Apple Computer Inc Case Study

Julianne Carrido, Sami Hakimeh, Kyle Hayes, Frankie Lau Thursday, May 31, 2006 Apple 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 Environment Demographic Segment The 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 Segment Apple 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 Segment There 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. Sociocultural Americans 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.

Good customer and product support enhances the value perception and experience for the user. Knowing how customers think. These strong returns will allow Apple to invest in new products thus attracting new customers which will increase its et share. Apple has been extremely innovative and with strong sales of it¶s unique IPOD. Global Globalization has had a major impact on the. The Apple brand must create a desire to own and reward the user with more than just the basic tangible product functionality. it has realized above normal profits. Executive Summary Strategic intent Strategic Path Strategic Path Apple develops and sells innovative products at a profit and creates a customer experience that change the way people work. communicate and learn. Apple Computing Inc..Technological Technology has been and always will be a major component in any computing business.. what they want and how they make decisions provides the information to provide the customer with a value for money experience. 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. think. . Market opportunities are seized by redefining existing market concepts. Apple Computing Inc.

Stakeholder Stake in the project Potential impact on Project Growth percentage of online distribution Perceived attitudes and/or risks 12 ± 24 years Downloaded an average of 12 tunes per month. the digital lifestyle and music. The official focus is on growth by concentric diversification into portable / mobility and wireless communications. iPod. By attending to some of these basic principles Apple has ensured its place as a strong competitor in the market. housing libraries .: Think Different. 4 C¶s Stakeholder Analysis ‡ Customers Based on the background of ³the era of the Digital lifestyle´. Current Conditions Analysis Current strategy Apple's current strategy in the PC market revolves around a business of software manufacturing that drives the hardware and retail categories.This customer focus enables Apple to create innovative products in early markets. Think Online Music´ . 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. Inc. 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. ³Apple Computer. 2004). iPod mini and iTunes Music Store (Evans. iTunes 3 target customers are.

latest releases and favourites and a free 30 second full quality preview of any song. but have a one stop shop for all their preferences.between 25 to more than 300. ITunes interface as shown in exhibit 7. 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 music 25 ± 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. They like to be µdown with the latest releases (both audio and video)¶. 65 million people in the USA had downloaded a song from the internet. Statistics show that by July 2003.. µthe newest kid on the block¶ and to be known to own it. artist and album ‡ Software design is attractive and easy to use ‡ Sound in industry standard Dolby Advanced Audio. top songs. have the top albums. 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. Most consumers of this online music were children and teens. (They do not have a dependable income). Based on this. the target segment 12 ± 24. This will seize the tedious search on the internet..000 songs from the internet High 59% ‡ Unlimited library of songs and videos by genre. Today¶s music industry targets the younger generation. Apple Computer Vs Microsoft Introduction: It seems that the competition that has been brewing between Apple Inc. . The growth rate by December 2002 was at 26% and by less than 5 months it had grown to more than 30%.

As a result.. on personal computers.S...03 and later.0. v. 1993. Apple lost all claims in the lawsuit. even as both companies have had ups and downs in the stock market and in the consumer products market as well. Release of Windows 2. Both GUIs were developed as a user-friendly way for ordinary mortals to communicate with the Apple computer. (NASDAQ: MSFT) has never really died down from the late 1970s. . having a similar GUI. Inc. Apple Inc. and perhaps all GUIs. 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.0 in present and future products. 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. Products: Lisa and Macintosh are Apple computers. the decision was affirmed on appeal in 1994. Apple complained. When Microsoft Corporation released Windows 1. The lawsuit was filed in 1988 and lasted four years.0 Microsoft released Windows 2. [1] and the appeal to the U. Some critics claimed that Apple was really attempting to gain all intellectual property rights over the desktop metaphor for computer interfaces. The lawsuit was decided in Microsoft's favor on August 24. Microsoft Corp.(NASDAQ: AAPL) and Microsoft Corp. Supreme Court by Apple was denied.03 & 3. Windows. Each has a graphical user interface ("GUI") which Apple Computer. the two agreed to a license giving Microsoft the right to use and sublicense derivative works generated by Windows 1. icons and pull-down menus which can be manipulated on the screen with a hand-held device called a mouse. registered for copyright as an audiovisual work. the Lisa Desktop and the Macintosh Finder1 are based on a desktop metaphor with windows.

2% market share in the Personal Computer Manufacturing Industry (third quarter. However. Companies are active in innovation. . This report will examine the pertinent issues within Apple (as at 2005). laptop and portable music player also know as the iPod that uniquely uses the iTunes music player software. External Environment Analysis Five Forces Model ± Personal Computer Market 1. and they are aware that PC¶s are weakly differentiated. an analysis of their current strategies used to achieve their success. HP. Apple Computer is currently the leader in the MP3 player industry and holds a 4. it is vital for the company to examine their strengths. 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. improve profitability and remain viable in constantly changing markets. an action plan and recommendations of strategies that Apple could use to increase market share. IBM and Apple computer. Gateway. was established in 1976 and is widely recognised as a key producer in both the Personal Computer and portable music player industries. 2005).Apple Computers 2006 Apple Computers 2006 Executive Summary Apple Computer Inc. 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. weaknesses and be aware of competitor¶s role in the market. Rivalry among competing sellers Strong rivalry is evident as 5 key companies dominate the technology industry: Dell. Contributing to Apple¶s success has been the development of the personal computer. To improve or maintain Apple¶s current situation.

In 1979 Apple II+ is introduced. it includes 4K of standard memory. The Evolution Of Apple Computer Let's take a trip back in time and review the evolution of a computer company. The price about the same. case.2.195.In 1980 Apple FORTRAN introduced and proves to be a catalyst for high-level technical .298. Potential New Entrants Low threat of potential new entrants occurs when the industry is dominated by few companies such as: Dell. So when Steve Wozniak and Steve Jobs sold a van and two programmable calculators for thirteen hundred dollars and started Apple Computers. They only hired people into the company that had the same visions as they did. in Jobs garage. California. The price is $1. but the computer has changed tremendously. Apple II Pascal is also released..In early 1976 Wozniak and Jobs finish work on a preassembled computer circuit board.. They form the Apple Computer Company on April Fool's Day and sold the Apple I board for $666. Wozniak 26 years old and Jobs 21 years old. Compare this price with computers today. In the year 1976. sound or graphics. Back then the computer community added up to a few brainy hobbyist. had a vision. available with 48K of memory and a new auto-start ROM for easier startup and screen editing for $1. Incorporated. This company is Apple Computers. This makes it difficult for. Inc. They call it the Apple I. "Computers aren't for nerds anymore. HP. In 1977 the Apple II is available to the general public. It has no Product keyboard. It's not IBM or Microsoft.66 at the Home brew Computer Club in Palo Alto. IBM and Apple Computer. Low cost computers for everyone."From the first day on the founders of Apple kept their vision intact. Customers use their own TV set as a monitor and store programs on audio cassette recorders. "Computers are going to be the bicycle of the mind.But these two young business men. before most people even thought about buying a computer for their homes." they announced.. and they spoke it at every turn. the reach for success seemed far. Fully assembled and pretested. Gateway. and comes equipped with two game paddles and a demo cassette.

sound or graphics. 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. They only hired people into the company that had the same visions as they did. In the year 1976. had a vision.. Inc. Back then the computer community added up to a few brainy hobbyist. Incorporated." they announced. "Computers are going to be the bicycle of the mind. It has a new." From the first day on the founders of Apple kept their vision intact. the reach for success seemed far. in Jobs garage. So when Steve Wozniak and Steve Jobs sold a van and two programmable calculators for thirteen hundred dollars and started Apple Computers.. before most people even thought about buying a computer for their homes. In early 1976 Wozniak and Jobs finish work on a preassembled computer circuit board. They call it the Apple . This company is Apple Computers. Wozniak 26 years old and Jobs 21 years old. "Computers aren't for nerds anymore. case. Low cost computers for everyone. But these two young business men. Apple III announced at the National Computer Conference. and they spoke it at every turn..and educational applications. It has no Product keyboard. It's not IBM or Microsoft.

Founding Apple was formed by Steven Jobs and Stephen Wozniak in 1976 to market the Apple I. They form the Apple Computer Company on April Fool's Day and sold the Apple I board for $666. Customers use their own TV set as a monitor and store programs on audio cassette recorders. In 1979 Apple II+ is introduced.195. but the computer has changed tremendously. California. and networking products. Apple II Pascal is also released. printers.298. Inc. software. They scrapped their plan to sell the board alone when Jobs's first sales call yielded an order for 50 units. Apple Computer. and comes equipped with two game paddles and a demo cassette. In 1980 Apple FORTRAN introduced and proves to be a catalyst for high-level technical and educational applications. a computer circuit board that they had designed and built in Jobs's garage in Los Altos. Compare this price with computers today. 1. California. Fully assembled and pretested. Apple designs. monitors.. education. Introduction Apple Computer. and sells personal computer systems for use in business.I. and the home. The price about the same. government. The price is $1. it includes 4K of standard memory. sold . In 1977 the Apple II is available to the general public. California. Apple. They were. scanners.66 at the Home brew Computer Club in Palo Alto. Inc. produces. however.macintosh and apple 2 Apple Computer.. available with 48K of memory and a new autostart ROM for easier startup and screen editing for $1. major manufacturer of personal computers with headquarters in Cupertino. 2. Its products are sold in more than 120 countries and include personal computers..

including Hewlett-Packard. as well as investment cash of his own and contacts among Silicon Valley's venture capitalists. a personal computer.without monitor. power supply.. or casing. introduced in 1980. Even thought the computer wasn¶t a big success. Both men dropped out of college in hopes of making a fortune (in then) a small computer company. and their new partner and chairman. and eight slots for peripheral devices. started with the introduction of the Apple I computer on April 1. engineering and product management experience. maturity.change of directors In the early 1970¶s two friends from high school. In 1983 Apple introduced the Lisa. with its own keyboard. Apple established its corporate headquarters in Cupertino in 1978. and Wozniak worked for Hewlett-Packard. The company was incorporated in January 1977 by the charismatic Jobs. It was the first .. Jobs prior to working for Apple. keyboard. Markkula also recruited all of Apple's outside board members and lured away managers from other major hightechnology firms. A year after. The Apple III computer. the Apple II debuted at a local computer show. a personal computer able to generate color graphics. sold poorly because of hardware problems and a high price. and National Semiconductor. 3. it made a good profit. Apple Computer Inc. Apple II and the Macintosh In 1977 Apple introduced the Apple II. which gave users wide possibilities for add-on devices and software programs. 1976. worked for Atari. With Apple II sales soaring. and an extremely broad-based knowledge of the business world. in 1982 Apple became the first personal-computer company to record annual sales of $1 billion. Intel. Markkula brought credibility. Apple Computers. Steven Wozniak and Steven Jobs. Mike Markkula. the meditative inventor Wozniak. changed the world for the better.

0. and was beginning to sell computers very well. Sculley was relieved of his position as CEO. In March of that year. The iMac would be Apple's answer to the low-end consumer question.personal computer to come in a plastic case and include color graphics. With the increase in orders and company size.. leaving Sculley as the head of Apple History Of Apple Computer . at . In 1980 with the introduction of the Apple III. The company was soon forced to lay off 40 workers. and Apple with its Mac were in trouble. Orders kept coming in for the new machine. Jobs resigned that day. which would work on all the clones. Page 3 June of 1993. Apple had a several thousand employees. 0. Apple decided to hire new managers in order to find new funding for newer technology. Steven Jobs remains at the helm of Apple Computer Inc. Jobs also announced two new Apple machines: the PowerMac G3. enabling Apple to lose exclusive rights to the interface. 00 a year. putting Spindler in the big chair. Soon Sculley began to lose interest in the day to day operations of Apple. with more than enough computing power for most people.. and the PowerBook G3. By 1981 the competition soon made selling computers very difficult. to make Apple a ³real company´. Wozniak was injured in an airplane crash. not in other versions. at an affordable price.

While early models used ordinary cassette tapes as storage devices.[23] According to Brian Bagnall.[14] The Apple I went on sale in July 1976 and was market-priced at $666.[24][25] . and basic textual-video chips)²less than what is today considered a complete personal computer. it lacked basic features such as a keyboard.History Main article: History of Apple See also: Apple Inc. the Disk II. RAM. they were superseded by the introduction of a 5 1/4 inch floppy disk drive and interface. and Ronald Wayne. Apple exaggerated its sales figures and was a distant third place to Commodore and Tandy until VisiCalc came along. Mike Markkula provided essential business expertise and funding of $250. 1976 by Steve Jobs. It differed from its major rivals.[13] The Apple I was sold as a motherboard (with CPU. Sold as an assembled circuit board. Apple's first product.000 during the incorporation of Apple.[10] to sell the Apple I personal computer kit. monitor. The owner of this unit added a keyboard and a wooden case.66. 1977[5] without Wayne. Steve Wozniak.[22] The Apple II was chosen to be the desktop platform for the first "killer app" of the business world²the VisiCalc spreadsheet program. They were hand-built by Wozniak[11][12] and first shown to the public at the Homebrew Computer Club.[23] VisiCalc created a business market for the Apple II. and gave home users an additional reason to buy an Apple II²compatibility with the office. because it came with color graphics and an open architecture. Apple was established on April 1.[15][16][17][18][19] Apple was incorporated January 3. litigation 1976±1980: The early years The Apple I.[20][21] The Apple II was introduced on April 16. the TRS-80 and Commodore PET. 1977 at the first West Coast Computer Faire. and case. who sold his share of the company back to Jobs and Wozniak for $800.

which not only allowed you to listen to your music. 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. Thus was born a new user interface which facilitated the true needs of the end user. stop and pause actions. A truly innovative creation the iPod concept quickly permeated . Pause. previously apple had only been a computer hardware and software manufacturer. and then its follow up service the iTunes store. Essentially Apple Inc. The Apple II was succeeded by the Apple. 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 Computers Apple Inc. Looking at Tidds 4 P¶s we can say that the initial implementation and sale of the iPod was indeed a product innovation. enabling them to interact with the device in a whole new way. Apple was able to foresee the mammoth market that digital media could expand into.Stop buttons that you would see on a typical portable music device (like a portable CD player ).By the end of the 1970s. 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. gone were the Play. which facilitated the distribution and legal purchasing of media online. These buttons were replaced by a single wheel on which you could slide your fingers over to perform the play.. Apple had a staff of computer designers and a production line. is a company that epitomizes what innovation and re-invention is all about. furthermore Apple was able to develop a product that was highly innovative in the iPod. but also "wear" your music.

innovative hardware design. Apple possess four differentiations. keeping them ahead of the competition. Brand loyalty is one of Apple¶s leading competitive advantages. On page 36 in the text book. Is this Essay helpful? Join Apple Computers.´ Apple focused on rolling out new products every six to twelve months. Markkula.´ Together. where the two built a computer circuit board. Apple¶s mission was to ³bring an easy-to-use computer to every man. The business started in the Job¶s family garage. but is still bringing the most advanced and innovative technology to consumers. In 1978. Apple Computers has built a number of competitive advantages since the beginning of the computer industry. The two acquired a partner. and ready right out of the box. by a pair of college dropouts. and ease of use. and child.into the pop culture and the iPod became a large part of Apple Inc¶s recent success. they did. Complementing this new product of the iPod and further increasing the perception of Apple Inc. woman. and Steve Jobs. and Jobs had the vision ³to change the world through technology. therefore it was a monopoly.. ³the . who was the ³experienced business man. Apple launched the Apple II.´ Wozniak was the technical genius. brand loyalty.competitive advantage Apple Computers was founded in 1976. dedicated market shares. For three years. Apple Computers since has had its share of ups and downs over the years. Steve Wozniak.. as a major innovative firm was the development and launch. Apple stood alone in the personal computer market. it is stated that ³competitive advantage accrues to companies that possess distinctive capabilities. In 1990. It was simple to use.´ Apple was the leader in the computer industry by the end of the 1980¶s.

The following is a brief analysis of the product life cycle of iPods. During the car ride I toggle between the news and my French audio lessons. Although Apple Computer already had a huge following of loyal costumers. By 1990. Apple¶s worldwide market share stabilized at about 8%. For the past years we have seen how APPLE Computers Inc. has not only introduced the Ipod into the market for music players.majority of IBM and compatible users µput up¶ with their machines. iPod is a brand of digital audio/video players that stand apart from the rest due to their user friendly interface and sleek design. Customers can carry their entire music collection and more in their pockets. Designed and marketed by Apple Computer. so I grab my umbrella and head for the door.. driving up the bottom line. 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. which leads the school systems to upgrade on a regular basis. but Apple customers µlove¶ their Macs. The weather channel says it is going to be a rainy morning. In the education market. . the company held a share of more than 50%. they will continue to be loyal to that company until their needs and desires are let down.´ Education will always require the latest technology and advancement. Product Life Cycle Analysis For The Apple Ipod The alarm clock rings and its time to go for a jog and get the morning routine off to a good start. All of these events are done through the use of a little device that seems to be everywhere you look. After my morning jog I take a shower while listening to my favorite high-energy-time-to-wake-up music.´ If a person falls in love with a product. iPods were first introduced to in 2001 and has since grown into a recognized cultural symbol. but created the new must have pop icon..

some of them shaped it. though static. it helps improve one's understanding of the setting and the conditions of such. All of which create similar players that incorporate design and. The most recent quarters have shown a significant increase in the sales volume of iPods.. Dell and Sony. Industry Analysis: Apple Computers Industry Análisis: Apple Computer 1. With this in mind. 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. a good indicator that the iPod market is expanding. Analyzing the computer industry from 1995 to 2005 seemed to be like analyzing a game of chest between the major competitors. It has shown a steady growth rate as demonstrated in the sales reported by Apple Computers for the past 15 quarters. Some of the main competitors include Creative Technologies.THE GROWTH STAGE Currently the iPod finds itself in the growth stage of its product life cycle. It appears as though there is now definitely a public awareness of the Apple iPod worldwide. In order for us to analyze the computer industry during the up said time period. we will consider porter's five forces analysis. in order to determine if the industry is attractive or not . the supplier's and buyer's power and the threats from substitute products.. some followed it and some helped it grow. Competition is also quickly increasing as new players are being incorporated into the market. 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.

. but still not a mature industry. Grover.we need to understand the pulling of these forces and therefore the profit potential of such industry. 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. Apple made several hugely successful product introductions over the years. 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. a considerable time for a technology based industry. Steven Jobs. (Burrows. Since we are mainly concerned with Apple computers. and Green) External Analysis: 1) Technological Change: Technological change creates both opportunity and threats.Apple Corporation Apple Computer¶s 30-year history is full of highs and lows. the industry had experienced explosive growth" and presenting the industry as a very attractive industry with capability of even more growth. Apple¶s products are trendy and stylish.HP. By 1995 the computer industry was a relatively new industry with a history of around 20 years only. which is what we would expect in a highly innovative company.. Dell and other manufacturers are pricing many systems under the $1000 threshold.. They evolved throughout the years into an organization that is very much a representation of its leader. They have also completely fallen on their face on several occasions. there was a great presence of economies of scale. Even with this growing strength. 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. External Ananlysis . since competing against IBM and Microsoft. ³Apple is struggling to meet .

´ (Burrows) Apple has only recently entered the lowend consumer market ($500) with the Mac Mini. 2008 Abstract . it comes encased in a very small and distinctive package that Apple portrays as ± ³small is beautiful´. (Apple) Although Apple competes directly with Microsoft for operating systems. A 30 year business strategy A response to Harvard Business School Case Study 9-708-480 Apple Inc... This decision expanded the potential customer base to nearly all personal computer owners.. A 30 Year Business Strategy Apple Inc. Apple¶s Garage Band application makes the recording of pod casts and music very easy. With ³pod cast´ a household word. sApple Inc. together with the general nature of the relationship between government. Likewise. Although the Mac Mini is a base model with few features.3% of all personal computer sales. (Yoffie) Apple not only dominates the music player market. even though Apple only has 2% . its iLife suite provides consumers with easy-to-use software for music and video composition. (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.demand for its new MacBook Pro Laptop despite a $1900 price tag that is nearly that of garden-variety rivals. the iPod Shuffle was Apple¶s first entry into the lower-end ($100 range) of flash-memory-based portable music players. the release of iTunes for Windows in 2002 was a key strategic move.

Even though initially viewed as a toy by many businesses. laptops. Apple has consistently produced proprietary hardware and software. the Apple quickly showed itself as a viable substitute to the traditional mainframe. A staple of Apple computers became. innovation has been at the forefront of Apple¶s ability to compete in the world market. Based on its fully bundled package of hardware and software Apple became synonymous with usability. Steve Jobs and Steve Wozniak sparked the PC revolution. a mouse. being the first to introduce a computer with color. a Graphical User Interface. Finally.Apple¶s fundamental business model has not changed since it first began business in the late 1980¶s. the PC side of the market and how those differences have affected Apple. 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. Apple Computer¶s Business Strategy Since its inception. sound. the various pieces of the Apple world will be viewed to see if and what Apple has learned over its lifetime.. . pg 10). The Apple II (offered initially in 1978) drove the PC industry to $1 Billion in annual sales in less than three years. what type of business strategy was employed during that stage and the results of those strategies. and many other firsts. These inventions came to define Apple and its business strategies. (Carlton. In the years that followed Apple continued to prove its ingenuity. eventually leading to a loss of market share in any particular market they have ventured into.. While being a leader in innovation. Even though it has learned from some mistakes. This analysis will look at the various stages of the Life Cycle of Apple. We will look at Apples strategy vs. turning the world of computers on its head.

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