, you help new owners get started and current ones get quick, efficient support —
developing strong, positive relationships with Apple. When a customer needs assistance, you quickly
assess their situation. Sometimes you take care of customers with advice or a solution on the spot, using
your knowledge of current Apple technology to help with iPod, iPhone and iPad devices. At other times,
you refer customers to support team members who get them up and running again. You even provide
personal training for new customers, helping them acquire the basic skills they need to get started on
photo, video and music projects. The entire store team benefits from your commitment to providing the
best care for customers. By helping Apple maintain strong relationships with customers, you are
instrumental to our success.

Additional Requirements
 You have excellent time management skills and can make decisions quickly.
 You maintain composure and customer focus while troubleshooting and solving issues.
 You reassure customers when delivering product diagnoses and potential solutions.
 You’re fluent in the local language.

Training and Development

Apple's internal training program is highly secretive and rarely written about," the Times
reports. Apple employees are discouraged from talking about the company in general, and the
classes are no exception. Business Insiders reporter having navigated that web of secrets said that
Apple University is elite. The training goes on year-round at company headquarters in Cupertino.
There are full-time instructors from Yale, Harvard, Stanford, and other top schools. Joel Podolny, once
the dean of the Yale School of Management, designed the course at Steve Jobs' request. It teaches
you how Apple makes business decisions.

But for the fresher in the job for any of the non-hierarchical posts, they are given accurate training
according to the work in future. They are educated with the norms, regulations of organizational
culture. Apple has a very well planned training and development program. Its employee is one of its
key advantages, especially in the research and development department and marketing department.
Effective training and development programs are essential components of a learning environment
that can improve the Apple’s ability to attract and retain employees with the skills and competencies
needed to achieve results for the benefit of the company. Training and developing new and current
staff to fill up new roles and work in dissimilar ways will be a decisive part in the endeavors of the
company to meet its transformation challenges. Ways that employees learn and achieve results will
also continue to transform how Apple Inc. does business and engage or force the employees in
further innovation and improvements in line with its objectives. Apple has also expanded professional
development opportunities for workers through Supplier Employee Education and Development
(SEED) program. This Apple-designed program offers workers classes in topics such as finance,
computer skills and the English language(Apple,2012) In addition mentioned in their official website,
SEED programs partners with Chinese universities to allow workers to earn associate
degrees. The program began as a pilot at Fox Conns facility in Shenzhen and
expanded to all final assembly sites in 2011. Over 60,000 workers have participate and their
evaluation of the program shows that participants have higher morale and are promoted more often
than other employees (Apple, 2012).

Apple.Inc has offered benefits for eligible employees.

 Health and life insurance

 Flexible Spending Accounts (for health care and dependent daycare)
 Short- and long-term disability coverage
 Long-term care insurance
 401(k) Plan with company match
 Employee Stock Purchase Plan
 Financial education seminars
 Tuition assistance
 Paid vacations and holidays
 Product discounts
 Personal and family counseling
 Wellness programs
 Onsite fitness center

Executive compensation program for the named executive officers, other than Mr. Cook, consists of
three elements:

 Long-term equity awards in the form of RSUs

 Annual performance-based cash bonus awards
 Base salaries.

Organizational Culture
Apple Inc. has an organizational culture for creative innovation. The company’s cultural features
focus on maintaining a high level of innovation that involves creativity and a mindset that challenges
conventions and standards. The business depends on cultural support and coherence, which are
determinants of competitiveness and industry leadership, especially in addressing aggressive and
rapid technological innovation and product development. The following are the main characteristics
of Apple’s corporate culture:

 Top-notch excellence
 Creativity
 Innovation
  Secrecy
 Moderate combativeness

Top-notch Excellence. Apple’s organizational culture comes with a policy of hiring only the best of
the best in the labor market. Steve Jobs was known to fire employees who did not meet his
expectations. This tradition continues under Tim Cook. Such a tradition maintains and reinforces a
corporate culture that promotes, appreciates, and expects top-notch excellence among employees.
This cultural trait is institutionalized in Apple’s organization. For example, the company has programs
that recognize and reward excellence among workers. Excellence is emphasized as a critical success
factor in the business, especially in product design and development, which is a major growth
strategy.

Creativity. This cultural characteristic pertains to new ideas that help improve the business and its
products. Apple’s management favors creativity among employees’ knowledge, skills, and abilities.
This characteristic of the corporate culture enables the company to ensure sufficient creativity,
especially among employees involved in product design and development processes. Such creativity
is observable in the design and features of iPhones, Macs, and iPads, among other products included
in Apple’s marketing mix or 4Ps. In this regard, the organizational culture helps maintain the
company’s capacity to satisfy customers’ expectations and preferences.

Innovation. Apple’s organizational culture supports rapid innovation. The company is frequently
appraised as one of the most innovative companies in the world. Based on this cultural trait, the firm
trains and motivates it employees to innovate in terms of individual work performance and
contributions to product development processes. The corporate culture facilitates rapid innovation,
which is at the heart of Apple Inc.’s business. Rapid innovation ensures that the company continues to
introduce new products that are profitable and attractive to target customers.

Secrecy. Steve Jobs developed Apple to have an organizational culture of secrecy. This cultural
characteristic continues to define the company’s human resource development. Secrecy is part of the
company’s strategy to minimize theft of proprietary information or intellectual property. It is also a
strategic management approach that enables Apple Inc. to maximize its leading edge against
competitors. Through the corporate culture, employees are encouraged and expected to keep
business information within the company. This cultural trait is reinforced through the company’s
policies, rules, and employment contracts. In this context, Apple’s organizational culture helps protect
the business from corporate espionage and the negative effects of employee poaching.

Organizational Culture from the eye of Employees

Conclusion
The main conclusion that can be drawn is we found to be the most interesting about Apple is how
they are very innovative and early adapters. Apple is usually the first company to come out with a new
product line before anyone else. This is very risky but it seems to be working to Apples advantage.
This shows that taking risks can sometimes make or break you and Apple has great potential and has
a lot to improve. Currently, Apple is demonstrating negative aspects of MNCs, contributing to
international debt crisis through exploitation of workers. In a way, Apple is promoting debt crisis in
Lower Developing Countries by accessing their labor and raw materials on the cheapest possible
terms. If it is willing to play the role of a beneficial TNC, the global economy can certainly benefit.
Furthermore, people in the least developed countries, and the environment, will benefit as well. This
requires a change from all stakeholders: the company itself, the consumers, the shareholders, and the
workers. It is important for a MNCs to progress towards beneficial behavior because this can
determine people's view on progressing towards further globalization, as influenced by neo-
liberalism. I wished to write from a critical side of the company as we already know how apple
changed the spectrum of technology in human life. I wish Apple will keep of innovating and make
lives simpler for us.

Bibliography
In my writings, I referred to many of the sites for information, the major sites from where the data
have been extracted are given below:

www.paperdue.com www.scribd.com www.coursehero.com www.businessinsider.in

www.accessessays.com www.academia.edu jobs.apple.com research-methodology.net
www.gurufocus.com www.nasdaq.com in.investing.com www.zdnet.com
www.statista.com www.ibef.org www.yourarticlelibrary.com www.cheshnotes.com
titanwebmarketingsolutions.com www.macworld.co.uk www.macworld.com
chetaru.com www.marketing91.com www.strategicmanagementinsight.com
in.reuters.com seekingalpha.com www.macrumors.com www.apple.com
www.financialexpress.com www.economictimes.com m.moneycontrol.com
bestmediainfo.com 9to5mac.com www.idc.com www.livemint.com
www.thehindubusinessline.com www.electronicsb2b.com www.hongkiat.com

Apart from extracting information, I used YouTube and Investopedia to see videos and grasp the concepts of how Apple
Inc. has extended its 1 trillion $ empire.

Thanking You,
Abhishek Roy Choudhury