Apple case
Case 3: Apple Inc.
I. Introduction
Apple Computer is an innovative company evolving on the multimedia and high technology market. It is present on hardware and software markets, as well as in the on-line services market. Its highly diversified offer makes Apple Computers a company that is very hard to manage.
Steve Jobs and Steve Wozniak created the company in 1976. They wanted to “change the world through technology” by creating the personal computer (PC). The launch of Apple II in 1978 was the beginning of Apple’s leadership on the PC industry. Nevertheless, Apple had to face quickly with face competitors, who imposed their standards on the market. First IMB first, and then Windows and Intel, posing posed the problem of non-compatibility with Apple compatibility.
Apple was successively headed by a number of leaders who performed very well. Lots of performing leaders followed one another at the head of Apple Computer, such as Steve Jobs, Sculley, Spindler or Amelio, and each of them had a different vision on of what the Apple computer strategy of Apple should be. After many years of irregular results, Steve Jobs came back to Apple Computer as CEO and his strategy had immediate positive effects on company results and market positioning.
II. Generic and Complementary Strategies
Apple without a doubt uses a focused differentiation strategy. They are able to command premium prices by strategically marketing their products and adding features and functionality that customers highly value, such as the “plug and play” ability of many devices when connected to Apple products. The iPod’s average selling price in the height of its success was $50-$100 higher than the products competing with it. When the iPod nano was released, it grossed margins of around 40% - unheard of in the industry. When Apple released the iPhone, it was estimated that Apple generated over 50% of the cellphone industry’s total profits from the less than 4% unit market share the iPhone gained.
I. Introduction
Apple Computer is an innovative company evolving on the multimedia and high technology market. It is present on hardware and software markets, as well as in the on-line services market. Its highly diversified offer makes Apple Computers a company that is very hard to manage.
Steve Jobs and Steve Wozniak created the company in 1976. They wanted to “change the world through technology” by creating the personal computer (PC). The launch of Apple II in 1978 was the beginning of Apple’s leadership on the PC industry. Nevertheless, Apple had to face quickly with face competitors, who imposed their standards on the market. First IMB first, and then Windows and Intel, posing posed the problem of non-compatibility with Apple compatibility.
Apple was successively headed by a number of leaders who performed very well. Lots of performing leaders followed one another at the head of Apple Computer, such as Steve Jobs, Sculley, Spindler or Amelio, and each of them had a different vision on of what the Apple computer strategy of Apple should be. After many years of irregular results, Steve Jobs came back to Apple Computer as CEO and his strategy had immediate positive effects on company results and market positioning.
II. Generic and Complementary Strategies
Apple without a doubt uses a focused differentiation strategy. They are able to command premium prices by strategically marketing their products and adding features and functionality that customers highly value, such as the “plug and play” ability of many devices when connected to Apple products. The iPod’s average selling price in the height of its success was $50-$100 higher than the products competing with it. When the iPod nano was released, it grossed margins of around 40% - unheard of in the industry. When Apple released the iPhone, it was estimated that Apple generated over 50% of the cellphone industry’s total profits from the less than 4% unit market share the iPhone gained.