Steve Jobs -Creator of Apple

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Case Study - Apple Inc.
STRATEGIC MANAGEMENT
APPLE INC.
Submitted by:
BURGAS, JHENNEL
CATORCE, FREYA JULIA
DACALOS, DAVE RYAN
MERIDA, KRISTY RAE
SABILLO, MA. CARMEN
F 12:00-3:00
Submitted to:
Mr. Rene Y. Paquibot
1. Summary
Everything started on April 1, 1976, when Steve Jobs, 20, and Steve Wozniak, 25, both electronic experts, decided to create and sell personal computers designed by the latter. Their little company was located in Job’s garage. They called their company Apple and their first machine, Apple I. It was just a simple computer with no case, keyboard and power supply. However, in October 1976, through the efforts of Woz, an improved version of Apple I was introduced, called the Apple II. Mike Markkula, a retired millionaire because of Fairchild and Intel, decided to visit Jobs’ garage and invested one-third in the company and helped in running it. The Apple II was introduced in 1977, with a Motorola microprocessor, keyboard, a power supply, a monitor, and a programming software. In 1978, Apple sold an improved version of Apple II which contained a disk drive for third-party developers to write software programs for the computer such as EasyWriter and VisiCalc. By the end of 1980, Apple became the leader in the embryonic personal computer industry because of the high sales generated by Apple II. It even introduced its next product, Apple III. However, such product was still outsold by Apple II, with the latter becoming a standard computer in American classrooms. Apple then introduced other products which were Lisa and the Macintosh, and high-end business machine and a low-end portable machine, respectively. Jobs wanted the Lisa product to contain innovations that are to be integrated into the machine but was turning people insane with his different specifications. In 1982, he even insisted that the Mac be shipped early which caused some friction in the company. With all Jobs’ demands, Apple started to change for the worse. Significant employees started to clash with executives. Jobs even tried to ask John Sculley, former marketing vice president of Pepsi to join Apple as CEO. On the other hand the Lisa line had its own problems. In 1984, the Macintosh was introduced in the market which had early strong sales but then lacked some important features such as a hard disk drive and insufficient computer memory which were present in other machines. Such absence caused Apple to incur its first loss in 1985. Due to drastic actions that happened in Apple, Jobs had no other choice but to resign from Apple. He then created another computer company he called NeXT. Together with his resignation, Sculley closed the Lisa line which generated minimal sales due to its high selling price. In January 1986, an improved version of Macintosh, called the Mac Plus, was introduced. Apple had its golden years for the period between 1986 and 1991 because it was able to offer both hardware and software to customers to “plug and play”. In 1990, the sales of Apple were around $5.6 billion, representing 8% of the global market share. Apple even had a strong statement of financial position and was regarded as one of the top income generating companies worldwide. This period raised concerns on whether MAC operating systems should be cloned. Sculley was in favor of cloning such systems. However, Jean-Louise Gassee, head of Research and Development at Apple, disagreed. However, in 1985, the company pursued licensing its Mac clones to Microsoft which were later on called Windows, which looked like a typical Mac operating system. Around the 1990s, Microsoft introduced Windows 3.1 has been introduced which caused Apple’s unique display of an operating system to disappear. It even turned the company into a niche player. Dan Eliers, the vice president of strategic planning said that “The company was on a glide path to history.” On the same period, it was found out that Apple was spending 8% of its sales on Research and Development costs...
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