Apple underwent a remarkable turnaround under Steve Jobs from 1997-2011: - When Jobs returned as CEO in 1997, Apple was struggling but he transformed it by focusing on innovative new products. - Over the next 13 years, Apple launched hugely successful products like the iMac, iPod, iTunes, iPhone, and iPad that changed their industries. - After Jobs' death in 2011, Apple has struggled to maintain the same level of innovation and has seen its share price decline as competitors like Samsung gained ground.

1. Group 5
ANAND KUMAR 12P127
ANKUSH SINGLA 12P129
ASHWIN BHOOMI 12P131
ADITYA CHADHA 12P132
SIDDHARTH BHARADWAJ 12P170
SOUMYAJIT SENGUPTA 12P171
STRATEGIC MANAGEMENT II, Section C
TURNAROUND
Apple Inc.

2. A Tribute to Steve Jobs
Here's to the crazy ones.
The misfits. The rebels. The troublemakers.
The round pegs in the square holes.
The ones who see things differently.
They're not fond of rules. And they have no respect for the status quo.
You can quote them, disagree with them, glorify or vilify them.
About the only thing you can't do is ignore them.
Because they change things. They push the human race forward.
And while some may see them as the crazy ones, we see genius.
Because the people who are crazy enough to think they can change the world, are
the ones who do.
-Steve Jobs

3. Executive Summary
 This project looks at the turnaround that Apple had gone through under the vision and command
of Steve Jobs from 1997 to 2010-11
 Apple has gone through every possible business emotion in its existence of nearly 44 years. It has
seen the euphoria surrounding its first product, the Apple 1 to the uncertainty that prevailed
during the end of Steve Jobs’ initial reign to the meandering and stagnant phase it got stuck in
between 1984 to 1997. The company literally rose from the ashes in 1997 under Jobs to become
the biggest titan in the technology industry and finally in the entire business world.
 The entire chronology has been divided into 4 phases and each of the major aspects of Apple
like Strategy, Innovation and Marketing approaches undertaken have been discussed under the
ambit of these 4 phases.
 Inception Phase (1969 – 1984)
 Jobs-less Apple (1984-1997)
 Return of Steve Jobs (1997-2010/11)
 Post Jobs Era @ Apple (2011-Present)
 This presentation also looks at the successful creation of blue oceans by Apple and the
subsequent highs that the company achieved as it sustained its remarkable innovations with even
more innovative products as follow-ups.
 Finally the project looks at the current situation of the company and we have recommended a
more proactive approach to new product development and a cautious outlook on its evolving
strategy to go low-cost in emerging markets.

4. Introduction: A Timeline of Apple Inc.
Inception of Apple by Jobs
& Wozniak, post Atari
Apple 1 Invented, Becomes
a Commercial Hit
Macintosh invented, 1984:
the 1st ever self-sufficient
desktop, Run-away
Commercial Success
Steve Jobs is removed from
Apple following a power
struggle with Sculley
Apple starts on its downward
decline
Jobs returns to Apple as
Interim CEO after Apple
acquires NeXT
iMac introduced, the 1st ever
all-in-one computer. Also
called the Candy
Computer.
iTunes launched, allowing for
people to own music @ 99
cents
iPod launched in 2004.
Another bumper hit in the
commercial segment
Mac OS X launched
iPhone launched in
2007
iPad becomes the last
innovation by Apple
under Jobs, 2010

5. History of Apple Inc.
InceptionStage(1976-1984)
Jobs & Wozniak got
together and set up Apple
Wozniak designed Apple 1
and 2 while Jobs became
the figurehead due to his
acute marketing acumen
Jerry Mancock came on
board as the exterior box
designer for Apple
Apple 3 launched in
1980, but turned out to be
a failure due to design
defects in 1983
Apple launched its IPO in
1980, the biggest since
Ford IPO in 1956
Jobs showcased the 1st
working model of a GUI
GUI-based Lisa and Mac
developed and launched
Mac Office launched
creating a complementor
to Mac leading to huge
sales
Jobs-lessApple(1984-1997)
Jobs had brought in
Sculley from PepsiCo in
1983
Sculley was the
protagonist in Jobs’ ouster
from Apple in 1984
following a Board decision
Jobs sold all his 605 million
shares in Apple less 1, as
protest
Macintosh was developed
into a fully-fledged
product line and 1989-1991
was hailed as the golden
age of the Macintosh due
to stranglehold on the PC
market
IBM emerged as the
biggest competitor to
Apple and in
retaliation, Apple
launched
undifferentiated, commodi
tized products losing out
on its brand equity.
Apple was voted the worst
managed company
Apple licensed its
Macintosh OS leading to
flooding of clones and
further damage to Apple’s
identity
AppleRisestothetop(1997-201011)
Jobs returned to Apple as
the interim CEO after
Apple acquired NeXT in
1996/97
The company was
floundering and was
staring at bankruptcy
around this time with an
overburdened product
portfolio of
undifferentiated
commoditized products
Jobs came back and de-
licensed the Mac OS on
the back of a loophole in
the contract
NeXT provided the
Launchpad for the
redesign and
development of the brand
new Mac OS
Jobs convinced Microsoft
to invest in Apple
@$150million and a 5 year
commitment to develop
the Office Suite for Apple
Apple launched the iMac,
iBook, iPod, iTunes, iPhone
and the iPad over the next
13 years
PostJobsEra,Apple(2011-Present)
Jobs resigned as Apple
CEO in August, 2011
Tim Cook officially took
over after Jobs’ death in
October
Thus ended Apple’s
existence as the pioneer
when it came to
passionate product
development and
arrogant marketing
techniques
Since, then Apple has
been on a slow and
steady decline with share
price erosion and a lack of
innovation plaguing the
company
Samsung has emerged as
the biggest threat to
Apple and has been
capturing the market from
Apple quite rapidly over
the last 2 years

6. Strategy @ Apple after 1997
Silent Incremental
Development
Online Stores &
Going Retail
Protocol Change
in Manufacturing
Increased
Operational
Efficiency
R&D Focus shifted
from Science to
Product
Losing Small to Win
Big (Microsoft
Deal)
• Incremental Development was put on a
continual, piecemeal basis
• Mega Media-Events were reserved for new product
launches rather than upgrades
• Greater time was afforded to creating the next
“insanely great” product which could put Apple on a
higher step in the technology ladder
• Apple created its own online ordering store
after the acquisition of NeXT.
• The idea was sourced from DELL’s initiative and
Apple managed to gain an advantage here
after DELL had to change from the market
leader WebObjects technology to Microsoft’s
Active Server for hosting its web channel due to
Apple not making available WebObjects for
external vendors, as it was a NeXT property.
• Apple developed its strategy of “Store within
Store” in which Apple products were to
displayed separately in a different section of a
store which would be manned by employees
hired by Apple themselves.
• This led to a perceived sense of differentiation
among the buyers
• Apple reduced its retail partners from 20,000 to
11,000 within a year after Jobs’ return
• Apple shifted to a order-based manufacturing
strategy rather than the assembly-line system it
had previously adopted
• This led to reduced inventory levels that were
hampering Apple’s profitability earlier
• Apple hired Tim Cook, the current CEO as the COO of Apple
• He was instrumental in clearing up the clutter that Apple had accumulated
over the years due to incorrect demand forecasts & loose cost control
mechanisms
• Inventory held was reduced from 90 days to 2 days within a year
• Cash Interim duration increased from 10 days to 60 days under Cook
• The sector focused on inventions while
Apple took on a different route of
“Product Innovation”
• Apple tried to focus on the user
experience when it came to developing
new products
• They pioneered the concept of allotting
technical experts to scout for
commercial technologies and this, at
times, led to Apple co-inventing even at
the most basic level like chips.
• This was the time when Apple moved
into the well-documented shroud of
secret product innovation and only Jobs
and his trusted colleagues knew what
exactly was going on.
• Apple managed to convince Bill Gates
to invest $150million in Apple which
helped it stay afloat a bit more
comfortably
• Jobs also managed to convince
Microsoft to develop the Office suite for
Mac with a commitment of 5 years for
this initiative
• This strategy went a long way in
creating the almost unbeatable
combination of the Mac OS and the
Microsoft Office Suite

7. Innovation @ Apple
•Original Innovator:
APPLE I
•Apple II, the first
commercially
successful computer
•Apple III, LISA :
Failures
•Macintosh: Hit but
was misused and
turned into a
commodity
Apple @
Inception
•Decline in Innovative
Capacity
•Inability to make
Competition
redundant
•Incremental
Innovation becomes
the order of the day
@ Apple
Jobs-less
Apple
•NeXT becomes the
next growth engine
•Indigenous
Innovation became
central to
Apple, again
•Sales Channel
Innovation
•Launch of “Insanely
Great” Products
made a comeback
Jobs returns
to Apple
iPod iTunes iPhone iPad
Post Jobs, Apple has again gone back to its era of innovating incrementally. It has been 3 years since the last
breakthrough product was unveiled by Apple. With the demise of Jobs, Apple distinctly looks like it has lost its focus
towards creating a product that would be both new but can be used like old.

8. Trend Identification
Commoditization of PC
Industry & a Digital Boom
were key drivers along
Apple’s Marketing
Campaign
iPod and iTunes were
developed keeping these in
mind
Analyze Competitors
De-licensing led to market
share erosion
Apple tied up with
Microsoft & Intel to produce
software and chips. This
allowed it to become even
more stronger against
competitors
Innovate
Apple’s design has been
unparalleled throughout
history
Apple’s marketing
campaigns have also been
innovative like Think
Different which included all
the world’s leading thought
agents as their ambassador
Product Positioning
Complementors are central
to extended life of a
computing device
Apple’s App Store has
been instrumental in
creating the eco-system
that has helped position
Apple as a premium
product
Brand Awareness
Building
Creative Advertising & Use
of Non-Traditional Media
Channels helped create
the aura of Apple in the
minds of potential
customers
The use of simple but
sophisticated colors has
also increased the brand
equity of Apple
Distribution
Optimization
Apple moved from small
regional stores to national
chains to increase its reach
Individual retail stores were
also opened to get 1st hand
access to customers
Online selling was
introduced leading to higher
inventory optimization
Customer Focus
Apple pioneered the
concept of “Participatory
Design” in which company
executives would observe
people and their habits to
draw conclusions on how a
product should function
Ease of use and product
quality were at the forefront
of anything Apple did
Marketing @ Apple
Macintosh
Restoration
of
Distribution
Channel
Reduction
of Number
of Product
Lines from
16 to 4
Allocating
the biggest
part of the
budget for
R&D
Differentiati
on Strategy
Creative
Advertising
New
Website for
Managing
Sales
Launch of
Apple
Retail
Stores
Focus on
Customer
Service
iMac
Apple’s Philosophy
1. Timely Product Launches
2. High Quality Product
3. Absolute Secrecy during Development
Apple’s Promise
Once launched, Apple products were
commercially available in every Apple
store worldwide
Jobs’ 1st & 2nd Marketing
Initiative after his Return

9. Leadership @ Apple
Steve
Jobs
Passion
Focus on
Core
Charisma
&
Simplicity
Vision
Driven
Authoritari
an & Firm
Innovative
Potential
Product &
Quality
Driven
Stay
Hungry, St
ay Foolish
Reality
Distortion
& Mental
Innovation

10. Company Analysis
Strengths
Global presence
Brand image
Synergistic portfolio
Strong media content
Weakness
Low returns
Dependency for key components
Opportunities
Wireless products
New digital platform
MP3 player market
Threats
Strong competition
Slow Eurozone economy
Lawsuits
During Steve Jobs
as CEO
Strengths
Branding
Retail Strategy
Superior Quality
Weakness
High price products
Less penetration
Cannibalization
Opportunities
Technology Innovation
Strategic alliance
Fast growing Industry
Threats
Extensive competition
Substitute Products
Technical advancement
Economical factors
Current 2012-
13, After Steve Jobs

11. Industry Analysis
Competitive
Rivalry
HIGH
Supplier
Power
MEDIUM
Buyer Power
HIGH
Threat of
New
Entrants
LOW
Threat of
Substitutes
HIGH

12. Current Scenario @ Apple
 Prominent lack of innovative capability.
 No new product launches
 Focus seems to have shifted from an innovation-
based model to an operationally efficient, assembly
line like model.
 Competitors now catching up to it,
 Stiff competition from Google-based Android
smartphones
 Launch of a low-cost smartphone in the developing
markets can lead to the revival of sales of the iPhone,
 iWatch is a product in the pipeline but has not seen
the light of day for nearly 2 years since it went into the
prototype stage.

13. Recommendation & Conclusion
CONCLUSION
• One of the greatest turnaround in corporate history, possibly the greatest
in the last two decades has been the turnaround of Apple.
• From near bankruptcy to the pinnacle of the world corporate ladder.
• Growth rates of over 50% Y-o-Y for over a decade was maintained by the
company as it went on launching one gadget after gadget which
captured the imagination of one and all.
• Steve Jobs was the single most important factor when it comes to
outlining the causes, which helped Apple turn the corner.
• His leadership and his vision were instrumental in leading Apple out from
the brink of non-existence
• Disruptive innovation became a norm rather than a chance event while
incremental innovation was always on the horizon as Apple released a
new version of its current offerings, every year.
• Apple is on the brink of another important milestone in its life as a
corporate entity. The sluggish growth has led to a change in the strategy
which has shifted from innovation to operational excellence under Tim
Cook.
• Low cost models are a form of diversification of the product portfolio and
acts as a medium of entry into markets which cannot afford the premium
products Apple has in its portfolio.
• It is a fascinating story that Apple has lived through its existence and
expecting more of the same may not be that outlandish an idea.
Recommendation 1:
Active Innovation
Recommendation 2:
Perfect Market Timing
& Properly Tested
Products should be
launched as a Priority
Recommendation 3:
Cautious Approach for
the new Low-Cost
Model that has been
broached

14. Thank You 