Situational Analysis Apple Ipod

A. Company Analysis

Company Information (source - Apple's latest annual report on their web site)

* Apple Computer, Inc. was incorporated in 1977.

* Products include personal computers and related software, services, peripherals, and networking solutions; line of portable digital music players along with related accessories and services; personal communication devices; online sale of third-party audio and video products.

* Products sold worldwide through online stores, retail stores, and third-party wholesale resellers

* The main users of Apple products are: students, consumers, creative professionals, businesses, and government agencies

Apple's Business Strategy (source - Apple's latest annual report on their web site)

* "The Company is committed to bringing the best personal computing and portable digital music experience to students, educators, creative professionals, businesses, government agencies, and consumers through its innovative hardware, software, peripherals, services, and Internet offerings."

* Providing customers new products and solutions with superior ease-of-use, seamless integration, and innovative industrial design

* Belief in the research and development in order to continuously develop new products and technologies

* Expanding its distribution network to reach more customers and provide them with a high-quality sales and after-sales support experience

* Belief in providing integrated digital lifestyle solutions by combining and enhancing the utility of various consumer electronic and digital devices

Apple and the Global Environment (source - their web site)

"How we impact the environment is also important to us, and environmental considerations are an integral part of Apple's business practices. From the earliest stages of product design through manufacturing, use, and recycling, we take care to keep our activities and our products environmentally sound."

Product Information

* Multi-touch user interface using pioneering new software already on the iPhone

* Wi-Fi wireless networking with three applications: Safari (mobile web browser), Google Search or Yahoo! oneSearch, and YouTube.

* New iTunes Wi-Fi Music Store

* 8 mm thin, 3.5-inch widescreen display

* Cover Flow lets you browse music collection by album cover artwork

* Exclusive agreement with Starbucks allowing users to access iTunes Wi-Fi Music Store for free

* Over 100 million iPods sold

* Apple now sells four different types of iPod: the Touch, Shuffle, Nano and the original model, now called the Classic

Strengths

* Innovative leader Steve Jobs is at the helm of the company.

* Having the support and curiosity of the early adopters. Loyal customer base

* Domination of the market for portable digital music and movie players

* Ability to focus on customer identity rather than brand identity

Weaknesses

* Dependency on performance of distributors and iPod resellers

* Reliance on availability of third-party digital content

* The capacity of new iPod Touchs flash memory of only 8 or 16 GB versus the capacity of Classic flash memory of 80 or 160 GB offered at lower price

Opportunities

* Analysts say that during upcomming holyday season, the new products should help Apple to again outsell its competition

* Success of downloads from iTunes

* New Wi-Fi partnership with Starbucks

Threats

* Possible impact of finding out that Apple has infringed on the intellectual property rights of others

* Highly dependent on spending trends in the education, consumer and creative markets

* Margins depend on changes in component pricing

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