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Top trademarks 2014
Why?
Company Differentiation and diversification
! High integration of all these areas
History
1977 1980 1976
Steven Wozniak, Steven Jobs and Ronald Wayne
April 1, 1976, Apple Computer
Cupertino, California.
Apple I Apple II Apple III
Price $666.66
Revenue reaches $1million
Price $1298 with 4K RAM; $2638 with 48K RAM
Price $3495 w/128K RAM $3815 with monitor
History
1983 1984 1980
Jobs presents “1984”,
Pre-launch event
Macintosh
https://www.youtube.com/watch?v=g2V8vikCHIU https://www.youtube.com/
watch?v=RcRQWGFJ5YY
Apple goes public, share price jumps
from $22 to $29 on the first day
of trading
Ridley-Scott directed commercial aired during the Super Bow
Price: $2495
History
1991 1986 1997 1985 1996
Wazniak and Jobs resign the
company
Jobs founds NeXT
Jobs buys Pixar and Next
becomes Pixar Animation
Studios
Apple acquires Next Computer for $427
million Jobs becomes Apple CEO
Low market share and lower profitability
PowerBook
History
1999 2002 1998 2001
iBook and PowerMac
iPod First generation
iMac
Apple returns to profitability
The Unix-based OS X next-generation operating system
ipod 2G Windows compatible
History
2004 2003 2005
iTunes Music Store
iPod mini
Safari (web browser)
iLife package (iDVD, iMovie, iPhoto)
iPod 3G, Flat Pannel iMac, iBook G4
PowerBook Alluminium G4
PowerMac G5
iPod nano iPod suffle
History
2007 2006 2005
From IBM PowerPC processors to Intel
processors.
MacBook Pro
iPhone
Apple TV
MacBook Pro and iMac Pro Super Drive
History
2010 2008 2011
MacBook Air
App Store iPad
iPhone 4S
iPad2
iCloud
History
2013 2012 2014
iPhone 5
iPad Air
iPhone 6
Company
53%
19%
13%
3% 9% 3%
Net Sales by Product of 2013 (%)
iPhone iPad Mac iPod iTunes, so:ware and services Accessories
Company
What are the key success factors of
Apple?
Apple logo
• a bitten apple to identify the values of an innovative company that was born and still lives outside the box.
• the concepts of knowledge and desire, hope and anarchy
The logo should transmit the personality of the company
Innovation in Products
Apple leverages a combination of Top-Down and Bottom-up innovation strategy to create new
innovation
Management and organization driven,
highly structured and process oriented
Customer driven, spontaneous and deep
understanding of customer need
Innovation in Products
New technology earlier than competitors
To redefine existing product categories, focusing on: • Design • Consumer experience • Seamless integration of hardware and software
Kaizen - costant improvement
The Apple New Product Development Programme reflects a process of constant improvement, always in one infinite loop.
Integration of all products
Innovation in Products iPod
Innovation in Music Player products
In 2001 Apple introduce its firs iPod, a hard drive based music player with a retail price of $399.
Why was it a successful product?
It has impeccable design and easy to use menu. It was capable of storing approximately 1000 song (21 times more capacity than the competitors) and play music for 10 hours.
In 2002, Apple released iPod 2 with larger memory that was compatible with Windows
Innovation in Products iPod
Innovation in Music Player products
Over a short period of time, Apple has redefined many “Experience Environments” which are smoothly linked together
1. iPod “music access and
listening” experience
2. iTunes “music
management and
download” experience
3. iTunes “music
browsing” experience
4. iMix sharing playlists
experience
5. Apple in-store
experience 6. iPod photo management
experience
7. Apple video
experience
Source: Venkat Ramaswamy, Francis Gouillart
Innovation in Products iPod
Innovation in Music Player products
The strong combination of device, software and online store quickly disrupted the music industry and gave Apple a dominant market position.
Key success factors: • Seamless music experience for the users
• Distinctively design
• Integration of device, iTunes software and iTunes music store
• Strong according with all the major record companies to create the world’s largest online music library
Innovation in Products iPod
Business Model Canvas
Value Proposition Key Partners Key activity Customers C u s t o m e r relationship
Key resource Channel
Innovation in Products
Cannibalisation
Apple is never afraid to cannibalise it’s own as a results of the product development programme. The iPhone hit sales of the iPod and the iPad is hitting the sale of the Mac.
Halo effects A cognitive bias that involves one trait influencing other in judgement of another product or company
• The success of iPod has stimulated sales of Apple Macs and Mac book pro.
• In turn the success of the iPods and the iTouch facilitated the introduction of the iPhone.
• The user experience of the iPod, the iTouch and the iPhone created a user base for the iPad.
Secretative company
Secrete in term of product launches helps, on one hand to create expectation and to stimulate customer
imagination, and on the other hand to protect themselves from competitors
Only Steve Jobs is authorized to talk about Apple
products and to presents the new products
Deep collaboration
All experts are in-house, are in one place (Cupertino campus)- the mechanical, electrical, software and industrial engineers, product designers-
“We believe in deep collaboration and cross-pollination of our groups, which allow us to innovate in a way that others cannot”
improves the sharing of ideas and the production of new innovative products
To work in a small team (organization as a start up)
• Meet together for three hours once a week
• Agility and focus
Top 100 employees meet 3 days annually and discuss key strategic issue in a secret location
Good food, no golf!
Deep collaboration
https://www.apple.com/diversity/
THINK OUT THE BOX, ENCOURAGE THE EXPERIMENT, SHARE THE IDEAS
Apple culture focus on Intense work Creativity Perfectionism
Combine with a rebel spirit
“It’s better to be a pirate
than join the navy!”
Different kind of people of different kind of place à Inclusion inspire innovation
Apple’s employees are talented people with passion for excellence, proud to be part of the Apple Company. Smart and Creative people that work in a Company in which best ideas have to win.
Investment in Promotion
¡ 1997: “Think Different” ad campaign was created
https://www.youtube.com/watch?v=nmwXdGm89Tk
¡ 2002: “Apple Switch” ads https://www.youtube.com/watch?v=l2-UuIEOcss
¡ 2006: “Get a Mac” more famously known as PC vs. Mac
https://www.youtube.com/watch?v=KNnX6XRQBec
Most Famous Ad Campaigns
Strategic alliances and Strategic acquisition
Strategic alliances to exploit economies of scales, learn from competitors, manage risk and share costs
e.g.: • Record Labels (EMI, Sony, Etc) for iTunes • Youtube, Google (for mapping) for iPhone • Intel for the processor used in Apple products • Microsoft to develop Microsoft Office for MAC
Strategic acquisition to improve its in-house competences
e.g.: • Emagic, Germany specialist in music software • PA Semi, microprocessor company (high
sophisticated and low priced chips)
Apple store: own retail division. As of October 2014, Apple has 444 retail stores in 16 countries
Online Apple Store available in 39 countries (October 2014)
Wholesalers and retailers (e.g. Wal-Mart, Best Buy, Fnac, Mediaworld)
Apple Distribution Channels
https://www.youtube.com/watch?v=7L2fsubA2-c
Apple sells to consumer, small and mid-sized business, education, enterprise, government and creative
customers
Apple Distribution Channels App Store (from 2008) : the only authorized service for laoding programms into the iPhone and iPad (Seamless integration between hardware)
The App Store allows users to browse, buy and download application directly.
Application developers must channel sales of application through the App Store, with Apple connecting a 30% royalty on each application sold.
Apple Distribution Channels
What's next for Apple?
Oct. 5, 2011 -- Steve Jobs dies at age 56 the actual CEO is Tim Cook.
“Always focused on the future. We don’t sit and think about how great things were yesterday. We are always looking to where we would like to be next” Tim Cook
“Stay hungry, stay foolish” Steve Jobs
Highlights
¡ Apple customers are intensely loyal
¡ Apple’s products work better and are simpler to use because Apple has deep understanding of consumer behavior
¡ Apple gives a life-feels-good experience to its consumers
¡ Work environment that encourage creative freedom
¡ Constant innovation in products
¡ Integration of all products
