A STUDY ON 3C (COMPANY, CUSTOMER AND COMPETITOR)

ASPECTS OF APPLE INC.

By

ABHIJIT PAUL
Program:- MBA(Gen)
ID No:- 19IUT0160050
Batch:- 2019-2021
Under the Guidance and Supervision of
Prof. Mousumi Biswas

ICFAI UNIVERSITY TRIPURA

NOVEMBER 2019
 A Report on
A STUDY ON 3C (COMPANY, CUSTOMER AND COMPETITOR)
ASPECTS OF APPLE INC.
Assignment Report submitted in partial fulfillment of the
requirements for the award of Degree of Master of Business
Administration of ICFAI University, Tripura.
 ACKNOWLEDGEMENT

Every assignment big or small is successful largely due to the effort of a number of
wonderful people who have always given their valuable advice or lent a helping hand.

We sincerely appreciate the inspiration; support and guidance of all those people who have
been instrumental in making this project a success.

We would like to express our special thanks of gratitude to our teacher Prof. Mousumi
Biswas, who gave us the golden opportunity to do this wonderful assignment on making of
3C Report on Apple which also helped us in doing a lot of research and we came to know
about so many new things. We are really thankful to him.

Last but not the least we would also thank all our friends and family members for their
support and love given by them without which the completion of this research was not
possible.
 TABLE OF CONTENT
S. NO CHAPTERS PAGE NO
Company Profile 5-7
a) History 5
b) Company details (Origin, change in name, 5
incorporation, etc)
c) Mission Statement 6
1 d) Vision Statement 6
e) Global Players in Market 6
f) Product Mix 6
g) SWOT Analysis 7
h) Apple Products 7
2 SWOT Analysis 5
3 Apple Products 5
4 Customer 8
Competitions 9
a) Competitors 10
b) Competitive Positioning 11
5
c) Pricing 12
d) Promotion 12
e) Strategies for the company 13-14
6 Bibliography 15
 COMPANY PROFILE
HISTORY

Apple Inc. had its genesis in the lifelong dream of Stephen G. Wozniak to build his own
computer—a dream that was made suddenly feasible with the arrival in 1975 of the first
commercially successful microcomputer, the Altair 8800, which came as a kit and used the
recently invented microprocessor chip. Encouraged by his friends at the Homebrew
Computer Club, a San Francisco Bay area group centred around the Altair, Wozniak quickly
came up with a plan for his own microcomputer. In 1976, when the Hewlett-Packard
Company, where Wozniak was an engineering intern, expressed no interest in his design,
Wozniak, then 26 years old, together with a former high-school classmate, 21-year-
old Steven P. Jobs, moved production operations to the Jobs family garage— and the Silicon
Valley garage start-up company legend was born. Jobs and Wozniak named their company
Apple. For working capital, Jobs sold his Volkswagen minibus and Wozniak his
programmable calculator. Their first model was simply a working circuit board, but at Jobs’s
insistence the 1977 version was a stand-alone machine in a custom-molded plastic case, in
contrast to the forbidding steel boxes of other early machines. This Apple II also offered a
colour display and other features that made Wozniak’s creation the first microcomputer that
appealed to the average person.
COMPANY DETAILS ( ORIGIN, CHANGE IN NAME, INCORPORATION, ETC)
The company was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1,
1976, to develop and sell personal computers. It was incorporated as Apple Computer, Inc. on
January 3, 1977, and was renamed as Apple Inc. on January 9, 2007, to reflect its shifted
focus toward consumer electronics. On April 1 Steve Jobs, Steve Wozniak Ronald Wayne
introduced apple 1 marked at a price of $666.66 ($2,772 in 2016, adjusted for Inflation).
And Apple 2 was introduced on 16 April 1977. In 1984, Apple launched the Macintosh, the
first personal computer to be sold without a programming language at all. The Macintosh
initially sold well, follow-up sales were not strong due to its high price and limited range of
software titles. butDuring his keynote speech at the Macworld Expo on January 9, 2007, Jobs
announced that Apple Computer, Inc. would thereafter be known as "Apple Inc.", because the
company had shifted its emphasis from computers to consumer electronics. This event also
saw the announcement of the IPhone and the Apple TV. The following day, Apple shares hit
$97.80, an all-time high at that point. In May, Apple's share price passed the $100 mark. On
October 5, 2011, Apple announced that Jobs had died, marking the end of an era for Apple.
From 2011 to 2012, Apple released the IPhone 4S and IPhone 5 and with the iPhone 5
(released September 21, 2012) becoming Apple's biggest IPhone launch with over 2 million
pre-orders.
Aside from being a top technology company worldwide, Apple has also paired up with the
(RED) charity to enhance its marketing strategy. The goal of this collaboration with (RED)
is "to fight for an AIDS-free generation by 2015" ("Apple - (PRODUCT) RED - Help fight
AIDS in Africa."). In order to do this, Apple has created red products and every time a
consumer purchases one of the red products, the profits go to AIDS programs in Africa.
The charity has collected more than $50 million from Apple. In addition to using cause
marketing, the company has shown considerable interest for its effect on the environment,
specifically its environmental footprint.
One of Apple's main goals is to create environmentally friendly products. Apple aims to do
this by designing products that require less material and not only lessen carbon emissions
but eliminate common toxic substances that are used in manufacturing products ("Apple -
The Story Behind Apple's Environmental Footprint."). Additionally, Apple also reduces
greenhouse gas emissions by running several of their data centers on 100% renewable
energy.
Apple's aim has been to provide consumers, businesses, students, and educational institutions
with the best personal computing experience. Not only has Apple Inc. redefined how
consumers use computers at home, school, and work but has also given consumers a whole
new perspective on the mobile phone and music industry all while exemplifying social
responsibility and environmental sustainability for its stakeholders. Apple's worldwide
success is evidence that the company has succeeded in accomplishing its mission in being
one of the world's top innovative companies.
MISSION STATEMENT
Apple designs Macs, the best personal computers in the world, along with OS X,
iLife, iWork and professional software. Apple leads the digital music revolution with its
iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary
iPhone and App Store, and is defining the future of mobile media and computing devices
with iPad (Apple). 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 2020
"Inspire the World, Create the Future."
GLOBAL PLAYERS IN MARKET
Samsung Micromax LG Lenovo HTC
Sony Nokia Blackberry

PRODUCT MIX
Apple Inc. has continued to expand its product mix. This component of the marketing mix
determines the outputs of the business organization. In Apple’s case, the following are the
main product lines:
Mac I-Pad IPod I-Phone Apple TV Apple Watch Software
These Apple products currently available in the market show the firm’s diversification in this
component of the marketing mix. However, as part of its product development intensive
growth strategy, the company continues to develop new products, such as the Apple electric
vehicle, which is under development through collaboration with firms like Tesla Motors. This
product mix shows that Apple’s marketing mix is extensive in terms of product variety to
address customers’ needs in different areas of their lives.
 SWOT ANALYSIS OF APPLE INC.
STRENGTHS WEAKNESS
1. Higher Prices than competitors
1. Strong Brand Image
2. Narrow Product Range
2. Financial Strength
3. No major improvements in latest product
3. High Profit Margin
versions
4. Market leader for a large range of
4. Occasional technical issue related to
products.
product functionality.
OPPURTUNITY THREATHS
1. Aggressive competition
1. Product Diversification
2. Loss of innovative potential
2. Formation of Strategic
due to decease of legendary
Partnership.
founder Steve Jobs (Lack of
3. Investment in R&D Department
Innovation)
4. Increasing compatibility of
3. Intensifying competition from
Product
China and India.
4. Increasing in Manufacturing Cost.

APPLE PRODUCTS
 CUSTOMER
There is no point to having great products if there is no target market for those products.
Apple, Inc. focuses on marketing to people with a few different characteristics. Apple targets
users who are typically between ages 14 and 55 plus. Apple's computers all target home
users, schools, and media and design professionals. Middle and upper class income people
are a primary focus for Apple because these demographics are usually willing to pay slightly
more for “a better user experience” because $500 for a laptop is not a stretch for them. The
Iphone has a stylish design and it targets those who want to make it a fashion statement.
Loyal iPhone users are known for staying up to date with the latest technology so the device
also targets those who are tech-savvy.
Apple are going to focus on people who like to have fun with technology; Apple’s extensive
line of entry level devices and tools is beginning to appeal to people of all ages and not just
the coveted 18 to 34 year old demographic that seems to be thoroughly enthralled by the
company and its products. Because of iPods and iTunes (and their impressive compatibility
with all other Apple products), Apple is able to target music enthusiasts from a large age
demographic. Additionally, their cutting-edge technology, Apple is also able to target
professionals that work in media and design. While Apple’s prices are generally higher (a
new iPhone could be $800 or a new iPad almost $2000), they are able to appeal to people of
all ages and demographics due to their reputation of impressive technological
breakthroughs, while still managing to focus on targeting the customers that were just
discussed.
Product related segmentation is another major marketing strategy used extensively by the
company. Every Apple device is targeted specifically to different groups of consumers and
businesses and features in the products are built around their needs. Apple's retail stores are
dedicated to serving the needs of all new and existing customers and are considered
"friendly" places where consumers can look at and test out the company's products. The staff
in these retail locations that are well educated on these products and are there to assist
customers with whatever need they have. By selling products to new consumers that are on
their lower end on price range, they effectively promote their higher end products because
consumers who become satisfied with their iPod or iPhone for example, will most likely buy
a Mac computer in the future.
Customers will generally be loyal if there are only a few competitors out there offering the
same product and your product offers better quality overall.
 COMPETITIONS
Apple creates computers, phones, tablets, music players, operating systems, television set-
top boxes, lifestyle, productivity software, professional media software, wireless routers, and
also sells movies and music. Products created by Apple are intuitive and easy to understand
and learn. Apple offers great customer service and in- store service experiences. Further,
Apple stays at least two years ahead of its competitors, having geniuses in design, software,
and retail; Apple has the cash to invent components, and manufacturing processes.

Apple’s direct competitors are Samsung, Mi, Realme, Huiwai, Google Pixel, Micromax,
Lenovo, Karbonn etc. Apple by forging the modern smartphone layout first and patenting its
screen-centric design, Apple now finds itself in the position of being able to force
competitors to tread warily in their layout of smartphone elements. Apple has perfected the
precision and responsiveness of screens, the iPhone showed the potential of new screens by
increasing their size, given the screens a hard glass surface that responded to light finger
gestures. Majority of other technology companies have fewer design patents than Apple,
design has become an advantage in consumer choice as weak design patents will have to
catch up. Competitors have fewer design patents because they are less driven by design,
unlike Apple much of the industry has produced predictable standard computer boxes,
laptops, and phones and make a minimal investment in design. Apple ignored the
competition and remained convinced that the original iPhone’s 3.5 inch screen was sufficient
and stuck with it, however when Apple finally embrace a larger screen size with the iPhone
5, it did not follow directly in its competitors’ footsteps, rather it implemented the new
phone’s larger screen in a way that clung to the original iPhone’s design goal of being usable
with one hand. When Apple unveiled the iPad, competitors released knockoff tablets with
different screen sizes. Apple responded to the iPad’s competitors by releasing the iPad mini
which is $329, while the Kindle Fire costs $159 and the Google Nexus 7 starts at $199.

Apple is providing premium features but it only lacks in the field of pricing from its
competitors according to Indian customers. The customers are not willing to pay for iphones
because they are too costly for middle class customers. Samsung is leader in Indian market
because; they are able to fulfill the demands and requirements of middle class and rich class
customers. Samsung, Micromax, Intex, Karbonn etc are launching their mobile phones at
prices between 8000/- to 21000/- with exclusive features in it which attracts the customer
most. Recently Samsung has launched J series with 4G in it at only 8990/- (online store
prices.
 COMPETITORS
Samsung was founded by Lee Byung-chul in 1938 as a trading company. Over the next
three decades, the group diversified into areas including food processing, textiles, insurance,
securities and retail. Samsung entered the electronics industry in the late 1960s and the
construction and shipbuilding industries in the mid-1970s; these areas would drive its
subsequent growth. Following Lee's death in 1987, Samsung was separated into four
business groups – Samsung Group, Shinsegae Group, CJ
Group and Hansol Group. Since 1990s, Samsung has increasingly globalized its activities
and electronics, particularly mobile phones and semiconductors, have become its most
important source of income.
Samsung comprises around 80 companies. It is highly diversified, with activities in areas
including construction, consumer electronics, financial services, shipbuilding and medical
services.
In FY 2009, Samsung reported consolidated revenues of 220 trillion KRW ($172.5 billion).
In FY 2010, Samsung reported consolidated revenues of 280 trillion KRW ($258 billion), and
profits of 30 trillion KRW ($27.6 billion) (based upon a KRW-USD exchange rate of 1,084.5
KRW per USD, the spot rate as of 19 August 2011) However, it should be noted that these
amounts do not include the revenues from all of Samsung's subsidiaries based outside South
Korea.
Micromax is an Indian consumer Electronics Company headquartered
in Gurgaon, Haryana. The company was established as an IT software company operating in
the embedded devices domain; it later entered the mobile handset business. Micromax was
incorporated as Micromax Informatics Ltd on 29 March 2000.It started selling mobile
telephones in 2008, focusing on low pricing to compete with international brands.
Micromax's co-founder Rahul Sharma once saw a public call office being powered by a
truck battery because of frequent power cuts in its locale. It prompted him to launch a feature
telephone with an extended battery life. Micromax launched X1i, its first telephone with a
month-long battery back-up. By 2010, it was one of the largest domestic companies making
handsets in the low-cost feature phone segment in India. In 2010, Micromax entered the
tablet computer market with the Funbook series.
In 2014, Micromax's sales exceeded those of Samsung to become the mobile telephone
manufacturer shipping the most telephones in one quarter in India. On 24 January 2014,
Micromax became the first Indian mobile company to start sales in Russia. As of Q3 2014,
Micromax is the tenth largest smart phone vendor in the world. Micromax launched its first
eight-core flagship smart phone, Canvas Knight A350, in January 2014 in Russia. In the same
year, Micromax launched the Android One smart phone, Canvas A1. In November 2014,
Micromax partnered with Cyanogen Inc. to provide Cyanogen-based smart phones in India,
under the brand name YU
On June 17, 2015, Micromax launched Micromax Canvas Sliver 5, which it claimed was the
slimmest telephone in the world. While most of Micromax's smart phones run the Android
OS, the company also markets smart phones that operate Microsoft's Windows Phone 8.1.
The company is an official Windows Phone 8.1 hardware partner; it launched two Windows
Phone handsets, the Micromax Canvas Win W092 and the Micromax Canvas Win W121, in
June 2014.

COMPETITIVE POSITIONING
Apple has built a truly sustainable competitive advantage and is definitely worth the current
valuation premium. It is harder and harder to beat Apple with its deep integration between
apps, OS and devices. Apple is building a fortress around its suite of product / services /
experiences and it is almost impossible to break that and it is not in the space of music and
devices but Apple is also foraying in other categories of products. Every single Apple
product complements every other. Apple recently reached third place in personal computer
sales in the U.S., selling more Macs the past few quarters than analysts expected. Also,
Apple is the leader in the tablet space with its popular iPad. Many iPad buyers are first-time
Apple customers. Just as many of the nearly four million buyers who purchased Mac
computers in the most recent quarter are first time Apple customers. The reason for Apple's
compounding, growing success is a simple multiplier factor involving customers. Once they
buy one product, like an iPad, Apple's other products like the iPhone or a laptop computer
become a natural product for them.
It is widely recognized that Apple is a premium brand that demands and earns a price
premium. This price premium spans the entire Apple product lineup encompassing the
Macintosh, iPod, iPhone, software, and accessories. It is widely recognized that Apple is a
premium brand that demands and earns a price premium. This price premium spans the
entire Apple product lineup encompassing the Macintosh, iPod, iPhone, software, and
accessories. Apple products appeal to buyers who are not price conscience and therefore,
price elasticity is not a major concern.
 PRICING
The different types of pricing strategies Apple uses is that they set their products and offers
different price ranges for each product based on the amount of storage (gigabytes) the
product offers. Apple’s strategic pricing of their products has helped the company succeed,
because whenever a new Apple product comes out, many customers are already waiting in
a never ending line to buy this hot new product. After a quarter or so, Apple lowers the
price of the product for example, when the original iPhone was released one quarter later,
Apple cut the retail price by $200 each. The similarities of the iPod, iPhone, iPad, iPod
Touch, iMac, is that for each product one can purchase a product with the capacity varying
from as little as 2GB, to as much as 64GB from all of the different models and products
Apple offers. The similarities of the iPod, iPhone, iPad, iPod Touch, iMac, is that for each
product one can purchase a product with the capacity varying from as little as 2GB, to as
much as 64GB from all of the different models and products Apple offers. They all have
versions that you can purchase with more capacity capability. It is interesting because
people want to pay that extra money to get the best features on their product, whereas the
oldest versions would just be less extravagant and less cool than the hottest version out.
Recently Apple released the iPhone 6 & 6s that everyone has been raving about. The price
for iphone 6s is set based on the capacity of the phones is 16GB for Rs 62000 and 64GB for
Rs 72000. Due to iPhone 6s, Apple lowered the prices for Iphone 5s models. The phones are
significantly lower priced than when they have first come out, the iPhone 5S now stands at
Rs 20800 for the 16GB & Rs 26899 for the 32 GB. Based on Apple’s quality of their
products and exemplary customer service it is easy to say that they are pricing their products
at reasonable prices, because of their well-known products all over the world, Apple’s profit

margin does not cease to continue to rise each year. The extent of Apple’s products is that an
average person would be able to purchase at least one of their products if not more.

PROMOTION
An average customer would most likely find out about the firm’s products through friends
and just the people around them. Due to high demand for their products, there is a vast
majority of people who own and prefer their products over companies’ products; therefore
this is one of the ways Apple is able to advertise their products which is through consumers.
When it comes to promotions, they offer many different promotions that allow many people
to purchase their products. Recently, Apple has almost been doing no advertising on their
products. But even though almost no advertising is done anymore, the Apple store is almost
always consistently packed on a daily basis. Most of all their advertising is done through
their customers and their well - known products; Apple’s image is also branded based on
their sleek, most trendy items in the technology world.
When Apple announced that they would finally be coming out with the long anticipated
iPhone 5, just by hosting just one conference to introduce the iPhone 5, thousands of
people lined up to purchase the iPhone , on the opening day to purchase their new iPhone
5, many people even pre-ordered their phones. Because Apple products are sold worldwide
and Apple is such a well-known brand, it is easy to publicize their products though their
store fronts and their customers only.

STRATEGIES FOR THE COMPANY

What gives then? Why is Apple so bullish on India? The simplest explanation is that with
China’s Smartphone market slowly heading for saturation, Apple has no choice but to look
at India, regardless of whether the company has a fool-proof plan to crack the market while
retaining its appetite for high profits.
A more nuanced perspective is that Apple is banking on a number of factors. Whether this
will amount to anything if Indian income levels don’t tick up, and they start spending more
on their Smartphone purchases, remains to be seen.
1. The Apple Store-The piece de resistance of Apple’s retail strategy; a corporate retail
outlet that has the highest sales per square foot of any commercial real estate space. More
importantly, the Apple Store is the first step in establishing Apple as a luxury brand. If
you’re shelling out over Rs. 60,000 on a Smartphone, you need to be able to buy into the
experience; to flaunt your purchase and more importantly to do it in style.
India has no Apple Stores: sales are done through a whole range of stores from the
common, where iPhones are placed next to Samsung phones like a vegetable cart vendor, to
Apple’s “authorized resellers” which are better but still a pale imitation of the real Apple
Store.
Does Apple believe that opening Apple Stores in India, as it plans on doing, will raise
sales? A few commentators and analysts believe so. If this is to be accepted, however, one
has to buy into two main assumptions.
The first goes something like this: Apple isn’t considered a luxury product right now but
with the Apple Store coming to India, it will be. This is a difficult premise to swallow:
India’s elite flaunt their iPhones, journalists are given iPads as Diwali gifts, and India’s
youth stick Apple stickers on their normal PCs. iPhones are more of a Veblen good in India
than the US; Apple is the very definition of luxury in India.
The second assumption, which makes more sense, is as follows: Apple products are
luxury items, but the process of purchasing an Apple product in India is anything but
luxurious. Apple’s authorized resellers in India don’t do a very good job of letting
consumers hold, touch and ultimately fall in love with an iPhone or iPad. If one is to
accept that there is a certain magic present in the Apple Store, it’s safe to say that there’s
no magic currently in the stores that sell Apple’s products in India.
While the primary premise here is still weak – that the opening of Apple Stores will result in
more footfalls and sales than the current stores selling Apple products – it’s a plausible
outcome.
2. The Refurbished iPhone Plan-Come September, India and other developing countries will
be flooded with refurbished versions of the relatively latest iPhone. Last year, the company
introduced an ‘iPhone upgrade scheme’ in the US that puts its customers on a slightly more
expensive permanent rolling contract in exchange for a new phone every year. As part of this
deal, consumers are required to hand in their one-year old iPhones to Apple every year.

3. Apple is explicitly entering the second-hand market for iPhones: the company plans on
taking these old iPhones, putting them through a strict examination of quality testing, give
them a new serial and IMEI number and package it along with a one year warranty. These
phones can then be sold in developing countries for anywhere between $260-$350 (the
current going price in Western markets for a year-old iPhone).
As it happens, Apple has currently applied for permission from the government to import and
sell these type of phones in India. In order for it to receive permission it has to prove to the
environment ministry’s Technical Review Committee that it isn’t trying to move e-waste
from the US to India.
If this does come through -what could happen is that when the iPhone 7 comes out later this
year, a one-year old, refurbished iPhone 6S could be sold for approximately Rs. 25,000 in
India. It would normally take the company three years to be able to drop prices to that extent;
the iPhone 5S is currently sold online in India for Rs. 22,000. If the refurbishing plan goes
through, the company could shorten this time period to one year.
Ultimately, both these factors that Apple may be banking on to improve its market share
here in India aren’t product or technological innovations. They are clever ways of pumping
up sales numbers. That doesn’t mean that Apple should rush to offer more discounts or bring
out cheaper iPhones; that’s a rush to the bottom that every player should avoid.
It’s a waiting game: the Indian consumer and market isn’t a shy animal that needs to be
carefully coaxed into eating food out of a person’s hands. The average Indian consumer
simply needs to have more discretionary income to spend, like the average Chinese
consumer, and until that happens Apple may need to look elsewhere for growth.
 BIBLIOGRAPHY
1) http://www.apple.com/in/
2) http://seekingalpha.com/article/2542745
3) http://www.saleschase.com/blog/2012/03/13/the-best-of-apples-marketing-
strategies/
4) http://store.apple.com/us_edu_354020/browse/campaigns/education_ pricing
5) http://www.economist.com/node/21551058
6) http://www.informationweek.com
7) http://gadgets.ndtv.com/

“We believe that we are on the face of the earth to make great products and that’s not
changing.

We are constantly focusing on innovating”

-Tim Cook (CEO, Apple)