GROUP 2:

A D R I A N U S AT M A A D I W I J AYA - 2 9 3 2 2 4 6 9

EDWIN OCTORIZA - 29322475

FAHMI ARIEF HAKIM - 29322428

IDA BAGUS G. GIODANTHA - 29322436

S T E M B A 2 IRFANDHIA RAHMAN - 29322480

M A R K E T I N G N U R M A N J AYA D K - 2 9 3 2 2 4 4 0

SOLEHUDIN MURPI - 29322XXX

M A N A G E M E N T
WILLIAM JUHADI - 29322447
-   A P P L E  
 BACKGROUND
Apple Inc., (Apple) the California-based multinational technology
company that was known for its innovative hardware, software, and
online services. Apple had been accused of having allowed labour
rights violations in China at Foxconn, a major supplier of its
products in 2009, but the company had worked hard to overcome
these issues to avoid any negative ramifications for its corporate
image. Yet on December 18, 2014, new evidence was presented in a
British Broadcasting Corporation (BBC) documentary that showed
that labour rights violations continued to occur in China, this time
at Pegatron, another large Apple supplier that specialized in the
assembly of Apple’s iPhones 1 This documentary questioned
Apple's repeated statement in its 2014 supplier responsibility
progress report that “Each of those workers has the right to safe and
ethical working conditions.”
B U S I N E S S M O D E L C A N VA S
KEY PARTNER KEY ACTIVITIES VALUE PROPOSITIONS CUSTOMER RELATIONSHIP CUSTOMER SEGMENTS

Manufacturer/ R&D Premium High-End Digital Device Ecosystem Product Buyers

Supplier  Products and
Manage Manufacturing Experiences Extremely Loyal
App Developer
Service Subscribers
Life-changing Experience
Content Provider Marketing An Ecosystem of
(Music, TV+, News Interconnected
and App Store) KEY RESOURCES Services App Developers
CHANNELS
Network Carriers Intelectual Property
Access to iPhone / Offline
Finance (Apple Pay) Brand iPad User Base Artist/Producer

Retailer/ Reseller Capital Online

Talent

COST STRUCTURE REVENUE STREAMS

COGS G&A
Mobile Devices Desktop and Laptop
R&D Retail Operations
Wearables, Home and Accessories
Marketing & Advertising Other Op. Expense
Services and Subscriptions Other Products
Sales & Distribution
 K E Y PA RT N E R S
• Manufacturer/ Supplier to assembly  the components and products.

• App Developer is a vital part of Apple's ecosystem, and the company collaborates with
millions of app developers who create software applications for iOS and macOS. 
• Apple partners with Content Providers such as music labels, movie studios, publishers,
and app creators to offer a wide range of digital content through platforms like Apple
Music, Apple TV+, Apple News, and the App Store. These partnerships help ensure a
rich and engaging user experience.
• Network Carriers. These partnerships enable Apple to reach customers with reliable
cellular connectivity and facilitate the sale and activation of devices.
• Apple collaborates with Financial Institutions to Offer Apple Pay, a digital payment
service. These partnerships allow customers to link their credit and debit cards to Apple
Pay, making secure and convenient payments using their Apple devices.
• Retailer/ Reseller. These partnerships help Apple reach customers in physical retail
locations and provide a broader availability of its products.
KEY ACTIVITIES
1. Research & Development, Apple first key activity is to do research and development
to bring innovation in designs and features of product that will be offered to the
customers.

2. Manage Manufacturing, after the designs and features are finalized, Apple will
coordinate with its vendors to start the production and periodically evaluating the
vendor selection that can fulfill their demands and criteria.

3. Marketing, in parallel, Apple also composing and executing its marketing campaign
as well as managing and coordinating its marketing effort on its distributor (mainly on
product launching).
KEY RESOURCES
1. Intellectual Property, Apple has built intellectual property since they start their
reputation. This intellectual property are consists of OS (Operational System), digital
platform, etc 

2. Brand, Apple has great competitive advantage on his name. Consumer buy the
product because there is a title of "Apple".

3. Capital, Apple has huge market capitalization (2,7 Trillion USD) with total asset of
351k Billion USD. Apple is one of profitable company with ROE : 165%,
VA L U E P R O P O S I T I O N S
1. Premium High-End Products and Experiences, Apple plays in the premium category of electronic devices
since the release of their Iphone, so "premium" is their first impression and their brand image, not many brands
that have the same focus and specialization as Apple in this category, not only premium in the terms of hardware
quality, but also in the user interface, so the customers can get a complete premium experience.

2. An Ecosystem of Interconnected Services, To get better experience of the simplicity and robustness of

Apple's technologies, customers are offered to join Apple's ecosystem buy also buying their various
products, from Iphone, to the Macbook, Ipad, Apple's Accessories, and also to subscribe to their software
and digital services, it makes Apple products always embedded in customer's life.

3. Access to Iphone / Ipad User Base, by having customers in their ecosystem, especially now with their
growing loyal customers, Apple can engage well with their customers, Apple can know better and
understands well what the customer's needs so Apple can always improve their products, relieve more
pains and also create more gains.
CUSTOMER SEGMENT
1. Products buyers which include B2C and B2B that buy Apple products  

2. Service subscribers, are customers who subscribe to Apple's premium subscriptions and
monthly / yearly fees.

3. App developers, who develop Apple software applications or games

4. Music artists / producers, who sells their works to Apple

C U S T O M E R R E L AT I O N S H I P
• Apple provides digital devices ecosystem: smartphone, laptop, PC, tablets, iPods, TV, cloud
storage services, etc.
• Customers are extremely loyal; switching to competitors' ecosystem will be difficult and
inconvenient if they are already integrated within Apple ecosystem
• Life-changing, beyond functional and emotional values; Apple users feel life-changing values
from using Apple products due to strong brand affiliation and exclusivity/sense of belonging in
the Apple s community
REVENUE STREAMS
• Apple's revenue streams consists of:

1. Mobile Devices (IPhone and iPad)

2. Desktop and Laptop Computers (Mac)

3. Wearables, Home, and Accessories

4. Services and Subscriptions (App store, Apple Music, Apple TV+. Apple Arcade, Apple News, iCloud storage
subscriptions, Apple Pay)

5. Other Products (accessories)

Apple established a complete ecosystem so that the users  can use the devices seamlessly and will be interested in
buying other products from Apple. This diversification also brings Apple as the leader of the technology companies
CHANNELING
OFFLINE

Retail Stores: Apple operates its own chain of retail stores

worldwide. Retail stores offers hand-on experiences for
customers to explore and purchase Apple products, receive
technical support and participating in events (if any). 

Authorized Reseller: Apple partners with various authorized

reseller (iBox, Digimap, Erafone, etc) for diversification and
other benefits such as market expertise and rapport.
CHANNELING
ONLINE

Organic: Apple official online store offers convenience

and user-friendly platform that allows customer to
browse and purchase directly from the website.

E-Commerce Platform: Apple products are also sold

through popular e-commerce platforms (Tokopedia,
Lazada, Shopee, etc) to provide convenience for
customers so that they may purchase Apple product
from their trusted platform.
COST STRUCTURE
• Cost of Goods Sold (COGS): includes direct costs associated with producing Apple's products, such as iPhones, iPads, Macs,
and accessories. It encompasses expenses related to materials, manufacturing, and assembly. COGS also covers costs associated
with warranty claims and provisions.

• Research and Development (R&D): R&D cost is to develop new products, enhance existing ones, and innovate the hardware,
software, user experience, and services. R&D expenses include employee salaries, facilities, equipment, prototyping, testing, and
IP .

• Marketing and Advertising includes marketing and advertising campaigns to promote its products and build brand awareness,
across various media channels, events, sponsorships, and partnerships.

• Sales and Distribution: costs associated with selling and distributing. It includes expenses related to Apple's own retail stores,
online platforms, channel partners, logistics, warehousing, and shipping.

• General and Administrative (G&A): G&A expenses cover the day-to-day operations and other administrative i.e management,
finance, legal, human resources, information technology, facilities, and other support services.

• Retail Operations: Cost related to retail stores , including employee salaries, training, store design and construction, rent,
utilities and maintenance.

• Other Operating Expenses: includes additional costs, such as license fees, IP acquisitions, legal , regulatory compliance and
other miscellaneous expenses.
APPLE INC BUSINESS ECOSYSTEM

Stakeholders Functions/Tasks

Apple Inc • Produces and sells smartphones (e.g., iPhone)

• Develops iOS operating system and related software

Suppliers • Supply/provide Apple with components, such as processors, displays, camera modules, etc.
• Includes companies like Samsung, TSMC, LG, and other hardware manufacturers

Manufacturing and • Manufacturers, primarily Foxconn, for large-scale production and assembly of iPhones
Assembly

Distribution and Retail • Apple's own retail stores, online store, and authorized resellers distribute iPhones to customers
• Carrier stores and third-party retailers also sell iPhones

App Developers • Create applications for iOS, available on the Apple App Store
• Range from individual developers to large software development companies

Customers • Individuals, businesses, and organizations who purchase iPhones and use Apple's ecosystem

Service Providers • Telecom carriers provide network services (voice, data) to iPhone users
• Third-party repair and support services cater to customers' post-purchase needs
APPLE INC MARKETING PROGRAM
Marketing Program Goal/Objectives

Product Marketing • Effective product marketing campaigns can create awareness and generate demand for iPhones. This can drive sales
and increase market share. It also influences customers' perception of the brand and the product's value.

Pricing Strategies • Pricing decisions can impact the demand for iPhones. Offering competitive pricing, discounts, or installment plans may
attract more customers. Price reductions or promotions can also affect margins for suppliers and resellers.

Promotions and Advertising • Marketing campaigns, advertising, and promotional activities help create buzz around new iPhone launches and
updates. It can influence customer purchasing decisions, drive foot traffic to retail stores, and boost online sales.

App Store Optimization (ASO) • App developers can leverage marketing strategies to optimize their app's visibility on the App Store. This includes
optimizing keywords, creating compelling app descriptions, and utilizing app previews to attract users. Apple's
marketing efforts to promote the App Store can impact developers' app downloads and revenue.
Customer Relationship Management • Apple's marketing programs can focus on building strong customer relationships through personalized
(CRM) communications, loyalty programs, and after-sales services. This enhances customer satisfaction, loyalty, and repeat
purchases.
Channel Marketing • Marketing programs targeting Apple's retail partners and carrier relationships can help strengthen distribution channels.
Co-marketing initiatives, training programs, and incentives can encourage retailers to promote iPhones more
effectively
Social Responsibility Marketing • Apple's CSR initiatives, when effectively communicated through marketing, can enhance the brand's reputation and
customer loyalty. Highlighting environmental initiatives, labor practices, and community engagement can resonate
with socially conscious consumers.
H O W A P P L E ' S M A R K E T I N G S T R AT E G Y
AFFECTS THE INDUSTRY ECOSYSTEM
Marketing Program Effects to the Industry Ecosystem
Brand Perception and Image • Apple's focus on innovation, design, and user experience has influenced consumer expectations and set a benchmark
for competitors. This can lead to a shift in consumer preferences and impact the strategies of other industry players.

Competitive Dynamics • Competitors often respond to Apple's marketing moves by adjusting their product offerings, pricing, and marketing
strategies. This competitive response can lead to increased innovation, improved features, and more consumer-centric
approaches across the industry
Market Trends and Consumer Behavior • Apple's emphasis on user-friendly interfaces, ecosystem integration, and seamless user experiences has influenced the
broader industry's focus on these aspects. It has also contributed to the rise of trends such as mobile app ecosystems
and the demand for premium devices.
Consumer Expectations and Industry • Apple's marketing campaigns introduce new features, technologies, and design concepts that set benchmarks for the
Standards industry. These innovations often influence consumer expectations and shape industry standards. 

Customer Relationship Management • Apple's marketing program has built strong customer relationships through personalized approach. Apple's extremely
(CRM) loyal customer would be very difficult for competitors to grab. The possibility for the customers to switch loyalty to
other brands is due to Apple's own misbehavior or disappointing policy.
Social Responsibility Marketing • As a leading brand of electronic gadget, Apple can take advantage in influencing other brands to set a proper and
stricter ESG standards, especially in this case to eliminate labor abuse from their suppliers. If the big player make a
move, other brand may as well follow, same as how they follow Apple's trend in technology.
• Apple can make partnerships with other brands to eliminate labor abuse issues in their suppliers in China. This kind of
partnership can also benefit other brands since it can leverage their brand.