APPLE INC. IN 2012 Harvard Case Solution & Analysis

APPLE INC. IN 2012 Case Solution


Apple Inc. is consumer electronics company. The company produces iPhone (Smartphone), iPad (tablet PCs), Mac computers, iOS(consumer operating software), iPod(Media player) and Apple Watch (Smart watch). The company is best recognized for its Macintosh (Personal Computers). Steve Jobs and Steve Wozniak were the founders of Apple Inc. who developed the Macon 1st April, 1976 which revolutionized the computer industry. On January 3, they had launched their company named Apple Inc. Job's mission was to bring an easy to use a computer for consumers. Despite high competition, Apple Inc. successfully gained significant market share. On October 5, 2011, at the age of 56 Steve Job died of cancer, however he had changed the company which was going towards bankruptcy to one of the largest and most profitable organization in the world. Tim Cook was allotted as the new CEO of Apple Inc.,however was challenge for him to sustain Apple's success and market share in PC market, tablets, and Smartphone and media players.

Apple Inc. confronted some serious challenges when IBM entered into the PC market. Apple's operating system was not easy to replicate as IBM used Microsoft's DOS operating system, which could be replicated easily. IBM gained a significant market share in the response of which Apple launch its Macintosh (Personal Computer) however,due to its slow speed Apple failed to gain profit which led the company into crisis. Apple hired, John Sculley, which pushed Macintosh towards success, as well as this helped Apple to sustain its market share. John Sculley also formed two joint ventures with its rival, IBM, which aimed to produce the new operating system for Personal Computers and other one which was intended to rework on Mac operating system. However,this decision was a failure and Apple's gross margin declined. In June 1993, Sculley was the substitute of Michael Spindler as heeded the alliance with IBM. The company hired another CEO, Gilbert Amelio, who executed the plan of Steve Job to develop a new OS, which unfortunately couldn't succeed and Apple went almost bankrupt.

Job had returned to Apple as an advisory and after Apple's critical situation, John became the company's temporary CEO in September 1997. Job's passion of doing extraordinary led Apple towards an era of success. He brought drastic change in Apple's corporate culture andinAugust 1998, he came up with a new invention, iMac, and as a result Apple had a profit of $309 million which pushed Apple Inc. towards success.

 Strategic Analysis of Problem:


 The PCindustry was giving challenges to Apple Inc. to sustain its position.IBM’s Wintel (Windows operating system with an Intel processor) captured the market in 1990 as notebook and ultra book were successful in attracting price-sensitive consumers. Apple's iPad faced tough competition due to ultra book because of its thin design, light weight, and other features. Buyers and distributors are price cautious therefore, they preferredthedesign and quality but in reasonable price. Samsung's Smartphone especially the S series is a tough competition for Apple’s iPhone. Moreover, Samsung provides high quality and high product performance at comparatively low prices due to which it got the advantage. It is expected that Apple’s iPhones are way more expensive to be in range for a low-income class because of their premium price strategy.

Apple's iPad Air is comparatively thick which is not user-friendly due to which customers preferred to buy ultra book. It is suggested to the company to improve its design to make it easier to use. Moreover, the company should also develop its product which should be of low cost. According to Samantha Nelson Tim Cook aimed not to sell a phone at low price but his goal was to provide a high quality of product but not at a lower cost'. However, this can also be done through low pricing strategy. (Samantha Nielson, 2014)..................

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