Group #10: 1. Binh Thieu 2. Lan Phan 3. Minh Thu Luu 4. Tung Duong (Communication Equipment Industry) BUS 890: Strategic Management What is the one item you never leave home without?

Industry Analysis – Smartphone 1. Why does it matter? 2. Driving forces 3. Dominant features 4. Five-Forces model 5. Strategic group map 6. Key Success Factors Company Analysis – Apple's iPhone 1. Company Overview 2. Value Chain Analysis 3. SWOT Analysis 4. Competencies 5. Business Analysis 6. Competitive Strategy Strategic Recommendations Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies Business Analysis Competitive Strategy Recommen dations

Smart-phones allow users to:  , internet  store information,  entertainment  install programs,  along with using a mobile phone in one device Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies Business Analysis Competitive Strategy Recommen dations

Products Provides new capabilities & applications at anywhere and anytime Technology Business tools to cool items for entertainment Competition Google – the next powerful entrant No sign of major firms exiting Innovation Although 3G still fresh, talks of 4G already on the way Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies Business Analysis Competitive Strategy Recommen dations

 Market size and growth rate  Number of rivals  Product Innovations  Learning/experience curve effects Total Mobile Sales: - Mobile phone sales to exceed 1billion in More than 200 million smart- phones will be sold in Source: Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies Business Analysis Competitive Strategy Recommen dations

1. Consumers market 2. Corporate market 1. Carriers AT&T … 2. OS providers Linux, WM… 3. Hardware makers Intel … 1. Establish mobile manufacture: LG, Samsung 2. Software giants: Google, MSFT 1. VoIP Skype… 2. PDA phone Palm… 3. Features phone Nokia, LG … 1. More companies enters… 2. Strong brands and finance Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies Business Analysis Competitive Strategy Recommen dations Industry Rapidly Emerging Buyers Weak Suppliers Strong Rivals Strong New Entrants Threat Substitute Products Emerged

Nokia Motorola RIM PALM Samsung Apple HTC Source: Source: Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies Business Analysis Competitive Strategy Recommen dations

Source: Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies Business Analysis Competitive Strategy Recommen dations

Consumer-oriented Factors Technology Internet driven force - Replacing communication tools - Next generation experience Marketing Well-know and well-respected brand name - Market segmentation - Targeting and Pricing effectiveness Skill and Capability Value added (cheaper, faster, more convenient than the alternatives) - Design and innovation expertise Distribution A strong network of wholesale distributors/ dealers - Fast introduction and application of services “This is a difficult industry, part of it is technology; part of it is fashion…” Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies Business Analysis Competitive Strategy Recommen dations

Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies Business Analysis Competitive Strategy Recommen dations

Mission: "Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings." Vision: "Man is the creator of change in this world. As such he should be above systems and structures, and not subordinate to them" Industry: 1. Computer software & hardware 2. Consumer electronics Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies Business Analysis Competitive Strategy Recommen dations

Supply chain OperationDistribution Sales and Marketing Service Taiwan – Facilities of camera, circuitry, connectors, stainless casings Singapore – Facilities of CPU, processing chips US – Facilities of touch screen, specific parts China – Shenzhen Assembly Facility Source: Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies Business Analysis Competitive Strategy Recommen dations

 Sharp rise in consumer demand  56% of smart-phone buyers prefer iphone  New target market – price reduction attract more customers  High Potential Software – upgradable; can add new features  3G Apple iPhones to captivate business demand worldwide Source: Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies Business Analysis Competitive Strategy Recommen dations

 New powerful entrant - Google  Many similar or substitute products  Intense competition with major rivals  Increasing bargaining power of buyers Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies Business Analysis Competitive Strategy Recommen dations

 First mover advantage  Ownership of technological patents  Apple is one of the most established brand  Customers loyalty  Cultural, fashion identity Source: Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies Business Analysis Competitive Strategy Recommen dations

 Dependence on third party provider:  AT&T, Content Provider, Application provider  Less appeal to corporate customers  Technological complication  Gorilla arm  Limitation of particular features  Application slow down and freeze Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies Business Analysis Competitive Strategy Recommen dations

 iTunes : Synchronization between the iTunes - App store and Apple devices.  User interface of consumer gadgets and computing devices  Intuitive design, easy-to-use and self-discoverable Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies Business Analysis Competitive Strategy Recommen dations

Users’ experience Source: Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies Business Analysis Competitive Strategy Recommen dations

Source: Data: Standard & Poor’s Apple may well pass Microsoft, which has $23.7 billion in cash, and could have $40 billion in 2 years Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies Business Analysis Competitive Strategy Recommen dations

Source: Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies Business Analysis Competitive Strategy Recommen dations

Source: Textbook  Focus-Differentiation Strategy  A narrow market niche with unique needs  Premium Price to target high-end consumers, business market  Broad-Differentiation Strategy  Offer more products to a broad of buyers  Deliver value to customers by differentiating Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies Business Analysis Competitive Strategy Recommen dations

Outline Industry Analysis Why? Driving Forces Dominant Features Five Forces Strategy Group Map Key Success Factors Company Analysis Overview Value Chain Analysis SWOT Analysis Competencies Business Analysis Competitive Strategy Recommen dations Diversification: iphone Nano, iphone Biz… Expansion: M&A, alliances, partnership… Innovation: smart-card, Apple cloud … __APPL-IZATION__

 Peter Burrows (2008,7,30). How to spend Apple’s cash. Business Week. Retrieved August 11, 2008, from magazine+channel_news magazine+channel_news  Olga Kharif (2008, 8,4). That iPhone Nano rumor. Business Week. Retrieved August 11, 2008, from e_nan.html?chan=top+news_top+news+index_news+%2B+analysis e_nan.html?chan=top+news_top+news+index_news+%2B+analysis  Peter Abilla (2007,1,18). The Apple iPhone Supply Chain. Shmula. Retrieved August 11, 2008, from  Charles Jade (2008,4,23). Apple Q2 2008: Mac sales surge, iPhone not so much. Ars Technica. Retrieved August 11, 2008, from iphones-not-so-much iphones-not-so-much  Bryan Gardiner (2008,4,1). The smartphone smackdown: who satisfies customers best? Wired. Retrieved August 11, 2008, from  Santhosh Paramesh (2007,10,16). 3 more ways Apple will take over the world. Vibgior Technomix. Retrieved August 11, 2008, from