Apple Incorporation – Case Analysis Essay Example

overall market environment, including demographic, economic, political/legal, socio-cultural, and technological factors, as well as Porter's five forces. It will also analyze Apple's opportunities and threats and deconstruct the industry structure to evaluate market size, distribution channels, competitors (both strong and weak), and potential strategic moves by rivals.

Within the following text, there will be an enumeration of economies of scale and key success factors as well as financial information to yield a logical direction. Additionally, readers can look into the Apple Value Chain. An assessment of Apple's mission, vision, and financial goals will be included to leverage an internal analysis. The dissection of products and services, along with its corporate culture, values, and morals will also be examined. The identification of core competencies will be analyzed in combination with a value chain review to assist Apple in defining its true advantages to ensure future successful operation.

Apple management will receive recommendations that outline the pros and cons of implementing strategies to improve their position in the computer and digital music industries. The history of Apple dates back to 1976 when Steve Wozniak, a self-taught engineer, and Steve Jobs, both college dropouts aged 26 and 21 respectively, founded Apple Computer. Prior to this venture, they had collaborated on creating devices that facilitated toll-free phone calls.

After selling a few hundred boxes, Wozniak continued on to create the Apple I computer box. To finance the project, the team sold their van and two calculators, eventually earning the $1300 required to build it in Jobs' garage. They managed to sell over 200 units to computer hobbyists in the San Francisco Bay area. Meanwhile, Wozniak worked on the Apple II and Jobs

hired high school computer enthusiasts to build circuit boards and design software. It was Jobs' idea to house the circuitry in a sleek beige plastic container, both hoping to provide computer enthusiasts with a more compact, user-friendly machine.

Jobs enlisted the assistance of Regis McKenna, a prosperous owner of an advertising relations company, to create an advertising plan for the enterprise. McKenna fashioned the iconic Apple logo and promoted it in publications aimed at personal computer enthusiasts. It was only a matter of months until sales hit $1 million by June 1977, and it surged to over 35,000 computer sales by 1978. The growth rate was phenomenal, and by 1980, the company went public with sales skyrocketing to $117 million.

After Wozniak's departure three years later, Steve Jobs recruited John Scully from Pepsi Company to serve as president. Despite encountering some setbacks, the launch of the Macintosh in 1984 was a pivotal moment that propelled Apple to become a widely recognized brand. However, conflicts between Jobs and Scully ultimately led to Jobs' departure in 1985. Around this same time, Microsoft and Bill Gates were urging Apple to license its products and adopt the Microsoft platform as the industry standard.

During the late 1980s, Apple had secured its position in the corporate world by introducing the Mac Plus and Laser Writer printers, which were well-received in the desktop publishing industry. However, the company faced challenges from Microsoft's Windows operating system and the failure of its Newton hand-held computers, which led to a drastic decline in earnings. The resignation of John Scully and downsizing efforts furthered the company's struggles as it endeavored to shift toward licensing its operating system to

Macintosh clone producers. However, this approach proved unsuccessful as it actually caused Apple to lose a significant amount of money and market share. In an effort to regain momentum, software was developed to allow Macintosh to connect with IBM systems, resulting in increased sales that reached over $4.

In 1997, CEO Gilbert Amelio bought NeXT software from Steve Jobs in the attempt to create Apple's new operating system. However, the plan was unsuccessful and resulted in Amelio being removed from his position in 1998 and Jobs being reinstated as CEO. Jobs wasted no time in striking a deal with Microsoft, ceasing the production of Newton handheld devices and printer products, and incorporating Claris software into the main offices while cutting cloning company licenses. Apple still managed to successfully launch the iMac and iBook product lines during this time and continues to market them to consumers and educational institutions.

Apple offers both G4 portable and desktop versions, which are marketed towards design and publishing industries. The company's history demonstrates several changes to strategic management that drove equipment and software updates. Initially, Wozniak and Jobs aimed to create a small, user-friendly desktop computer for enthusiasts. The strategy then shifted towards manufacturing Apple II for the consumer industry. As sales increased, management continued modifying strategies to capture more market share.

Apple's motivation to enter the office market, which was dominated by IBM, led them to concentrate on developing the Apple III. As a result, the product was released prematurely without proper line testing, resulting in defects that required production halts and repairs. Apple never achieved the same level of sales for the Apple III as it did for the Apple II.

Although some strategic management decisions prove incorrect, Apple regrouped and increased R&D investments by $21 million.

Jobs aimed to develop an approachable computer that anyone could operate. He executed this strategy by releasing the Lisa computer, which included a mouse, hand-controlled pointer, and visual images that acted as keyboard commands. This shift in strategy correlates with a heightened emphasis on customer needs. Jailbreaking from computer enthusiasts to the office market was a significant directional change. Jobs' vision was to create a "people's computer" that catered to individuals with minimal technical background. This endeavor also aimed to seize some of IBM's business share in the office market. Although the introduction of the Macintosh in 1989 contributed to this objective, it was a short-lived specialized proficiency that could easily be mimicked.

During his tenure as CEO, John Scully led Apple to expand into the consumer and education computer industry and global markets. However, IBM's release of a new operating system that imitated the Macintosh's ease of use prompted Apple to consider multi-tasking functions. It is worth noting that even the best strategies cannot always overcome management unrest or battles for power within a company. When Scully was ousted, Michael Spindler licensed Apple's technology to external companies, which ultimately ate away at profits. In addition, Spindler's introduction of the Power Macintosh in the mid-90s demonstrated that Apple had the right products for the market but lacked the right people to promote them.

Under Spindler's leadership, the management team underestimated demand for their products, resulting in $1 billion worth of unfulfilled orders and a 15% stock plunge. After Scully was replaced by Amelio, the company implemented cost-cutting measures that caused share prices

to drop from $70 to $14 and market share to decrease from 16% to 4%. Despite being effective, poor management hindered Amelio's strategy until NeXT was acquired and Steve Jobs hired as an advisor. With this new direction, the company realigned its strategy based on past successes.

Under Jobs' leadership, Apple redefined its business strategy by cutting licenses, eliminating most of its products, and withdrawing from the printer, scanner, and portable digital assistant markets. Instead, Apple focused on providing desktop and portable Macintosh computers for professional and consumer customers. This shift aimed to offer reasonably priced computers that were also popular. After ten months of hard work, Apple introduced the iMac in the late 1990s as a pared-down version of its past self. Nowadays, Apple concentrates on the digital hub, retail, and educational sectors. The company's 2003 annual report outlined its commitment to bringing the best computing experience to students, educators, creative professionals, businesses, and consumers worldwide.

Apple's goal is to change personal computing through their inventive hardware, software, peripherals, and internet services such as Mac™ and the iTunes® Music Store™. Their vision involves a fresh era of connectivity between digital devices that brings benefits for consumers. Apple holds a strategic advantage by being the sole personal computer company that designs and produces complete computers, enabling them to offer digital hub solutions. As part of their retail program, Apple launched 65 stores during 2003 and added nine more in Q1 2004.

In 2004, Apple inaugurated its first overseas store in Tokyo, Japan. The company selects top-quality shopping malls and urban shopping areas for their retail establishments with the objective of expanding their customer base by enticing first-time

computer purchasers and those seeking to switch to the Macintosh platform. To enhance the retail experience, Apple hires knowledgeable staff members who can offer post-sale advice and assistance. Furthermore, they provide a variety of third-party products that complement their own merchandise. Additionally, Apple maintains a steadfast dedication to providing technological products for educational purposes.

It is believed that incorporating technology in classroom instruction can improve it and increase student success, while also maximizing school investments. Apple recognizes the importance of the creative industry as a key business strategy sector, and therefore designs their hardware and software products with this customer base in mind. Apple's emphasis on addressing specific customer needs is a vital aspect of their overall strategy.