apple case summary

1. CASE : APPLE A
APPLE INCORPORATED
In 4th quarterof 2011 APPLEover tookthe record of IBM. There isa growthof 16% of salesinthat
year.The total revenue is46.30 million.APPLE buildthe hardware andsoftware andthe services.It
isa blue oceanstrategy.Itis vertical integratedcompany,because itfocusonsegmentation. APPLE
was bornin 1976. Theyfoundand angel investorMarkmakkula.
IBM CHALLANGE
Apple first challenge was faced when IBM introduced personal computer. There was a
commercial failure as the failure of the marketing department. The introduction of "Lisa " the
computer named after Job's daughter was supposed to overtake the APPLE-2., but it failed.
Then Job bought in John sculley at this time. The reason for Lisa failure was it was
overpriced, but it was the first one to introduce the GUI and the mouse technology. John
taught MAC would be the future of the company.
The failure of establishment of MAC as 3rd most standard product in company would result
in decreasing the apple revenue curve. It is because Ibm has taken lot of market share.IBM
positioned itself as education cum home product. So penetrating into the market is a long
term goal for APPLE now. Moreover IBM had a strong value proposition FUD.( fear,
uncertainty and doubt) . These characteristics influence purchasing power than product
characteristics. However APPLE is still strong in product quality, which the company taught
would help to compete with IBM. It worked as well. Apple could create lot of loyal
customers for its premium products. Ibm actually produced itself as desktop for homes but it
actually for the corporates. But on the other hand apple was for home desktop and wanted to
position the same and target that segment. In the mean time Jobs believed that the direct to
customer business model has to be introduced. But John insisted in the old distributor -
retailer model. This created lot of internal conflicts in the organisation. The board decided to
throw Jobs out of the company. There was no cohesive product strategy, when Jobs exited the
company. Later Jobs made his own company by selling most of his shares in APPLE. Yet the
company remained stable due to the continuous demand for the APPLE-2.
THE SECOND COMING OF JOBS
There was a problem of investing on hardware and software. When Microsoft started creating
their own O.S and outsourced the hardware, APPLE share came down in market share. So
they are trying to revive. Microsoft introduced windows 95. So Jobs stared convincing people
to buy APPLE, still it it don't work. Then NEXT was acquired. SO the senior management of
next moved to apple. Jobs convinced Bill gated to invest and got 150 billion dollars. He then
restructured the organisation. It was
r&d was reduced to half

2. product line was increased.
they did not outsource and nor did they ask others to design their interface.
distributors were totally cut off.
online store came
ad's were made better- Think different campaign.
Then APPLE revived. and revenue of 300million dollars.
DIGITAL HUB
It's about strategy after Jobs returned. By then it has only 3% of market share is held by
APPLE. The strategy is Jobs tried to introduced APPLE'S products in all the digital devices.
It means he tried to make IMAC as the hub. He wanted to make this by
HUB and
SPOKE.
The strategy was disclosed to the market yet the competitors could not do it
RETAIL DIFFERENT
Jobs tried to sell the products direct to customers through his apple stores. He used promote
this buy using celebrities and had caption THINK DIFFERENT. The ambiance of the stores
was also worked out. The competitors expected this ambiance strategy would fail. More over
Jobs targeted highly expensive places and locations. Jobs didn't want his product to be placed
with other products. This might give the customers a chance to compare his product with the
others. The normal stores i.e gateway stores has low foot count, but on the other side apple
could get high foot fall. There was also a high drastic increase in the revenue.( data is
supported in the case). The other products and growth of the company is also discussed.
In1993 there was a problem with mp3 player . They were
short battery
long download
limited storage etc
So job grabbed this market opportunity and capitalised on it. He designed the I-POD. In the
market it is compatible with MAC it had a better start. Later IPOD mini and many versions of
this variants was introduced. It had an attractive offer that on the release day of the DVD is
released through APPLE STORE.

3. VISIONARY
In 19990's in electronic industry a study is made on electronic companies success. They got
on how do you get market. It was also observed that most of the companies take the idea of
the some company solve the challenges and adopt it and make money out of it. APPLE said i
am going to wait for the next big thing. was the answer of Jobs when the same question was
put to him. There was also a hint that there was also alliances with the music companies to
provide better services to the "I-CUSTOMERS".
So the whole case talks about the strategy APPLE adopted to become the market leader and
to create the loyal customers.