Apple Computer Case Analysis

1097 Words Nov 2nd, 2006 5 Pages
APPLE COMPUTER CASE ANALYSIS

After the return of Steve Jobs at Apple Computer many changes happened which finally brought the company back to profitability. However Apple holds a market share of only 3.48 percent among its six strongest competitors.

The fact is that today the PC market is a mature market and only the strong survive. In Exhibit 1 is shown how the PC market has been shared among the most valuable players and how Apple 's share has decreased by more than half during five years time. Under the current situation the only way for a company to increase its market share is to take customers away from the competition.
So the question is what Apple has to do in order to gain more market share.

First of all let
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5. Return on Total Assets is improving by 2002 but is still lower than the competition, which means that the total investment on Apple has not yet attributed what is expected.

Though we have to focus on how can Apple increase its market share, in other words how they can persuade the customers to switch from Windows to MAC OS. Since as stated in the case study if Apple took 1% of Windows users to switch, Apple 's market share would increase by 20-35%.

What are the reasons preventing people from switching from Windows to Mac?

The main reason is the compatibility between these operating systems. Apple has isolated itself from the market, as they focus on developing both hardware and software, which are compatible only with one another . That explains also in a great value the low profitability ratios referred above. Apple spends too much on research and development and also on manufacturing because their products are not compatible with the competition.

So Apple has to take a strategic step forward and develop an operational system which will be fully compatible with Windows. A Mac OS in which users will be able to run any Microsoft program. In that way Apple customers will maintain their Image and Style but also will not be limited from using any software on the market.
In such a case there may be an

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