Apple Computer Case
This Harvard Business School case examines the history of Apple Computers in the context of personal computer (PC) industry over last 20 years of rivalry between Apple, Microsoft, IBM, Dell, and other leaders. ... In five years Apple had four CEOs, including famous Steve Jobs, but the company was still trying to find its strategic position. With Steve Jobs’ return in 1997, Apple seemed to start re-gaining its strength, going from $1. ... In 2002 Apple faced weak unit sales, flat gross margins, and declining share in several core markets. ... This paper considers the evolution of Apple’s strategy and market positioning during past 20+ years. Analysis of major driving forces and recommendations for Apple’s future growth are provided. ... Apple historically had a unique position in this industry, comparable only to IBM’s: it had its finger in each of this segments, except making microprocessors. Apple’s Initial Position (1980s) Founded in 1976 Apple Computer started quite gloriously: by 1978 - introduction of Apple II – its first personal computer; by 1984 – introduction of famous Macintosh, a system with all major features of modern PCs. ... What was Apple’s main core competency at the beginning? ... By re-investing highest in the industry portion of its income in R&D, Apple managed to create a product superior to the products of other companies. From designing its own motherboards, through developing proprietary OS, and to making spreadsheet-like applications Apple created one of the greatest moderately priced general purpose computing systems. ... Intimidated by the technology they depended on the service and support and many of them preferred to buy established brands like Apple’s Macs through full-service Apple’s dealers. ... Also, computer literacy of the general public at that time was not exactly “high” and most people simply did not need advanced systems for their tasks. To sustain its competitive advantage, Apple refused to license its OS to any other manufacturers.