Case Study Apple

Topics: Apple Inc., Marketing, Operating system Pages: 4 (596 words) Published: August 28, 2013
| |Case Study Analysis |[pic] |

GENERAL INFORMATION

|Class |Strategy | |Date |01/06/2013 | |Case |Apple (2006) |

Summary

• Apple 2005
o $1.3 net income
o $13.9 billion in sales
o 11.8% operating margin
o sales had grown at an annual rate of 27%
o stock was at an all time high $86
• Jobs had pushed for innovative products
o iMac
o OS X
• Apple retail chain
• Source chips from Intel
• 1985 ( Apple removed Jobs

Why did Apple struggle in the 1990s?
Too many different strategies during the 1990s, company lost direction and had several renovation attempts in a span of less than 10 years

• Sculley
o Exploit Apple’s capabilities in graphics and design to make the company a leader in dekstop and publishing o 1990
▪ sales of $5.6 billion
▪ world market share of 8%
▪ US market share of more than 50%
▪ $1 billion in cash ( most profitable PC company in the world o More horizontal and vertical integration than any other PC company, except for IBM o Developed own operating system which bundled with the Mac, own application sw and many peripherals ▪ Could offer consumers a complete desktop solution o Love affair with consumers ( sell products at a premium price

• BUT
o IBM came out with a low price computer so NOW Apple was seen...
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