Business Strategy

E-Commerce:

For Apple, e-Commerce is used in ways that simplify the shopping process by culling the price and availability of products from designated Web sites, among other features. Sherlock II is Apple’s upgraded search engine technology, which creates information partnerships with other businesses, and even collaborates with other businesses on new product and service offerings. Business-to-business is used in a wide variety because shoppers can submit a query for a product they want, and Sherlock II will inform them who has the product and at what price as well as link them to the site. The company is working on adding the ability to search on specific sets of sites. When a set of e-commerce sites is selected, Mac consumers, as well as garner ad revenues will automatically display the search results in a window that lists all of the transactions made.

Internet Business Models:

Apple uses many different methods of utilizing the internet to connect to people and other businesses. Business to Business e-commerce is used in the selling of computers to help operate everyday proficinicy in other businesses. Business to Consumer e-commerce is the selling of ipods, computer, and other products to different individuals rather than businesses. Business to Government e-commerce is the process of selling of any Apple products to government operated organizations. As you can tell Apple has many different groups of customers and does not favor or focus in on just one certain group.

Marketing Mix:

The types of marketing mix that Apple adopts are Twitter updates, Ebooks, and My Friends List. Apple is adding users to its marketing mix by giving users a way to tell the world through traditional media; what they think about their iPhones and iPods. Apple has created commercials just for the YouTube community. There are icons on Facebook leading to sites that offer new updates about Apple and discounts or new technology.

Payment Systems:

In choosing to purchase from Apple you are offered many different types of payment options. Financial cybermediary is an Internet based company that makes it easy for one person to pay another person or organization over the internet. Paying for your items over the internet is a major way that Apple generates sales and revenus today. Another example of this is electronis bill presentment and payment, this system sends bills over the internet and helps to provide an easy method for you to pay them.Most business to consumer transactions involve to use of credit cards. For most of the business to business transcactions electronic data interchange is used. This is the direct computer-to-computer transfer of transaction information contained in standard business documents. There is always the option of paying for items with cash or gift cards.

Business Strategy

Generic Business Stratigies:

Apple uses a differentiation business strategy, which falls under e-collaboration. Apple’s employees and departments work together in the creation of their products. Apple believes in deep collaboration, and that a great product is developed by all departments: design, hardware, software, etc. Collaboration (in an integrated way), control, and congruent engineering are some of the goals and behaviors Apple employees follow to create/develop innovating products. Apple has an integrated collaboration environment where virtual teams do their work. Also, Apple uses a process like the knowledge management system where the IT system supports the capturing, organizing, and dissemination of knowledge throughout the organization. The KM has to make sure that the company’s knowledge of facts, source of information, solutions, patents, trademarks, and the best-practice processes are available to all of its employees whenever needed.

Porter's Five Forces:

Buyer Power – High when buyers have many choices from whom to buy and low when their choices are few. High Buyer power due to the fact that there are different software programs and also different kinds of MP3’s on the market right now, and yet APPLE is able to overshadow them by its innovative thinking.Supplier Power – High when buyers have few choices to buy from and low when their choices are manyLow Supplier power due to the fact that APPLE designs and creates both; its hardware and its software. That means that all of the computers made have to use the software designed for it, not another company but APPLEThreat of Substitute products or services – High when there are many alternatives to a product or service and low when there are few. High as far as the iPod goes, because there are a lot of new MP3 players out there, some smaller in physical size, and you also have the Zune which is a direct substitute.Threat of new entrants - High when it easy for new comers to enter market and low when there are significant entry barriers to entering a marketLow threat because to enter in any level to be able to compete against apple you would have to be very innovative and also must have the cool design and yet the usefulness of their software or hardware. Rivalry among existing competitors – High when competition is fierce in a market and low when competition is more complacent High rivalry among Apple’s competitos. Lets take the commercial of MAC and PC, they are directly comparing each other to show how the old rivalry of the old software developers has become this epic struggle of power between two major companies of the computerized world, or three if you even want to count LINUX.

Business Initatives:

For Apple, one of the major business initiatives that are used are customer relationship management. When you walk into the actual store or call for technical support, they are always extremely helpful and ensure that the problem you're facing is fixed. They also use sales forces automation. They are always looking to sell their products in numerous ways, via online, television and magazines etc. The software used is a modern operating system that combines a stable core with advanced technologies to help you deliver world-class products. The technologies in Mac OS X help you do everything from manage your data to display high-resolution graphics and multimedia content, all while delivering the consistency and ease of use that are hallmarks of the Macintosh experience. Knowing how to use these technologies can help streamline your own development process, while providing you access to key Mac OS X features. These are top-line initiatives because overall they increase revenue. They reach new customer segments, offer new products and achieve in cross-selling related services

IT Organization:

Apple uses the Matrix IT method. This method is the used to maintain the IT personnel function but to also spread them across all of the other functions. This means that instead of having one boss or person to report to, they will have two or even sometimes several. Apple follows this Matrix function very seriously and that is one of the main reasons why Apple is so successful today. They are able to have everyone connected in all of the activities rather than having everyone in different departments working separately. Apples philosophical approach would be listed as Decentralized and also early adopters..Decentralized are early adopters of technology that empower their employees throughout the organization to try new and emerging technologies. Apple is always one step ahead and open to trying new things.

Introduction

Over the past 30 years Apple has amplified from computer design to developing consumer electronics. The company was started by Steve Jobs, Steve Wozniak, and Ronald Wayne in the 1970’s. Steve Jobs the CEO of Apple dropped out of college after only one semester. He began a job at Atari Inc. a leading manufacturer of video games which is where he met Wozniak. In 1976, Jobs and Wozniak founded Apple Computer Co. in Job’s family garage. Their main goal of their company was to develop personal computers. Job’s idea was a success and the first personal computer sold for $666.66. One of their first designs was the Apple I which had very limited features. They then moved onto the Apple II which was presented to the public in 1977. The Apple II featured graphics and color which was different from the Apple I. Job’s also wanted to develop a stronger case and keyboard for the new Apple. In 1980 Apple went public launching the Initial Public Offering of its stock to the public investors. This instantly created more millionaires than any company in history. In 1985 Job’s left Apple only to return when Apple purchased his company Next and it’s Next step operating system in 1996. This was the beginning of Job’s position CEO. In 1997 Apple entered into a partnership with Microsoft. This meant Microsoft agreed to a five yea r commitment to release Microsoft Office for Macintosh including a 150 million dollar investment in Apple. 1998 and 2001 marked the introduction of the iMac, iBook, and Power Mac G4. The 2001 birth of the Mac OS X was aimed towards professionals and consumers because of its stability, reliability and security. A line of Apple retail store began opening in May 2001. Apple introduced the first iPod in October of 2001 starting out with the capacity of 5 gigabytes and has increased as of 2009 to 160 gigabytes. The newest invention from Apple would be the iPhone 3G which supports faster data speeds and has assisted GPS. In January 2007 Apple officially changed its name from Apple Computer, Inc. to Apple Inc. Apple has a number of social and ethical responsibilities in place. Apples main goal is to ensure social responsibility anywhere their product is made. Apple also has a code of conduct and the whole company is ran around it. Apple has a very good security system. They are constantly monitoring their products and computers in the work place to prevent risk of hackers or any other problems.


http://www.apple.com/