Apple:A Vision to Change The World

Presented To:Mr. Subhojit Sengupta

Presented By:-Nishi (148933)-Pushpika (148938)-Shravanthi (148946)

CONTENTS• HISTORY• COMPETITIVE ENVIRONMENT• GROWTH• CHANGES AT THE HELM• DECLINE OF APPLE• APPLE’s STRATEGY• CORE COMPETENCIES• SWOT• CONCLUSION

APPLE• On April 1, 1976, as Apple Computer Inc. STEVE JOBS & STEVE

WOZNIAK (Co- founder)• Industry: Computer Hardware and Software, Consumer Electronics• Vision: Change the world & worked feverishly to project his philosophy• By 1976, Wozniak developed programming language for 6502

microprocessor.• In 1978, Apple – II was presented.• In 1979, Development of VisiCALE.

History• In age 21, Steve Jobs was established Apple in a garage with Stephen

Wozniak in Silicon Valley, California.• Wozniak was the technical wizard & Jobs was the entrepreneur.• Wozniak had develop programming language & Jobs shared Wozniak’s

passion for computer.• In 1978, Wozniak was package several components of PC together and also

presented Apple II

• 7 principle of Jobs that responsible for his success:> Do what you love> Put a dent in the universe> Kick-start your brain> Sell dreams, not products> Say no to 1,000 things> Create insanely great experiences> Master the message

Competitor Environment

GROWTH PERIOD

In1980, 25000 Apple II was sold & largest stock offering. In 1982, Huge infrastructure of retail & touch $1B. Focus on dealers. Launched a new programme “Kids Can’t Wait”. In 1984, New computer models: II-e & LISA GUI , interface between People & Machine that were develop by

XEROX engineers. Apple invested $100 million over two years to develop software.

CHANGES AT HELM

• In 1983 , growing invincibly & production demands was high.• They move to STEWARDSHIP MANAGEMENT STYLE.• John Sculley was elected president & CEO in 1983.• In 1985 , Jobs ousted from the board.• Reestablished Apple as pioneer in GUI.• Unique features for PC & captured the attention of users.

APPLE UNDER SCULLEY• Macintosh less expensive than LISA.• IN 1985, departure of Jobs & Wozniak.• IBM forceful enter into PC market & apple demand was depressed.• Reengineering the organization in 1986.• Vision was to target office computing.• Sales were $1.96B to $5.3B in 1989.• IBM clones, led to slow down of market share growth.• Apple was decentralized in 1988.• Separate division for product development & manufacturing • Change in organizational structure cause problems between marketing and

R&D.• Process improvement initiatives• Smart manufacturing and geared the company to a market pull then

technology push.

DECLINE OF APPLE• Refused to license its OS to other computer manufacturer.• Technology proprietary and exploit it only in its own products.• Microsoft with windows, diffuses its technology by putting on IBM PC.• Finally realized its mistake of superior technology.• In 1993, decided to license its OS & architecture but its too late • In 1991, participate in IBM/Motorola/Apple consortium.• Five distinct initiatives:

a) Better integration with IBM compatiblesb) New family of Reduced instruction set computers (RISCs)c) Open system environment known as AIX.d) Multimedia joint venturee) Next generation of OS software based on object oriented programming.

• Aim was to break Intel & Microsoft strong hold on PC market. • In 1993, Michael Spindler took over as CEO & aggressive actions was

taken.• In 1996, Gilbert Amelio, replaced Spindler as CEO.• Second Quarter loss was $740M.• In 1997, stock fell to 12 year low• Jobs was brought back as an advisor.• He declined as CEO & remain CEO at PIXAR , a new hi-tech venture.

RE-BORN• In 1997, Steve Jobs was back as an advisor • Mr. Jonathan Ive, develop & nurture a new pleasing design for Mac

i.e., iMac• In 2001, launched iPod• In 2003, launched iTune • Next wave of revolution came with iPhone followed by launch iPad &

iPad-II

Apple’s Strategy

• Apple employs a Product Differentiation• Drawbacks as a result of their strategy include:

– Not appealing to Price Conscious Consumers – Risk of Imitation by Competitors– Risk of Change in Customer Taste

SWOT

Strengths• Branding

• Innovation• Differentiated Product• Superior Quality• Retail Strategy

Weaknesses• High Price Proprietary

System• Niche Market, Less

Penetration• Cannibalization

Opportunities• Fast growing Industry

(Customer Electronics Industry)

• Technological Innovations• Extend new products to

loyal customers• High Potential music phone

market• Strategic Alliances

Threats• Extensive Competition • Substitute Products• Low prices of

Competitors• Technical Advancements• Economy downfall

CONLUSION• Free flow of information permits innovation.• Venture Capital as strong Catalyst.• Synergy between an inventor & Entrepreneur.• Packaging leads to success of product.• Worked feverishly to project this philosophy.• Incremental Innovation need to be managed with same as vigor as

radical innovation.• Importance of forming alliances with competitor.• Decided to license OS.• Attempted to reorganized R&D activities several times