...Apple Computer Apple Computer: The iPod, the iMac, and the Business Lessons of Closed Systems Steve Jobs has had much to celebrate lately. But the Apple CEO was particularly happy in February 2006 when he announced that the iTunes Music Store had sold its billionth song, to a teenager in Michigan who had bought a copy of Coldplay's "Speed of Sound". That milestone is all the more impressive when you remember that Apple has numerous competitors in the digital music world. Yahoo music Unlimited and the legal incarnation of Napster are gunning iTunes customers. Sony and Samsung are trying to create iPod slayers. And the field is only getting more crowded. By the summer of 2006, Amazon may launch a digital music service with a branded MP3 player, possibly made by Samsung. It is already being referred to in the industry as the iPod. Amazon won’t discuss its plans, over 40 years old it refers to them as "the NPR crowd" who aren’t as likely to own iPods as MySpace users. The more impressive when you remember that Apple has numerous competitors in the digital music Yet Apple's challengers all face the same problem: Job’s company will no doubt dominate the digital music market for years to come. That's because Apple has learned its hard lesson about closed systems. In the microcomputer desktop market, Apple shrank from an industry leader to a Niche player because it designed closed systems with proprietary hardware and software that were often incompatible with thousands...
Words: 328 - Pages: 2
...Ron Edwards Research paper 10/2/08 Apple computers was established in Cupertino, California on April 1, 1976 and incorporated January 3, 1977 by Steve Jobs, Steve Wozniak and Ronald Wayne. The company was called Apple Computers Inc. for it’s first thirty years but dropped the word “computers” leaving it’s name simply Apple Inc. when they began working on expanding into consumer electronics like the iPod and iPhone. Apple employees twenty eight thousand people world wide and posts sales in excess of twenty seven billion annually. Apple has a devoted customer base and a unique reputation in the consumer electronics industry. Fortune Magazine named Apple inc. one of the most admired companies in America. In 1976, Apple Computer Inc. began to offer the Apple I personal computer kit at the Homebrew Computer Club. The Apple I was hand made by Steve Wozniak and consisted of a motherboard (with CPU, RAM, and basic textual-video chips) less than what is today considered a complete personal computer. They went on sale in July 1976 for $666.66. Apple then incorporated on January 3, 1977 without Ronald Wayne who sold to Jobs and Wozniak for $800 at which time Mike Markkula invested $250,000 and also lent his financial expertise. To compete with the TRS-80 and Commodore PET the Apple II was introduced in April of 1977 at the West Coast Computer Faire. It distinguished itself because it came with color graphics and an open architecture. In later models it offered a 5 ¼” floppy disk for...
Words: 959 - Pages: 4
...Apple Computer, Inc.: Maintaining the Music Business while Introducing iphone and Apple TV Fannie Person Professor Matthew Ademola BUS499- Strategic Management 10/25/2011 Describe the key strategic challenges facing Apple The technology world is a highly competitive industry and two friends Steve Jobs and Stephen Wozniak founded this company in their garage in 1976. Apple has been very successful in building cutting edge products and developing a brand that everyone knows and trusts. Apple is a highly innovative company but, they have had their fair share of highs and lows. A big challenge that Apple has faced is when Steve Jobs and John Sculley began not seeing eye to eye when it came to the direction Apple was going to take. Jobs left shortly after this to start his own business and Microsoft benefited from this. Since Apple was not successful in securing their own product ideas Microsoft was then able to make their own version of a windows system that used GUI technology. “Apple had effectively lost exclusive rights to its interface design”, (Hitt, Ireland, & Hoskisson, 2011). Being in this industry new technology is another big challenge that Apple faces. When Apple introduces a new product there is a craze among consumers that they have to it and it is sold out everywhere. This attracts Apple’s competitors and then they start to try to outdo them by producing similar products and sometimes even at lower...
Words: 1546 - Pages: 7
...Evaluation of the External Environment a. Introduction i. Apple Computers originated in Cupertino, California by three friends, Steve Wozniak, Steve Jobs, and Ronald Wayne. Wozniak was the computer nerd of the three and had been working on a computer design and once Jobs convinced him of finishing his model and selling it to the public the beginning of Apple computers was underway. On January 3, 1977 the hard work of the three friends became Apple Computer, Inc. Soon after Wayne sold his share back to Jobs and Wozniak. The two Steve’s continued on to create one of the most successful companies that would in future years be known for their computers, music devices, cell phones, and software worldwide. Apple took off after Wozniak’s Apple I adding numerous versions of the Apple, the Macintosh line, the iPod, iPhone, and iTunes products, and numerous other computer/software products to the Apple Computer, Inc. family. Apple has made its mark on the technology industry by continuing to be successful innovators that lead their numerous product markets. b. Identification of the Current Corporate Level Long-Term Strategies and Tactics ii. Apple has two major long-term strategies and tactics that they focus on. The first being strategic alliances that they have with IBM, Microsoft, and AT&T. The alliances they formed with IBM and Microsoft have enabled Apple to further their computer growth and guarantee software that is available and familiar to consumers...
Words: 5706 - Pages: 23
...“Case 14: Apple Computer, Inc.: Maintaining the Music Business while introducing iPhone and Apple TV” Assignment 2; “Case 14: Apple Computer, Inc.: Maintaining the Music Business while introducing iPhone and Apple TV” Anthony Green Professor Milan Havel BUS499 July 24, 2011 “Case 14: Apple Computer, Inc.: Maintaining the Music Business while introducing iPhone and Apple TV” * Describe the key strategic challenges facing Apple Computer. * Describe the dimensions along which company success can be measured. * Describe the critical external and internal environmental factors that have strategic implications for Apple's future. * Describe how Apple's strategy stands up against industry rivalry. * Describe the recommendations you would make to enhance the effectiveness of the company's strategy or to change its strategic approach for better results. “Case 14: Apple Computer, Inc.: Maintaining the Music Business while introducing iPhone and Apple TV” Describe the key strategic challenges facing Apple Computer Apple's is currently a very innovative company. It has gone through many ups and downs over the past 30 + years. From a successful company that brought in millions thanks to 2 guys a garage and a dream, to Steven Jobs, one of the founders, walking away from the company and in the process causing competitors to acquire ideas due to legal mistakes. Apple computer has faced many challenges throughout its 24 year history. Steven Jobs left...
Words: 1303 - Pages: 6
...Case Analysis: Apple Computer Course number: NETW583 Date: May 10th, 2013 The innovation of apple computer began with Steve Jobs and Steve Wozniak in the garage of the parents of Steve Jobs in Mountain View, California. On 1st April 1976, fool’s day, the first apple computer was formed by Ronald Wayne, Steve Wozniak and Steve Jobs. The following year, 1977 the apple company was incorporated. The first Apple Computer was a failure and was followed by the second one which was successful. Today Apple Company is one of the most revolutionary computer companies in the world that is involved in designing, developing and marketing personal computers, media devices, peripherals, networking solutions, and third-party digital content and applications. (Datamonitor, 2011) The timeline gives us an outlook of Apple’s biggest successes and failures. Some of the Apple’s successes come from the reinvention of Apple computer and Apple’s culture. The first success came from the Apple II in 1977. The Apple II was designed for mass production and broad consumer appeal and that must have contributed to the success of Apple II. In 1984, the introduction of first Macintosh was a success. To appeal to the consumes, Apple created hype around the Macintosh with its infamous "1984" Super Bowl commercial, and announced it...
Words: 882 - Pages: 4
...Apple Computer: The iPod, the iMac, and the Business Lessons of Closed Systems Steve Jobs has had much to celebrate lately. But the Apple CEO was particularly happy in February 2006 when he announced that the iTunes Music Store had sold its billionth song, to a teenager in Michigan who had bought a copy of Coldplay's "Speed of Sound". That milestone is all the more impressive when you remember that Apple has numerous competitors in the digital music world. Yahoo music Unlimited and the legal incarnation of Napster are gunning iTunes customers. Sony and Samsung are trying to create iPod slayers. And the field is only getting more crowded. By the summer of 2006, Amazon may launch a digital music service with a branded MP3 player, possibly made by Samsung. It is already being referred to in the industry as the iPod. Amazon won’t discuss its plans, over 40 years old it refers to them as "the NPR crowd" who aren’t as likely to own iPods as MySpace users. The more impressive when you remember that Apple has numerous competitors in the digital music Yet Apple's challengers all face the same problem: Job’s company will no doubt dominate the digital music market for years to come. That's because Apple has learned its hard lesson about closed systems. In the microcomputer desktop market, Apple shrank from an industry leader to a Niche player because it designed closed systems with proprietary hardware and software that were often incompatible with thousands of application software...
Words: 1372 - Pages: 6
...APPLE COMPUTER, INC.: A CASE ANALYSIS SWOT analysis and recommendation -------------------- INTRODUCTION According to Apple Computer's 2007 10-K Annual Report, "The Company is committed to bringing the best personal computing, portable digital music and mobile communication experience to students, educators, creative professionals, businesses, government agencies, and consumers through its innovative hardware, software, peripherals, services, and Internet offerings." The company's 2005 Mission Statement reads: Apple Computer is committed to protecting the environment, health and safety of our employees, customers and the global communities where we operate. We recognize that by integrating sound environmental, health and safety management practices into all aspects of our business, we can offer technologically innovative products and services while conserving and enhancing resources for future generations. Apple strives for continuous improvement in our environmental, health and safety management systems and in the environmental quality of our products, processes and services. In recognition of current market trends, Steve Jobs has claimed that he wants to transform the company by making the Mac the hub of the consumers' digital lifestyle. Despite Apple Computer's recent successes, the company is facing an ever-changing competitive environment on multiple fronts. 1. What are the key strategic challenges facing Apple Computer? 2. What are some of the dimensions...
Words: 3564 - Pages: 15
... Describe the key strategic challenges facing Apple Computer. Apple needs to stay competitive and innovated. Apple always has new competitors with some trying to make substitutes. Such substitutes, like the Android Market causes Apple to stay competitive. Marketing is an area where Apple does not go over and beyond. Apple has repeat customers. True Apple customers return and usually have more than one Apple product. The name Apple has such a reputation that marketing is not the only way that customers find out about their new products. With technology changing at such a fast pace, ensuring that you have the newest and greatest products is always a challenge. You have to look into the future to think what could possibly be the next big thing. In October last year Apple launched their IPhone 4S. This new release included Suri, which proved to be very successful. This tool is able to respond to any question that is asked to it. It has proven to be successful because of being able to be hands free. Apple always has to think into the future. Steve Jobs has done an amazing job leading Apple to where it is today. I believe that without Jobs Apple would not be as successful as it has been. 2. Describe the dimensions along which company success can be measured. It is important with Customer and Market Share that customer satisfaction is a top priority. Without satisfied customers a company like Apple would not be successful. To keep customer satisfaction...
Words: 1011 - Pages: 5
...Apple Computer Inc. Case Analysis Julianne Carrido, Sami Hakimeh, Kyle Hayes, Frankie Lau Thursday, May 31, 2006 Apple Computer Inc. is an American computer technology company. It leads the industry in innovation with its award-winning desktop and notebook computers, OS X operating system, iLife and its range of professional applications. Apple also spearheads the digital music revolution with its iPod portable music players and iTunes online music store. Apple played a major role in the introduction of the personal computer in the 1970s, which eventually kicked off the personal computer revolution. It’s first big hit, the Apple II, was introduced in 1977 and was a very popular with home consumers. Being the innovator that Apple is, it introduced the first graphical user interface (GUI) to the commercial personal computer. This technology is used on all of today’s major computer operating systems such as Windows XP as well as Unix-like systems. Since then, the company has revolutionized the way people and computer companies think about aesthetic design of computers and consumer electronics alike as well as the security and operability of the operating system. In addition, Apple’s unmatchable success with it’s iPod mp3 player and revolutionary iTunes music store has left many companies struggling to keep up with the new wave of giving consumers the simplicity they desire in technology. The recent announcement along with the release of new Apple computers using...
Words: 2001 - Pages: 9
...apple computer 2012 Apple Computer 2012 1. What, historically, have been Apple’s major competitive advantages? Early on, although not always profitable, Apple Computer was known for their unique products. A quote worth noting from an analyst, “the majority of IBM and compatible users ‘put up’ with their machines, but Apple’s customers ‘love’ their Macs.” This is truer knowing what Steve Jobs strives to achieve with the company as well as the employees. Job was especially fanatic about industrial design, simplicity, and product elegance. The employees love working for Jobs, however it is very difficult. The employees connect with the passion that Jobs has in this work ethic. “My passion has been to build an enduring company where people were motivated to make great products. Everything else was secondary.” Overall, a strong leader in Jobs and Cook has been an advantage of Apple as well as their well-groomed employees who are handpicked by Jobs. Another historical advantage that Apple has is their use of vertical integration. Since they make all the aspects to their products, doing so adds great value to the company and therefore provides a strategic and competitive advantage. 2. Analyze the structure of the personal computer industry using Porter’s Five Forces. Are these dynamics favorable or problematic for Apple? Bargaining power of buyers In terms of technology: PCs, smartphones, and tablets, the product lines of different companies need to be unique. Buyers have...
Words: 905 - Pages: 4
...1) Analyze the structure of the personal computer industry over the last 20 years. How have the dynamics of the PC industry changed? Before 1990, IBM and IBM-compatible dominated PC industry. However, IBM-compatible had been replaced by Wintel, IBM early partners, Microsoft and Intel. As supplies component of PC such as memory chips, disk drive, RAM and peripherals had been available from a wide verity of sources due to relatively easy to produce, the price of them became highly competitive. On the other hand, the importance of microprocessor and OS has increased because they were from just few sources. Since assembling computers was not a very difficult job, thousands of manufacturers built PCs around and OS mainly supplied by Intel and Microsoft. Most companies outsourced the production of components manufacturing contractors at high volume plants in low-cost location like Asia. Large contract manufacturers began to build entire PCs for brand-name companies, assembling basic computers in Asia and shipping them to geographic hubs to complete. Many manufacturers changed their operation from a build-to-stock to a build-to-order to reduce cost by reducing inventory. There have been four main types of PC buyers: Business, home, government and education. Business buyers buy direct from vendors or distributors. Consumer markets are serviced by super stores and web-based retailers who can provide service all types of demand at discounted price. Decreased innovation made PC industry...
Words: 715 - Pages: 3
...INTRODUCTION The success of Apple’s strategy actually began when there were crises internally and financially arose that worried Mac users around the world Apple’s shareholders and customers were losing faith, and competitors were closing in fast. These crises began when John Scully joined Apple in 1983 and also the ouster of Steve Jobs from Apple Computers (Apple) in September 1985 because he cannot work closely with John Scully. Both Jobs and Scully have difference opinion in running the business. In the 1990s, Apple changed three CEOs in the four years between 1993 and 1997, and the company went through several reorganizations and also the returned of Steve Jobs to the company as Apple’s CEO in April 1997 till to date. Due to the many significant events that had happened during the year from 1984 to 2004 and the frequently changed in top management position actually had brought and contributed towards the growth and success of Apple. 1984 – 1985 Apple launched Macintosh As we can see in 1984-85, Apple next launched is the Macintosh. The Macintosh initially sold well, but follow-up sales were not strong. This was because of the again high price tag, as well as limited software titles. The machine's fortunes changed with the introduction of Apple’s new product - LaserWriter, the first PostScript laser printer to be offered at a reasonable price point, and PageMaker, an early desktop publishing package. The Mac was particularly powerful in this market due to its advanced...
Words: 4717 - Pages: 19
...measures of putting the state of the economy in a more favorable light. There are organizations that seek to find inventive ways of solving the issues that can be solve by man. Many corporations are looking for more efficient ways of preserving the environment, inventing planet friendly technology and creating a society of educated consumers. Apple computer Inc. is committed to being the leader in the computer industry. This essay will discuss the contributions that Apple has contributed of the past decade, such as how and why it continues to be the leading corporation among all of its want to be competitors. Apple Computer Inc Overview Apple computer Inc. was co-founded by CEO Steve Jobs and friend Steve Wozniak in 1996. Their original products were computers. Apple continues to manufacture computers and related software currently. It also develops and markets, portable digital music players, related accessories and services , including online music distribution and sales, audio books, videos and has even marketed movies. It operates in the United States and global (datamonitor.com, 2000). Although there was no transparent missions statement, Apple brings the best personal computing products and support to students, educators, designers, scientist, engineers, businesspersons and consumers in over 140...
Words: 1345 - Pages: 6
...Apple Computer Company Steven Paul Job established Apple Computer Company on April 1st 1976, when he was 20 years old and he was college dropout. Steve Job was lacking on the technical skill. He made teamed up with Steve Wozniak who had already written programming language and designed circuit board and Started with the first apple computer, Apple I, basic circuit board they sold through a local retailer for $500, and some 15 months later they introduced their first computer, the Apple .II. Annual sales quickly reached $300million and by 1980. Steve hired two engineers from Hewlett-Packard to conceive new computer. Steve also hired doctoral student in neuroscience, Bill Atkinson. Steve always tries to innovate the products. By getting new technology from Xerox Corporation, Steve “bought” Xerox PARC product, Smalltalk. Smalltalk showed three amazing features. One was how computers could be networked; and the second was how object oriented programming worked, and last, the graphical interface that was made possible by bitmapped screen. The Apple raid on Xerox PARC is sometimes described as one of the biggest heist in the chronicles of industry. Bill Gates and Steve Jobs, despite their similar ambitions at the confluence of technology and business, had very different personalities and backgrounds. Gates was good at computer coding, unlike Jobs, and his mind was more practical disciplined and abundant in analytic power. At first, Steve Jobs wanted Microsoft to create applications...
Words: 300 - Pages: 2
