A. APPLE INC.

SUMMARY

Apple was by two college dropout students Steve Wozniak and Steve Jobs with the motto of
“Think Differently”. In the early 1980s, Steve Wozniak left the company and Steve Jobs hired
John Sculley as the President of the company. After facing many failures, Apple launched its
Macintosh computers for house hold users. In mid 1980s, Steve Jobs had to leave the company
because of his controversial relations with the president. At that time John Sculley rejected the
offer of Microsoft‘s CEO, Bill Gates to license the Macintosh operating system to Microsoft.

After this refusal, Gates developed DOS operating system and in late 1980s, the competition
between DOS and Macintosh decreased Apple’s sale, workforce and resignation of John Sculley.
So, Apple’s current CEO planned to purchase NextStep operating system of Jobs in order to
improve the Macintosh operating system. In late 90s Jobs again became the CEO of the company
and be started surprising relations with Microsoft by developing a Macintosh version of office
software.

Apple also took cost saving measures like streamlining the product line, production of printers.
Steve Jobs brought Apples’ focus on two concepts of consumer series with the prefix “I” for
internet like iMac, iBook laptop and professional with prefix “power” such as PowerMac
desktop and PowerBook laptop series. Under Jobs, Apple again becomes the innovator of
computer market. His leadership leads the company to USB and Firewire ports, introduction of
iPod and iTunes website put Apple in the digital computing age.

B. SWOT ANALYSIS

Strengths:

1. Produce innovative products by using innovative technology

2. Produce aesthetic / stylish products

3. They make diversified products

4. Customers of Apple computers are brand loyal

5. Have technology of interacting with computer using human senses

 6. They have virus free systems

7. First company which adapt calligraphic font style

8. Introduce USB and firewire ports for digital connection

9. Make music website

b) Weaknesses

1. Apple has high manufacturing and inventory cost

2. Management is not stable

3. Has low market share in software industry

4. Majority of retail stores located in U.S.A.

5. No compatibility options in their soft wares

6. Decline in sales of iMac

7. Less emphasis on marketing issues to create awareness for their innovative products

c) Opportunities

1. Should expand on the basis of sales

2. Should open retail stores in different countries

3. Should target government and educational institutions

4. Should make compatible soft wares

5. Should capitalize on the basis of virus free systems

6. Should introduce the speech recognition program

7. They should focus on customized products for customers

8. Should start making their own microprocessor chips

 d) Threats

1. Merger & acquisitions of competitors

2. High cost can be a limitation in future

3. High market share of Microsoft Windows

4. Competition increases in music downloading sites

C. INTERNAL / EXTERNAL FACTOR EVALUATION

a) IFAS

Internal Factors Weight Rating Weighted Comments

Strengths
(i) Produce 0.10 3.5 0.35 Good R&D
innovative efforts
products

(ii) They make 0.10 4 0.40 Stable products

diversified to control shocks
products in different
product markets
(iii) Brand loyal 0.15 4 0.6 High end
customers customer
satisfaction level

(vi) Virus free 0.05 2 0.10 High level of

systems security

(v) Produce 0.10 3 0.30 Cutting edge,

aesthetic high end stylish
products
 products

(vi) Introduce 0.05 2 0.10 Enabling

USB and firewire portable
ports peripherals
Weakness

Weaknessess

i) High 0.05 3 0.15 More focus on

manufacturing development and
and inventory R&D
cost

(ii) Has low 0.15 4 0.6 Less awareness

market share in
software industry

(iii) No 0.10 3 0.30 Extremely high

compatibility end products
options in soft
wares

(iv) Decline in 0.05 2 0.10

sales of iMac

(v) Less 0.10 4 0.40 Low investment

emphasis on in marketing
marketing issues
to create
awareness

TOTAL 1.00 3.40

b) EFAS

Internal Factors

Weight

(out of1)

Rating

(1 - 5)

Weighted

Score

Comments

Opportunities

(i) Should expand on

the basis of sales

0.10

0.20

Emphasize on the sales

of innovative products
7

(ii) Should target

government and

educational institutions

0.15

0.45

Find a propitious niche

(iii) Should capitalize

on the basis of virus

free systems

0.15

0.60

Give advanced security

(iv) Should introduce

speech recognition

program

0.10

0.30
Give new meaning to

technology

(v) Should focus on

customized products

0.05

0.15

Cater the segment in a

better way

Threats

(i) Mergers &

acquisitions of

competitors

0.15

3.5

0.7

Rival companies become

giants and good name

(ii) High cost can be a

limitation in future

0.15
4.5

0.67

It is a question for Apple

(iii) High market share

of Microsoft

0.10

3.0

0.30

Well positioned rival

(iv)Comp etition

increases in music

downloading sites

0.05

0.10

http://www.scribd.com/doc/15908770/Apple-Computer-IncCase-Study