Unit 1_CaseAnalysis

Unit 1_CaseAnalysis - Case Analysis of Apple Inc., page...

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Case Analysis of Apple Inc., page Background In January 2007, Apple Computer Inc was renamed Apple Inc. after 30 years of being a very productive organization. Apple Inc. changed from being known as strictly a Macintosh computer company into a diverse technology company that is known for its art, video, and graphics. They presented this diversity by selling new products such as; the Ipod used together with the iTunes store and the iPhone. In 2008, Apple Inc earned a profit of $1.07 billion from revenue of $7.46 billion. Over half of Apples income was generated from the sales in these new Steve Jobs and Steve Wozniak founded Apple Computer in April 1976. Their first computer was called the Apple I. Apple Computer was incorporated in 1977 by bring on another partner, A.C. “Mike” Markkula, Jr. With the help of Markkula, Jobs and Wozniak introduced the Apple II computer in 1978. The Apple II drove the PC industry up to $1 billion in annual sales in less than three years. Apple, of course was the industry leader by selling more than 100,000 Apple IIs by the end of 1980 (Yoffie &Slind, 2008). Apple Inc. Obstacles In 1981, IBM entered the market with its DOS operating system and a microprocessor from Intel. This made them competitors for Apple because IBM’s system was one that other producers could clone. Apple saw a 6.2% drop in their market shares in 1982 and the net income fell 17% between 1983 and 1984. This left the company in dire need of a change. In 1985, Jobs was removed from his operating role and left the company. John Sculley would be named the new CEO of Apple.
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Sculley would work vigorously to bring Apple into the corporate world and to stabilize the market share at 8%. Apple retained the big lead in 1990 due to their core software technologies and by offering a complete desktop solution, including hardware, software and peripherals that allowed customers to “plug and play” (Yoffie &Slind, 2008). Senior executives realized this lead would only last a while because a top-of-the-line Mac could go for as much as $10,000. This could be problematic because IBM’s prices were actually dropping so the Mac appeared to be overpriced. Sculley wanted to mainstream by offering new
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Unit 1_CaseAnalysis - Case Analysis of Apple Inc., page...

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