Apple Case A: Group 05

Apple Incorporation: This case talks about the Apple Incorporation. In the fourth Quarter of 2011- Apple had record results and took over HP as the worlds largest personal computer vendor. Reasons could be high demand of its tablet PC which accounted for global industry sale to be 120 million which is 16% higher than the previous year. The Cupertino a California based company has sales of $15.4 million I pads and 5.2 million Mac Computers which accounted in total 17% total shipments. Apple sold 37 million iPhones which brought around cash flow over $17.5 billion in the fourth quarter and profit doubled. This financial result indicated the best fit to the leadership of Steve Jobs the co-founder of the company. Ben Bajarin pointed out that there are few companies which can compete with Apple in consumer electronic section as the companies are vertically integrated. Here vertical integration is referred to as it builds its own hardware, owns the core software services and fits the hardware to the software and loads it with web services and lastly makes the sales strategy. In contrast to this most other vendors make the hardware and make the software on its own and third party services provide services like Google and then these are sold in some difference stores like best buy. Apple is vertically integrated very well so that competitors cant complete in context to iPod and iTunes. After the internet bubble in 2003 the share price started increasing. Ideology of Jobs was that Apple products make the users feel free. The Company is born: Apple was born on April 1 1976.Initial product was circuit board kit designed for computers. Initial growth capital was given by Mark Markulla who was the chairman later. Michael Scott became the CEO and after a bad start Apple II came up which created the personal computer markets. In 1980 Apple went public in IPO. During this time Jobs had sown the seed for Vertical integration. The main focus is on the quality, simplicity and design. Its believed that Jobs focus of building great products has with even designer parts for the unseen parts. Apple has always looked forward to make its own hardware and software for its computers. The IBM Challenge: Apples first challenge came up as the introduction of IBM PC in 1981 when Apple II was about to end its life time. And in recent times Apple III also was a failure. Apples Macintosh failed and this brought down its growth curve very rapidly. And IBM has taken the large, medium and small office segment orders. National accounting penetration is a long term prospect for them. And IBM was using its regular successful approach of Fear, Uncertainty and Doubt(FUG). These are the real competitive forces which can have greater influence on the purchasing decisions. But being posed with a challenge from IBM Apple wins it on the basis of Product Superiority. But Mac book initially was a roaring success and then it failed to keep up the momentum. To boost the sale of

Apple Case A: Group 05

Mac book Jobs wanted to focus only on the household and develop a direct-to-customers distribution model. Later it has been believed that Microsoft Windows took over the personal computer market. The second coming of Jobs: Apple went through a string of CEOs and by this time Microsoft had built its empire very large. And Microsoft gave a final blow to Apple by releasing its Windows 95 OS. By this time Jobs returned to Apple as Strategic Consultant and was made the CEO. Steps taken by Jobs in his Second Term: He put the senior NEXT management as the key members Regrouped by buying time from Microsoft Striking a historic deal. He made a deal with Microsoft to keep producing the software for Mac. R&D spending was cut into half so workforce was reduced. Many product lines were axed to focus better. Clones makers who were cannibalizing the product were cut off. Distributor and retailers were cut off and new online store was opened. He brought in a new Mac commercial saying Think Different Campaign. Shortly after this Apple seemed to live again to its brand promise. Placed quality and design over accounting and engineering.

New features introduced: Candy colored iMac Fast and easy internet connectivity

Digital Hub: January 2000 Macworld event Apple introduced a much improvised Macintosh operating system. That came by the benefit of Apple acquiring NeXT software. Now its brand had been restored. Apples digital hub strategy was introduced. He saw great opportunity in positioning iMac as the control center of a users digital life, managing cameras, video cams, mobile phones and media player. Company also has to look after the ecosystem. Digital hub Strategy was laid off publicly but nobody executed it and Apple to the chance of executing it. Retail Different: Apple being a great brand didnt want to place its products along the competitors products. And it dint trust the third party who would sale their products. Jobs wanted 100% control on sales pitch for all Apple products. And following this strategy they has high turnover from Sales and Virginia store had recorded the highest sales.

Apple Case A: Group 05

Conclusion: The turnaround strategy was very unique developed by Jobs. Apple recognized when the new window of opportunities was opened and then were the first to set everything alright. They made alliances and took 360 degree feedback, looked at foreign markets, setting challenging strategic goals etc. Jobs were always different and he always waited for the big opportunities that would come his way.