Apple Computer Case Study
Apple Computer Case Study
Apple Computer Case Study
This case study discusses the history of Apple Computer, starting out in a garage to building a global company worth billions. Steve Jobs and Stephen Wozniaks venture started in April of 1976, in humble beginnings because they had a vision of the future market for electronic media. The strategies used along the way worked very well because of the right time and place strategies they have been able to use to stay well in front of their competition.
Their growth can be contributed to multiple strategic actions Apple has taken through the years. But it is the combination of those strategies at the right time and place which has made them the company they are today. Their innovations, recognitions of markets, interconnections with products and marketing have been very successful for the company.
Apples growth into the computer based integration technology involving not only computers but photos, music and movies have revolutionized the computer industry.
My iPhone is a sophisticated computer based product. I can search the internet, download information, music, movies and photos as well as make a conference phone call. This is why they have been one of the leaders in so many fields of computer based products.
The demand for single device to perform multiple functions or larger capacities to avoid the need for multiple products is one of the largest environmental factors. It has driven the competition for building computer based products, creating software to use them, introducing new products to make life easier and creating markets to provide more products.
The economic environmental factors are pretty simple; provide a personal computer based product, whether it is a smart phone or television, at a cost that everyone could afford was and has been the target. The large advantage Apple enjoys is economies of scale, as well as creating the software, for producing the computer based products hardware in large volumes to keep the prices low. In most cases the competition has to purchase the software to run their systems making it hard for competitors and start ups to sell enough products at a reasonable price to compete with Apple on a cost per volume basis. In the case where Apple needed a new operating system they purchased Steve Jobs company NeXT Computers.
The marketing of the personal computer gadgets has been influencing the Socioculture segment to create the demand in the multifunctional product markets. The consumers culture and values in Apples must have it markets want the smallest, lightest, fastest, easiest to use and least expensive computerized gadgets driving the physical environment, demographic segment, political/legal segment, global segment, technological segments.
Apple has been an innovator developing and improving computerized electronic personal use products so the end user does not have to think, just turn the product on and use it. And it is so inexpensive; in eighteen months when the new an improved item comes along they just buy it instead of waiting for the current model to stop working.
The Apple Company and the competition have marketed computer based products to the public so well they have influenced all demographic segments and global segments that the products are a need to have instead of a want no matter the location or income of the consumer.
Apples leading technology segment, the Graphic User Interface (GUI), is one of the best transitions in the computer to simplify its use. Microsoft, a large competitor, borrowed the GUI process and created a legal dispute for the two companies. GUI is the foundation of all software Microsoft sells. Can you imagine if Apple had patented GUI, it would be the leaders in software as well as hardware sales?
The first thing that Steve Jobs tackled after coming back to Apple in 1997, was to salvage a gain from the GUI legal dispute into money. Prior to Microsofts Office 98 suite the Mac and the PC were not compatible with communication. The manufacturing industry ran on Microsoft software installed on PCs, when Jobs struck that deal it meant Apples were now compatible with PCs, opening new markets.
Using Porters 5 Forces – Analyze the companys competitive environment
Analyzing Apple using the Porters five forces the first three refer to competition from external sources. The first being the threat of the entry of new competitors is always great. This is where the economics of scale help Apple to prevent new comers; they would have a hard time competing with the price. Apple provides exceptional customer support which helps the Brand equity and loyalty to help prevent new competitors. Apple has created many barriers for the competition to