Apple Computer Inc Case Study

Julianne Carrido, Sami Hakimeh, Kyle Hayes, Frankie LauThursday, May 31, 2006Apple Computer Inc. is an American computer technology company. It leads the industry in innovation with its award-winning desktop and notebook computers, OS X operating system, iLife and its range of professional applications. Apple also spearheads the digital music revolution with its iPod portable music players and iTunes online music store.      Apple played a major role in the introduction of the personal computer in the 1970s, which eventually kicked off the personal computer revolution. It’s first big hit, the Apple II, was introduced in 1977 and was a very popular with home consumers. Being the innovator that Apple is, it introduced the first graphical user interface (GUI) to the commercial personal computer. This technology is used on all of today’s major computer operating systems such as Windows XP as well as Unix-like systems. Since then, the company has revolutionized the way people and computer companies think about aesthetic design of computers and consumer electronics alike as well as the security and operability of the operating system. In addition, Apple’s unmatchable success with it’s iPod mp3 player and revolutionary iTunes music store has left many companies struggling to keep up with the new wave of giving consumers the simplicity they desire in technology.      The recent announcement along with the release of new Apple computers using the Intel processor, rather than the faithful IBM PowerPc processor, has allowed the company to enter into an entire new realm of needed compatibility with it’s desktop and portable computers. The Intel chip allows the new machines to run the Windows Operating System natively as well as OS X on the same drive. With the correct setup of virtualization software, these two operating systems may even run at the same time, and a couple of key commands would be able to instantly switch between...

General External EnvironmentDemographic SegmentThe demographic for Apple computers is finally changing in its favor.   While

Apple was once a significant rival to IBM and a leader in personal computers, it watched its et share slide as it was slow to integrate Microsoft products into its operating systems.   Apple had a policy of trying to maintain their current clientele by innovative products, but have since began a new aggressive campaign aimed at attracting new customers thus brightening the company’s outlook.     Economic SegmentApple Computers Inc. was positioned in the computer industry and still is, but it has managed to avoid direct competition in the personal computer industry by defining a target audience and maintaining its loyal customers.   It competes horizontally to the major competitors in the computer industry like DELL, HP and Gateway.    

Political/Legal SegmentThere were not any political activities listed in this case.   However, outsourcing and globalization has made the personal computer et extremely competitive with DELL computers coming out on top due to its ability to globalize its production effective and efficiently.    

SocioculturalAmericans have warmed up tremendously to the personal computers with some estimating that 3 out of 4 American household having personal computers.   Apple continues to enjoy loyal fans that give it rather consistent sales (though on a slight decline), but has moved to further attract more customers by integrating its operating system and making it compatible with many Microsoft products.    

TechnologicalTechnology has been and always will be a major component in any computing business.   Apple has been extremely innovative and with strong sales of it’s unique IPOD, it has realized above normal profits.   These strong returns will allow Apple to invest in new products thus attracting new customers which will increase its et share.  

GlobalGlobalization has had a major impact on the...

Apple Computing Inc. Strategic Pat� hApple Computing Inc. Strategic Path �

Executive Summary Strategic intent

Apple develops and sells innovative products at a profit and creates a customer experience that change the way people work, think, communicate and learn. Market opportunities are seized by redefining existing market concepts.

Customer knowledge and assessment provides Apple with the learning and understanding to create desire for its products and provide value-added experiences to the users of its products. Knowing how customers think, what they want and how they make decisions provides the information to provide the customer with a value for money experience. The Apple brand must create a desire to own and reward the user with more than just the basic tangible product functionality. Good customer and product support enhances the value perception and experience for the user.

This customer focus enables Apple to create innovative products in early markets. Apple builds on its core-competency to integrate open standards or reinvent into a fit for purpose product with necessary proprietary protection. Research and development allows Apple to be innovative and not just imitate successful business solutions.

Good software solutions and ingenious peripheral interface products comes from an environment and a culture where management has created the necessary space for creativity to develop and succeed whilst maintaining a sense of urgency to deliver. By attending to some of these basic principles Apple has ensured its place as a strong competitor in the market.

Current Conditions Analysis Current strategyApple's current strategy in the PC market revolves around a business of software manufacturing that drives the hardware and retail categories. The official focus is on growth by concentric diversification into portable / mobility and wireless communications, the digital lifestyle and music, iPod, iPod mini and iTunes Music Store (Evans, 2004).

“Apple Computer, Inc.: Think Different, Think Online Music”

. 4 C’s   Stakeholder Analysis• CustomersBased on the background of   “the era of the Digital lifestyle”,   iTunes 3 target customers are;Stakeholder Stake in the project Potential impact on Project Growth percentage of online distribution Perceived attitudes and/or risks12 – 24 years Downloaded an average of 12 tunes per month, housing libraries between 25 to more than 300,000 songs from the internet High 59% • Unlimited library of songs and videos by genre, artist and album• Software design is attractive and easy to use• Sound in industry standard Dolby Advanced Audio, allowing CD quality sound• Better data compression allowing users to store more files more quickly• There was no subscription fee but songs were not free• The teens and children felt exploited by the escalating prices of music25 – 34 years Downloaded at least one music file from the internet High 43% 35 – 54 years Downloaded at least one music file from the internet Medium 24%

Online music was growing to be the best phenomena in the United States.   Statistics show that by July 2003, 65 million people in the USA had downloaded a song from the internet.   The growth rate by December 2002 was at 26% and by less than 5 months it had grown to more than 30%.   Most consumers of this online music were children and teens.   They felt exploited by the escalating prices of music from stores and sort to look for other free or cheaper means to own the music.   (They do not have a dependable income).   Today’s music industry targets the younger generation.   They like to be ‘down with the latest releases (both audio and video)’, ‘the newest kid on the block’ and to be known to own it.   ITunes interface as shown in exhibit 7; have the top albums, top songs, latest releases and favourites and a free 30 second full quality preview of any song.   This will seize the tedious search on the internet, but have a one stop shop for all their preferences.   Based on this, the target segment 12 – 24...

Apple Computer Vs MicrosoftIntroduction:It seems that the competition that has been brewing between Apple Inc. (NASDAQ: AAPL) and Microsoft Corp. (NASDAQ: MSFT) has never really died down from the late 1970s, even as both companies have had ups and downs in the stock market and in the consumer products market as well.Apple Inc. v. Microsoft Corp., was a copyright infringement lawsuit in which Apple Computer sought to prevent Microsoft and Hewlett-Packard from using visual graphical user interface (GUI) elements that were similar to those in Apple's Lisa and Macintosh operating systems. Some critics claimed that Apple was really attempting to gain all intellectual property rights over the desktop metaphor for computer interfaces, and perhaps all GUIs, on personal computers. Apple lost all claims in the lawsuit, except that the court ruled that the trash can icon and file folder icons from Hewlett-Packard's now-forgotten NewWave windows application were infringing. The lawsuit was filed in 1988 and lasted four years; the decision was affirmed on appeal in 1994, [1] and the appeal to the U.S. Supreme Court by Apple was denied.The lawsuit was decided in Microsoft's favor on August 24, 1993.Products:Lisa and Macintosh are Apple computers. Each has a graphical user interface ("GUI") which Apple Computer, Inc. registered for copyright as an audiovisual work. Both GUIs were developed as a user-friendly way for ordinary mortals to communicate with the Apple computer; the Lisa Desktop and the Macintosh Finder1 are based on a desktop metaphor with windows, icons and pull-down menus which can be manipulated on the screen with a hand-held device called a mouse. When Microsoft Corporation released Windows 1.0, having a similar GUI, Apple complained. As a result, the two agreed to a license giving Microsoft the right to use andsublicense derivative works generated by Windows 1.0 in present and future products. Release of Windows 2.03 & 3.0Microsoft released Windows 2.03 and later, Windows...

Apple Computers 2006Apple Computers 2006

Executive Summary

Apple Computer Inc. was established in 1976 and is widely recognised as a key producer in both the Personal Computer and portable music player industries. Contributing to Apple’s success has been the development of the personal computer; laptop and portable music player also know as the iPod that uniquely uses the iTunes music player software. These three successful products are the key contributors to Apple’s growth and innovation that not only produce quality core products but also allow development of computer hardware accessories and software. Apple Computer is currently the leader in the MP3 player industry and holds a 4.2% market share in the Personal Computer Manufacturing Industry (third quarter, 2005). To improve or maintain Apple’s current situation, it is vital for the company to examine their strengths, weaknesses and be aware of competitor’s role in the market. This report will examine the pertinent issues within Apple (as at 2005), an analysis of their current strategies used to achieve their success, an action plan and recommendations of strategies that Apple could use to increase market share, improve profitability and remain viable in constantly changing markets.

External Environment Analysis Five Forces Model – Personal Computer Market

1. Rivalry among competing sellersStrong rivalry is evident as 5 key companies dominate the technology industry: Dell, HP, Gateway, IBM and Apple computer. Companies are active in innovation, and they are aware that PC’s are weakly differentiated. However, weak rivalry occurs simultaneously as switching between competitors is costly to the consumers and once a company attracts and acquires its customers it is rare that they will switch with out a great offer.

2. Potential New Entrants Low threat of potential new entrants occurs when the industry is dominated by few companies such as: Dell, HP, Gateway. IBM and Apple Computer. This makes it

difficult for...

The Evolution Of Apple ComputerLet's take a trip back in time and review the evolution of a computer company. It's not IBM or Microsoft. This company is Apple Computers, Incorporated. In the year 1976, before most people even thought about buying a computer for their homes. Back then the computer community added up to a few brainy hobbyist. So when Steve Wozniak and Steve Jobs sold a van and two programmable calculators for thirteen hundred dollars and started Apple Computers, Inc., in Jobs garage, the reach for success seemed far.But these two young business men, Wozniak 26 years old and Jobs 21 years old, had a vision. "Computers aren't for nerds anymore," they announced. "Computers are going to be the bicycle of the mind. Low cost computers for everyone."From the first day on the founders of Apple kept their vision intact, and they spoke it at every turn. They only hired people into the company that had the same visions as they did.In early 1976 Wozniak and Jobs finish work on a preassembled computer circuit board. It has no Product keyboard, case, sound or graphics. They call it the Apple I. They form the Apple Computer Company on April Fool's Day and sold the Apple I board for $666.66 at the Home brew Computer Club in Palo Alto, California. In 1977 the Apple II is available to the general public. Fully assembled and pretested, it includes 4K of standard memory, and comes equipped with two game paddles and a demo cassette. The price is $1,298. Customers use their own TV set as a monitor and store programs on audio cassette recorders. Compare this price with computers today. The price about the same, but the computer has changed tremendously.In 1979 Apple II+ is introduced, available with 48K of memory and a new auto-start ROM for easier startup and screen editing for $1,195. Apple II Pascal is also released.In 1980 Apple FORTRAN introduced and proves to be a catalyst for high-level technical and educational applications. Apple III announced at the National Computer Conference. It has a new...

Apple Computers-how it actually started(beginning)The Evolution of Apple Computer

Let's take a trip back in time and review the evolution of a computer company. It's not IBM or Microsoft. This company is Apple Computers, Incorporated.

In the year 1976, before most people even thought about buying a computer for their homes. Back then the computer community added up to a few brainy hobbyist. So when Steve Wozniak and Steve Jobs sold a van and two programmable calculators for thirteen hundred dollars and started Apple Computers, Inc., in Jobs garage, the reach for success seemed far.

But these two young business men, Wozniak 26 years old and Jobs 21 years old, had a vision. "Computers aren't for nerds anymore," they announced. "Computers are going to be the bicycle of the mind. Low cost computers for everyone."

From the first day on the founders of Apple kept their vision intact, and they spoke it at every turn. They only hired people into the company that had the same visions as they did.

In early 1976 Wozniak and Jobs finish work on a preassembled computer circuit board. It has no Product keyboard, case, sound or graphics. They call it the Apple I. They form the Apple Computer Company on April Fool's Day and sold the Apple I board for $666.66 at the Home brew Computer Club in Palo Alto, California.

In 1977 the Apple II is available to the general public. Fully assembled and pretested, it includes 4K of standard memory, and comes equipped with two game paddles and a demo cassette. The price is $1,298. Customers use their own TV set as a monitor and store programs on audio cassette recorders. Compare this price with computers today. The price about the same, but the computer has changed tremendously.

In 1979 Apple II+ is introduced, available with 48K of memory and a new auto-start ROM for easier startup and screen editing for $1,195. Apple II Pascal is also

released.

In 1980 Apple FORTRAN introduced and proves to be a catalyst for high-level technical and educational applications. Apple...

Apple Computer- macintosh and apple 2Apple Computer, Inc.1. IntroductionApple Computer, Inc., major manufacturer of personal computers with headquarters in Cupertino, California. Apple designs, produces, and sells personal computer systems for use in business, education, government, and the home. Its products are sold in more than 120 countries and include personal computers, printers, monitors, scanners, software, and networking products.2. FoundingApple was formed by Steven Jobs and Stephen Wozniak in 1976 to market the Apple I, a computer circuit board that they had designed and built in Jobs's garage in Los Altos, California. They scrapped their plan to sell the board alone when Jobs's first sales call yielded an order for 50 units. They were, however, sold without monitor, keyboard, or casing. The company was incorporated in January 1977 by the charismatic Jobs, the meditative inventor Wozniak, and their new partner and chairman, Mike Markkula. Markkula brought credibility, maturity, engineering and product management experience, and an extremely broad-based knowledge of the business world, as well as investment cash of his own and contacts among Silicon Valley's venture capitalists. Markkula also recruited all of Apple's outside board members and lured away managers from other major high-technology firms, including Hewlett-Packard, Intel, and National Semiconductor.

3. Apple II and the MacintoshIn 1977 Apple introduced the Apple II, a personal computer able to generate color graphics, with its own keyboard, power supply, and eight slots for peripheral devices, which gave users wide possibilities for add-on devices and software programs. Apple established its corporate headquarters in Cupertino in 1978. The Apple III computer, introduced in 1980, sold poorly because of hardware problems and a high price.With Apple II sales soaring, in 1982 Apple became the first personal-computer company to record annual sales of $1 billion. In 1983 Apple introduced the Lisa, a personal computer...

Apple Computers- change of directorsIn the early 1970’s two friends from high school, Steven Wozniak and Steven Jobs, changed the world for the better. Jobs prior to working for Apple, worked for Atari, and Wozniak worked for Hewlett-Packard. Both men dropped out of college in hopes of making a fortune (in then) a small computer company.Apple Computer Inc. started with the introduction of the Apple I computer on April 1, 1976. Even thought the computer wasn’t a big success, it made a good profit. A year after, the Apple II debuted at a local computer show. It was the first personal computer to come in a plastic case and include color graphics. Orders kept coming in for the new machine.

With the increase in orders and company size, Apple had a several thousand employees, and was beginning to sell computers very well. In 1980 with the introduction of the Apple III, Apple decided to hire new managers in order to find new funding for newer technology, to make Apple a “real company”.

By 1981 the competition soon made selling computers very difficult. The company was soon forced to lay off 40 workers. In March of that year, Wozniak was injured in an airplane crash, at

. . . The iMac would be Apple's answer to the low-end consumer question, with more than enough computing power for most people, at an affordable price. Page 3

June of 1993, Sculley was relieved of his position as CEO, putting Spindler in the big chair. Jobs also announced two new Apple machines: the PowerMac G3, and the PowerBook G3.

Soon Sculley began to lose interest in the day to day operations of Apple. 00 a year, Steven Jobs remains at the helm of Apple Computer Inc. 0, not in other versions, enabling Apple to lose exclusive rights to the interface. 0, which would

work on all the clones, and Apple with its Mac were in trouble. Jobs resigned that day, leaving Sculley as the head of Apple

History Of Apple ComputerHistoryMain article: History of AppleSee also: Apple Inc. litigation

1976–1980: The early yearsThe Apple I, Apple's first product. Sold as an assembled circuit board, it lacked basic features such as a keyboard, monitor, and case. The owner of this unit added a keyboard and a wooden case.

Apple was established on April 1, 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne,[10] to sell the Apple I personal computer kit. They were hand-built by Wozniak[11][12] and first shown to the public at the Homebrew Computer Club.[13] The Apple I was sold as a motherboard (with CPU, RAM, and basic textual-video chips)—less than what is today considered a complete personal computer.[14] The Apple I went on sale in July 1976 and was market-priced at $666.66.[15][16][17][18][19]

Apple was incorporated January 3, 1977[5] without Wayne, who sold his share of the company back to Jobs and Wozniak for $800. Mike Markkula provided essential business expertise and funding of $250,000 during the incorporation of Apple.[20][21]

The Apple II was introduced on April 16, 1977 at the first West Coast Computer Faire. It differed from its major rivals, the TRS-80 and Commodore PET, because it came with color graphics and an open architecture. While early models used ordinary cassette tapes as storage devices, they were superseded by the introduction of a 5 1/4 inch floppy disk drive and interface, the Disk II.[22]

The Apple II was chosen to be the desktop platform for the first "killer app" of the business world—the VisiCalc spreadsheet program.[23] VisiCalc created a business market for the Apple II, and gave home users an additional reason to buy an Apple II—compatibility with the office.[23] According to Brian Bagnall, Apple exaggerated its sales figures and was a distant third place to Commodore and Tandy until VisiCalc came along.[24][25]

By the end of the 1970s, Apple had a staff of computer designers and a production line. The Apple II was succeeded by the Apple..

Apple Computers

Apple Inc, is a company that epitomizes what innovation and re-invention is all about. By using innovation the company has been able to turn itself around from the poor position it was in of 2000 to the far more attractive and appealing position it is currently in as one of the most innovative and forward thinking technological firms in the market today.Essentially Apple Inc. was able to turn its fortunes around by being highly innovative in the digital media market which was still only present in the underground computer networks and communities for the late 90’s. Apple was able to foresee the mammoth market that digital media could expand into, furthermore Apple was able to develop a product that was highly innovative in the iPod, and then its follow up service the iTunes store, which facilitated the distribution and legal purchasing of media online.Looking at Tidds 4 P’s we can say that the initial implementation and sale of the iPod was indeed a product innovation; previously apple had only been a computer hardware and software manufacturer; however the iPod saw Apples first foray into personal audio and marked the start of Apple marketing its Macs as the centre of a digital lifestyle, gone were the Play, Pause,Stop buttons that you would see on a typical portable music device (like a portable CD player ). These buttons were replaced by a single wheel on which you could slide your fingers over to perform the play, stop and pause actions. Thus was born a new user interface which facilitated the true needs of the end user, enabling them to interact with the device in a whole new way, which not only allowed you to listen to your music, but also "wear" your music. A truly innovative creation the iPod concept quickly permeated into the pop culture and the iPod became a large part of Apple Inc’s recent success.Complementing this new product of the iPod and further increasing the perception

of Apple Inc, as a major innovative firm was the development and launch... Is this Essay helpful? Join

Apple Computers- competitive advantage

Apple Computers was founded in 1976, by a pair of college dropouts, Steve Wozniak, and Steve Jobs. The business started in the Job’s family garage, where the two built a computer circuit board.   The two acquired a partner, Markkula, who was the “experienced business man.”   Wozniak was the technical genius, and Jobs had the vision “to change the world through technology.”   Together, they did. Apple’s mission was to “bring an easy-to-use computer to every man, woman, and child.”   Apple was the leader in the computer industry by the end of the 1980’s.   Apple Computers since has had its share of ups and downs over the years, but is still bringing the most advanced and innovative technology to consumers.   Apple Computers has built a number of competitive advantages since the beginning of the computer industry.   In 1978, Apple launched the Apple II.   It was simple to use, and ready right out of the box.   For three years, Apple stood alone in the personal computer market, therefore it was a monopoly.   Apple possess four differentiations; brand loyalty, innovative hardware design, dedicated market shares, and ease of use.   On page 36 in the text book, it is stated that “competitive advantage accrues to companies that possess distinctive capabilities.” Apple focused on rolling out new products every six to twelve months, keeping them ahead of the competition.   Brand loyalty is one of Apple’s leading competitive advantages.   In 1990, “the majority of IBM and compatible users ‘put up’ with their machines, but Apple customers ‘love’ their Macs.”   If a person falls in love with a product, they will continue to be loyal to that company until their needs and desires are let down.   By 1990, Apple’s worldwide market share stabilized at about 8%.   In the education market, the company held a share of more than 50%.”   Education will

always require the latest technology and advancement, which leads the school systems to upgrade on a regular basis, driving up the bottom line...

Product Life Cycle Analysis For The Apple IpodThe alarm clock rings and its time to go for a jog and get the morning routine off to a good start. After my morning jog I take a shower while listening to my favorite high-energy-time-to-wake-up music. The weather channel says it is going to be a rainy morning, so I grab my umbrella and head for the door. During the car ride I toggle between the news and my French audio lessons. All of these events are done through the use of a little device that seems to be everywhere you look. For the past years we have seen how APPLE Computers Inc. has not only introduced the Ipod into the market for music players, but created the new must have pop icon. The following is a brief analysis of the product life cycle of iPods. iPods were first introduced to in 2001 and has since grown into a recognized cultural symbol. Designed and marketed by Apple Computer, iPod is a brand of digital audio/video players that stand apartfrom the rest due to their user friendly interface and sleek design. Customers can carry their entire music collection and more in their pockets. Although Apple Computer already had a huge following of loyal costumers, the iPod has created a new generation of Apple fanatics that simply cannot get enough of the iPod and all of the iPod attachments that have since developed.

THE GROWTH STAGECurrently the iPod finds itself in the growth stage of its product life cycle. It has shown a steady growth rate as demonstrated in the sales reported by Apple Computers for the past 15 quarters. The most recent quarters have shown a significant increase in the sales volume of iPods, a good indicator that the iPod

market is expanding. It appears as though there is now definitely a public awareness of the Apple iPod worldwide. Competition is also quickly increasing as new players are being incorporated into the market. Some of the main competitors include Creative Technologies, Dell and Sony. All of which create similar players that incorporate design and...

Industry Analysis: Apple ComputersIndustry Análisis: Apple Computer

1.Analyzing the computer industry from 1995 to 2005 seemed to be like analyzing a game of chest between the major competitors. The development is noticeable and the shaping of different corporate strategies could be sensed easily thanks to the different approaches toward the movement of the industry that the companies had; some of them shaped it, some followed it and some helped it grow. In order for us to analyze the computer industry during the up said time period, we will consider porter's five forces analysis, though static, it helps improve one's understanding of the setting and the conditions of such. Porte's five forces constituted the analysis of the new entrants to the industry as the barriers that can occur and the rivalry that represents it, the supplier's and buyer's power and the threats from substitute products. With this in mind, in order to determine if the industry is attractive or not we need to understand the pulling of these forces and therefore the profit potential of such industry. Since we are mainly concerned with Apple computers, we will alternate also with the position of the company and its defense against these forces giving a setting for recognizing the company's corporate strategy.

By 1995 the computer industry was a relatively new industry with a history of around 20 years only, a considerable time for a technology based industry, but still not a mature industry. On the other hand, by 2002 the industry was all ready a "$220 billion global industry"   showing how "from its earliest days in the mid 1970's, the industry had experienced explosive growth"   and presenting the

industry as a very attractive industry with capability of even more growth. Even with this growing strength, there was a great presence of economies of scale, if a new company were to enter this industry it would have to face the cost disadvantage of not coming in with a large scale, since competing against IBM and Microsoft,...

External Ananlysis - Apple CorporationApple Computer’s 30-year history is full of highs and lows, which is what we would expect in a highly innovative company.   They evolved throughout the years into an organization that is very much a representation of its leader, Steven Jobs.   Apple made several hugely successful product introductions over the years.   They have also completely fallen on their face on several occasions. (Burrows, Grover, and Green)External Analysis:1) Technological Change: Technological change creates both opportunity and threats. Apple’s products are trendy and stylish.HP, Dell and other manufacturers are pricing many systems under the $1000 threshold. “Apple is struggling to meet demand for its new MacBook Pro Laptop despite a $1900 price tag that is nearly that of garden-variety rivals.” (Burrows) Apple has only recently entered the low-end consumer market ($500) with the Mac Mini. Although the Mac Mini is a base model with few features, it comes encased in a very small and distinctive package that Apple portrays as – “small is beautiful”. Likewise, the iPod Shuffle was Apple’s first entry into the lower-end ($100 range) of flash-memory-based portable music players. (Apple) Although Apple competes directly with Microsoft for operating systems, the release of iTunes for Windows in 2002 was a key strategic move. This decision expanded the potential customer base to nearly all personal computer owners, even though Apple only has 2% - 3% of all personal computer sales. (Yoffie) Apple not only dominates the music player market, its iLife suite provides consumers with easy-to-use software for music and video composition. With “pod cast” a household word, Apple’s Garage Band application makes the recording of pod casts and music very easy. (Boddie)2) Legal and Political Conditions: The legal and political dimensions of an

organization’s general environment are the laws and the legal system’s impact on business, together with the general nature of the relationship between government...

sApple Inc. A 30 Year Business StrategyApple Inc. A 30 year business strategy

A response to Harvard Business School Case Study 9-708-480 Apple Inc., 2008

Abstract

Apple’s fundamental business model has not changed since it first began business in the late 1980’s. While being a leader in innovation, Apple has consistently produced proprietary hardware and software, eventually leading to a loss of market share in any particular market they have ventured into. Even though it has learned from some mistakes, Apple’s actions in the past few years have not shown a change from the core reasons for its failures and unless new actions are taken its current market lead will eventually dwindle.

This analysis will look at the various stages of the Life Cycle of Apple, what type of business strategy was employed during that stage and the results of those strategies. We will look at Apples strategy vs. the PC side of the market and how those differences have affected Apple. Finally, the various pieces of the Apple world will be viewed to see if and what Apple has learned over its lifetime.

Apple Computer’s Business Strategy

Since its inception, innovation has been at the forefront of Apple’s ability to compete in the world market. Steve Jobs and Steve Wozniak sparked the PC

revolution, turning the world of computers on its head. The Apple II (offered initially in 1978) drove the PC industry to $1 Billion in annual sales in less than three years. (Carlton, pg 10).

Even though initially viewed as a toy by many businesses, the Apple quickly showed itself as a viable substitute to the traditional mainframe. In the years that followed Apple continued to prove its ingenuity; being the first to introduce a computer with color, a Graphical User Interface, sound, a mouse, laptops, and many other firsts.

These inventions came to define Apple and its business strategies. Based on its fully bundled package of hardware and software Apple became synonymous with usability. A staple of Apple computers became...