Apple’s Increasing Problems and Core Strategic Issue(S) Leading to the Crises Around the Mid 1990s

Satisfactory Essays
IBCON – Global Strategic Management
Case: Apple Inc. 2010 – One pager case questions October 2011
Question: Please explain and generalize Apple’s increasing problems and core strategic issue(s) leading to the crises around the mid 1990s?

By overtaking Exxon Mobil Corp., Apple Inc. became the world’s most valuable company on 9th August 2011 with a market valuation of $337.2 billion1. However, Apple has not always been that successful throughout the company’s history. During the mid 1990s Apple was struggling to stay afloat and almost went bankrupt by 1996. Loss of market share Founded in 1976, Apple grew rapidly with high profits and became market leader of the PC industry by the end of 1980. As IBM entered the market in 1981, the competition between Apple with its Macintosh Operation System (OS) and Microsoft with its “open” DOS (later Windows) OS has begun (see case p. 2). At least one factor which led into Apple’s crises was that both competitors followed different market entry strategies. On the one hand, Apple kept its Macintosh OS proprietary and was not willing to license the software and technology in order to enable other manufacturers producing Macintosh clones. Michael Spindler was the first CEO which turned Apples strategy into this direction – obviously too late2. On the other hand, Microsoft not only started setting up an ecosystem with a lot of PC manufacturers (e.g. IBM) very early, but also a close cooperation with Intel as a producer for microprocessors. This partner network enabled IBM and other PC producing companies to attack the market with very low prices. As a result, the Microsoft-Intel cooperation (called “Wintel”) became a de facto standard in the Personal Computer industry by the early 1990s, which is reflected in a market share of more than 90%. In comparison to that, Apple’s market share decreased from 16% in the early 1980s to 10% in the early 1990s, further down to finally 4% in the late 1990s (see Exhibit 3). We can observe a

You May Also Find These Documents Helpful

  • Good Essays

    Apple Evaluate Apple’s strategies since 1990 and explain why Apple has been through difficult times. What made the “Apple turnaround” possible? After firing Steve Jobs, Apple has been trying to fit into many different markets. They started diversifying into many different areas and ended up with half a dozen products suitable for each area. But this was not what made Apple famous. In 1986 they were seen as a rebellious company trying to be different to IBM and Microsoft. Steve Jobs had the…

    • 556 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Apple's Strategic Management

    • 4858 Words
    • 20 Pages

    Apple's Strategic Management Table of Contents 1 Executive Summary ..............................................................................................p3 2 Analysis of Environment and Competitiors ........................................................p3 2.1 General Review of Strategic Environment .................................................p3 2.2 PESTAL Analysis .......................................................................................p4 2.2.1 Political…

    • 4858 Words
    • 20 Pages
    Satisfactory Essays
  • Best Essays

    Apple's Strategic Plan

    • 3143 Words
    • 13 Pages

    unfairlyApple Inc. 2012 Strategic Management of Technological Innovation Course Project TM583 “Apple’s Strategic Plan” Linda D. Smith Lindasmith645@gmail.com Instructor: Professor Gorelick April 15, 2012 * Introduction The company that will be the topic of discussion in my final project paper is Apple Inc. The company was established on April 1, 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne…

    • 3143 Words
    • 13 Pages
    Best Essays
  • Satisfactory Essays

    Apple's Strategic Assessment

    • 3278 Words
    • 14 Pages

    Apple Strategic Assessment Strategic Assessment  Economic features (Computer Market) o Size: $800 billion worldwide o The US market is controlled by five main companies, Dell, HP, Gateway, IBM and Apple. These companies control 64% of the US market and 40% of the international market. Apple only controls 2% of the international market. The markets have experience a substantial growth in recent years but are predicted to slow down to 8% unit sales growth from 2006 to 2009 in the US and European…

    • 3278 Words
    • 14 Pages
    Satisfactory Essays
  • Better Essays

    Crime In The 1990's

    • 1265 Words
    • 6 Pages

    Crime in the 1990’s Crime in the 20th century was always a big problem. Although it still very much existed at the time, rates of crime in the 1990’s astonished many Americans: it took a sudden turn. Rates of crimes dropped all over the nation, even in larger cities where violence was an everyday factor. There are numerous statistics and theories out there that try to explain why such a random decrease in crime happened. The 1990’s was at first high with crime, There were numerous gangs committing…

    • 1265 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    Political situation in Great Britain in the 1990’s. As we all know, one of the significant features of British political system is its flexibility. Britain have unwritten Constitution, formal Bill of Rights and Supreme Court which works rests on precedents. It makes possibility for each government to make wide reforms and rearrangements in the way in which politics and government are conducted. There is no doubt that in years after Second World War Britain went through the great changes in its status…

    • 1312 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Innovations Since 1990’s

    • 3545 Words
    • 15 Pages

    http://www.abc.net.au/news/2013-09-04/nokia-microsoft-smartphone-apple-samsung-android-galaxy-apple/4934674 The company, which remains the world's number two mobile phone maker behind Samsung but is outside of the top five in a smartphone market dominated by the likes of Apple and Samsung, has described the deal as "the best path forward". The company also announced the immediate departure of chief executive Stephen Elop, to be replaced in the interim by Risto Siilasmaa, Nokia's chairman. Of…

    • 3545 Words
    • 15 Pages
    Good Essays
  • Good Essays

    growing leaps and four times that night . And according to me all the failed attempts to stop it are proved . The world 's population is 6 billion 70 million 35 thousand . While the number of Mahaddhip Asia alone, the equivalent of nearly $ 4 billion . That 60 per cent of the world's population is Asia 's population . That 's up from Asia and especially India 's increasing population pressure itself - Bkhud is understandable . China is the largest populated country in the world . China has a population…

    • 327 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Strategic Issues

    • 2300 Words
    • 10 Pages

    Strategic Issues University of Phoenix Strategic Issues In any comprehensive planning process, strategic questions must be addressed. This is the reason United Parcel Service (UPS) examined several companies that have faced similar issues as they have experienced. These companies are Siemens, United States Postal Service, Oracle, JCPenney and 3M. In addition, UPS will show how they will adopt each company’s strategy in dealing with strategic issues and how those companies handled the situation…

    • 2300 Words
    • 10 Pages
    Powerful Essays
  • Satisfactory Essays

    Homelessness in the 1990’s was less prominent than in 2015. Although the 1990’s did have economic and homeless problems more people were able to find housing and support themselves compared to now where we see people on the streets on New York city begging left and right. Daniel Weinberger found that in the early 1990s the poor constituted 14.5 percent. (Weinberger, D. The causes of homelessness in America.). Today 36 percent of people live in poverty. Elisabeth Bumiller wrote an article for New…

    • 155 Words
    • 1 Page
    Satisfactory Essays