American classroom in an embryonic arsenal computer industry. 2. Why did Apple fail to build on these advantages to lead the industry? Apple failed to build on these advantages because it lacked the ability to expand its marketing base to corporate America. IBM seized market leadership from Apple for this reason – mounting PC sales to over 500,000. IBM changed both its marketing and production strategies where Apple did not. 3. How has the structure of the personal computer industry changed over the last 20 Hears?
What are the implications for the profitability of personal computer manufacturers? Apple’s golden years were marked between 1986-1991 because of the company’s ability to manufacture both hardware and software. In this way, Apple was able to control all aspects of its computers, offering a complete desktop solution that allowed customers to “plug and play. ” Huge profitability in this industry in the last 20 years came as a result of strategic manufacturing solutions along with the ability to manufacture and sell integrated and complicated systems.
In this way, computer manufacturers are able to obtain huge profits because they are able to change remit prices, thus cornering global market shares. For example, the Apple I series, by 1990, was selling well in the education market and the Mac dominated the desktop publishing segment, generating high profitability margins. 4. Evaluate Apple’s strategies since 1990 (focus on Sculls and the return of Steve lobs)? How did Scullery try to save Apple? How did Jobs? Ninth the introduction of Windows 3. In 1990 by Microsoft, Apple’s differential appeal began to erode. To solve some of the problems facing Apple with these new developments introduced by Microsoft, Scullery analyzed and made several attempts o correct a troubled Apple industry. Apple, during this time, had an extremely high cost structure. Apple and a small market snare and needed to lower costs in order to develop a new operating system to compete with Microsoft technologies. Scullery appointed himself Chief Technology Officer as well as CEO.
Second, he challenged Apple to bring out a low-cost version of the Macintosh to compete with IBM clones. He cut prices for Macs and Apple ASS by 30%, thus increasing sales volume by 60%. Norfolk was reduced by 10%, salaries of top management by 15% and manufacturing was shifted to subcontractors. Technological leads were increased by production every 12 months. Apple formed an alliance with MM. Unfortunately, Sullies desire to boost sales did not work. Costs continued to rise. He left Apple in 1994.
Spindled, in 1994, attempted to take a step forward, allowing licensing of the Mac-SO to a few companies in order to produce Mac clones. However, the Microsoft introduction of Windows 95 killed efforts at the Mac-SO clones. Under Spindled, Apple further declined during the second half of 1995. He was replaced by Amelia, who bought NEXT, the computer company founded by Steve Jobs. Amelia’s moves did nothing for Apple and, as a result, he was replaced by Jobs, who immediately made moves to save Apple.
This included: (1) striking a deal with Microsoft (Gates) in product investments and production; and (2) stopping the licensing deals with clone makers, acquiring the assets of the leading Mac clone maker, Power Computing, and licensing. Jobs killed slow-selling products and reduced the number of product lines from sixty to four. He also pushed the company Into online distribution. Jobs offered new computer products such as the mimic and 5. What explains Apple’s success with the phone? How sustainable is this success?
Apple’s success is sustainable because it revolutionized the “smartened,” a device capable of browsing the Web, taking pictures, and downloading music. It has a revolutionary touch screen design that has replaced the traditional mechanical keypad and allows users to switch quickly between functions. As the exclusive provider of wireless service, the phone’s success may be sustainable through strategic innovations and the domination of global markets. Customer demand for phones will depend on new designs and faster G networks.