• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Apple computer has experienced both good and bad times as a major player in the computer industry.

Extracts from this document...


Apple computer has experienced both good and bad times as a major player in the computer industry. It has been a leader in computer technology in the past but has struggled lately in keeping pace in the rapidly developing computer industry. Developing technology and evolving computer applications have contributed to a business environment that is extremely competitive. Survival in this industry requires the ability to anticipate changes and to effectively respond to market demands. This industry has experienced tremendous growth over the last two decades with the popularity of personal computers. Many households now have personal computers, making them a household item. This market is no longer confined to the business and educational environment; computers are a consumer good world-wide. Every day, new uses for personal computers are developed including information dissemination, world-wide communications and entertainment. Apple Computer, Inc. must respond to this business environment if it is to survive in the future. Apple Computer, Inc. developed as a major player in the computer industry in the early years. This company started as a garage operation in 1976 and grew to a publicly traded company by 1980. ...read more.


Apple also underestimated the growth potential of the computer industry. In an effort to exercise control their products, Apple decided not to allow "cloning" of their product. They felt they could effectively protect their technological competitive advantage by keeping tight control over manufacturing of their systems. When Microsoft successfully introduced their version of "windows," Apple now had a new competitive threat. IBM chose to allow the cloning of their computer systems and this spawned a tremendous boom in PC based computer companies. Apple has paid a large price for this decision by losing larger and larger portions of the market share. This trend needs to be reversed if Apple is to survive as a major player in the computer industry. The result of these ineffective strategies required Apple to begin a series of Defensive Strategies. Apple Computer, Inc. began to initiate a Retrenchment Strategy to protect the company from large losses by laying off 1,500 employees in 1993 and another 4,100 employees in 1997. These layoffs were needed to reduce their operating costs as the company experienced larger than expected losses in those years. This was an attempt to reverse a trend of operating losses and to try to reorganize the company to improve its financial performance. ...read more.


Revenues would be generated from the licensing agreements. This could result in quickly establishing this new technology in the industry and re-establish Apple as a leader in technology development. * Develop better marketing and distribution of their products. Apple products are not as available as PCs to the retail market. For example, I cannot purchase an Apple product in Greenfield, Mass. where there are several retailer of PCs. I must travel to approximately 20 miles to the nearest Apple retailer. * Develop an integrated and easy-to-use computer system. This system could be targeted to young children and older individuals that would be interested in using a computer but do not want the hassle of setting up equipment. Although there are many different strategies to consider, Apple's future success will depend on their future strategic decisions Apple has experienced some recent success from the introduction of the iMac, the G3 processor, OS 8.5 and recent cost cutting. The iMac was a major player in increased revenues. This new product was highly advertised by Apple and produced in bright primary colors as an effort to differentiate form other systems. It is a self contained system that emphasizes ease of use and appeal to consumers that want a simple computer. Apple had also decided to counter declining sales by concentrating on customers in the graphics, advertising and publishing industries. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Marketing section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Marketing essays

  1. Corporate Restructuring of Zippo bicycles.

    According to Icc.org.uk ,In the big cities of UK such as London , organisation such as London Cycling Campaign's are encouraging cycling in London in a big way, and they have been successful in encouraging cycling as a convenient and preferred mode of transportation ,and by introduction of congestion zone and cycling zones cycling as got a further boost.

  2. Sales Report Apple, Inc.

    Bill Fernandez, introduced 21-year-old Wozniak to 16-year-old Jobs and Jobs managed to interest Wozniak in assembling a machine and selling it. With this idea, Jobs approached a local computer store, The Byte Shop, who said they would be interested in the machine, but only if it came fully assembled.

  1. Analysis of Kolar Kegging, Inc.

    About 60% of these serve some type of food, which ranges from limited menus to full restaurants. Regional Micro Breweries -The State of Wisconsin has approximately 56 micro breweries. It is felt that the breweries closest to Sheboygan (Kolar Kegging Inc.) are considered their prime competitors to their wholesale business.

  2. A Marketing report on apple and the iPod

    Micro-Environment Porter's Five Forces The microenvironment consists of those factors that affect the firm directly. This model helps to contrast the micro environment of a firm. (Refer to Appendix A) What we know is that competition in the market is very intense A wrong move could have a harmful affect

  1. Segment the business market for the range of iMAC computers from Apple Computer Corporation.

    As can be seen from the screenshot, Apple attempt to filter different consumers into different segments, including; education, creative, small businesses and developers. This idea forces the customer to be channelled into a certain area where he/she can be exposed to the marketing stimuli that is most appropriate to that consumer group.

  2. Transforming Greenwich as a tourist centre

    factors which include the strength and weaknesses of Greenwich as a tourist centre, for which these information can provide a possible and a much clearly need toward the purpose of the new product development. Moreover on this project using the SWOT analysis, the strengths and weaknesses are used as key

  1. Mergers, Acquisitions and Restructuring.

    * Increase in prices: Demand is relatively price- insensitive implying that the market size increases along with an increase in prices. * Increase in volume: With the demographic profile changing following the increase in the number of people in the old age segment, the volume of sales of pharmaceutical products is also expected to increase.

  2. Marketing Mix Strategy Analysis of Apple iPod

    The same effect was generated by Sony Walkmanâs. Today, itâs only 10 years since the launch of iPod, but it has become a sort of rage and an industry admired product.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work