PORTFOLIO MANAGEMENT OF APPLE INC.

Portfolio Management of Apple Inc.



Portfolio Management of Apple Inc.

Introduction

Marketing plays the most significant role in the success of any product or organisation. Whether it is a launch of the new product or increasing sales of an existing product, marketing plan holds a crucial position. This report aims to put forward the marketing plan for one of the world's famous and successful company that is Apple Inc. The marketing plan fundamentally aims for the launch of a new and innovative product by Apple Inc. The marketing plan initiates with a brief overview of the company and its mission statement. The report then provides an overview of the market in which Apple Inc does its business. The market overview entails the competitor analysis for the Apple Inc. The marketing plan cascades light on the internal strengths and weaknesses of Apple Inc as well as the prospective opportunities and potential threats and risks that Apple Inc is exposed to. The SWOT analysis is followed by a brief financial summary of the company highlighting the main figures and ratios for the past years. An idea for the launch of a revolutionary product is then put forward. The idea is followed by the marketing objectives and the marketing strategies for the marketing of the new product. The marketing plan concludes with 3 year forecasts and budgets related to the sales of the new product.

Background

Apple Inc is an American multinational corporation that designs and markets consumer electronics, computer software and personal computers. The company is best-known hardware products include the Macintosh computers, the iPod, the iPhone and the iPad. Apple software includes the Mac OS X operating system; the iTunes media browser; the ilife suite of media and the creativity software; the iWork suite of productivity software; Aperture, a professional photography package; Final cut studio, a suite professional audio and film-industry software products; and logic studio, a suite of audio tools. As of 2010, the company operates 284 retail stores in 10 countries and an online store where hardware and software products are sold. (Paliwoda 1991 p.87)

Established on April 1, 1976 in Cupertino, California, and incorporated January 3, 1977 the company was previously named Apple Computer, Inc. for its first 30 years, but removed 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. As of the end of 2009, Apple had 34, 300 full time employees and 2, 500 temporary full time employees worldwide and had worldwide annual sales of $42. 91 billion in its fiscal year . (Kotabe and Helsen 2001 p.32)

In the initial year of launch, the company will spend a considerable amount on advertising and various promotions. Therefore, selling and administrative expenses will be high in the first year and the operating income will be relatively low as compared to other years. The company; however will not bear loss in the first year because of the innovative and exciting nature ...