apple computer 2002
Apple computer 2002
Abstract
This case basically introduces the history of the Apple Company, and shows the company’s ups and downs in the computer industry. Apple Computer is the key factor to upgrade computer industry innovation. It is one of the first companies to venture into the computer marketplace. Apple Computer founded in 1976 by Steve Jobs and Steve Wozniack. After launching the first product Apple 2, Apple quickly became the industry leader and ready to change the world through technology. Apple was still maintaining the leader position until the mid 1980’s when IBM entered the PC market, Dell, Compaq and HP were soon to follow, and they have taken some market share from Apple. In this bad situation, Apple faced weak unit sales, flat gross margins and the executives change. By introducing new products and changing the strategy of distribution, Apple seems to be successes. However, in 2002, Apple was again challenged by the bad performance in market share. The central issue confronting Apple is whether its strategy and products could bring the company back to life. Additionally, the case presents the influential factors of the PC industry, including: PC Manufacturing, Buyers and Distribution, PC Manufacturers, Suppliers and Complements, Alternative Technologies. These factors will play an important role in developing strategy plans for Apple.
Comprehensive knowledge of the functional areas of business
Finance and sales
The five years from 1986 to 1990 was probably a financial golden age at Apple. From 1986, sales continued to grow. In 1997, the net sales reach $7,081 millions, which is about four times the net sales in 1986. Because Apple controlled computer market, including hardware, software, and peripherals that allowed customers to”plug and play”.
For the pricing strategy of Apple computer is skimming pricing. Users paid a price premium for the high-technology products, Apple
Abstract
This case basically introduces the history of the Apple Company, and shows the company’s ups and downs in the computer industry. Apple Computer is the key factor to upgrade computer industry innovation. It is one of the first companies to venture into the computer marketplace. Apple Computer founded in 1976 by Steve Jobs and Steve Wozniack. After launching the first product Apple 2, Apple quickly became the industry leader and ready to change the world through technology. Apple was still maintaining the leader position until the mid 1980’s when IBM entered the PC market, Dell, Compaq and HP were soon to follow, and they have taken some market share from Apple. In this bad situation, Apple faced weak unit sales, flat gross margins and the executives change. By introducing new products and changing the strategy of distribution, Apple seems to be successes. However, in 2002, Apple was again challenged by the bad performance in market share. The central issue confronting Apple is whether its strategy and products could bring the company back to life. Additionally, the case presents the influential factors of the PC industry, including: PC Manufacturing, Buyers and Distribution, PC Manufacturers, Suppliers and Complements, Alternative Technologies. These factors will play an important role in developing strategy plans for Apple.
Comprehensive knowledge of the functional areas of business
Finance and sales
The five years from 1986 to 1990 was probably a financial golden age at Apple. From 1986, sales continued to grow. In 1997, the net sales reach $7,081 millions, which is about four times the net sales in 1986. Because Apple controlled computer market, including hardware, software, and peripherals that allowed customers to”plug and play”.
For the pricing strategy of Apple computer is skimming pricing. Users paid a price premium for the high-technology products, Apple
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