Group C6

Apple
1992 – 1997 : Decline in Performance Four CEOs
1. 2. 3. 4.

Steve Jobs - Visionary John Sculley – Marketing expert Michael Spindler – Engineer, International Expert Gilbert Amelio – Turn around Specialist

Two third of Market share is lost $1.6 billion dollar loss Stock price at an all time low

PowerPC chip – fleeting price advantage – 1995 price cut 25% Killed Star Trek 1995 Computerworld Survey – Apple losing momentum Taligent & Kaleida fail International Markets Japan fails China – Expansion Plans Operation Problems Amelio Streamline Product Lines Higher Margin Segments Premium Price by Differentiation 1996 – Impact of „95 Fire – Mkt Share drops from 6% 3% Core Education Mkt Share Scrapped the new Mac OS Acquire NeXT PDA (Newton) – 6% M. Set-top boxes Taligent (OS) PowerPC chip Kaleida (language) Headcount down by 10% PDAs 1992 – Star Trek – by Nov they had a prototype Intel-based PC .S.Group C6 1992 – 1997 Highlights 1985 1993 1995 1997 Sculley Low Cost Producer Mass Market Appeal Maintain Tech Lead 1991 Allied with IBM Spindler Price Controls Refocus on Core Mkts Licence for Clones 1994 – Power Mac .

Causes Stock-Outs Unforeseen Losses Due to “fire” in „95 Cost Control Procedures Fail Clash of Ideologies .Group C6 Causes of Failure Eroding Brand Loyalty IBM becomes a major competitor Pricing Woes Failure of Other Products Mkt Share drops Intl Markets Fail Streamlining Prodn.

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