Apple. Inc, 2015
Gamze Sargın
Only Liu Weiyi
Ella Leppänen
Umur Hastürk
Agenda
1. Synopsis of The Case
2. Identify The Problem
1.1 Background
1.2 Summary
2.1 Vertical Identification
2.2 Horizontal Identification
3. Recommendation
4. Conclusion
3.1 Short-Term Solution
3.2 Long-Term Solution
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1. Synopsis of The Case
A solution, not
broaden the
categories of
products.
Establish
Sculley
Spindler
Amelio
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1. Synopsis of The Case
Apple
iPad
Watch?
iPhone
iPod
Mac
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2. Identify The Problem
High dependence on iPhone
Failure of AppleWatch and ApplePay
56%
Almost dead of iPad and iPod
$
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2.1 Vertical Identification
“Closed”
System
High Cost
Structure
Overpriced
Quantity↓
Compete with
Low-Cost Manufacturers
Premium-Price
Strategy
Product
Job’s
Reshape
4P
Place
3V
Price
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Promotion
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2.2 Horizontal Identification
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2.2 Horizontal Identification
Benefits
iPad
Samsung
Microsoft
Amazon
AFTER 2014...
Price
● Contribution of iPad to total
revenues start to decrease
● Tablet market started to shrink
● iPad is moving from being the
‘’rising star’’ to ‘’cash cow’’
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2.2 Horizontal Identification
Benefits
Dell
HP
Lenovo
Acer
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Apple
Price
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2.2 Horizontal Identification
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2.2 Horizontal Identification
Benefits
Xiaomi
iPhone
Samsung
Currently performs well
● Most of the total smartphone profits
● The biggest revenue stream
Lenovo
Price
BUT:
● Samsung is a tough competitor
● iOS has been losing to Android
● Xiaomi is a truly threat
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2.2 Horizontal Identification
Benefits
Pandora
Cannibalization
Spotify
iPod
Amazon
Napster
Walmart
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Price
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2.2 Horizontal Identification
Benefits
Samsung
Garmin
Fitbit
Sony
Pebble
Lenovo
34%
23%
Motorola
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Apple
Watch
Price
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3. Recommendation
Long-Term
Short-Term
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3.1 Short-Term Solution
iPad
● Innovating the iPads for
the use of specific
industries.
● Creating complementary
accessories to increase
the attractiveness of iPad.
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3.1 Short-Term Solution
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3.2 Long-Term Recommendations
Complementary products won’t secure Apple’s position
in the long-term
→ It should enter a new high-tech consumer industry
● Apple has a lot of money
● It has done it earlier with other products
● The entry would attenuate Apple’s dependency
on iPhone
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Value-Added Consulting Services
4. Conclusion
Entering into New Industry
Diversify the Revenue Portfolio
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