Apple Computers Inc. was cofounded by Steven Wozniak and marketed by Steven Jobs. It was later renamed to Apple Inc. Apple Inc. is involved in the manufacture, marketing and design of PCs and related software, network solutions, services and peripherals. The company is also involved in developing and designing of portable digital music players with related services and accessories. This includes online distribution of audio books and third party music, videos and films. The company does this through its own retails stores, online stores, third party resellers and wholesalers and direct sales force.
In 1976, the two founders introduced Apple I which was the first. The Apple 1 failed but was closely followed by the launch of Apple II, which was successful. This happened in the year 1980. In the same year, the company offered its IPO. Competition from the PC market coupled by internal difficulties led to management crisis and management changes. In the year 1983, the company announced danger with the entry of international business machines which was followed by failure of Apple III. Apple introduced the first mouse driven computer in 1984, the Macintosh. By 1990, the PC clones had saturated the market while Microsoft had launched an operating system which had a graphical user interface.
Although Apple launched the Power personal computer in 1994, the problems of the company continued. This caused the company to have a 1 billion dollars backlog. The situation was made untenable when Microsoft launched Windows 95 operating system. In the 1980s, Apple’s most fierce rivals were Amiga and Atari groups. IBM had become more popular than all the three companies by the year 1990s. They had developed a graphical user interface through the use of windows 3.0 and thus were outcompeting Apple. Apple was performing poorly in the market. Apple responded to the threat by developing a profusion of Performa, Quadra and Centris. However, these new lines were marketed poorly. Apple was arguably the worst-managed companies in the computer industry. Apple was also suffering from too many models, which were only differentiated by minor improvements in their technological specs. The presence of many arbitrary models from Apple confused customers and destroyed the company’s reputation. Apple’s retail resellers like CompUSA and Sears failed to make any sales or even displays for Apple products effectively. Macs were cheaper than PCs given their components. However, poor marketing made them look expensive and customers never identified with Apple products. Apple inventory grew as it consistently underestimated the demand for popular models while overestimating others. This caused the workers to be demoralized.
Around 1996, the world had believed that Apple was on its deathbed. The company lacked a marketing plan. Its products were priced higher than others in competition. The company had fallen the top five in the United States sales. The company was struggling financially with other companies continued to grow substantially. In 1997, G. Amelio was ousted as CEO by the board of directors paving the way for Steve Jobs. Apple and Microsoft signed a deal for cooperation. In a speech, the CEO of Microsoft said he was happy to help Apple return to success. There was no doubt Apple was struggling, and the new Apple chief executive was determined to change that direction the company was taking. Apple began to focus on its purpose and success. This was echoed by the new chief executive officer of the Apple Company. Jobs announced in the speech that for Apple’s success was not tied to Microsoft’s failure but on hard work and strategic partnerships. Under Steve Jobs, Apple Inc rose from its deathbed to become the most valuable company with its net worth being close to $600 billion presently.
The strategy of Apple Inc. concentrates on undifferentiated products with the target being the entire market. Apple Inc. used a...