Apple Inc

Introduction
Apple Inc. (formerly Apple Computer, Inc.) is an American multinational corporation with a focus on designing and manufacturing consumer electronics, and other closely related software products. Apple develops, sells, and supports a series of personal computers, portable media players, computer software, and computer hardware accessories. Less than a year after procuring NeXT, Apple established their online store, Apple Store, on 10 November 1997 with the use of NeXT's WebObjects web application technology. This technology was previously utilised by Dell to build its online store as well. WebObjects helped Apple to create and deploy its online store within a year. Consequently, it was announced by Steve Jobs that the new Apple online store acquired over $12 million in sales merely one month into its operation. In addition, Apple had also revolutionized the computer and music industry by signing the five major record companies to join its new music download service, the successful iTunes Music Store, now known as iTunes Store. Unlike other fee-based music services, the iTunes Store charges a flat $0.99 per song (or $9.99 per album). Users have more flexibility as compared to previous on-line music services. The iTunes Music Store was launched in 2003. Within only 16 days, there were already 2 million downloads. On 12 September, The iTunes Music Store changed its name to iTunes Store. It began offering video content (TV shows and movies) for sale. Since, iTunes has sold over 2 billion songs, and clocked over 50 million TV episodes and 1.3 million movie downloads. Thus, it is evident that an e-commerce website is feasible, playing the significant role of an effective and efficient intermediary in generating revenues for the company.

Origins
Apple was founded on 1 April 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne. It was later incorporated on 3 January 1977 without Wayne as he sold his share of the company back to Jobs and Wozniak. Their very first creation called the Apple-1 personal computer kit, was hand-built by Steve Wozniak and was first shown to the public at the Homebrew Computer Club.

Since its earlier days, Apple has made tremendous progress. The beginning of Apple’s success was in 1997 (the first year the company turned a profit after losses through 1995 and 1996). Their success accelerated between 2003 and 2005, and this was apparent in its rapidly rising stock. Between early 2003 and January 2006, the price of a share of Apple's stock increased more than tenfold on 13 January 2000, resulting in its market cap surpassing that of Dell. From a little more than US$6 per share, it rose to more than US$80 per share!

Website Purpose
As a result of the proliferation of the Internet’s importance in our society today, it is important for a major organization like Apple to have a diverse, elaborate and educational website in order to compete against the other major players in the industry. Therefore, the website acts as a platform for attracting new customers to their products. Without neglecting their satisfaction, Apple could even possibly induce their existing customers into buying other merchandises from their website.
The Apple Store online also brings about convenience to the consumers worldwide, enabling the Internet-savvy masses to gain relevant information and knowledge they require about their product(s) of interest at the touch of their fingertips. Hence, the consumer is able to make a sagacious decision on which item to purchase. Besides this, the website keeps Apple’s ardent supporters well-informed and updated on the new products available as well.

Characteristics of the Website
The Apple Store online has a captivating and modern design which enables effortless viewing of the various Apple merchandises and accessories for sale. Moreover, the website provides clear and precise links. Although there are many links and information available on the website, the website does not look cluttered and convoluted. As the Apple Store online is very interactive and entertaining, it is able to capture consumers’ attention when they visit the site. Some examples would be its featured tutorial videos on the usage of Apple products and enabling consumers to download music, trailers, television advertisements, and even movies on iTunes.

Payment Methods
Apple allows the payment methods described below, and even the combination of more than one payment method for a single purchase.

• Credit, Debit, and Check Cards
The Apple Store accepts Visa, MasterCard, American Express, and Discover cards.

• Apple Gift Card
With an Apple Gift Card, an individual can purchase just about anything sold by Apple (except another Apple Gift Card, or an iTunes Gift), including products from both Apple and third-party manufacturers and developers.

• Financing
Qualified purchasers may finance all or a portion of their purchases with the Juniper Visa Card.

• Combining credit, debit, check, and gift cards and Apple Credit
Usage of more than one credit, debit, charge, or gift card (or combination of them) to pay for anything Apple sells, except for an Apple Gift Card, an iTunes Gift Certificate or software download such as QuickTime. Payment with two credit cards can be made by indicating the amount to place on the primary card. The remaining balance will be allocated automatically to the second card. An Individual may also use up to a total of four Apple Gift Cards, by themselves or in addition to one credit card. If one is financing all or a part of his/her purchase through Apple Credit, he/she may pay with a combination of a credit, debit, or check card and what he/she finance through Apple Credit, or with up to four Apple Gift Cards and what he/she finance through Apple Credit.

• Cashier's Check or Money Order
The Apple Store accepts cashier's checks and money orders as valid forms of payment.

Payment Method for iTunes
The iTunes Store accepts credit cards, payment through PayPal account, iTunes Cards, iTunes Store Gift Certificates and Allowance Account balances as forms of payment. The iTunes Store accepts the following credit cards: Visa, MasterCard, American Express, and Discover.

Additional Purchasing Method
1-Click is a registered service mark of Amazon.com, Inc., used under license.
1-Click is a convenient feature that allows an individual to purchase from the Apple Store with a single click of the mouse. In order to activate 1-Click features, an individual must have an Apple Store Account. Once the 1-Click features have been activated, the individual may select the products he/she wishes to purchase and click the "Buy with 1-Click" button. When purchasing products using 1-Click, he/she will have 90 minutes to change items in the 1-Click order (except for Electronic Software Downloads). All of the items that are purchased within the 90 minutes will be consolidated into one order, to save on shipping costs.

Safety Features
Apple supports industry initiatives — such as the Online Privacy Alliance and TRUSTe — to preserve privacy rights on the Internet and in all aspects of electronic commerce. The company does not knowingly solicit personal information from minors or send them requests for personal information.
Apple is a licensee of the TRUSTe Privacy Program. TRUSTe is an independent, nonprofit organisation whose mission is to build users’ trust and confidence in the Internet by promoting the use of fair information practices. Apple also discloses their information privacy practices for compliance review by TRUSTe. The TRUSTe program covers only information that is collected through this website, and does not cover information that may be collected through software downloaded from the site.

How Personal Information Are Protected
The Apple Online Store and iTunes Music Store use Secure Sockets Layer (SSL) encryption on all web pages where personal information is required. To make purchases from the Apple Online Store or iTunes Music Store, an SSL-enabled browser such as Safari, Netscape Navigator 3.0 or later, or Internet Explorer must be used. Doing so protects the confidentiality of the customer’s personal and credit card information while it’s transmitted over the Internet.

Business Model
Apple uses two types of Business Models, Merchant Model and Manufacturer Model.Merchant Model - Wholesalers and retailers of goods and services. Sales may be made based on list prices or through auction.
• Bit Vendor - a merchant that deals strictly in digital products and services and, in its purest form, conducts both sales and distribution over the web.
Manufacturer (Direct) Model - The manufacturer or "direct model", it is predicated on the power of the web to allow a manufacturer (i.e., a company that creates a product or service) to reach buyers directly and thereby compress the distribution channel. The manufacturer model can be based on efficiency, improved customer service, and a better understanding of customer preferences.
• Purchase -- the sale of a product in which the right of ownership is transferred to the buyer.

Strengths of the Apple Online Store
• provides a wealth of resources that allows users to be kept up to date regarding any new developments of the firm, information and reviews of products they manufacture.

• gathers all the hardware, software, third party software and accessories all under one roof to provide online shoppers the conveniences that would spur their desire to own an Apple product.• displays the array of special promotion plans such as; education discounts, corporate gifts plan that would enable users to have a better shopping experience.Apple itself has given itself the market edge by diversifying their product range from Mp3 players to Multimedia players, Computers, Software and the latest addition – the iPhone. It also provides a large range of 3rd party accessories and software to users that would complement its own products.

Apple has also added a very personalized touch - an Apple online account. This account stays up to date with all orders (past and present) and also keeps customers’ personal information with them so as to provide service at a more efficient pace.

Weaknesses of the Apple Online Store
• Apple has got a lot more to do to offer the service to consumers worldwide.
Initially, only Mac OS X users who had credit cards with a US billing address could buy songs with the service. Apple has since released the iTunes for Windows and launched iTunes Music Store in Europe, Australia and Japan. Residents in other countries can only buy a gift card from a merchant to purchase music and or download free podcasts and previews.

• Apple has spent much time trying to ensure that anyone who buys an iPod is completely locked in to an Apple-centred world (in which they use iTunes, buy from the iTunes Music Store, and purchase only Apple-certified iPod accessories) and this might not be good news to many consumers.

• As Apple doesn’t support Linux, any Linux user who can't resist the lure of an iPod needs a non-Apple library manager.
With the latest version of iTunes, Apple has added a new feature to the iTunes database, a special number that is calculated from your list of files using a process only Apple knows. If the number is wrong, your library looks empty. And because the free players don't know the algorithm used, they can no longer be used with iTunes/iPod.

These limitations of iTunes and its music store is limiting Apple’s penetration rate to other regions outside Europe, US and Australia. Apple needs to work on integrating its network to open its online music stores to regions where the Internet penetration rate is high, for example, South East Asia.

Conclusion
The strengths of Apple reflect the ways they use to integrate their products with their software and web presence. The weekly tips and tutorials uploaded online keeps the consumer checking back their website.

The Apple homepage features a clean design with an easy-to-navigate menu. It is obvious that “the Apple feel” is a top priority in the site’s development. Consumers not only learn how to optimize Apple products, they also learn of new products each time they return to the Apple homepage. Links to purchase items are strategically placed to product pages, and these links make online purchases quick and easy. The web store is also fully integrated with its customers’ database and helps to increase the convenience to buy online.

Market research indicates that Apple draws its customer base from an unusually artistic, creative, and well-educated population. Apple owes its successful in reaching to and converting customers to their web presence.

As of July 2007, the store has sold 3 billion songs, accounting for more than 80% of worldwide online digital music sales. This proves that Apple’s business model and online stores work. Today, Apple has the highest brand and re-purchase loyalty of any other computer manufacturer, and is a role model to all in the industry.