Apple Inc. a 30 Year Business Strategy
Apple Inc. A 30 year business strategy
A response to Harvard Business School Case Study 9-708-480 Apple Inc., 2008
Abstract
Apple’s fundamental business model has not changed since it first began business in the late 1980’s. While being a leader in innovation, Apple has consistently produced proprietary hardware and software, eventually leading to a loss of market share in any particular market they have ventured into. Even though it has learned from some mistakes, 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.
This analysis will look at the various stages of the Life Cycle of Apple, what type of business strategy was employed during that stage and the results of those strategies. We will look at Apples strategy vs. the PC side of the market and how those differences have affected Apple. Finally, the various pieces of the Apple world will be viewed to see if and what Apple has learned over its lifetime.
Apple Computer’s Business Strategy
Since its inception, innovation has been at the forefront of Apple’s ability to compete in the world market. Steve Jobs and Steve Wozniak sparked the PC revolution, turning the world of computers on its head. The Apple II (offered initially in 1978) drove the PC industry to $1 Billion in annual sales in less than three years. (Carlton, pg 10).
Even though initially viewed as a toy by many businesses, the Apple quickly showed itself as a viable substitute to the traditional mainframe. In the years that followed Apple continued to prove its ingenuity; being the first to introduce a computer with color, a Graphical User Interface, sound, a mouse, laptops, and many other firsts.
These inventions came to define Apple and its business strategies. Based on its fully bundled package of hardware and software Apple became synonymous with usability. A staple of Apple computers became
A response to Harvard Business School Case Study 9-708-480 Apple Inc., 2008
Abstract
Apple’s fundamental business model has not changed since it first began business in the late 1980’s. While being a leader in innovation, Apple has consistently produced proprietary hardware and software, eventually leading to a loss of market share in any particular market they have ventured into. Even though it has learned from some mistakes, 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.
This analysis will look at the various stages of the Life Cycle of Apple, what type of business strategy was employed during that stage and the results of those strategies. We will look at Apples strategy vs. the PC side of the market and how those differences have affected Apple. Finally, the various pieces of the Apple world will be viewed to see if and what Apple has learned over its lifetime.
Apple Computer’s Business Strategy
Since its inception, innovation has been at the forefront of Apple’s ability to compete in the world market. Steve Jobs and Steve Wozniak sparked the PC revolution, turning the world of computers on its head. The Apple II (offered initially in 1978) drove the PC industry to $1 Billion in annual sales in less than three years. (Carlton, pg 10).
Even though initially viewed as a toy by many businesses, the Apple quickly showed itself as a viable substitute to the traditional mainframe. In the years that followed Apple continued to prove its ingenuity; being the first to introduce a computer with color, a Graphical User Interface, sound, a mouse, laptops, and many other firsts.
These inventions came to define Apple and its business strategies. Based on its fully bundled package of hardware and software Apple became synonymous with usability. A staple of Apple computers became
References: Carlton, Jim. 1997. Apple: The Inside Story of Intrigue, Egomania, and Business Blunders (New York: Times Business/Random House, 1997) Enderle, Rob. March 1984. Apple’s Competitive Advantage. TechNewsWorld. http://www.technewsworld.com/story/33061.html?wlc=1235590233 Yoffie, David B. and Slind, Michael. September 2008. Apple Inc., 2008. Harvard Business School Publishing. Krazit, Tom. January 2008. iPhone unlocking explodes despite Apple 's countermeasures, cnet News. http://news.cnet.com/8301-13579_3-9860766-37.html. Krazit, Tom. June 2008. Apple unveils iPhone 2, both the phone and the business, cnet News. http://news.cnet.com/apple-unveils-iphone-2/ Houghton, William. February 2008. Apple iPhone 's "Core" Strategy Problem, The Brooding Savage http://www.broodingsavage.com/business-analysis/apple-iphones-core-strategy-problem.html. Porter, Michael. January 2008. The Five Competitive Forces that shape Strategy, Harvard Business Review.