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Apple's Network

Apple uses a variety of networks such as LAN, WAN, Wi-Fi to keep their retail stores in constant communication. The software that is used in the network is developed by Apple called Concierge. Accessible by employees from anywhere at concierge-admin.apple.com. The most commonly communication software used is what they call retailme.apple.com it keeps employees informed of what is new in stores and also there are video tutorials for training there. Their retail stores connect to their internet via Ethernet cable or Wi-Fi. The speed that is shared between a few stores is T1. Voice over IP is an option and it is used when necessary to communicate with employees in different parts of the country, sometimes video is also used. The four principles of security are met, since Apple keeps all information confidential and the authenticity of the user is revised in the beginning of a session. The authenticity provides an pi address to a database to keep track of who is searching what at any given time. Integrity is kept by giving only privileged users the right to manipulate certain information. Availability is kept by a series of maintenance of the servers and the network software.

Apple Database Management

There are different types of files in Apple’s Databases such as employee files, Customer files, Store Region files, Product files, Sales files.

Apple has a self developed database that manages and interrelates data within files. As an example, from sales to customers, or employees to store and sales.

Apple develops its own database through its developers. It is in constant renovation to increase the understanding of the information to their employees and managers.

Apple Database Administrators and Developers are responsible for their database information

Managers get daily reports on sales and services as well as customer’s feedback. They get it through an intranet system available only to managers. After their review, this information is made available on a daily meeting to employees also.

Reports such as sales, services (technical support, personal training, sales experience). Overall company’s averages to compare against store’s numbers.

OLAP is used to provide live analytical data for Managers to view the sales in the Store. Comparing these numbers to a sales forecast and see if the numbers are above or below the margin.

A data warehouse is used to store all the data from sales, employees, sales are stored.

Data Marts are used for all Departments in Apple. Such as Sales, Marketing, Production, Service, etc. Data marts is what constitutes Apple’s database as a whole, by combining all its information together into a Data Mart.

As in OLAP, Apple uses data mining to retrieve analytical information for managers as well as employees to increase the sales by forecasting them or by increasing customer satisfaction by customer reviews.

The team responsible for data mining is the Database Administration at Apple, and the software used for it is uniquely developed by and for Apple.

Apple Inc

Apple is one the greatest companies in the world. It was incorporated in April 3, 1977. Apple has re-invented the oprations management system. Apple represents the face of the music, phone, and computing industry. The technology advancement and CEO’s decisionmaking keeps Apple in the frontline of the market. Apple innovative designs has opened international doorways to sell their computers and devices globally.

Introduction

Apple Inc. is an American multinational corporation that designs and manufactures consumer electronics and computer software products. The company's best-known hardware products include Macintosh computers, the iPod and the iPhone. Apple software includes the Mac OS X operating system, the iTunes media browser, the iLife suite of multimedia and creativity software, the iWork suite of productivity software, Final Cut Studio, a suite of professional audio and film-industry software products, and Logic Studio, a suite of audio tools. The company operates more than 250 retail stores in nine countries and an online store where hardware and software products are sold.

Established in Cupertino, California on April 1, 1976 and incorporated January 3, 1977,the company was called Apple Computer, Inc. for its first 30 years, but dropped the word "Computer" on January 9, 2007 to reflect the company's ongoing expansion into the consumer electronics market in addition to its traditional focus on personal computers. Apple has about 35,000 employees worldwide and had worldwide annual sales of US$32.48 billion in its fiscal year ending September 29, 2008.For reasons as various as its philosophy of comprehensive aesthetic design to its distinctive advertising campaigns, Apple has established a unique reputation in the consumer electronics industry. This includes a customer base that is devoted to the company and its brand, particularly in the United States. Fortune magazine named Apple the most admired company in the United States in 2008 and in the world in 2009.

Steven Jobs

Steven Paul Jobs (born February 24, 1955) is an American businessman, co-founder and CEO of Apple Inc. and former CEO of Pixar Animation Studios.


In the late 1970s, Jobs, with Apple co-founder Steve Wozniak, created one of the first commercially successful personal computers. In the early 1980s, Jobs was among the first to see the commercial potential of the mouse-driven graphical user interface. After losing a power struggle with the board of directors in 1985, Jobs resigned from Apple and founded NeXT, a computer platform development company specializing in the higher education and business markets. NeXT's subsequent 1997 buyout by Apple Computer Inc. brought Jobs back to the company he co-founded, and he has served as its CEO since then. Steve Jobs was listed as Fortune Magazine's Most Powerful Businessman of 2007.


In 1986, he acquired the computer graphics division of Lucasfilm Ltd which was spun off as Pixar Animation Studios. He remained CEO and majority shareholder until its acquisition by the Walt Disney Company in 2006. Jobs is currently a member of Walt Disney Company's Board of Directors. Jobs' history in business has contributed greatly to the myths of the idiosyncratic, individualistic Silicon Valley entrepreneur, emphasizing the importance of design and understanding the crucial role aesthetics play in public appeal. His work driving forward the development of products that are both functional and elegant has earned him a devoted following.In mid-January 2009, Jobs took a 5 month leave of absence from Apple to undergo a liver transplant.

Assignment # 3

For your company, which of the 3 generic business strategies is used? If differentiation, then how do they differentiate their services/products?

The Apple Corporation uses the differentiation strategy. The differentiation strategy is used by Apple because the type of product and products that Apple produces are different that their competitors. An example in the IPod. An IPod is an example of a MP3 player, but has certain characteristics that make it different than an everyday MP3 player. Apple as a whole uses differentiation in many different ways. The first example as stated earlier is the IPod. Secondly is the IPhone which is similar to other phones of the market, but offers different features that sets it apart from the competitors. Apple also makes laptops that are different that an everyday laptop because of the features once again. I feel that the differentiation method is very productive because people are looking for things that set themselves apart from competition. This is why the Apple Company is so lucrative.

For your industry, estimate how much power each of the 5 forces has (suppliers include their employees and suppliers of technology). How do they reduce the buyer and supplier power? How do they create switching costs and entry barriers?

Buyer Power - Medium

Apple has competitive advantages on their products such as the iPod - iTunes or the Mac and One to One Training. Things that Apple has to try and reduce Buyer Power and increase Supplier Power.

Supplier Power - Medium

*CORRECTED*

Apple, as read in an article on 'How Apple Does It,' Steve Jobs, Apple's CEO, has been always fanatic of high customer experience. Which brings us to the point that Apple has always found ways to reduce supplier power by seeing who makes the next iPod with the highest standards in designs and technology and above all, secrecy. Because of the requests that Apple has, I believe Apple must have medium Supplier Power, Although it tries to keep it low, there will be a small hand-full of manufacturers that assemble the next revolutionary product Apple comes up with.

Threat of Substitute Products or Services - High

There are many products that Apple has that there’s an alternative product for. Nevertheless, Apple has managed to create a competitive advantage into merging the iPod with the music store which is not offered as a whole in the market. Zune HD is a substitute with music store rasphody, but the interface and reputation of the iPod has given Apple that competitive advantage.

Threat of New Entrants - Low

There is a very low possibility for a competitor to enter the market that Apple is in. The entry barriers are the competitive advantages mentioned before as well as the loyalty that the customers have towards Apple.

Rivalry Among Existing Competitors - High

As seen on TV. There are many ads on “I’m a Mac and I’m a PC,” which is informative for new customers to enter the world of Mac and commercials of PC’s such as “You find it, you keep it” campaign to find a laptop PC on a budget. So there is definitely rivalry on each side of the market. It is competitive advantages that keep each other within the industry.

Apple creates switching costs by making all their products user friendly. Even then, it offers programs like One to One training to help customers in their first steps on how to use a Mac. Cutting edge technology in Apple’s devices are switching costs that enable the customer to think twice before purchasing a cheaper media player.With this in mind, Apple has not only created a switching cost but also entry barriers. Since a new competitor will be low likely to provide a customer the services that a present company already offers and does well.

Read Chapter 2. For your company, what major business initiatives are used or being considered? What software is used? Are they top-line or bottom-line initiatives?

Apple uses an E-collaboration style of business initiative, they get everyone involved from each department to work on a product. Their focus is to be innovative so their competitive strategy is differentiation, because of that they are a top- line initiative.

What type of IT organization is used? What philosophical approach do they use.

The philosophical approach they use is knowledge. They have the technology to learn their customers inside and out in order to satisfy the demand of there customers needs. The type of IT that my company uses is e-collaboration.