PRESENTATION PREPARED BY 

GROUP  C

DU LIANGJUN
FAN BEIBEI
LIANG RUIJUAN
SAILESH MISRI 
WANG SHUCHEN
WEN QIAN
ZHANG WEN

Apple Inc.
STRATEGIC LEADERSHIP AND INNOVATION AT
APPLE INC
Outline
 Introduction
 Key Feature of Apple Industry
 1.1 Porter's Five Forces with Apple Industry
 1.2 Internal key features
 Apple and Steve Jobs
 2.1 Strategic leadership of Steve jobs
 2.2 John Kotter - Leading Change
 2.3 Research Results about Public “Effect”
 Strategic Innovation
 Financial Performance of Apple

 The critical analysis of Apple’s closed

ecosystem
 Conclusion

Introduction
 The purpose of presentation
l To answer the main question with relevant framework.
l Clearly explain some important contents: key features, Steve
jobs.


 Expected outcome of this presentation

 To provide critical opinion about apple’s operation
 Understanding the potential meaning of some financial data.





Key Feature of Apple Industry
1.1 Porter's Five Forces with Apple Industry

Thre at o f ne w e ntrants

Bargaining  Bargaining 
po we r o f  po we r o f 
supplie rs buye rs

Thre at o f substitute  and c o mplime nt pro duc ts

Swot analysis of apple
1.2 Internal key features


 Product diversification and innovation



 Integration of software and hard ware



 Transcended the barriers of computer industry to cross

many aspect of industries


 Loyal customer base



 An ambitious Leadership



APPLE
AND

STEVE

JOBS
2.1 Strategic leadership of Steve jobs
2.2 John Kotter - Leading Change
John Kotter Steve Jobs leadership

Establish a sense of urgency Jobs examines the market shrewdly.
Find: the market share of Apple is much lower than HP and 
Dell.

Form a guiding coalition In 1997, the board of directors which has been restructured 
shares Job's view. 
Create a vision Create a new brand 

Communicate the vision Communicate the unique marketing strategies and  the 
pursuit of perfection
Empower people to act on the vision Coordination between divisions and strong discipline 
encourages staff to perform
Create short term wins Successful and fastest selling ­ iMac
Continually update and launch almost every 4 moths
Consolidate improvements to produce 
further change

Institutionalise new approaches From computer to diversified industries

Kotter, J.(1995) 'Leading change: why transformation efforts fail', Harvard Business Review, March­April , pp 50­67.
2.3 Research Results about Public “Effect”

11/25/10
Current Survey Mar  Previous Survey Sep Previous Survey 
09 08 Jun 08

Would Make Me Less Likely to Buy  9% 14% 18%

Apple Products in the Future

Would Make Me More Likely to Buy  1% 1% 1%
Apple Products in the Future

Would Have No Effect 80% 74% 68%

Don't Know 10% 11% 14%

Sellers, D. (2009) ' Evaluating the 'Steve Jobs effect', at 
http://www.macsimumnews.com/index.php/archive/evaluating_the_steve_jobs_effect
STRATEGIC INNOVATON OF APPLE INC.
Strategic innovation means experimenting with new strategies,
with new combinations of the What, Who and How of a business.

Strategically innovative companies explore new business

opportunities and concepts and a continuous process of
experimenting, learning and improving new strategies in these
three dimensions.

Michael, M. Stolla ,C. Doujak, A.(2008 )Strategic Innovation :Building New Business growth.p16
 Analysis of Strategic I nnovation in Apple I NC.
what Enhanced the quantity of loyal consumer and keep the value of user 
friendliness.
Redefined existing product categories.

Help the company successfully enter into new markets such as the 

entertainment industry.
Strengthen its core competencies.

who Its costumers.
Its internal system.

Its corporate culture.

how Making products easy and intuitive
Manufacturing both high end and low end products, 

Combining the products’ design, software and hardware together 

seamlessly, 
Launching iTunes Music store and iPhone, 

Developing strategic alliances and proceeding with a number of 

acquisitions, 
Forming a innovative corporate culture
 Financial performance
 Apple, Inc. Dividend Policy
 Apple, Inc. Competitor Dividend Policy






Key Statistics of Apple Inc. (1)
 1. 2001-09-29
 Market Rate ------ $76.54 billion
 Revenues ....................... $5,363 million
 Gross profit .................... $1,235 million
 negative operating income ......... $344 million
 2. next year i.e. 2002:
 Revenues ............... $5,742 million
 Gross profit ............. $1,603 million
 3. 2003-09-27:
 Revenues stood at ............... $6,207 million
 Net income.... $69 million
 4. 2004-09-27:
 net income.... $266 million
 5. 2005&2006
 2005 2006
 Net Income $1,328 million $1,989 million
 EPS $1.55 $2.27

Key Statistics of apple Inc. (2)

Revenue (ttm): 57.09B

Revenue Per Share (ttm): 63.06
Qtrly Revenue Growth (yoy): 40.10%
Gross Profit (ttm): 17.22B
Net Income Avl to Common (ttm): 12.24B
EPS 13.29
Total Cash (mrq): 25.62B
Total Cash Per Share (mrq): 28.04
Total Debt (mrq): 0.00
Total Debt: N/A

Apple stock history
Rise in stock price increase in(%)
Apple 7.96
Microsoft 15.53
Hewlett-Packard 33.60
Cisco 41.21
All the major competitors’ performed well than Apples stock.
http://finance.yahoo.com/q/ks?s=AAPL
The closed ecosystem: seamless integration of hardware and software
The critical analysis of closed ecosystem
n Advantage
ü High profit: From 2003 to 2005 the iPod and the iTunes
Music Store had occupied: “76 percent worldwide market
share of all MP3 players; 430 million songs downloaded
through iTMS ( iTunes Music Store)”. (Cruikshank, p 169)
ü Loyal consumers: Habit buying
n


n Disadvantage
ü Do not meet consumers’ need
ü low market share



Conclusion
Reference


Websites:



Thanks for your attention!
Question time!