Apple Computer

This case summarizes the rise and stumbling and rise of Apple Computer, the brainchild of Steve Jobs and Steve Wozniak. These two students who lived in Palo Alto created an alternative operating system for a hard disc that used a graphical interface rather than the text-only DOS system that had been invented by an also-ran named Bill Gates.

Jobs and Wozniak had a vision that the growth of the personal computers would herald a new industry, and they wanted to be one of the leaders of that industry. And, in fact, during the late 1970s, Apple owned the personal computer market with its Apple I and Apple II. Apple's first full year of official business was 1978, and according to the case study (p. 675) "the company organized a distribution network through independent distributors. This distribution contributed greatly to the increase of sales."

By 1980, the personal computer was changing from a fad to a fact, and Apple was the primary market mover. However, as the case points out, one of the dangers of "owning" a market is that there are lots of others who don't want you to own it. This case study reflects the hazards of a competitive pricing strategy that is targeted to value-conscious consumers. Pricing strategy decisions were to position Apple as the best bargain by pegging it against IBM and other DOS-based PCs.

Profitability in the computer industry initially relies on price competiti

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alysis. This stands for "Strengths", "Weaknesses", "Opportunities", and "Threats." Strengths * Apple has a strong brand name, perhaps more familiar than its operating system. * Innovative platform development and good graphical interface makes computing icon-oriented and intuitive. * The company has a distinctive competence in design and some distinction in its sales incentive programs for distributors. * Good contacts/relations with clients and customers. Existing customers, that is, which is a crucial difference. Weaknesses * No clear strategic direction * Inadequate financial resources * Deteriorating competitive position? * Sub par profitability based on lack of managerial depth and talent? * Poor track record in determining and implementing strategy. * Plagued with some internal operating problems * Vulnerable to competitive pressures against price points, technology support, and non-DOS operating system. * Limited access to economies of scale because of the production and quality levels demanded by Jobs. Opportunities * Find, develop and serve additional customer groups * Embrace new markets, technologies and segments * Expand service line to meet broad
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Some common words found in the essay are:
Apple III, Threats Strengths, PCs Profitability, Campbell Marcus, Jobs Opportunities, II Apple's, Conclusions Recommendations, PCS Apple, DOS CPM, Jobs Wozniak, apple iii, iii market, marcus 1997, campbell marcus, organizational culture, apple iii market, operating system, campbell marcus 1997, operating system *, graphical interface, system *, brand name, apple ii,
Approximate Word count = 1444
Approximate Pages = 6 (250 words per page)

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