Apple Company

In 1996, Apple was a struggling company that had lost more than 70% of its market capitalization in the past decade. Apple’s sales had fell dramatically and their new personal computers weren’t particularly popular with consumers. The return of Steve Jobs to the company was a turning point for Apple and initiated a new era for the firm. With the launch of innovative products such as the iPod, iPhone and iPad, Apple became the biggest brand in the world. Now it remained to be seen if Tim Cook would be able to continue to develop new products and maintain Apple’s success.

Porter’s four competitive strategies does Apple engage in are cost-leadership strategy, differentiation strategy, cost-focus strategy and focused- differentiation strategy. Explanation is as below.

Steve Jobs and Steve Wozniak founded Apple in California in 1976. Their mission was to introduce an easy to use computer to market, which led to a computing revolution and quickly became the industry leader by selling more than 100,000 Apple IIs in 1980. After IBM entered PC market, IBM PCs, which used Microsoft’s DOS (OS), gained more market share and became the new standard for the PC industry. At the same time, Apple introduced the Macintosh in 1984. However, Apple’s net income fell 62% due to the Mac’s slow processor speed and lack of software limited sales. In 1985, Steve Jobs was forced out and John Sculley took charge of the Mac. Under the direction of Sculley, Apple

Apple Incorporation is one of the largest organizations dealing into Information Technology. Apple has a host of products ranging from Laptops, Desktops, Mobile Phones and Multimedia Devices. The company has been extremely innovative in the field of multimedia and it owes it success to one of the greatest innovators, Steve Jobs. The company has always believed in innovation and that is the major reason why it has been so successful in the mobile phone segment. In recent years Apple is second only to Samsung in the Global Mobile Phone industry. However the operations have been largely based in the United States and in times of recession any organization needs to focus on economies of scale and thus focus on growth

“Apple was two months from bankruptcy” in September 1997 which led to CEO Steve Jobs to reconstruct their plan. In order to bring Apple back up into the competitive market, Jobs implement a new strategy which “shrunk Apple to a scale and scope suitable to the reality of its being a niche produce in the highly competitive personal computer business. He cut Apple back to a core that could survive” (12). What made Job successful was focusing on the sources and barriers to be successful in the market and to utilize the opportunities that came by. The strategy of eliminating unnecessary cost or reducing risk help transform Apple’s business

Jeffrey Young and William Simon provide new perspectives on the legendary creation of Apple, detail Jobs’s meteoric rise, and the devastating plunge that left him not only out of Apple, but out of the computer-making business entirely.The authors examine the takeover and Jobs’s reinvention of the company with the popular iMac and his transformation of the industry with the revolutionary iPod. iCon is must reading for anyone who wants to understand how the modern digital age has been formed, shaped, and refined by the most influential figure of the

In 1997, Steve Jobs returned to Apple as an advisory and with the purposes of reshaping the product line. The changes made by Jobs resulted in increased sales and $309 million in profits. Job changed the mindset of Apples management and development team. He encourage them to have the “think different” management style that promotes the development of products that are ahead of the technology and design curve, and a creative retail strategy. It is this strategy that would eventually make Apple the best-selling company in the PC industry.

Without Jobs, Apple was falling apart. In 1996, Apple agrees to buy NeXT for more than $400 million. Apple didn’t buy just NeXT, but they also bought Steve Jobs back. Jobs became the chief executive and Apple’s a multi-billion dollar company thanks to products like the iMac and iPods. Jobs said, “Getting fired from Apple was the best thing that could have ever happened to me. Blumenthal says, “ In an almost unbelievable way, the dots had connected again. Jobs had been thrown out of Apple, started a company that struggled, and then sold that company to Apple, his first love, where he was now in charge. Of course, none of it would have happened had he not been fired” (197).

Jobs’ passion for his work was arguably the most important factor that went into his success in achieving the American Dream. Some argue that he took his passion too far, pushing his family and personal life away in order to focus on his work. Their argument, however, is formed without regard to the fact that the products he created would not be as creative and useful as they are today if he failed to put in as much love and attention to his creations as he did. After Jobs was fired from his own company, he recalls watching Apple fall without him, lamenting that “’Sculley destroyed Apple by bringing in corrupt people and corrupt values […] They cared about making money – for themselves mainly, and also for Apple – rather than making great

Apple Computer’s 30-year history is full of highs and lows, which is what we would expect in a highly innovative company. They evolved throughout the years into an organization that is very much a representation of its leader, Steven Jobs. Apple made several hugely successful product introductions over the years. They have also completely fallen on their face on several occasions. They struggled mightily while Jobs was not a part of the organization. Apple reached a point where many thought they would not survive. When asked in late 1997what Jobs should do as head of Apple, Dell Inc. 's (DELL) then-CEO Michael S. Dell said at an investor conference: "I 'd shut it down and give the money back to the shareholders.”

Promoting innovation is a big advantage for businesses although the failure rate of the innovation of new products is high (Hill & Jones, 2013:495). So, Steve Jobs strategy is blended art and technology in order to provide a simple and streamlined user experience. Thus, in 2007, Apple was in the forefront of

In the first seven years of Apple's existence, Steve Jobs had created a strong productive company with growth rates of over 150% a year. Then IBM muscled its way into the PC market. In two years, IBM PC's had taken over as the top selling computer in the PC industry.

The Apple computer began reading and writing 4 kilobytes which was 20,000 times slower than today. Between then and now, Apple has progressed far from where it began. The Mac offered point and click technology which was comprehensible and easy to use. It did not take an expert to set up and use, causing technology to spread quickly through the common people. Jobs says in his speech, “If today were the last day of my life, would I want to do what I am about to do today?”, then explains how if he believes this is untrue, something needs to be changed. He believes that if he is doing something he does not enjoy, something needs to be done

IBM PCs not only gained more market share, but they also emerged as the new standard for the industry. Apple responded by introducing the Macintosh in 1984. The Mac marked a breakthrough in ease of use, industrial design, and technical elegance. However, the Mac’s slow processor speed and lack of compatible software limited sales. Apple’s net income fell 62% between 1981 and 1984, sending the company into a crisis. Jobs, who was often referred to as the “soul” of the company, was forced out in 1985.6 The boardroom coup left John Sculley, the executive whom Jobs had actively recruited from Pepsi-Cola for his marketing skills, alone at the helm.

Steven Jobs was one of the founders of Apple Computer. Apple Computer's initial strategy was to target specific sub-segments of the market that the company's management believed could be best served by the company. Apple Computer focused on these sub-segments, addressed the needs of these users, and developed a loyal following for the company's products (Fortune, 2011). The senior executives at Apple Computer, led by Jobs, reinforced a customer focus within the company. This customer focus was largely responsible for the success of the company's initial strategy.