Contents
[hide]
|
Basic Information of Apple Computer--2002
Author: David B. Yoffie, Yusi WangPublisher: HBR
Case Number: 9-702-469
Publication Date: Mar 22, 2002
Course Category: Strategy
Case Summary of Apple Computer--2002
• 1976 Jobs (visionary) and Wozniak (technical) and Markkula (finance) found Apple• 1978-80 Apple II sells 100k units
• 1980 Apple IPO
• 1981 Apple’s competitive position changed fundamentally when IBM entered PC market. (IBM PC is an open system that other manufacturers can clone, while Apple PC relied on proprietary designs that only Apple can produce.)
• 1984 First Mac introduced. Slow performance, lack of software slows sales
• 1985-1993 Sculley Years
o Combo of software and peripheral gave Mac unmatched capabilities in desktop publishing
o 1990 revenues of 5.6B, market share 8%, is most profitable PC company
o Mac begins to look overpriced (apple cost structure high: 9% to R&D)
o 1990 reposition apple into mainstream with products and prices to regain market share
o 1990 Newton (the first PDA introduced). Product flops in face of competition (Palm/Microsoft)
o 1991 forms partnership with IBM to create new software and PowerPC chip
• 1993-1995 Michal Spindler
o Vows to drop prices
o Refocus on core markets: schools & desktop publishing
o Set international growth as key objective (focus on E. Asia)
o 1994 tries to re-establish as a tech leader and introduces Power Mac
o 1994 Macs selling at $1k more than comparable Intel PC’s
o 1995 Apple drops prices and unit sales surge
• 1996-1997 Gilbert Amelio
o Set out to improve operations by streamlining product line, cutting payroll & rebuilding cash reserves
o Proclaimed that Apple would return to premium-priced strategy
• 1997- 2002 (end of case) Steve Jobs
o Focused efforts to expand and support developers to bring more software to the Mac
o Key partnership with Microsoft (150M) to put core products (MS office) on Mac.
o 1997 website launched to sell direct to consumers (targeting Dell)
o 1997-1998 Introduce Power Macs and PowerBooks (high end business computers)
o 1998 iMac introduced targeted at low priced consumer market.
o 1998 “Think different campaign” initiated. Huge success.
o 2001 Open retail stores to introduce new customers to Apple products
o 2001 iPod and iTunes introduced
o 2002 New iMac introduced promoted as digital hub for cameras, MP3 players etc.
Overview
• The evolving personal computer industry
o Apple pioneered the first usable personal computing devices but IBM brought PCs into mainstream. IBM’s brand name and product quality helped it to capture the lion’s share of the market in early 1980’s. By the 1990s, Wintel had replaced “IBM-compatible” as the dominant standard.
• PC Manufacturing
o The largest element cost was the microprocessor
o As components became standardized, PC market cut R&D spending. More companies looked to innovations in manufacturing, distribution, and marketing to give them a competitive edge.
o In late 1990s, a new breed of large contract manufacturers of vertically integrated systems began to build everything for the brand name companies.
o Many PC manufacturers sought to streamline their operations by moving from a build- to-stock model to a build- to-order approach. They can reduce their costs by 10%.
• Buyers and Distribution
o PC buyers fell into 4 categories: business, government, education, and home.
1980s: PC buyers proffered to buy established brands through full-service computer dealers§
Early 1990s: customers became more knowledgeable about PCs, a variety of alternatives channels merged§
Late 1990s: fueled by the explosion of Internet, a growing number of manufacturers began to market PCs to customers over WWW.§
• PC Manufacturers
o Dell
Attributed success to distinct business model, which centered on direct sales and build- to-order manufacturing.§
Made it possible to offer products that matched customer needs.§
o Compaq
Compaq’s original strategy was to sell PCs that offered more power or features at prices close to IBM’s.§
Late 1990s, hybrid model, incorporating aspects of the direct seller’s approach.§
Implemented build- to- order and configure- to-order programs to streamline production and moved to direct sales in 1998.§
o HP
Started with electronic instruments and medical equipment and expanded to computers and peripherals§
PCs were a small piece of HP's operations before 2002§
Acquired Compaq in 2002§
o IBM
Largest computer company in the world§
Failed to secure ownership of PC platform giving OS to Microsoft and chip to Intel§
Major force in notebooks and corporate accounts§
No comments:
Post a Comment