Apple Computer Case Study

Apple Computer Case

Derrick Moultrie

Dr. Zaino

Marketing Problems

October 8th, 2007

Executive Summary:

Board of Directors:

Currently American Airlines are in great position to have a successful 2007. As of December 2006 American Airlines had a Gross Profit around the four million dollars range. This was the airline's 34th straight year of profitability. According to The Fortune 500 of 2006, American Airlines ranked 105. Also, this meant American Airlines lead number one in the airline industry. This ranking should have a higher area of focus when deciding on target markets and new products in the next six months to one year. Capitalizing on these areas could mean a significant increase in cash flow and total revenues.

American Airlines has a few weaknesses that may prevent the company from growing further.

turbulent fuel prices increasing pricing of tickets

These areas of concentration have prevented the company from excelling in all areas. With the proper implementation there could be more success and higher customer satisfaction.

The following actions can be taken to counter act some areas of weakness of Apple Inc.

• Make computers more compatible for everyday use

• Make products more accessible to general public (pricing)

• Create a better relationship with un-loyal customers

If these steps are implemented results should be higher brand loyalty and a larger profit margin for Apple Computer.

Organizational Assessment:

Mission Statement

"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."

Modified Mission Statement

"Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market this year with its revolutionary iPhone."

Present Goals of the Organization

Qualitative: Increasing Brand loyalty and customer repetitiveness by 10 percent during the next five years.

Quantitative: To increase the market position in the areas of digital media and the mobile phone market. Profits in those areas should increase significantly by 2010.

Policies of the Organization

The Company offers a range of personal computing products including desktop and portable personal computers, related devices and peripherals, and various third-party hardware products. In addition, the Company offers software products including Mac OS X, the Company's proprietary operating system software for the Macintosh; server software and related solutions; professional application software; and consumer, education and business oriented application software. The Company also designs, develops and markets to Macintosh and Windows users its line of iPod digital music players along with related accessories and services including the online distribution of third-party content through the Company's iTunes Store. A detailed discussion of the Company's products may be found in the 2006 Form 10-K. certain newly introduced products and/or upgrades to existing products are discussed below:

iPhone™

In January 2007, the Company announced iPhone, a handheld device that combines in a single product a mobile phone, a widescreen iPod with touch controls, and an Internet communications device. The iPhone user interface is based on the Multi-Touch™ display allowing users to control the device with their fingers. iPhone lets users make a call by pointing at a name or number in their address book,