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APPLE`S TURNAROUND
Steve Jobs (1955-2011)
Formation of Apple
 Established in 1976 by Steve Jobs, Steve Wozniak
and Ronald Wayne.
 Incorporated in 1977 without Ronald Wayne.
 Initial Public Offering on 12 December 1980 at $22
per share. Generated more capital than any other
IPO since Ford Motor Company in 1956.
 During the first five years of operations, revenues
doubled every four months, an average growth rate
of 700%.
Initial Product Portfolio
 Apple I
 Apple II (Platform for VisiCalc
Spreadsheet)
 Apple III (To compete with IBM and
Microsoft in the Business and Corporate
market)
 Lisa ( Innovative GUI but high priced )
 Macintosh (High Price but supported by
compatible devices )
Job Quits
 In 1985, a power struggle developed between Jobs
and CEO John Sculley. Jobs resigned from Apple
and founded NeXT Inc. the same year.
Post Jobs Era
 After Jobs` departure, the Macintosh product
line went through a change and was turned
into a high profit margin line.This policy
backfired badly a few years later as the
market became saturated with cheaper
clones with same functionality.
 In 1989 the stock price dropped by 20%.
Post Jobs` Product Portfolio
 Macintosh Classic/LC
 Powerbook ( Ancestor of modern laptop )
 Accessory market – TV, Digital cameras, Portable CD
players, Speakers,Video consoles etc.
Jobs returns to Apple
 In 1997, Apple Inc. was on the verge of
being bankrupt when Steve Jobs was
offered by the BoD to act as the interim
CEO.
 A deal was finalized and Steve Jobs
returned as interim CEO and eventually
became the CEO of Apple Inc.
How did Steve turnaround Apple?
 In 1997, Steve Jobs received help from his friend Bill
Gates. In an unprecedented move Microsoft made a
$150 billion non-controlling investment in Apple Inc
and announced to develop applications for the
computers manufactured by Apple Inc. Microsoft also
announced to develop MS Office for Mac so that
Mac users don`t migrate over to Windows.
At the Macworld Expo Boston(1997) keynote address, Steve Jobs told
the crowd that Apple needed to improve its relationships. "It needs
help from other partners; it needs to help other partners."
“Help others on your way up, because you might meet them on your way down.”
Product Portfolio After Restructuring.
 iMac
 Entered digital video editing market – Final cut
pro | iMovie
 Took over Astarte to acquire DVD authoring
technology.
 Entered music software industry by taking over
“Nothing real” and “Emagic”.
 Launched iPod in 2001.
 Launched iTunes store in 2003.
 In 2005 the first Intel powered Macbook was
launched and iMac series was retired.
Apple`s pre-positioning phase
A New Direction – Jobs` Factor
 During his keynote speech at the Macworld
Expo on January 9, 2007, Jobs announced
that Apple had now shifted its emphasis from
computers to mobile electronic devices.
New Era Portfolio – The Technology Revolution
 iPhone series
 Macbook pro series
 AppleTV
 iPod Nano
 iPod Shuffle
 iPodTouch
 iPad
From being a nobody in the mobile industry in January 2007, Apple went on
to become the third-largest mobile handset supplier in the world due to the
popularity of the iPhone by October 2008.
Blue Ocean Strategy
What did we learn?
 Be original, be creative. Money is important but don`t make it an
object of your life, instead focus on your strengths. If others try to
talk you down, take their criticism constructively and move on. Do
not judge yourself by what others think of you. Because the world
doesn`t know your potential.
 Steve Jobs didn`t quit when he left Apple. He didn`t quit when he
was diagnosed with Cancer. He kept on doing what he was best at
and he revolutionized the whole world for ages to come.
 Steve didn`t have a business background, he was an engineer but he
created one of the most successful and most influential company we
have in the world today.
 Steve`s use of Blue Ocean Strategy changed the whole world. He
didn`t have an MBA but he knew that in order to be the best you
have to think out of the box.Which is why Apple is and as long as
they continue with Steve`s policy, they`ll be trend setters.
Apple`s turnaround

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Apple`s turnaround

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  • 3. Formation of Apple  Established in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne.  Incorporated in 1977 without Ronald Wayne.  Initial Public Offering on 12 December 1980 at $22 per share. Generated more capital than any other IPO since Ford Motor Company in 1956.  During the first five years of operations, revenues doubled every four months, an average growth rate of 700%.
  • 4. Initial Product Portfolio  Apple I  Apple II (Platform for VisiCalc Spreadsheet)  Apple III (To compete with IBM and Microsoft in the Business and Corporate market)  Lisa ( Innovative GUI but high priced )  Macintosh (High Price but supported by compatible devices )
  • 5. Job Quits  In 1985, a power struggle developed between Jobs and CEO John Sculley. Jobs resigned from Apple and founded NeXT Inc. the same year.
  • 6. Post Jobs Era  After Jobs` departure, the Macintosh product line went through a change and was turned into a high profit margin line.This policy backfired badly a few years later as the market became saturated with cheaper clones with same functionality.  In 1989 the stock price dropped by 20%.
  • 7. Post Jobs` Product Portfolio  Macintosh Classic/LC  Powerbook ( Ancestor of modern laptop )  Accessory market – TV, Digital cameras, Portable CD players, Speakers,Video consoles etc.
  • 8. Jobs returns to Apple  In 1997, Apple Inc. was on the verge of being bankrupt when Steve Jobs was offered by the BoD to act as the interim CEO.  A deal was finalized and Steve Jobs returned as interim CEO and eventually became the CEO of Apple Inc.
  • 9. How did Steve turnaround Apple?  In 1997, Steve Jobs received help from his friend Bill Gates. In an unprecedented move Microsoft made a $150 billion non-controlling investment in Apple Inc and announced to develop applications for the computers manufactured by Apple Inc. Microsoft also announced to develop MS Office for Mac so that Mac users don`t migrate over to Windows. At the Macworld Expo Boston(1997) keynote address, Steve Jobs told the crowd that Apple needed to improve its relationships. "It needs help from other partners; it needs to help other partners." “Help others on your way up, because you might meet them on your way down.”
  • 10. Product Portfolio After Restructuring.  iMac  Entered digital video editing market – Final cut pro | iMovie  Took over Astarte to acquire DVD authoring technology.  Entered music software industry by taking over “Nothing real” and “Emagic”.  Launched iPod in 2001.  Launched iTunes store in 2003.  In 2005 the first Intel powered Macbook was launched and iMac series was retired. Apple`s pre-positioning phase
  • 11. A New Direction – Jobs` Factor  During his keynote speech at the Macworld Expo on January 9, 2007, Jobs announced that Apple had now shifted its emphasis from computers to mobile electronic devices.
  • 12. New Era Portfolio – The Technology Revolution  iPhone series  Macbook pro series  AppleTV  iPod Nano  iPod Shuffle  iPodTouch  iPad From being a nobody in the mobile industry in January 2007, Apple went on to become the third-largest mobile handset supplier in the world due to the popularity of the iPhone by October 2008. Blue Ocean Strategy
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  • 17. What did we learn?  Be original, be creative. Money is important but don`t make it an object of your life, instead focus on your strengths. If others try to talk you down, take their criticism constructively and move on. Do not judge yourself by what others think of you. Because the world doesn`t know your potential.  Steve Jobs didn`t quit when he left Apple. He didn`t quit when he was diagnosed with Cancer. He kept on doing what he was best at and he revolutionized the whole world for ages to come.  Steve didn`t have a business background, he was an engineer but he created one of the most successful and most influential company we have in the world today.  Steve`s use of Blue Ocean Strategy changed the whole world. He didn`t have an MBA but he knew that in order to be the best you have to think out of the box.Which is why Apple is and as long as they continue with Steve`s policy, they`ll be trend setters.

Editor's Notes

  1. VisiCalc worked on Apple II computers which helped Apple enter the Business as well as the domestic market. Now Apple was competing head on with other 2 major competitors Commodore and Tandy
  2. After quitting the company he himself had founded, Jobs formed NeXT inc the very next year. In 1990 Tim Berners Lee used the computer of NeXT to create World Wide Web. In addition to this, Jobs entered the Visual effects field and helped create Pixar which produced the first ever animated film called Toy Story.
  3. 10 January 2007, Apple shares hit $97.80, an all-time high at that point.
  4. In 2008-9 America faced a credit crunch and the whole economy went into a recession. Even with the recession, Apple  recorded its best first quarter (Q1 FY 2009) during the recession with revenue of $8.16 billion and profit of $1.21 billion. In May 2010, Apple's market capitalization exceeded that of competitor Microsoft for the first time since 1989.
  5. If today were the last day of your life, would you want to be doing what you’re doing? Every day of his working life, Steve Jobs looked in the mirror and asked himself that question, he told a Stanford graduating class in a justly famous speech. “Whenever the answer has been ‘No’ for too many days in a row, I know I need to change something,” he added.