Essay PreviewMore ↓
This case basically walks you through the ups and downs in the history of the Apple Company. Steve Jobs and Steve Wozniak started the company in 1976 with the Apple I. In 1984, the company expanded with the Macintosh, which was the first affordable computer. After the introduction of the Macintosh, the company continued to grow and introduced the Mac II, Powerbook, iMac, and most recently the iPod line. Apple was the market leader up until the mid 1980's when IBM was introduced to the public. Gateway, Dell, and HP were soon to follow, and they too acquired some of the market share that had once belonged to Apple. Apple has consistently failed to gain market share over the past decade and has even posted quarterly losses- something unheard of in the beginning. Apple's recent initiatives in advertising and distribution seem to be successes, but the company must still endure the economic uncertainly that is in the marketplace today while simultaneously finding a way to compete with Microsoft and the other leaders in the computer industry.
Apple's consistent loss of market share and posted losses in 2001 and 2002 are signs that the company faces an underlying problem.
The issues facing Apple are wide ranged. First and foremost, they company needs to better its competitive strategies in order to gain back some of the market share that it has lost to corporations such as Dell, IBM, HP, and Gateway. Apple also needs to position itself to "steal" PC users and convince them that Apple software and operating systems are superior to those available on PCs.
Strengths -Apple has maintained a good reputation for quality.
-The company uses innovative advertising campaigns.
-Their new products are producing large revenues (iPod).
-They have a good balance in their distribution channels.
-Apple has the most stable operating system available.
Weaknesses -They lack the ability to convert PC users to their system.
-The company spends too much on advertising.
-Apples are seen as computers for professionals.
-The lack a good sales forecasting method.
Opportunities -Apple can expand with the switcher program and new stores.
How to Cite this Page
"Apple Computer Case." 123HelpMe.com. 23 May 2019
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Apple Computer, Inc. Case Description: This case basically walks you through the ups and downs in the history of the Apple Company. Steve Jobs and Steve Wozniak started the company in 1976 with the Apple I. In 1984, the company expanded with the Macintosh, which was the first affordable computer. After the introduction of the Macintosh, the company continued to grow and introduced the Mac II, Powerbook, iMac, and most recently the iPod line. Apple was the market leader up until the mid 1980's when IBM was introduced to the public.... [tags: Business, Case Study, solution]
1171 words (3.3 pages)
- Overview/Introduction In this analysis, I will address the following: (a) the main components to the success of Apple Computer, Inc., (b) how Chuck & Don.s has applied some of these successes, and (c) identify an additional company that could benefit from the lessons from this case. Success From this case study, four main components of success for Apple Computer Inc. surface: Innovation Strategic thinking and partnerships Marketing savvy Learning from past mistakes Apple Computer Inc.... [tags: Apple Case Study]
2907 words (8.3 pages)
- Bijay P Shrestha EE 4302 Dr. Robert Magnusson 20 September 2012 Apple A company whose birth was at the cluttered garage of one of the two founders now has become one of the historically successful companies with more than 360 stores around the world, 60,000 plus employees, and market capitalization of more than $619 billion, more than world’s second biggest oil company: Exxon Mobil, in last thirty years (Worstall, Tim). The small initiative startup company at the Silicon Valley who has kissed this level of success is taken by surprise.... [tags: Steve Jobs, Apple Inc., IPhone, Steve Wozniak]
1478 words (4.2 pages)
- Apple and Microsoft are one of the biggest computer systems known to man. Both are very different from each other that attract many people. Apple offers unique products and gadgets within the device. It comes with a variety of different things that have multiple positive items. Apple is clearly a better choice when it comes to electronic devices. Apple consists of multiple different devices. Each and everyone can link to each device so you can access whatever you 're doing on any of your devices.... [tags: Apple Inc., Operating system, IWork, Computer]
994 words (2.8 pages)
- Ever wonder How a Corporation, could start out of nothing and become the leading technology Company in the world. Its amazing, Apple is A company That is a great example. Steven Wozniak and Steven Jobs where best friends in high school. They had both been interested in electronics. They always tried there best to keep in touch after graduation, they both ended up dropping out of school and getting jobs working for companies in Silicon Valley. Woz worked for helewt packer and jobs for Atari. Wozniak had been working in designing computers for along time when, in 1976, he designed the Apple1.... [tags: Apple Inc., IPod, Steve Jobs, ITunes Store]
1340 words (3.8 pages)
- The History of Apple Inc. Apple is a well-known company when it comes to technology. Apple products are extremely desirable despite their outrageous prices. Apple technology is so preferable because these products were created by everyday people who knew exactly what consumers wanted. Apple was founded in 1976 by two college drop outs, Steven Jobs and Steven Wozniak. Both Jobs and Wozniak were often viewed as outcasts. They were friends in high school and were both fascinated with electronics. Wozniak had been attracted to computer-design and created what became the Apple I.... [tags: Apple Inc., IPhone, Steve Jobs, IPhone OS]
1278 words (3.7 pages)
- Investigate and Analyze the Company’s History and Growth The rise of apple products began in 1976 by two men, Steve Jobs and Steve Wozniak. Jobs and Wozniak were both highly intelligent and were interested in electronics; however, they were not the social type so people looked at them as outcasts. Both of the men ended up dropping out of school and working for companies in the Silicon Valley. Steve Jobs worked in the Atari industry and Steve Wozniak worked for Hewlett –Packard. Later the both men came together and designed the first Apple computer called the Apple 1.... [tags: Apple Inc., Steve Jobs, Steve Wozniak]
1524 words (4.4 pages)
- A boy, adopted by middle class parents, who dropped out of college after six months, decided to begin his own business, and he stated his business on 1 April; April Fool’s Day (Dernback, n.d.). Society would presume that a company with such a colorful beginning would most likely not survive its infancy stage, but that is not the case for this story. In 1976, this company began with three men and one thousand dollars, but it started a movement that would revolutionize the world, Apple Computer was born.... [tags: Steve Jobs, Apple Inc., Timothy D. Cook, IPhone]
903 words (2.6 pages)
- Apple and the Personal Computer Revolution 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 was only a few nerds building simple computers from hobby kits. 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.... [tags: Technology Computers Steve Jobs]
1361 words (3.9 pages)
- Apple Computers There are many things you could think of when you hear the word apple. For example, “an apple a day keeps the doctor away” or “the apple doesn’t fall far from the tree.” Yet if you said apple to most Americans they would think of the infamous APPLE Computers. The reason this is so, is because APPLE Computers has changed history, present and the future in America. There are three main reasons for the company becoming so remarkable. First is Steve Jobs and Steve Wozniack, second is the early days of APPLE Computers and third is modern day APPLE and its great effect on America.... [tags: Apple Cooperation]
1079 words (3.1 pages)
-New electronics allow them to serve a new market sector.
-Apple is positioned to be the future entertainment leader.
-They can continue to build on their integrated distribution.
Threats -Apple's market share is decreasing while others are increasing.
-The computer market is mature.
-Apple is facing very strong competition.
-Economic uncertainty is present in the market today.
Apple has already made numerous efforts at recapturing the strength that they once had. They have continuously developed new hardware and software, spent more money on advertising, integrated their distribution systems, and outsourced certain areas to improve their operations. That being said, there is still ground left to be covered. Apple could revamp their ads and direct them more towards showing the benefits of the Mac OS system. The company could also continue to expand not only by opening more brick and mortar locations, but also by adding to their already successful consumer electronics line. Apple also needs to concentrate on developing software that is geared toward the PC user so that they no longer feel that going to Apple would be a "switch".
Proposal for the Future:
I do not believe that Apple will ever be the force that it once was simply because of the strength and number of competitors in t he market today. However, they can maintain, if not regain, market share by implementing new ideas. Apple needs to continue to appeal to young computer users. If an adolescent grows up on an Apple computer they will most likely remain loyal for life. The company also needs to spend time convincing consumers that Apple is superior to PCs. They need to showcase the fact that Mac OS is the most stable operating system available. Finally, I would suggest that Apple continue to add to its consumer electronics line with new products and accessories. This new segment brought in over $650 million in 2003- which was 12% of all revenues- and is poised to grow. Apple needs to take advantage of the opportunities that they have.
Q: Why did the first mover advantage Apple had in the computing industry not provide a sustainable competitive advantage?
A: Apple indeed made the first move and enjoyed being at the top of the market for a period of time, but their competitive advantage could not withstand the formation of new companies. HP, Dell, IBM, and Gateway all entered the market with distinctive strategies that appealed to certain sections of the market. Apple failed to compete with these new initiatives and fell behind.
Q: Will Apple's reputation as a computer use by "content creation professionals" help of hinder its efforts to expand its market share?
A: I think this reputation will hinder expansion. Apple already sells to the majority of these professionals; therefore expansion within the professional world is limited. The market with high growth potential is that of the everyday computer user. These people are often intimidated by Apple's reputation and feel that a "professional" computer system is far too complicated and choose to stay with PC companies.
Q: What are the advantages and disadvantages of shifting into the consumer electronics field?
A: By expanding into a new division, Apple is now able to reach an entirely new group of customers and increase their markets. The sale of these electronics brought in $650 million in 2003- 12% of the companies revenues. This shows that their line has great potential. However, Apple is the new face in the electronics game and must work to build a name for itself as well as compete with the already trusted market leaders. It is also possible that Apple will lower the perceived value of its computers if the spread themselves too thinly through a number of other fields.
Q: Will selling over the Internet eliminate the need to worry about sales forecasting, inventory control, and logistics?
A: No. Apple is still selling through other channels of distribution in addition to the Internet and these other channels depend upon forecasting, inventory and logistics. As far as the Internet channel is concerned, inventory is not the foremost concern anymore, but success still depends on forecasting and logistics. Apple cannot turn its back on these key business components and expect to remain prevalent in the computer market.