1. Apple Case Study

2.  Aditi Karnik
 Prajakta Bhandare
 Bharti Sonar
 Swapnil Pawar
 Lalit Singh

3. • Steve Jobs & Steve Wozniak started a company
with its product Apple I on 1st April 1976
• Limitations of Apple I-no case,keyboard,power
supply,hours of assembly by hands
• Apple II – 1978 Macintosh – 1984
• Apple II came out with a critical innovation to
insert a disk drive
• By 1980 1,00,000 Apple II were sold making them
leader in embryonic market

4.  Apple III was launched in 1980-failure
 Market Share fluctuated from 7% -9%-4%
 In 1985 Steve Jobs was fired
 By 2006 Apple bounced back & did record
breaking sales
 iPod music player, music downloading from
iTunes, MacBook laptop

5. • IBM had a huge and very profitable mainframe computer
business, but it had so far failed to develop a PC.
• 3rd PC project of IBM – Adopted an “Open Architecture.”
• 1891- IBM PC was instant success.
• Next 2 years IBM would sell more than 500000 PCs, seizing
market leadership from Apple.
• As a sale of IBM PC mounted 2 things happened –
1. Independent software developers started to write programs
to run on the IBM PC.
2. The success of IBM gave birth to clone manufacturers .
• Clone Maker-
 1983 – Compaq , 1st and successful.
 Tandy, Zenith, Leading Edge, Dell.

6. • 1980 – Important projects underway at apple
1. Lisa – High end business machine.
2. Macintosh – Low end portable.
• Jobs was astounded by what he saw at PARC
(Palo Alto Research Center) and decided that
these innovations had to be incorporated into
Apples machines.
• Pushed the Lisa tem to implement PARC’s
innovations.

7.  Sculley shut down the Lisa Line.
 Apple’s domination of desktop publishing market.
 1985-Apple licensed PostScript.
 Apple allowed customers to “Plug and Play.”
 1990 – Apple was the most profitable PC
manufacturer in the world.

8.  In 1990 Microsoft introduced Windows 3.1
and Apple’s differential appeal of GUI
began to erode.
 Windows OS became dominant in the
market and Mac OS turned to niche player
 The Company was on a glide path to
history.

9.  Appointed himself Chief Technology Officer in
addition to CEO.
 To bring out low cost version of the Macintosh
(Mac Classic) and cut prices by 30% of Apple II .
 Cut Costs by reducing workforce
 Maintain technological lead by introducing new
products in every 6-12 months.
 Alliance with IBM
Result:
 The game plan helped to boost top line but bottom
line reduced .In 1994 Sculley left Apple.

10.  To license the Mac OS to other computer makers.
 Committed for Next generation OS for Macintosh.
 Suggested to cut 23% workforce.
Result:
 Gross margin slide to 15 % down from 29% in 1994.
 Apple lost $68 million.

11.  Followed through Spindler’s plan
 Apple purchased NeXT , the computer company
founded by Steve Job’s.
Result:
 The Company booked a loss of $742 million in 1996
and was on track to loose another $400 million in
1997.
 Amelio was fired in July 1997.

12.  Steve Job was appointed as CEO after Amelio.
 Ended licensing deal with clone makers.
 Killed slow selling Products
 Pushed company into online distribution
 Came out with new offerings
Result:
 This brought favorable reaction from stock market.
 New offerings from Apple created the history.

13.  New product design came i.e. combination of
monitor and CPU unit
 And Apple company name it as “ iBook ” & a
New “ i Mac” .
 Made attractive & exciting design of machine
also with different colors in iMac
 Apple invested more in development of new
Operating system
 Came with new OS i.e. OS X ( a

14. i Mac
i Book

15.  Apple OS were facing problem of
compatibility with windows and Intel chips
 Apple introduced its Intel compatible version
of OS.
 Also invent a software program “Rosetta”
and utility program called “Boot camp ”
 Apple’s Intel based machines were more
faster in operations and portable to handle.

16.  Company opened their retail store in 2001
 Uses strategy of third party retailers or
direct sales
 Apple company design its retail stores more
stylish ,clean & also with attractive displays
to impress customers
 Steve jobs was also the part of such design
process