Apple Case Study
Please divide Apple 's history into periods and trace the changes in business models that took place over these periods.
Apple history is explained in the case history from 1972 – 2006. Apples history is described below, reflecting on the changes in Business Model (how the company generated revenue). The Beginning years, 1976 – 1985:
Apple was founded in 1976 and they built a computer circuit board named the Apple I. Within span of 4 years they went to IPO with the help of Venture capitalist Markkula, Jr.
Its original business model was based on selling a computer that could be used straight out of the box with a closed platform. In 1981 IBM introduced a Microsoft 's DOS operating system and it’s an open system and easily cloned, whilst a lack of compatible software on Macintosh (Mac) made net income fall 17%. Steve Jobs was removed from his operational role by the board. Jobs left Apple to find a new company NeXT.
The Scully years, 1985-1993:
In 1985 John Scully was appointed as CEO. Scully was an operations and marketing expert from Pepsi. Scully’s strategy was focused on taking Apple into the corporate world, which he did successfully, making Apple a well-known brand name. During the Scully years Apple was able to monopolize on the “love affair” for macs by selling at a premium. In 1990 Scully changed the business model to sell their computers at lower prices to get more market share, while also delivering new ‘hit products’ every 6-12 months. Apple embarked on a joint venture with IBM to create a new operating model, multimedia applications, etc. Scully also reduced headcount by 10% and moved much of the manufacturing to contactors. Scully also made himself Technology officer despite having no skills in this area. He was then relinquished of his duties in 1993.
The Spindler years, 1993 - 1995:
Spindler was an engineer and had successfully headed Apple Europe and changed the business model once more to focus on education and publishing.
Apple history is explained in the case history from 1972 – 2006. Apples history is described below, reflecting on the changes in Business Model (how the company generated revenue). The Beginning years, 1976 – 1985:
Apple was founded in 1976 and they built a computer circuit board named the Apple I. Within span of 4 years they went to IPO with the help of Venture capitalist Markkula, Jr.
Its original business model was based on selling a computer that could be used straight out of the box with a closed platform. In 1981 IBM introduced a Microsoft 's DOS operating system and it’s an open system and easily cloned, whilst a lack of compatible software on Macintosh (Mac) made net income fall 17%. Steve Jobs was removed from his operational role by the board. Jobs left Apple to find a new company NeXT.
The Scully years, 1985-1993:
In 1985 John Scully was appointed as CEO. Scully was an operations and marketing expert from Pepsi. Scully’s strategy was focused on taking Apple into the corporate world, which he did successfully, making Apple a well-known brand name. During the Scully years Apple was able to monopolize on the “love affair” for macs by selling at a premium. In 1990 Scully changed the business model to sell their computers at lower prices to get more market share, while also delivering new ‘hit products’ every 6-12 months. Apple embarked on a joint venture with IBM to create a new operating model, multimedia applications, etc. Scully also reduced headcount by 10% and moved much of the manufacturing to contactors. Scully also made himself Technology officer despite having no skills in this area. He was then relinquished of his duties in 1993.
The Spindler years, 1993 - 1995:
Spindler was an engineer and had successfully headed Apple Europe and changed the business model once more to focus on education and publishing.