OPERATIONS MANAGEMENT AND TOTAL QUALITY MANAGEMENT PRACTICES

OF APPLE COMPUTERS INC.

_________________________________________

A Course Paper Presented to

The Faculty of Business College

Notre Dame of Dadiangas University

General Santos City

_________________________________________

In Partial Fulfillment of the

Requirements for the Degree

Bachelor of Science in Business Administration Major in Financial Management

(BSBA-FM)

_________________________________________

By

Angelika Ruffeenaluz C. Antiporta

October 2020
 Executive Summary

Apple Inc. is a multinational technology company in America that develops,

modifies and sells the consumer software, consumer electronics, and online services.

The Headquarter of the company is in Cupertino, California. Apple Inc is one of the

most iconic companies of the recent decade. Apple has not only been developing and

selling great products. More importantly the company has been building an incredible

platform and an ecosystem for its loyal users within which it could further sell apps and

services. The company is not immune to general market trends and some of the product

sales are slowing down either due to markets maturing (e.g. smartphones) or due to a

general industry decline (e.g. music players and computers).

Apple has a formidable competition within well established and well financed

companies such as Alphabet, Samsung, Amazon, HP as well as newcomers from China

like Huawei and Xiaomi. Despite strong competition the company managed to grow and

thrive within its industries and enjoys one of the best balance sheets and financial

metrics among its peers. By making use of the talented research and development

team. Apple has been able to position its products as the best in terms of

innovativeness, performance and reliability while compare to similar products in the

market. However, Apple needs to continuously review its strategies to make sure that

the company maintain its position in the industry for many years.
 CHAPTER I

COMPANY BACKGROUND

Company History

Apple Computers, Inc. was founded on April 1, 1976, by college dropouts Steve

Jobs and Steve Wozniak, who brought to the new company a vision of changing the

way people viewed computers. 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.

Jobs and Wozniak started out building the Apple I in Jobs' garage and sold them

without a monitor, keyboard, or casing (which they decided to add on in 1977). The

Apple II revolutionized the computer industry with the introduction of the first-ever color

graphics.1 Sales jumped from $7.8 million in 1978 to $117 million in 1980, the year

Apple went public.

Wozniak left Apple in 1983 due to a diminishing interest in the day-to-day

running of Apple Computers. Jobs then hired PepsiCo's John Sculley to be president.

However, this move backfired and after much controversy with Sculley, Jobs left in

1985 and went on to new and bigger things. He founded his own company NeXT

Software and he also bought Pixar from George Lucas, which would later become a

huge success in computer animation of such movies as Toy Story, A Bug's

Life, Monsters, Inc., and Finding Nemo.

Through the rest of the 1980s, Apple was still doing well and in 1990 it posted its
highest profits yet. This was, however, mostly due to the plans that Jobs had already

set in motion before he left, most notably his deal with a tiny company by the name of

Adobe, creator of the Adobe Portable Document Format (PDF). Together the two

companies created the phenomenon known as desktop publishing.

Back in 1985 Sculley turned down an appeal from Microsoft founder Bill Gates

to license its software. This decision would later come back to haunt him because

Microsoft, whose Windows operating system (OS) featured a graphical interface

similar to Apple's, became their toughest competition in the late 1980s and throughout

the 1990s.

Over the course of a few years, Apple's market share suffered slowly after its

peak in 1990 and by 1996, experts believed the company to be doomed. It was not

until 1997, when Apple was desperately in need of an operating system, that it bought

out NeXT Software (Jobs' company) and the board of directors decided to ask for

some help from an old friend: Steve Jobs. Jobs became an interim CEO, or iCEO as

he called himself (Jobs was not officially the CEO until 2000). Jobs decided to make

some changes around Apple. He forged an alliance with Microsoft to create a Mac

version of its popular office software.

Not long after this decision was the turning point for the company. Jobs

revamped the computers and introduced the iBook (a personal laptop). He also started

branching out into mp3 players (iPod) and media player software (iTunes). This was

Jobs' best move yet. While computers are still an important part of Apple, its music
related products (i.e. iPod and iTunes) have become the company's most profitable

sector. Apple has also recently released the iPhone, a cellular phone, and the Apple

TV. While Steve Jobs died October 5, 2011, Apple continues on with his legacy.

Apple Inc. has pioneered its way through the computer industry—not once, but

multiple times throughout its existence. It believes in pushing the limits of creativity in

order to produce interesting and valuable products for society. After more than 30

years, it is undeniable that Apple "has had a profound impact on technology,

innovating and influencing not only how we use computers but the activities for which

what we use them."

Company Details

Products

1976 - Apple I

Steve Jobs and Steve Wozniak launched the very first

Apple computer in April of 1976.

1977 - Apple II

The Apple II, by comparison, was much better-looking than its

predecessor.

1980 – Apple III

 It was considered a failure by many.

 1983 – Apple Lisa

The first computer to use a mouse was the Apple Lisa in

1983.

1987 – Macintosh

Apple released its first personal computer, the Macintosh.

This is where Apple's success in consumer hardware really

began.

1991 - Macintosh Portable in,

Apple's first try at a laptop. The clamshell design would feature

prominently in every Apple laptop since then.

1993 – Newton Message Pad

The Newton Message Pad released in 1993 foreshadowed

Apple's push into mobile devices, though the Newton itself

was a flop.

1994 – PowerBook 500

The PowerBook 500 (released in 1994) was a lot less clunky than the Mac Portable.

1998 – iMac G3

Then came the iMac G3 in 1998, which attracted

consumers with a sleek plastic case and color options.

The first iMac came in bright colors and round body.

1999 – iBook

The next year Apple came out with the iBook, which looked

like a clamshell.

2000 – First iPod

The first musical player to go all digital.  Apple released its

biggest game-changer since the Macintosh: the iPod. Its

wheel actually spun around!

2002 – iMac G4

The iMac G4 made waves for its display, which appeared to float

above the computer's base.

2003 – PowerBook G4

In 2003 Apple released its first aluminum-body laptop, the

PowerBook G4. Apple also released a titanium version.

 2004 – iPod Mini

The iPod Mini came out in 2004. It would thrive until the

iPod Nano came out the next year.

2005 – Mac Mini

The Mac Mini came out in 2005 and provided consumers

an alternative to tower-style desktops.

2005 – iPod Nano

The iPod Nano unseated the iPod Mini and ushered in an

era of ultra-small MP3 players.

2006 – MacBook Pro

The first MacBook Pro came out in 2006. Now the MacBook

Pro is Apple's flagship laptop.

2007 – iPhone

In 2007 Apple shocked consumers again with the first-

generation iPhone.
 2007 – iPod Classic

By 2007 the iPod was on its sixth generation and was simply known as the "iPod Classic."

2008 – MacBook Air

The ultra-thin MacBook Air came out in 2008, making the

MacBook Pro look chunky by comparison.

2009 – iPhone 3Gs

In 2009 Apple released the iPhone 3GS, which looked fairly

similar to the original version.

By 2009 the iMac had matured into having an aluminum unibody

design.

2010 – iPad

In 2010 came the iPad, which appeared to many

people as just being a larger version of the iPhone. The

iPad was a great success and continues to dominate

the tablet market.

2011 – iPhone 4
The iPhone 4, released in 2011, was a slimmer version of its predecessor.

2012 - iPhone 5

Apple unveiled the iPhone 5 on Sept. 12, 2012 in San Francisco.

The new smartphone features a 4-inch display, 4G LTE, 1080p

HD video quality, 720p HD front-facing video, panoramic photos, a

new Lightening connector and EarPods. It was the first time the

smartphone changed its size since it was originally introduced in

2007.

2013 – Retina MacBook Pro

In 2013 Apple unveiled the third-generation MacBook Pro,

also known as the Retina MacBook Pro.

2013 - iPhone 5s,

iPhone 5c

Introduced in 2013, the colorful, lower priced iPhone 5c

did not prove as popular as Apple’s iPhone 5s.

2014 - iPhone 6 & iPhone 6 Plus

Apple Senior Vice President of Worldwide Marketing Phil

Schiller talks about the iPhone on stage at the Flint Center

for the Performing Arts in Cupertino, Calif., September 9, 2014. Apple unveiled the two

new iPhones, the iPhone 6 and iPhone 6 Plus.

2014 - Apple Watch

The Apple Watch was first introduced during an

Apple special event at the Flint Center for the

Performing Arts on September 9, 2014 in

Cupertino, California. But the devices didn’t

actually hit the market until the following spring.

2015 - iPad Pro

Apple’s largest tablet yet, the iPad Pro with a 12.9-

inch screen and smart keyboard, is seen during an

Apple media event in San Francisco, September 9,

2015.

2015 -

iPhone 6s,

iPhone 6s Plus

Phil Schiller, Apple’s senior vice president of

worldwide marketing, talks about the features of the

new iPhone 6s and iPhone 6s Plus during the

Apple event at the Bill Graham Civic Auditorium in San Francisco, September 9, 2015.
 2016 - iPhone 7 Plus

Apple VP Phil Schiller introduces new photography features,

including a depth of field and bokeh effects, in the iPhone 7

Plus at Apple's media event on September 7, 2016. 

2016 -

MacBook Pro

A new MacBook Pro, with the Touch Bar across

the top, pictured at an Apple media event in

Cupertino, California, October 27, 2016. The

Touch Bar lights up and reveals a shifting menu

of buttons, tools, and, of course, emoji options that change depending on which app

you’re using at any given time.

2017 - Apple iPhone X

The new $999 iPhone X with Face ID racial recognition

technology was introduced on Sept. 12, 2017, in Cupertino,

California.

2018 - iPhone XR, XS, and XS Max 

Apple stuck with a three-iPhone lineup in 2018, but expanded features like Face ID and

an edge-to-edge display to all iPhones. The iPhone XS and XS Max are natural

successors to the original iPhone X, adopting an edge-to-edge OLED display, an

improved dual-lens camera, Face ID, and a new super-fast A12 Bionic chip.

2019 – Airpods 2

Anticipated to launch in the first half of 2019, or

at latest, fall. Health reminiscent of the Apple

Watch's functions are touted, monitoring inside

the ear for the user's heart rate. While similar in

appearance to the originals, the second

generation may ship with a black color

option alongside white. Extra grip in the ear is expected, via a change in its coating

rather than by physical design alterations.

2019 – iPhone 11, iPhone 11 pro

The iPhone 11 line did not receive a major

cosmetic upgrade, but instead brought a

host of performance upgrades. The iPhone

11 Pro Max now features Apple's brand

new three-camera system, a 6.5-inch Super

Retina XDR display, the A12 Bionic chip, and a bigger battery for all-day battery life.

The iPhone 11 Pro Max made its debut on September 10, 2019, at Apple's "by
innovation only event." It premiered alongside the budget-friendly iPhone 11, and the

smaller, 5.8-inch iPhone 11 Pro.

Headquarters

Apple

headquarters may be the most unique building ever constructed. The building is shaped

like a spaceship as if it could ominously hover over cities foretelling their future

destruction. The building encompasses 2.82 million square feet of office space and was

constructed at an estimated cost of over $5 billion. The office complex is two-thirds the

size of the Pentagon. Over 12,000 employees work at the space-themed headquarters.

Even under the building is unique. In order to give Apple Park an

environmentally-friendly vibe, the company built a huge underground parking garage

that can hold 10,980 cars. Apple has an annual property tax bill of over $40 million on

this building alone.

 The futuristic headquarters is located at 1 Apple Park Way in Cupertino,

California. Over 80% of the Apple Campus site is green space that includes 7,000 plus

trees. There are over 1,000 bikes on-site to help get employees around campus.

Apple co-founder Steve Jobs announced plans for the new headquarters in one

of his last public appearances the city council meeting in Cupertino on June 7, 2011.

The charismatic CEO died on October 5, 2011. The building is powered by 700,000

square feet of solar panels on campus as well as an on-site low-carbon central plant. It

uses 100% renewable energy.

Additionally, a ventilation system built into the design lets the building go without

air conditioning or heating for 75% of the year. The sci-fi looking structure has become a

tourist attraction in and of itself. The Apple Park Visitor Center is typically the first stop

and tours can also be arranged. The structure’s walls include the largest curved glass

panel in the world. Over 3,000 sheets of glass wrap the entire building. Apple built one

of the world’s largest corporate dining halls, at over 60,000-foot it can accommodate

2,100 people. Additionally, there are 20,000 square feet of outdoor patios and terraces

that incorporates an additional 1,750 seats. The campus is 175-acres and is roughly the

size of 40 football fields.

Apple prides itself on the forested atmosphere surrounding the office building.

The landscaping includes 5 million square feet of grass and about 9,000 species of

native and drought-resistant plants.

Contact Information
 Apple.com/ph is a convenient place to purchase Apple products and accessories

from Apple. You can buy online, chat or call 1800-1651-0525.

You can get information about an order you placed on the Apple Online Store

through the Order Status page. If you prefer, you can also get order status or make

changes by phone at 1800-1651-0525.

Visit Apple Online Store Help on details about purchasing, shipping, checking

order status, returns and more.

Logo

The “bitten apple” is the logo of the well-known computer manufacturer Apple

Inc. It is one of the easily recognizable logos in the whole wide world, a fitting symbol to

the name of the company behind the picture. Here is one bite out of the apple’s history,

to enlighten readers on how the logo sprang into existence.

The Newton Crest: 1976-1976:

The first Apple logo was designed in 1976 by Ronald

Wayne, sometimes referred to as the third co-founder of

Apple. The logo depicts Isaac Newton sitting under a tree, an

apple dangling precipitously above his head. The phrase on

the outside border reads, “Newton… A Mind Forever

Voyaging Through Strange Seas of Thought … Alone.”

The Rainbow Logo: 1976-1998

 Not surprisingly, the above logo only lasted a year before Steve Jobs

commissioned graphic designer Rob Janoff to come up with something more modern.

Janoff’s eventual design would go on to become one of the most iconic and

recognizable corporate logos in history.

According to Janoff, the “bite” in the Apple logo was originally implemented so

that people would know that it represented an apple, and not a cherry tomato. It also

lent itself to a nerdy play on words (bite/byte), a fitting reference for a tech company.

As for the rainbow stripes of the logo, Steve Jobs is rumored to have insisted on

using a colorful logo as a means to “humanize” the company. It also could be because it

was launched right before Apple’s newest computer, Apple II which was the world’s first

PC with colored display.

The Monochrome Logo: 1998 – Present

The current logo, the one everyone knows, wasn’t

made simply because Steve Jobs is always looking to change

things up. When Jobs returned to Apple in 1997, the

company was bleeding money, and Jobs and Co. realized

that the Apple logo could be leveraged to their advantage.

When Apple released their first ever iMac, the Bondi

Blue, the logo was changed and its rainbow colors disregarded. The rainbow-colored

logo would have looked silly, childish and out of place on the sky-blue computer.
 The logo then took on a metallic look with embossing, which was applied on

many of their products. The “Glass” themed logo was the next evolution for the logo.

Today, the company uses a more modernized flat “Millennial” Apple logo. The

logo comes mainly in 3 colors; silver, white and black.

The millennial apple logo is now one of the sleekest and famous logos in the

world, just as famous or even more than McDonalds’s yellow arches. Steve Jobs’s

decision to hire Janoff, and go for a minimal styled logo (which is currently in fashion

and may have started the “flat” logo craze) was another genius choice by the enigmatic

founder.

Regardless of myths circulating about Apple logo, Apple’s design work of Janoff

recognised as one of the most iconic corporate logo designs in the world and proven to

survive for 37 years until 2014.

The Apple logo is very easily interpreted. This is the reason why Apple never put

information about the company name in the logo. Rob Janoff succeeded in giving identity

to Apple, which is simple and powerful, to Steve Jobs liking.

Company Highlights

Awards
 These are the awards that Apple Inc. had received:

 #33 Best Employers for New Grads 2020

 America's Best Employers By State 2020

 #194 Best Employers for Women 2020

 #1 World's Most Valuable Brands 2020

 #9 Global 2000 2020

 #17 Canada's Best Employers 2020

 #128 Best Employers for Diversity 2020

 #3 Just Companies 2020

 #4 World's Best Employers 2019

 #1 Top 100 Digital Companies 2019

 #11 Top Regarded Companies 2019

 #16 America's Best Employers 2019

 #1 America's Largest Public Companies 2018

 #79 World’s Most Innovative Companies 2013

 Brand of the Year for iPhone, iPad and MacBook 2013

Certifications

Apple Training offers a comprehensive curriculum that addresses a broad

range of technical proficiencies, whether you’re an IT or creative professional, an

educator or student, or a service technician. Designed by experts, these courses

will deepen your knowledge and facilitate your implementation of Apple’s Mac

OS X operating system and professional digital applications. Together with

Apple’s professional service and support offerings, our certified training programs

help you make the most of your Apple solution.

Apple Training and Certification, the focus of this catalog, develops and

delivers a training curriculum that includes hand-on lab experiences, lectures,

and web-based training through a worldwide network of Apple Authorized

Training Centers (AATCs). We are proud to offer training and certification to

support all your needs, including:

• Mac OS X client deployment

• Apple Xsan implementation and deployment

• Integration of Mac computers into a mixed computing environment

• Requirements for Apple’s service technician programs

• Expertise and certification in Apple’s professional digital media applications

• Achievement of industry-recognized certification

• Achievement of Apple Certified Trainer status

Apple’s growing certification programs meet a wide variety of needs.

Whether you’re an employer who needs to make qualified personnel decisions, a

business that wants a competitive differentiator, or an individual seeking tangible

 proof of technical expertise, you’ll find that being Apple Certified makes a

difference.

Benefits of Apple Certification

• Gain recognition

• Build credibility

• Differentiate yourself and your business

• Display your Apple Certified logo and credentials

• Connect with clients and employer

Special Programs and Projects

Project Purple was the iPhone. Gizmo was the Apple Watch. And Titan? Well,

that's believed to encompass Apple's automotive ambitions — aka, the car.

Just like iPhone started off as a tablet, became a phone, and then expanded to a

tablet again, Apple Car will likely take a twisting, turning path to market. That's if it ever

comes to market. Plenty of Apple projects, including the television set, never have.

The car feels different, though. For one thing, due to regulatory issues, it's forced

to be more public than most of Apple's special projects. Second, the logistical revolution

is real and Apple is uniquely positioned to be one of the major players in that space.

Because autonomous cars won't just be about the destination, they'll be about

the differentiated experience of the journey.

Apple’s autonomous car skunkworks endeavor, Project Titan, has spent years as

one of the company’s most volatile divisions, going through almost as many leadership
and employee changes as the company’s Siri team. Now Titan is dealing with another

staffing shakeup: Apple confirmed today that 200 employees were dismissed from the

project, with some moving to “other initiatives” within the company, including machine

learning.

The company’s confirmation came after CNBC sources disclosed the dismissals,

which were explained as internally expected, following Apple’s August 2018 hiring of

former Tesla engineering VP Doug Field to lead Project Titan, along with long-time

Apple “special projects” SVP Bob Mansfield. Apple has previously staffed Titan up and

down, including a major round of layoffs in 2016, but reportedly maintains both a

surprisingly large team and secretive database of automotive technologies.

While Apple has offered precious little explanation for the multi-year endeavor,

leaks have suggested that the company originally planned to release a revolutionary

self-driving car but subsequently refocused the project on narrower systems and

components for autonomous vehicles. 

Machine learning has become a more prominent topic at Apple over the past

several years, as the company developed and debuted the Core ML machine learning

framework for iOS and launched a public machine learning journal to share some of its

findings. Though most of its public-facing work in the space involves Siri, text, photo, or

facial recognition technologies, Project Titan could make a much bigger splash —

assuming its innovations ever make it into an actual Apple product.

Thus far, the company has been testing a growing fleet of autonomous

vehicles using its technologies, as well as building employee shuttles with self-driving

capabilities. Extensive real-world testing is an obvious prerequisite for releasing any

vehicular technology, but a particular challenge for Apple, which has a legendary

obsession with secrecy ahead of new product launches.

Apple Service Programs:

 Beats Pill XL Speaker Recall Program (June 3, 2015)

 Multi-Touch Repair Program for iPhone 6 Plus (November 17, 2016)

 13-inch MacBook Pro (non Touch Bar) Battery Replacement Program (April

20, 2018)

 iPhone X Display Module Replacement Program for Touch Issues

(November 9, 2018)

 13-inch MacBook Pro (non Touch Bar) Solid-State Drive Service Program

(November 9, 2018)

 13-inch MacBook Pro Display Backlight Service Program (May 21, 2019)

 Keyboard Service Program for MacBook, MacBook Air, and MacBook Pro

(May 21, 2019)

 15-inch MacBook Pro Battery Recall Program (June 20, 2019)

 Screen Replacement Program for Aluminum Models of Apple Watch Series 2

and Series 3 (August 30, 2019)

 iPhone 6s and iPhone 6s Plus Service Program for No Power Issues

(October 4, 2019)

 Smart Battery Case Replacement Program for iPhone XS, iPhone XS Max,

and iPhone XR (January 10, 2020)

 iPad Air (3rd generation) Service Program for Blank Screen Issue (March

6,2020)
Media Recognition

All the large brands are cleverly using social media to achieve their business and

marketing objectives. One social media account has become a multipurpose solution for

many branding and marketing related needs. Businesses are using their social media

accounts for connecting with their customers, to run their campaigns and for

discussions.

Apple is among the largest tech companies of the world. It is the first one to have

surpassed the trillion-dollar market cap. The tech industry is marked by heavy

competition. A few things have become crucial for generating competitive advantage in

the market. One of them is brand recognition which can be achieved through successful

marketing. Social media platforms have emerged as a great marketing solution because

of their reach and efficiency. Networks like Facebook offer some great advantages apart

from access to a large global audience. These features can be used to build great

relationships as well as excellent and lasting connections. Apple has also used social

media to deepen its reach among its customers. Its number of followers on each of

these platforms highlights its popularity around the globe.

This is a discussion of how the brand uses social media to connect with its fans

and followers and engage them.

Facebook:

Facebook is the leading social network used by marketers for achieving their

marketing objectives. Its popularity is the highest of all social media platforms and it also

boasts of the largest audience. Apart from that, it offers a great social media experience

which brands can use to engage their customers better. You can use it for promotions
or even for discussions and conversations with your fans & followers. Several of the

large brands have active social media teams to continuously interact with their fans on

Facebook.

Apple has several accounts on each of these platforms. Its main account has 11

million followers whereas there is also a support page that has less. An unofficial page

named Apple has around 11 million followers too. However, Apple has not used

Facebook for active promotions as most brands do. Its Facebook account is just a

touchpoint. That is a surprising fact since Facebook has become the main marketing

tool for several businesses. There can be several reasons behind it. When all the birds

flock to the same field, it grows a little crowded.

Apple uses its own website and blogs more than these social media channels.  It

exercises more care than others. Facebook exposes your business to a very large

crowd of followers. However, if you are not a shrewd marketer, you may also be through

some mess. Apple is either shrewd or likes being lazy.

Twitter:

On Twitter too, Apple has several accounts. Each one is dedicated to something

different like one for ITunes, one for Apple Music, one for support. Apple’s main official

page has not made any tweets and yet it has two million followers. The support page on

the other hand tweets to followers on important technical issues. It is for education and

awareness. Apple likes keeping its users aware of the latest technical features of Apple

products and their use and care. This is a smart use of social media tools for customer

service and engagement.

 Apple Music page has the highest number of followers at 9.33 Million. On the

other hand, ITunes page has around 1.3 million followers.  The Apple Music account on

Twitter is highly popular which is evident from the high number of followers, likes and

retweets. Apple’ social media activity is higher on Twitter than Facebook. The reason is

real time engagement. In terms of video marketing, Twitter and YouTube are more

attractive than Facebook.  Apple has used social media mainly to connect with

customers. No overuse; no wastage. You won’t see elaborate promotions on its

Facebook page except a few images.

Instagram:

Apple’s Instagram page shows very high-level engagement. Instagram is an

attractive social media network for engaging users. Its many features are suitable

for promotions and engagement. Apart from its album like look and feel which makes it

suitable for promotions, its comments and conversations features also make it a great

tool for communication. Apple is already a very popular brand. Number of likes on each

of its posts on Insta is in thousands. Number of responses is also very high. This is

excellent level of engagement and shows that Apple is great at churning excitement.

The brand’s main Instagram account has around 7.5 Million followers whereas that  of

Apple Music has higher than 3 million followers. The brand talks very little on these

pages and still the level of engagement is excellent. Instagram is mainly for sharing

multimedia content. In the recent years, Apple has increased its use of  such content in

its marketing efforts.

YouTube:
 On YouTube too, the brand has used several accounts to reach its customers.

However, the good news is that very few brands might have as large a follower base as

Apple. Apple’s main account has 6.8 million followers whereas Apple support account

has around 93 K. This is the era of video marketing and Apple uses videos actively for

promotions. This is why YouTube is a very important platform for Apple to engage its

followers. It’s also a great platform for running social media campaigns. Several of

Apple’s 245 videos have attracted very large number of visits. Its Iphone X unleash

video has received more than 8 million visits in just a month.

Apple’s use of social media is very different from most other brands. It does not

use social media for just marketing or promotions or only customer service. Its

Facebook account shows no action. However, it uses the other social media platforms

for customer engagement very well. The brand uses Twitter, Instagram and YouTube

mainly for engaging its users. Apple’s social media strategy looks much different from

any other brand. While it has not overlooked the potential of social media altogether, it

has utilized these channels with caution. The only major challenge with the use of social

media is that you need to be careful. Otherwise, a brand may also end up spoiling its

image unintentionally.

CHAPTER II

STRATEGIES AND APPROACHES

Financial Management

Financial Strategy at Apple will not just keep Apple afloat, but it will ensure that it

will be on top of the competition and that it will continuously dominate the Silicon Valley.

Financial Strategy at Apple is based on the concept that is maximizing margin.

This was single mindedly pursued by no other than the brains behind Apple, and that

was Steve Jobs.

This financial strategy of which is to maximize margin can be seen on every

product model of Apple. Apple gadget and model have unique features of which the

consumers cannot buy from other market except Apple. The product that was been

launched by Apple will ensure that the buying public cannot buy it from any other except

Apple.

Every gadget, product models introduced by Apple will make the consumers get

a frenzy, and that they will drain their pockets dry up to the last; penny just to get hold of

the latest gadget being offered by Apple. Apple products has a cutting-edge design,

unique and hard to emulate features had made Apple dominate the world of technology.

Financial Strategy at Apple is soundly based on their product features and which

is hard to emulate thus making the buying public go nowhere else except to Apple. This

is what the financial strategy of maximizing margin is all about. Apple will not let their

competitors get close to their standard in order to make them be of par excellence.

Financial Strategy at Apple involves launching super hyping products in order to

attract the buying public at the early point when the product was launch.
 People are willing to drain their pockets for a considerable amount just to get

hold an iPad on the day that it was launch. This response of the consumers towards

Apple product will make up for their investment strategy, and that is to maximize margin.

Marketing

Apple is the largest brand in the technology industry in terms of its revenue

generated as well as its brand ranking. It is not a surprise to many because Apple has

time and time again presented products which were ground breaking and which

revolutionised the market.

Here is the Marketing strategy of Apple:

Segmentation targeting and positioning of the brand

There are three major segments which Apple targets. It generally uses

lifestyle segmentation as Apple is the most premium brand out there. The segment is

usually the urban population with enough buying power for purchasing Apple products.

These are people who are early adopters in life but the brand equity of Apple is such

that even laggards have started adopting the products.

In the Marketing strategy of Apple, it has three target groups

1. One is the music lovers who are targeted by the Apple Ipod and Itunes.

2. Another target the professionals or even teenagers who are targeted for Apple

Iphone, Tablets, Macbook and other such gadgets which can be used by anyone,

irrespective of age.

3. And third is the crowd which can use their other products and services like Apple

TV and Apple Iwatch. They also use Ibooks, Apple pay etc.
 Apple being the world’s number 1 brand has the topmost mind positioning and

there is no doubt that when someone talks about Smartphones or Laptop or Tablets,

Apple is the first brand that comes to mind maximum number of time.

Mission in the Marketing strategy of Apple

Apple designs Macs, the best personal computers in the world, along with OS X,

iLife, iWork and professional software. Apple leads the digital music revolution with its

iPods and iTunes online store. Apple has reinvented the mobile phone with its

revolutionary iPhone and App store, and is defining the future of mobile media and

computing devices with iPad.

Vision in the Marketing strategy of Apple

We believe that we are on the face of the earth to make great products and that’s

not changing. We are constantly focusing on innovating. We believe in the simple not

the complex. We believe that we need to own and control the primary technologies

behind the products that we make, and participate only in markets where we can make

a significant contribution.

We believe in saying no to thousands of projects, so that we can really focus on

the few that are truly important and meaningful to us. We believe in deep collaboration

and cross-pollination of our groups, which allow us to innovate in a way that others

cannot.

And frankly, we don’t settle for anything less than excellence in every group in

the company, and we have the self- honesty to admit when we’re wrong and the

courage to change. And I think regardless of who is in what job those values are so

embedded in this company that Apple will do extremely well.

Tagline – “Think Different” is one of the best slogans in the tech industry. Many people

assume that Apple launched the slogan “Think different” in response to IBM’s slogan

“Think”. However, since 2002, Apple stopped using the slogan in its marketing. But from

time to time, the slogan has bounced back on Apple’s website or in their marketing and

it has never left the mind of Apple loyal consumers.

Competitive advantage in the Marketing strategy of Apple

Apple has several competitive advantages over its competitors

1. Superior technology products – Macbook and Iwatch are clearly leaders in their

market space because of the OS and the technology used.

2. Brand equity – Apple has repeatedly taken the top spot for its brand equity and

has a cult following since ages.

3. Revenue over time – Apple has deep pockets due to its high margins.

4. R&D – A major competitive advantage of Apple is the amount it spends on R&D

keeping its eyes on the future rather than on the present.

Distribution in the Marketing strategy of Apple

Apple has a very smart retailing setup. It has around 450 stores within the US.

And these retail outlets are such that they are more focused in helping the

customer and making him comfortable with using Apple rather than selling the product

and stuffing the product down customers throat.

Apple has also introduced the Apple Genius Bar, which is a walk-in service

center and can help any customer in problems they are facing in MacBook or Iphone or

Ipad. Overall, the company owned Retail and Service outlets are great.
 Along with company owned stores, Apple has set trade partners like Ingram

Micro and Redington which are responsible for the sales and distribution of the brands.

These trade partners will buy in bulk from the brand and then distribute the product in

the market. Thus, besides its own retail stores, Apple is found present in other modern

and premium retail stores. These stores are covered by its retail partners.

The Online E-commerce presence of Apple is fantastic. Most E-commerce

portals promote the brand themselves because they know that the brand is in

huge demand. Besides this, there is very less price penetration in Apple, and hence

the channel partners and E-commerce portals are happy too as they don’t have to fight

on price.  from the home page itself. The combination of retail, distribution and E-

commerce gives a complete market reach to Apple.

Brand equity in the Marketing strategy of Apple

Apple has the highest brand equity in the world as of 2016 and it is the topmost

ranked brand in the world. The brand worth of Apple is 118.9 billion dollars. The brand

has done a lot to reach this brand equity, but a major contributing factor was its ability to

give hit products back to back, and to reach across the globe with these excellent

products. The combination of both with the excellent marketing communications of the

brand help Apple reach the highest brand equity possible.

Competitive analysis in the Marketing strategy of Apple

Although on a company level there is very less competition for Apple, on product

levels, there is repetitive competition for each of its individual products. Ipad faces

competition from Samsung tablets, Iphone faces major competition from Android based

phones, Macbook is facing stiff competition from Dell which also has superior products.
 The unique services offered by Apple such as Itunes also face competition from

other online music players which are cropping up every day. Ibooks faces strong

competition from Amazon and even Apple TV faces competition from Fire TV

of Amazon. Samsung gear and other smart watches are rising competitors to Iwatch

although Iwatch still holds a majority market share.

Promotions in the Marketing strategy of Apple

Apple is one of the most elegant advertisers as can be seen from any of its print

ads in newspapers. You will commonly find Apple ads to be clear and crisp in

their message. Their background will be white and there will be a splash of colors on the

print ad introducing the product or differentiating the product.

And that is one major strength of the brand. Apple has so many differentiation

points that it can have a slew of ads, all targeted towards differentiating the products

that it is offering. Not only the print ads, even the video ads do the same. They tell you

one point which highlights the product features.

Overall, the advertising and promotions of Apple are used tenfold when there is

a new product launch. The hype created is so much that you just can’t ignore it. And this

hype is continued until the product becomes a success. As the number of products with

Apple is less, it is no doubt that it wants each one of its product to be a hit.

This was the Marketing strategy of Apple. The Brand can teach a lot to marketers

with regards to differentiation, brand building and most importantly – Innovation.

Operations

The company’s OM entails the application of 10 decisions that seek to

guarantee that all facets of the company run very smoothly. They relate to quality

management, product design, process and capacity design, location strategy,

inventory management, among others. The ten decisions related to OM are

implemented through cohesive efforts along its value chain especially its product

design and development, supply chain, as well as sales and marketing

functions. The dedicated and talented team of employees and managers ensures

that operations management strategies are implemented to provide

excellent performance in maximizing its efficiency. But I will elaborate only 5

Operation Management’s Strategy used by Apple Inc.

5 Operations Management

1. Designing of goods and services – the process of designing their products

involves organizational officials and components. For instance, in producing

Macs, the company employed VP for Mac Software Engineering and Senior VP

for Mac Hardware Engineering. The coordination that exists between the Senior

VP and VPs reflects how the company functions. The interactions enhance

efficient output, making the company prosper in the manufacturing sector.

2. Location Strategy – the location strategy employed in this company is selective

and involves a few numbers of authorized sellers. A large number of sellers are

positioned in urban areas to increase brand exposure and foot traffic. Location

strategy has made the company gain profit despite having a limited number of

sellers. In most cases, their revenue is higher than that of its competitors.
 Therefore, the location strategy plays an effective role in operation management

of Apple Inc.

3. Layout design and approach – this key to operation management focuses on

customer’s expectations and also positive experiences. The company as

authorized sellers and spacious company stores for better storage of the

company’s products. The storage areas have less décor, which improves

concentration on their products. The company also uses advanced office layouts

that promote efficiency and creativity of the work. Both creativity and efficiency

enhance the quality production of the products.

4. Quality Management – the company focuses on quality products that satisfy

consumer’s preferences. The Senior VP in this company works together to

enhance acquiescence with the quality standards of the organizations. The high-

quality standards used in different areas include online sales, product design,

retail, human resource management, marketing and industrial design. This has

made the company be known worldwide, due to its quality standards that spread

in all business sectors. The approach in quality management has addressed the

quality issues in Apple Inc. Company, making the company excel.

5. Capacity and process design – one strategy of human resource management

is to capitalize on workforce for design and product development. Besides, the

company makes use of its suppliers in enhancing the efficient process as well as

enough capacity in the operation management. Sometimes, they are provided

with directives to use in process design as well as the Apple Supplier Code of
 Conduct to improve their human resource management. In addition, the company

encourages innovation to increase process efficiency.

Apple is a prime example of a company that utilizes the principles of Total Quality

Management (TQM) at their organization to achieve their corporate and social goals.

Apple is a company and its main focus in on maximizing the profits of its shareholders

but it is also a company that believes in giving back to the society. Same is the case in

TQM were the primary focus is maximizing the profits but also keeping in mind

innovation solutions that do not harm the society that you operate in. TQM is a form of

management in which there is a focus on the individual capabilities of the workers and

these capabilities are explored to get collective goals.

TQM has benefited Apple from different angles. It has helped the leadership

understand the needs of the employees and fulfil their needs in the best way possible.

When the employees of an organization know that they have been accepted as an

integral part of the organization and their services are recognized in one way or the

other, they start to think of giving back to the organization from their heart. This is what

is happening at Apple. Its employees are trying their best to work in the best interest of

the company.

These are some TQM practices of the company:

1. Education and Training - encourage the proper training of the employees at an

organization. Apple had many training programs and extensive developer

resources for its employees. Apple does not believe in the violation of employee

right and provide any kind of assistance that may be required. For example, they

train their workforce at the factories where their products are assembled. Apple
 provides trainings at all levels not just some important levels. This adds to the

quality of their workforce at all levels.

2. Teamwork - In Apple Inc., teamwork is especially important. Apple is all about

innovation and creating new technology first. With the nonstop demands of Apple

customers, Apple employees must team up to figure out the best way to fill these

demands. Apple has to consider many aspects of the company in order to create

their product. They need to consider the technology, the marketing, the finances,

and how to use the product. Since all of these aspects are essential in every

Apple product, employees of Apple in all of these fields must team up and work

together in order to make a successful product. 

3. Strategically based - The strategic goal of developing new products, while

at the same time emphasizing on design, has been successful because it

has utilized the components of strategic implementation. The allocation of

resources by the company in the developing of new products has been

substantial, and more often in well thought and planned processes. Apple

Inc., by utilizing the superior capabilities in its possession, has been able to

develop products superior to those developed by its competitors and thus

acquiring a valuable market segment.

4. Employee involvement and empowerment - In Apple Inc., managers want

their employees to feel empowered by the job at hand and other parts of the

company. Apple wants their employees to be well rounded and knowledgeable,

no matter what task they are working on. Managers and upper level staff at Apple

Inc. believe in empowering all employees that they look over. The more
 empowerment Apple displays, the more efficient the job will be. A major part of

Apple’s success can be contributed to the continuous empowerment of workers.

An empowered worker is a happy and effective worker. Apple would not be

nearly as successful as they are today if workers did not believe in themselves

and their ability of completing a job

5. Continual improvement of people, processes, products, services, and

environments - Market trends are constantly changing, and demands are

certainly increasing. Other companies’ response to these changes may be “give

them new products”. What Apple does is to “improve the products that it has”.

This explains the product refreshes and updates that are released on a schedule

set by Apple. Thus, the tweaked or updated versions retain the best parts of the

old versions, with the “problematic” features corrected or improved. Clearly, this

means that the latest iPhone, the iPhone 6 Plus, is a much-improved version of

the first-generation iPhone, or even the previously released iPhone 6. These

changes put the Apple product development team in a good light, particularly in

the eyes of Apple users, since it implies a commitment on their part of seeking

continuous improvement for their product offerings. It also effectively attracts new

users, thereby increasing the market share of Apple.

 CHAPTER III

SWOT ANALYSIS

Strengths

 Varieties ranges of products – Apple has product variety which gives it the way

to earn a profit. The product lines include Mac, iPod, iPhone, iPad, Apple Watch,

Apple TV, Software and etc. By this diversified portfolio, Apple ensures that they

can offer modern technologies to their customers. Among these products, some

are cash cows. This means, these products are the most popular product and

collect most of the revenues. The diversified portfolio also ensures stabilization in

revenue earning. One product may fail for a specific period, but at the same time,

another one may experience a high sale. So, by offering varieties of products,

Apple manages product failure risks as well.

 Careful selection of employees – when it is about recruitment, Apple is very

much aware of selecting sincere and confident employees who work hard to

ensure quality. Apple tries to find those employees who strongly follow their

passion and have idealism. According to Forbes, “Apple look for positive thinking

people who don’t say “no”, people who can think out of the box, and people who

can make impossible to possible.” This ensures Apple will always be able to keep

the quality high and offer classy and innovative products to its customers. This

also helps Apple to reserve a strong brand image.

 Number of adroit developers, and workforce – After Steve Jobs, Apple is led

by Mr. Tim Cook who is another efficient person for Apple Inc. Apple has its own

operating system which is developed by adroit development teams. Apple

 searches for diversity and adroit workforce all over the world. They went to have

their production in China. As China has a low-cost labor force, most of the tech

manufacturers go there to have their products produced at lower costs. But the

case of Apple is different. They went there only because China had skilled labor

force. According to Tim Cook, “Skilled workers, not lower salaries, were the lure

that brought Apple to China”

 Development of new products – Apple does not stop at the time they launched

a finished product. They start working on developing a new product soon after

finishing and launching one. They do not waste time by watching their product’s

sales. “When we launched a product, we’re already working on the next one. And

possibly even the next, next one.” – said Tim cook, the CEO of Apple.

 Strong brand image – since the beginning, Apple has been providing quality

products to its customers and clients. A person bought an iPhone used it for a

long period without internal problems. Through this strong quality offering, it has

developed strong brand recognition. According to Forbes Magazine, “Apple has

as twice value as Microsoft.” They put Apple on the first position in their list of the

most valuable brands.

 Most successful company in history – According to the Computer World,

“Apple is the most successful company in history.” They have listed some facts.

Apple is the most valuable company in history, made record earning among all

others, solved phone theft problems, and has a huge collection of apps available

in the market.
  Excellent hardware performance – the performance of the internal hardware of

its product is excellent. Customers were highly satisfied with the longevity of

Apple hardware performance.

 Strong research and development department – the research and

development department of Apple is very strong. They have been working to

offer new innovative product to its customers.

 Consumer Focus - Apple Inc. has always designed its products with a primary

focus on consumers while keeping their mind in the future. They tend to ponder

on things that not even the consumers have imagined yet. The founding father of

Apple, Steve Jobs contends that if you ask the consumer what he or she wants,

by the time you give him/her the same thing, he or she will want something else.

This is the ideology that drives Apple to success.

Weaknesses

 Higher price than other smartphones - as Apple uses a premium pricing

strategy, the prices of Apple products always remains beyond the general

people’s reach, especially for iPhones. The price of the products was always

higher than the other recognized brand in the market such as Samsung, Huawei,

etc. There is a huge market for middle-class people. Apple ignores this segment

to preserve its brand image.

 Limitations – It is not flexible while you want to connect it with device that are

from other brands. Apple iPhone does not allow you to get the software installed

from other sources other than its providers.

  Less variety in the phone design – iPhone 1 and iPhone 7 do not have much

difference while it is about their look. It did not deviate from its first look much.

This creates a feeling of using same products years after years. Oppositely, other

manufacturers such as HTC, Asus, and Samsung are offering products with

unique and attractive looks when it is about smartphones.

 Narrow product line – for the last decade, it has been developing the same

looking iPhones with updated features.

 Niche customer target – when a company target the niche markets, their

market becomes small. In this case, Apple’s market is not big like other

smartphone or computer brands. Apple Inc. only target high-class customers that

let them avoid the middle-class customers which are really a big market.

 Limited distribution network – Apple distribute its product by itself. And it kept

its distribution channel narrow. For most of the time, they do not use any third

parties to sell their product. Apple uses own website and Apple Stores to sell

their products.

Opportunities

 Steady Customer Growth - Over the years, Apple has dominated the

technology arena. They have provided some top of the range of technology

products that offer cutting-edge customer experience. This is why they have

been able to maintain more than 90 percent customer retention rate.

Nonetheless, Apple relies on the influence that comes with the internet for

tomorrow’s opportunities to gain new customers and forge new alliances.

 Increasing technological dependency – People are becoming more dependent

on technology and they have been dependent on smartphones as well. They

became more interested in portable devices. As a result, the demand for a

smartphone may increase more at an increasing rate.

 Globalization – Globalization of the market is giving the people the opportunities

of having tech products very easily. As a result, people can buy and get those

products within a short period directly from respected companies. It increases the

sales as well which results in more profit margin.

 Accessories and gadgets – Apple can offer technological accessories and

gadgets to increase its products. With a strong innovative historical background,

it has created a strong familiarity with introducing new products. If it keeps this

trend, it will go further toward greater profits.

 Product diversification strategy – If it makes its product line broader, it will be

able to offer more products to its customers. Also, they should develop new

products or cheaper products for the middle-class people to grab the markets in

developing countries.

 Expansion of distribution network – for most of the time, Apple distributes its

products by itself. It should create more third-party distribution channels to make

more sales in overseas countries/ increasing distribution network will allow them

to create more profit.

Threats

 New competitors – Emerging strong competitors who are offering the same type

of products at a lower rate is the biggest threat. There are alternatives. Samsung

is offering premium products as well as cheap products. Other competitors such

as Sony, Asus and Nokia are growing larger as well.

 Aggressive competition within blue-chip companies – the increasing number

of blue-chip companies making the industry more competitive. China is offering

high-quality products at a very lower price than Apple products.

 Imitation – It was always bee a strong threat for recognized brands in history.

When Apple introduces a new product, a replica of a substitute product is

introduced by other companies. Sometimes, technology is stolen. There are also

many counterfeit products on the market.

 Lawsuits - Apple is actively dealing with hundreds of lawsuits. Consumers

mainly open these in regards to their phones being slowed down and the CPU

rates being throttled. According to recent news, Apple is to pay $18M to settle a

lawsuit for slowing or disabling FaceTime on older iPhone models.       

 Counterfeit Products - Apple Inc. has become a victim to third world countries

that are illegally using the brand image to sell counterfeit products. The illegal

dealers sell Apple counterfeit products at the same price as the original Apple

products. Counterfeit products make potential customers think that it is an Apple

product but made with low quality tainting the Apple brand before the public.
 CHAPTER IV

CONCLUSIONS AND RECOMMENDATIONS

Conclusions

Apple is 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. As a result of stronger branding and customer loyalty,

Apple is able to charge more for its products than its competitors do for similar products

and still maintain its market share. Also, Apple’s major resources include effective

leadership, its reputation in the market as a leader in technology and style, its research

work and technological expertise and its skilled and dedicated workforce and competent

management.

Recommendations

Since Apple faces a more significant challenge with its competitors, it needs to have

a stronger patent portfolio and constant innovation. This will help the company have a

competitive advantage, especially when imitated by other companies. They should

establish partnerships with more distributors to improve the overall market reach of the

company’s distribution network. And the company should lower the cost of the products

and maintain the same quality standard.

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