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Case Analyses–Apple computer case

March 24, 2016 | Author: | Posted in case study, mathematics and economics

CASE ANALYSIS

APPLE COMPUTERS

Historically , what were Apple ‘s major competitive advantages

Apple was the first customer-centered , user-friendly computer to be launched on the market . Since its launch in 1978 , Apple has been synonymous with new design and innovation , and incorporating advanced technology into its gadgets

Historically , these same unique characteristics have been the competitive advantages for Apple . In the 1980s , Apple was the only computer to offer a colorful , graphic and sound enhanced interface This lead in multimedia technology gave Apple an edge in the fields of desktop [banner_entry_middle]

publishing and education , where it had 60 and 80 market share respectively

Apple engaged in extensive backward integration , manufacturing its own chips , disk drives , and monitors . The only component it sourced from outside were Motorola ‘s microprocessors . This was a definite advantage in terms of building an individual brand identity and offered a complete desktop solution , something that its competitors could not offer at the time . This one-stop , integrated product allowed Apple to sell products at a premium price , with gross margins averaging around 50 . The one major drawback of this practice was that it limited inter-operability with other hardware and software systems

Still , its ability to invent cool ‘ technology and making it easy and fun to use , was a major competitive advantage that made Apple highly successful in the 1980s

Can Apple ‘s problems in the computer business be attributed to the nature of the personal computer industry ? Analyze the structure and evolution of the PC industry and justify your answer

The PC industry as a whole is a major factor contributing to the ascent or decline of the industry players . Studying the industry life cycle helps provides a context for analyzing Apple ‘s performance over the decades . When Apple I and II were launched , the PC industry was still at the introductory phase . There was rapidly changing design and substantial variety within core PC functions . This natural differentiation allowed contrasting products such as IBM and Apple to grow in the market . The introductory phase also justified local production , and high prices of products

The growth phase resulted in increasing use and demand of PCs in the market . IBM ‘s open source technology allowed different hardware and software to be used , thus creating a higher demand because of choice availability . The Windows operating system being used in IBM computers further increased its market share . Apple formed a joint venture with IBM to develop a new operating system , a project that did not materialize in the end . Apple therefore continued to use the PowerPC chips from Intel and the original Mac OS in their computers IBM-compatible computers also started being manufactured by independent vendors , who began to offer the PC at a much lower price compared to Apple . In response , Apple launched the Mac Classic , a lower-priced computer to compete with IBM PCs . Apple also licensed out its technology to independent manufacturers to make Apple-clones , in to meet the rising market capacity and to make Mac computers ubiquitous like IBM… [banner_entry_footer]

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