A Strategic Analysis
of
Apple Corporation
Timothy Pivovarnik
Jeff Shaver
Adam Siler
Richard Sterling
Dave Strubbe
EXECUTIVE SUMMARY 3
HISTORY OF APPLE 4
THE PC INDUSTRY 10
THE ONLINE MUSIC INDUSTRY 12
THE FUTURE OF APPLE 12
PERSONAL COMPUTERS ? A SHIFT IN STRATEGY 12
APPLE IN THE LIVING ROOM 14
STRATEGIC ALLIANCES AND ENTERTAINMENT 15
EXTERNAL ANALYSIS 17
TECHNOLOGICAL ENVIRONMENT 17
Brand Awareness ? Style at a Premium 17
Interoperability 18
Technology and the Digital Lifestyle 18
REGULATORY ENVIRONMENT 20
INDUSTRY ANALYSIS USING PORTER'S FIVE FORCES MODEL 21
WHICH EXTERNAL THREATS ARE MOST SIGNIFICANT 23
ADDITIONAL EXTERNAL THREATS 25
SECURITY 25
VERTICAL INTEGRATION OF COMPETITORS 25
VALUE CHAIN ANALYSIS 26
TECHNOLOGY AND PRODUCT DESIGN 27
PRODUCTION 27
SALES AND MARKETING 27
CUSTOMER SERVICE 28
LEGAL SERVICES 28
SWOT ANALYSIS 29
STRENGTHS 29
WEAKNESSES 30
OPPORTUNITIES 31
THREATS 31
FINANCIAL ANALYSIS 32
2ND QUARTER 2006 32
HISTORICAL PERFORMANCE 33