Analyst Apple 4ps

summary, class and marketing merge of orchard apple tree Introduction The aim of this report is to snap the live position of the partnership which eachow ins the merchandises, current strategic position, and current financial strength. Different types of marketing tools argon employ in this report. PEST analysis and Porters five force work for flavor into the bring outer environment. SWOT analysis for feeling into the internal environment of the organization.This report besides looks into market segmentation and the marketing mix of the product. apple was first off introduced by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1, 1976 to market and sell the apple individualised computer kit. The first computer kits were hand built and was kept for a public display first at the homebrew computer lab. This computer kit consisted of Motherboard with RAM, CPU, and some video chips.Since then apple wee-wee come a long mode in the market all e verywhere the worl d and they are one of the leading companies in electronic products. This give notice be kn deliver with the info given below Current Strategic Position orchard apple tree believes in continuous improvement and they look into all the bring out sectors the likes of environment, health and safety management systems and the quality of our products, processes and services.Looking into the Principle and goals of Apple, Apple has set out their let principles where they look to meet all the health and safety requirements, promote energy efficiency, and their briny goals are macrocosm is the most important thing for apple, to augment the trope of sales of the product in the education field, providing peeled and user friendly software for the customers, and last but not the least providing high quality products to the customers.Looking into the current strategic position of Apple, with the introduction of its possess operational system, hardware, software application, and with a co mpletely immature design, Apple looks to meet all the customer requirements like new products, ease of use, and an sophisticated design of the product. Apple is shortly focusing on, brand sense and improving the product by increasing the financial investment on marketing and advertisement, they are looking at expanding the retail segment by opening to a greater extent number of stores all over the world, they are looking at keeping it up with the opposition by mplementing a cost leadership dodging, and they are looking to continue the reputation of being the leader in installation for new technology by implementing product differentiation strategy. Looking into the current finance position of Apple, on October 19, 2009 Apple announced the financial results for the year 2009. The company posted revenue of $9. 87 billion and a gelt quarterly profit of $1. 67 billion. These results flush toilet be compared to the revenue of $7. 9 billion and net quarterly profit of $1. 14 billio n in the previous year quarter. International sales also helped 46% of the quarters revenue.Gross margin is 36. 6% when compared to the previous year quarter which was 34. 7%. Apple reached 17% affix when compared to the previous year quarter by no-hitly selling 3. 05 million macintosh computers during the quarter. PEST analysis and Porters five forces are in truth important tools to establish the external environment of Apple PEST Analysis Political F runors Different countries feature different rules and regulations which can act as a positive or a negative barrier which can result in restricting the companies or lend opportunities to the company.Good thing for Apple is NAFTA, European Union and other regional workmanship open doors so that the company can have a wider market in Europe, Asia, Latin, and America which can offer enormous potential to the company. Beatles lawsuit against Apple can affect the reputation of the company in a negative way. There is a direct impact o n the overall business of the company (Apple) due to the political uncertainties caused by terrorism. Apple relies on the government to give a grant and sharp property obtained from third parties. Economic FactorsApple has been affected in the last year by the slow scotch and that resulted in low consumer spending. However the current economy shows consumer spending, some amount of improvement, and investment might increase as well. In US due to the weak economic condition the educational segment is encountering a large loss in many states. Hence this has caused a negative impact over the Apples sales in the educational segment. With respect to sales of product Apple having a ecumenical market can be affected by currency exchange rate and by world(prenominal) trade regulations as they obtain the components of the product from foreign suppliers.Social Factors Apple have designed their induce computers and their own softwares which will help this generation as the computer and i nternet usage is quick growing worldwide. With the introduction of macintosh throng have more information, gain more knowledge well-nigh different types of computers and becomes a entire source of opportunities for the Apple computer industry. Education has become the primary proceeds for the new generation which is a key factor for the companys business. Social factors also include internet revolution, shopping online, Brand awareness of the company. Technological FactorsTechnology is experiencing a rapid boom in this generation, and people appreciate more and more innovative changes in their systems and are switching over to the new information appliances and Apple have been prospered in providing new appliances. There is a rapid reaping in the usage of the internet which is also a good opportunity for the company. The traditional desktop is becoming overaged with new products coming into the market like Mac laptops. This new technology can be used in schools, collages, and by professionals as they will be able to gain the more knowledge and this in turn increases the demand of the product.Porters five forces Porters five forces model is an excellent model to use to analyze a particular environment of an industry. In this report we are entering the PC industry and hence Porters model will help us to find out about Competitive Rivalry Competitive rivalry for Apple is rattling high as it is a competition among the big companies and it is fierce as e genuinelyone is aiming at a larger market share, intensive expense cuts and changes. PCs are differentiated as hardware / software configurations. Competition is mainly based one cost. The main competitor for Apple is Microsoft.Microsoft also has their own operating system but is providing it to the customers in a very cheap bell when compared to Apple. Hence I can say that thither is a fierce scathe competition. Bargaining Power of suppliers. (Low) Looking into Apple, the company is highly dependent on component suppliers. If the supplier wants to increase his profits he can put pressure on the market by supplying the components at a higher equipment casualty. Apple is running at a higher risk than other as they are working with only few selected suppliers. Bargaining Power of customers. Low) In the PC world there is high number of suppliers in the industry and Apple being a part of it, has its product price higher than the other company products. Hence there will be lot of options for the customers to buy the cheapest and the outperform product. Threats of substitutes. (Low) In the present generation PCs represent 90% of the market share as they have quadruple configurations, performance and price ranges. Looking into Apple they have their own operating system called as Mac and there is no product competing in the market. Threat of new entry.In the world of PCs any company that has a new technology that is efficient in terms of price and performance is considered as a terror to the industry. Looking into Apple there is no threats from any new entrants as there is no product competing in the market. Apple has a very good brand image and it will be very difficult for the new entrants to pose a threat to the company. SWOT analysis is also a very important tool which will help in establishing the internal environment of Apple SWOT Analysis SWOT analysis is a market tool which helps to understand the strengths, weakness, opportunities and threats in a business.During the strategic readiness process the most commonly used tool is SWOT. STRENGTHS Corporate reputation is high. Apple manufactures have their own product and their own operating system hence they have a good control over the product. Leader in innovation and product differentiation. Apple has a very good strategic trammel with HP. Creativity style. WEAKNESSES Apple has set high prices on their products. Apple has high inventory in their products. Apple has problems in distribution of their produc ts. Apple has too many product lines. OPPORTUNITIES Demand for innovation. Internet. Growing industry.Employee benefit programme. chance to create a new software markets and selling the hardware in those markets. THREATS There is fierce competition among the PC industry. Loss of market share. Price competition. Increase in supplys costs. Market cleavage The market segmentation includes Demographical bases. Geographical bases. Behavior bases. Psychographic bases. 2. 1 Demographical bases (age, family size, life cycle, occupation) Looking into Apple, the Demographical market segment is successful because they are developing products on the age, life cycle, occupation of the people.They are distributing their products into various places and the PCs are categorized on age, family size, for example they would have more games and entertainment in the PCs for the kids and a professional PC with all the in style(p) softwares. 2. 2 Geographical bases (states, regions, countries) Looking i nto the geographical bases of Apple they have established their business all over the world like U. S. , South America, Europe, Japan, and Australia. Recently Apple chose to implement a upright piano growth strategy and began expanding their own retail stores.The company also sells its product via third-parties dealers, or via internet through with(predicate) their own website or through the iTunes online music stores. 2. 3 Behavior bases (product knowledge, usage, attitudes, and responses) In this market segment Apple providing good product knowledge to the customers by advertizing on search engines, T. V. as they have a very good brand image. Using this brand image they are continuously coming up with new ideas and products and attracting the customers. Apple has got a very good response rate as many of the customers are looking for new designs and innovative products which Apple is successfully delivering. . 4 Psychographic bases (lifestyle, values, personality) Looking into Ap ple the psychographic market segment is successful because they are developing products on the lifestyle of the people such as Mac book for the junior generation. Apple having a very good brand image has very good value for its products as they are different and innovative. Looking into the personality (style) sector Apple is providing their products with different colors for the people who like fancy colors. MARKETING MIX Marketing mix is the combination of the product, the price, place and promotion. These are popularly cognize as Four Ps.When the marketing condition like political, social, economic, and technological factors change even the marketing mix has to be changed. The four Ps are listed as below 3. 1 Product Apple is connected to sell original, good looking products that have an easy-to-use interface. The company offers a range of personal computing products, think devices and various third party hardware-products. In addition, the company offers software products (M ac OS X), server software and related to solution professional application software and consumer, education and business oriented application software.Apple has been very innovative by finding new usages for its Mac computer, such as desktop publishing and strong artwork/animation capabilities. The Mac functionality for managing multimedia files from cameras, DV recorder and MP3 devices has been very popular and successful. 3. 2 Price Apple price is known to be above average in the industry. The company is using a differentiation strategy and focuses more on innovation, and quality. This strategy is justifying their premium prices.Lately, however, their new technology and their high cash flow allowed them to get off their price and to offer more discount to certain markets such as the education market. This new price strategy may help Apple to compete better with the non-Mac user market but might cause some issue with the brand image/recognition. 3. 3 Place Apples operating segme nts are comprised of U. S. South America Europe Japan Australia. Recently Apple chose to implement a vertical growth strategy and began expanding their own retail stores.The company also sells its product via third-parties dealers, or via internet through their own website or through the iTunes online music stores. 3. 4 Promotions The best in the Apple Mac is that songs can be played only from iTunes and hence Apple In 2003, formed a strategic adherence with PepsiCo. The Pepsi iTunes music promotion calls for people to use the winning code found under the Pepsis bottle caps products to redeem songs from Apples iTunes music Store. This promotion has already been successful for both companies and increased the awareness of the iTunes presence in the market.In 2003, Apple also announced marketing partnerships With America Online that are aimed at crusade iTunes use deeply into the mainstream. Apple computers could play a song only from the iTunes. Apple and America Online have agree d to put iTunes buy this song buttons next to every song thats listed in AOLs music service, which its 25 million subscribers can access. Clicking the button will automatically launch the iTunes music jukebox and begin downloading the song billing will be handled through the customers existing musical arrangement with AOL.Apple has a joint venture with Hewlett Packard. Apple has produced an iPod for PC users and the success of this product was a good way for the company to capture non-MAC users. The company also drew on endorsements from music stars. In 2005, Apple computing machine has initiated a partnership with Wal-Mart that saw the iPod shuffle featured at Wal-Mart discount locations around the country. Read more http//www. ukessays. com/essays/marketing/analysis-segmentation-and-marketing-mix-of-apple-marketing-essay. phpixzz2QZbbQKIn