CASE STUDY ON
APPLE INC. IN 2010:
This case is about the Apple Inc. and its journey through last 35 years under the visionary and innovative ideas of founder Steve Jobs. It started in 1976 with Apple I, which was a computer circuit board. Soon after launching Apple I, the company came up with Apple II, which quickly drove Apple to become the PC industry leader. In December 1980, Apple launched a successful IPO. When IBM entered into the competition market, Apple responded by introducing Macintosh in 1984. It provides the user hardware and ...view middle of the document...
* Users could not replace battery and add memory to iphone.
* iphone also did not supported Flash Technology
* The ipad could either connect to internet via wifi, or consumers could buy a premium ipad and then spend another $30 per month for AT&T`s unlimited 3G service.
* A top complaint was that the lack of multi-tasking to run different application in the background.
* Tough completion is rising among all Apple completion for bringing newest and bestest technology in the market.
* Price of the Apple products is too high as in comparison with the competitors.
* The products are limited to only Apple`s services and software.
ANALYSIS OF THE CASE
1. What, historically, have been Apple’s Competitive Advantages?
* It started in 1976 with Apple I, which was a computer circuit board. Soon after launching Apple I, the company came up with Apple II, which quickly drove Apple to become the PC industry leader. In December 1980, Apple launched a successful IPO. Jobs’s mission was to bring an easy-to-use computer to market. The Mac marked a breakthrough in easy to use, industrial design, and technical elegance.
* In Sculley time, Apple offered its customers a complete desktop solution, including hardware, software, and peripherals that allowed them to simply “plug and play.”
* Steve Jobs moved quickly to reshape Apple. In August 1997, Apple announced that Microsoft would invest $150 million in Apple and make a five-year commitment to develop core products, such as Microsoft Office, for the Mac. Jobs abruptly halted the Macintosh licensing program.
* Jobs also refused to license the latest Mac OS. Apple’s 15 product lines were slashed to just four categories—desktop and portable Macintoshes, for consumers and professionals. Apple launched a website to set up direct sales for the first time. Jobs’s first real coup came with the iMac in August 1998.
* Later on, Apple highlighted its computers as the world’s “greenest line-up of notebooks” that were energy efficient and used recyclable materials. The goal was to differentiate the Macintosh amid intense competition in the PC industry.
2. Analyse the personal computer industry. Are the competitive dynamics favourable or problematic for Apple?
* In April 1978 Apple released the Apple II, which sparked a computing revolution that drove the PC industry to $1 billion in annual sales in less than three years. Apple quickly became an industry leader selling more than100,000 Apple IIs by the end of 1980. In December 1980, Apple launched a successful IPO.
* Apple’s competitive position changed fundamentally in 1981 when IBM entered the PC market. The IBM PC, which used Microsoft’s DOS operating system (OS) and a microprocessor (also called a CPU) from Intel, was a relatively “open” system that other producers could clone. Apple, on the other hand, practiced horizontal and vertical integration. It relied on its own proprietary designs and refused to...