How Apple S Corporate Strategy Drives High Growth

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Blue Ocean Strategy Institute BOS022 How Apple 's Corporate Strategy Drives High Growth 10/2012-5860 This case was written by Oh Young Koo, Institute Fellow of the INSEAD Blue Ocean Strategy Institute, under the supervision of W. Chan Kim and Renée Mauborgne, Professors at INSEAD. It is intended to be used as a basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. Copyright © 2012 INSEAD TO ORDER COPIES OF INSEAD CASES, SEE DETAILS ON THE BACK COVER. COPIES MAY NOT BE MADE WITHOUT PERMISSION. NO PART OF THIS PUBLICATION MAY BE COPIED, STORED, TRANSMITTED, REPRODUCED OR DISTRIBUTED IN ANY FORM OR MEDIUM WHATSOEVER WITHOUT THE PERMISSION OF THE COPYRIGHT OWNER. Blue…show more content…
Clare C. Swanger and Modesto A. Maidique, “Apple Computer: The First Ten Years,” Stanford University No. BP-245 (California: Stanford Business School, 1985), p.5. Ibid. Daniel Eran Dilger, “1990-1995: Why the World Went Windows,” October 14, 2006, post on blog “RoughlyDrafted Magazine,”, accessed January 11, 2012. Copyright © 2012 INSEAD 1 10/2012-5860 Blue Ocean Strategy Institute software applications such as Microsoft’s Office suite and Exchange server, Apple Computer seemed to be losing the battle. In 1992, it earned over US$500 million, but sales dropped sharply to US$90 million the following year. In 1993, Sculley was replaced by Michael Spindler, the president of Apple Europe. The new CEO made efforts to turn the company around by pushing Macintosh lines and making thousands of lay-offs, but the company saw its market share fall 9% to 7.4%, and it had made a US$68 million loss by the end of 1995. In 1996, Apple Computer replaced Spindler, appointing Gilbert Amelio, a veteran IT expert, as CEO. He instigated many changes, which included massive lay-offs and bringing Jobs back to the company as an advisor. However, the financial situation got worse – the company lost US$2 billion in two years and its market share plummeted from 7.4% in 1995 to 3% in 1997, as did the stock price. In 1997, when Amelio resigned, Apple was again under the leadership of Steve Jobs as interim
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