Apple Case Study

GROUP MEMBERS

Aditi Karnik Prajakta Bhandare Bharti Sonar Swapnil Pawar Lalit Singh

APPLE’S EARLY YEARS• Steve Jobs & Steve Wozniak started a

company with its product Apple I on 1st April 1976

• Limitations of Apple I-no case,keyboard,power supply,hours of assembly by hands

• Apple II – 1978 Macintosh – 1984

• Apple II came out with a critical innovation to insert a disk drive

• By 1980 1,00,000 Apple II were sold making them leader in embryonic market

Apple III was launched in 1980-failure

Market Share fluctuated from 7% -9%-4%

In 1985 Steve Jobs was fired By 2006 Apple bounced back & did

record breaking sales iPod music player, music

downloading from iTunes, MacBook laptop

THE IBM AND IT’S AFTERMATH• IBM had a huge and very profitable mainframe

computer business, but it had so far failed to develop a PC.

• 3rd PC project of IBM – Adopted an “Open Architecture.”

• 1891- IBM PC was instant success.

• Next 2 years IBM would sell more than 500000 PCs, seizing market leadership from Apple.

• As a sale of IBM PC mounted 2 things happened –1. Independent software developers started to write

programs to run on the IBM PC. 2. The success of IBM gave birth to clone

manufacturers .

• Clone Maker- 1983 – Compaq , 1st and successful. Tandy, Zenith, Leading Edge, Dell.

THE BIRTH OF THE MACINTOSH

• 1980 – Important projects underway at apple

1. Lisa – High end business machine.2. Macintosh – Low end portable.

• Jobs was astounded by what he saw at PARC (Palo Alto Research Center) and decided that these innovations had to be incorporated into Apples machines.

• Pushed the Lisa tem to implement PARC’s innovations.

THE GOLDEN YEARS (1986 – 1991)

Sculley shut down the Lisa Line.

Apple’s domination of desktop publishing market.

1985-Apple licensed PostScript.

Apple allowed customers to “Plug and Play.”

1990 – Apple was the most profitable PC manufacturer in the world.

1990-1997 In 1990 Microsoft introduced

Windows 3.1 and Apple’s differential appeal of GUI began to erode.

Windows OS became dominant in the market and Mac OS turned to niche player

The Company was on a glide path to history.

SCULLEY’S GAME PLAN Appointed himself Chief Technology Officer

in addition to CEO. To bring out low cost version of the

Macintosh (Mac Classic) and cut prices by 30% of Apple II .

Cut Costs by reducing workforce Maintain technological lead by introducing

new products in every 6-12 months. Alliance with IBM Result: The game plan helped to boost top line but

bottom line reduced .In 1994 Sculley left Apple.

SPINDLER’S ACT To license the Mac OS to other computer

makers.

Committed for Next generation OS for Macintosh.

Suggested to cut 23% workforce.

Result: Gross margin slide to 15 % down from 29%

in 1994. Apple lost $68 million.

AMELIO Followed through Spindler’s plan Apple purchased NeXT , the computer

company founded by Steve Job’s.

Result: The Company booked a loss of $742

million in 1996 and was on track to loose another $400 million in 1997.

Amelio was fired in July 1997.

THE RETURN OF STEVE JOBS Steve Job was appointed as CEO after

Amelio. Ended licensing deal with clone makers. Killed slow selling Products Pushed company into online distribution Came out with new offerings

Result: This brought favorable reaction from stock

market. New offerings from Apple created the

history.

NEW PROJECT OFFERINGS New product design came i.e.

combination of monitor and CPU unit And Apple company name it as “ iBook ”

& a New “ i Mac” . Made attractive & exciting design of

machine also with different colors in iMac

Apple invested more in development of new Operating system

Came with new OS i.e. OS X ( a

i Mac

i Book

Intel Inside, Windows On Desktop

Apple OS were facing problem of compatibility with windows and Intel chips

Apple introduced its Intel compatible version of OS.

Also invent a software program “Rosetta” and utility program called “Boot camp ”

Apple’s Intel based machines were more faster in operations and portable to handle.

MOVING INTO RETAIL Company opened their retail store in

2001 Uses strategy of third party retailers or

direct sales Apple company design its retail stores

more stylish ,clean & also with attractive displays to impress customers

Steve jobs was also the part of such design process