Apple is among Americas most admired companies today but this has not always been the case. Using module theory and case evidence, critically evaluate Apples strategies since 1990. Explain why Apple has been through difficult times and wh

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  1. Apple is among America’s most admired companies today but this has not always been the case. Using module theory and case evidence, critically evaluate Apple’s strategies since 1990.  Explain why Apple has been through difficult times and what made the “Apple turnaround” possible.



The global PC market has always been highly competitive with constant growth and modernization with players such as IBM, Dell, HP and Compaq creating tough competing grounds; therefore creativity and innovation has always been at the heart of Apple Inc. Ever since its formation in 1976, Apple has been able to survive and grow through its brilliance, quality, experience and brand strategies which had helped it reach the mark of one the most innovative companies of the world today (Lee, 1996).

Company failure

However it has experienced successes and failures both over the period of time. Apple has struggled during the period of 1985-1997. This was due to the absence of strong leadership and the role of key executives who failed to come up with effective strategies as a result of which costs rose, consumer appeal and market share fell as competitors were able to produce better products at efficient prices, the company was making huge losses during that time and also due to its focus on its tightly nit proprietary system. However Apple was able to turn the crisis of 1990’s into a successful profitable venture after the brilliant leadership of Steve Jobs who was back in the company and revised the structure (Ed, 1996).

The Outside-in Approach to strategy

An analysis of the external environment gives an insight of the market situation of Apple and would help in the Outside-in approach to strategy. This strategy responds to changing market trends and consumer tastes based on the systematic analysis of the competitive environment (De Wit and Meyer). Apple also made use of that is by exploring the market it came up with a much better, easier and advance computing solutions. One of the ways to do this is through Michael Porters competitive forces as applied below (Burnes, 2009)




                                           Intra-Industry Rivalry        

                                            IBM, Dell, HP, Compaq





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Bring in the best computing solutions to its customers through its hardware and software capabilities.

Competitive Rivalry:  Microsoft, Dell, HP, Intel were the main players in the industry. They all were engaged in acquisitions and creating new products, improving efficiency, increasing competition and diversifying their product lines.

Core Value of the company

Apple was focused towards innovation and bringing in the best in the market before its competitors. They targeted the needs of both the lower end consumers to the professionals.

Porters value Chain

Apple had a ...

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