Prepared by Techno-Geek Consultants
APRIL 28, 2012
BY: GROUP C
has dominated the market with its innovative line of products like iPod, iPhone and iPad. Steve Jobs and Steve Wozniak started Apple in 1976, and in the 34 years until the launch of the iPod, the company had many difficulties. In 1980, Apple was leading the market with its Macintosh that was worth $1B annually. Their product stood alone at the top in a primitive early marketplace. While Apple benefited financially from the creation or rejuvenation of many products essential to our concept of modern life, they also experienced their fair share of lean times and struggles over the years.
Steve Jobs innovative founder, CEO of Apple and Pixar was an asset to the organization Strong brand, rapid growth and high profits Apple’s initial product Macintosh line was profitable for the company Mac resulted in loyal and satisfied group of customers for Apple Apple offered a complete desktop solution of “plug and play” Innovative line of products iMac, iPod, iPhone, iPad that captured multiple target markets Designed Mac Classic to compete with low priced IBM clones Self-proprietary designs and they refuse to license its hardware to third parties Revamping Apple’s distribution from smaller outlets to national chains Apple launched website for direct sales in 1997 Greenest lineup of notebooks that are energy efficient and use recyclable materials.
The top PC vendors HP, Dell,
Acer and Lenovo accounted for 55% of worldwide shipments between years 2006-2009. There are two categories of major suppliers in the PC market. The first category provided highly competitive prices since there were many sources available to sell parts like memory chips, disk drives and keyboards. The second category namely microprocessors and operating systems made by few sources like Intel, Advanced Micro Devices and VIA technologies, which made it difficult to negotiate for lower prices. Apple had to rely on Microsoft for its Internet Explorer until Apple built its own Safari for internet browsing. Apple increased the Macintosh capability by using Intel Microprocessor chips in 2006, now its Macintosh can run Windows applications too. With its premium price differentiation strategy, Apple tends to have higher profit margins, which arises a need of continuous innovation for their product lines that can raise them to the top against their competitors and sustain them through their rough times.
Allotted 3% of sales for R&D to keep flow of innovations in the market Products with premium price sometimes giving an overprice appearance Failure of software outcomes of Taligent and Kalieda with the alliance of IBM cost the company $500 million Faced loss, instability and dissatisfactory outcomes with different direction in company’s approach under 3 different CEO’s leadership from 1990 to mid-1997 Revenue growth failed to keep up with volume growth because of gradual decrease in average selling price
Cooperative project with Novell Network and Intel to redesign Mac OS to run on Intel chips for faster speed Investment of $150 million from Microsoft in developing Microsoft Office for Apple’s Macintosh Hired Taiwanese contract assemblers to manufacture Macintosh products
IBM PC’s faster than some Mac versions before Mac used Intel’s processor
APRIL 28, 2012
BY: GROUP C
Windows operating system developed by Microsoft “Wintel” dominated the industry Prices of the key components like (CPU, memory and hard disk) dropped HP, Dell, Acer, Lenovo and Toshiba accounted for more than 55% of worldwide market share Acquisition of Gateway and Packard-Bell by Acer Steve Jobs health is a concern to the company.
Our recommended solution is that Apple, Inc. focus on improving their...