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Case Study Apple

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Case Study Apple
| |Case Study Analysis |[pic] |

GENERAL INFORMATION

|Class |Strategy |
|Date |01/06/2013 |
|Case |Apple (2006) |

Summary

• Apple 2005 o $1.3 net income o $13.9 billion in sales o 11.8% operating margin o sales had grown at an annual rate of 27% o stock was at an all time high $86 • Jobs had pushed for innovative products o iMac o OS X • Apple retail chain • Source chips from Intel • 1985 ( Apple removed Jobs

Why did Apple struggle in the 1990s?
Too many different strategies during the 1990s, company lost direction and had several renovation attempts in a span of less than 10 years

• Sculley o Exploit Apple’s capabilities in graphics and design to make the company a leader in dekstop and publishing o 1990 ▪ sales of $5.6 billion ▪ world market share of 8% ▪ US market share of more than 50% ▪ $1 billion in cash ( most profitable PC company in the world o More horizontal and vertical integration than any other PC company, except for IBM o Developed own operating system which bundled with the Mac, own application sw and many peripherals ▪ Could offer consumers a complete desktop solution o Love affair with consumers ( sell products at a premium price

• BUT o IBM came out with a low price computer so NOW Apple was
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