Strategic Business Management for Apple Computers

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STRATEGIC BUSINESS MANAGEMENT APPLE COMPUTERS 2002 1. Why did apple perform well prior to 1991? Apple was successful virtually from the date of the company's first launch in 1976 (Fisk, 2008). Steve Jobs and Steve Wozniak sold their initial 200 units without difficulty and that made it possible for them to secure the necessary venture capital to expand their fledgling company into one that quickly grew into being one of the premier computer manufacturers at a time when there was comparatively little competition. They sold their first 100,000 Apple Units and reached the $1 billion annual sales milestone in record time. Even the subsequent challenge posed by the IBM line of Windows-based computers in 1985 stimulated Apple to increase its research and development budget which quickly allowed Apple to dominate the desktop publishing, educational products, and peripherals markets amounting to approximately half of the entire computer market and global recognition as the most successful computer manufacturer in the world. As a result, Apple also reached the $1 billion cash reserve milestone as well (Fisk, 2008). 2. What lead to the deterioration in Apple's performance from 1992 to 1997? By the early 1990s, Apple already enjoyed the benefits of a tremendous reputation and brand identity among its many customers and was greatly outpacing Windows-based computer manufacturers such as IBM (Fisk, 2008). Based on the strength of sales and brand loyalty, Apple focused largely on

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