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Apple, Microsoft
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1
Customer Segments
Product Buyers
Service Subscribers
App Developers
Music and Video Producers
Consumers
Enterprises
Self-Service
Apple’s customer segments consist of:
Product Buyers: These include people that buy their products for their high-end performances and people who use them as their primary devices regardless of performance. A section of their customers also buys their products because of the brand name;
Service Subscribers (most service subscribers overlap as product buyers): These include subscribers of Apple Arcade — their games’ subscription service —, Apple TV+, iCloud+, and their warranty extension services.
App Developers (and music producers): Anyone that would like to sell their apps and music to the Apple user base and monetize through app store or iTunes.
Microsoft’s customer segments consist of:
Commercial and corporate clients: Server management, IT support, and consulting services, for example, besides the regular tools and solutions, such as cloud computing, Office, and Skype;
General customers: All the common solutions (Office, Outlook, Skype, cloud, etc.) and mobile phone and video game platforms;
Advertising agencies and big brands: Ads at MSN portal and Bing search engine.
Server developers: a suite of development tools.
2
Value Propositions
Premium High-End Products and Experience
An Eco-System of interconnected services
Access to iPhone/ iPad User Base
Operational Systems
Productivity Suite
Cloud Services
Apple’s value propositions consist of:
Premium High-end Products (with a focus on privacy): Apple offers its customers carefully crafted products with a focus on performance, stability, and privacy, a number of its customers have stayed around because of this.
An ecosystem of interconnected services: Apple’s line-up of services (and products) are well integrated with each other, offering users hassle-free inter-use of their products and services.
Access to iPhone/iPad user base: one of the richest user bases in the world that are willing to spend much more than Google Android user base.
Microsoft’s value propositions consist of:
A reliable market leader that provides software solutions, many of them for free;
Compatible apps and software on many platforms, from phones to computers;
A trusted source of expertise for consulting and a large user base for advertisers.
3
Channels
Apples Stores
App Store / iTunes
microsoft.com
Retailers
Direct Sales and Re-Sellers
OEMs
Apple’s channels consist of:
Website
Apple Stores
Third-party Stores
Telecom Companies (Apple’s iPhones are typically bundled with a mobile plan to reduce costs by offering monthly repayment packages)
Resellers
Microsoft’s channels consist of:
MSN portal
Desktop, iOS, and Google Play apps
Sales and marketing team
4
Customer Relationships
Love Brand
Apple Care
Sales and Support
Apple’s customer relationships consist of:
Social Media
Customer Service
Apple Stores
Website
Operating Systems
Loyal Community
Microsoft’s customer relationships consist of:
Software and hardware products are self-service, so, they don’t need much personal interaction with staff;
Corporate products and services, consulting, support, and advertising require personal assistance from the Microsoft team and representatives;
Social networking profiles are used to interact directly with end customers (e.g. Facebook and Twitter).
5
Revenue Streams
Product Sales
Service Subscriptions
Commissions
Licences
Subscriptions
Apple’s revenue streams consist of:
Sale of Products
Subscription Services
App Store and in-app purchase percentage cuts
Licensing Fees
Cloud Services
Microsoft’s revenue streams consist of:
Productivity and Business Processes
Intelligent Cloud
Personal Computing
6
Key Resources
Intellectual Property
Brand
User Base
Proprietary Software
Apple’s key resources consist of:
Brand Name and Recognition
Patents
Employees
Management Team
Microsoft’s key resources consist of:
Intellectual property
Proprietary technology
Data centers
Servers
Human resources
Bill Gates
7
Key Activities
New Product Development
Marketing
Software Development
Sales and Marketing
Apple’s key activities consist of:
Innovation
Design & Manufacturing
Marketing & Sales
Customer Service
Branding
Microsoft’s key activities consist of:
Developing, licensing, and supporting software products and services;
Designing and selling hardware products;
Delivering online advertising solutions;
Providing IT consulting and support services.
8
Key Partnerships
Manufacturing Partners
Cellphone Carriers
App Developers
OEMs
Apple’s key partners consist of:
Hardware Suppliers, such as Qualcomm, Samsung, Cisco, etc.;
Software Providers: cloud service providers, such as Google and Amazon;
Investors/Shareholders
Telecom Companies
Microsoft’s key partners consist of:
Companies that provide app development, data analytics, data management, digital advertising, distribution, internet hosting services, manufacturing, marketing, system integration, telecommunications, etc.;
Resellers and independent software vendors.
9
Cost Structure
Operational Costs
Marketing and Branding
Software Development
People
Cloud Infrastructure
Apple’s cost structure consists of:
Manufacturing & Distribution
Salaries
Marketing
Platforms Maintenance Fees
Payment Processing Fees
Management & Administration
Microsoft’s cost structure consists of:
Research and development
Human resources
Maintenance and security of data centers and servers
Marketing
Sales
Office and general expenses
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