INTRODUCTION

Founded in 1976 Apple, a leading designer and

integrator of computer hardware and software
Changed the computer, music, mobile and retail
industries through its sleek product
Commitment to understand the way people use
computer and develop insanely great products
Market capitalization of $550 billion, annual sales
above $100 millions
Apps download reached 25 billion
Apple integrated music, books apps in a perfect
masterpiece
Under Sculley a lot of confusion emerged w.r.t
Development of product
Successful resolution of decisions
Indecision whether to
License MAC OS
Compete in cloning space
Enter into business market dominated by Wintel
Stiff competition from IBM and Dell
Entered into licensing accounting 20% of MAC unit sales
Greater than 70 Macintosh Performa between 1992
1997
Confused customers and increased complexity

STRATEGIC CHANGES IN 90S
STRATEGY AFTER COME BACK OF JOB
Steve Jobs pivotal influence
Believed processes brings efficiency
Changed in strategy
Stopped licensing program
Eliminated 70% of new projects
Product lines drastically reduced from 15 to 3
Launching website for direct sales
Changing distribution system
iMac debuted in August 1998
Reduced inventory from months to few days
In 2006 computer line run on Intel processors

THE APPLE WAY
Design
Thinking
Innovation,
Product
Development,
and Execution
CEO as Chief
Innovator
Bold Business
Experimentation
DESIGN THINKING
Innovation powered through understanding and the direct
observation of what people need and desire, like or dislike

Apple Business Opportunity: the computers used for automating
business processes could also become a wide-spread personal
device

Solution-based thinking that starts what is meant to be achieved
instead of starting with a certain problem



DESIGN THINKING
Figuring out the needs of people first
Apples design sense was found to be
one-of-its-kind (iPod mini)
Sensibility: Taking care of every small
detail
Simplicity is the ultimate sophistication!
Simplicity in Design and Use
Going beyond superficial trends and
getting to the essence of customer
experience
Problems were treated as moving
targets
Inside-out design: Result of
painstaking attention to detail
No compromise between simplicity of
use and functionality
Beyond Fashion
DESIGN THINKING
Early computers were only at specific locations
such as company headquarters and government
facilities.
The goal was to create computers that fostered
individual work
Desired to make people fall in love with PCs
Decided to make products simple

DESIGN-AS-PRODUCT-INTEGRITY
This notion was driven by Steve Jobs
After being ousted from Apple Jobs developed
NEXT computer workstation
NEXT targeted the education market
The same architecture was the basis of Apples
subsequent OS X
There was no compromise between simplicity of
use and functionality
Apple faced with moving targets and not one time
problem to be solved, It competed with itself


INNOVATION, PRODUCT DEVELOPMENT, AND EXECUTION
Core Approach Working intimately with manufacturers
and being completely attuned to customers
Involvement in Material selection and manufacturing
process
Quest for Insanely Great Products
Process Focused
Excellence in Execution
Strategy: Design initial product as a platform so that
future enhancements are not developed from scratch
Beneficial for key stakeholders, i.e. Customers,
Employees and the Company
Envision products, concepts at early stage
Increase efficiency and re-suability; Products require
less Repair and Maintenance
Platform Strategy
Participatory Design: Designing software with customer
and usability test
Customer experience, requirements, expectations
considered in product design and development
Smoother execution by increased user testing
Appropriate user interface
Iterative Customer Involvement
Close attention to new materials and manufacturing
processes
Use of combination of designs, materials, intense
colours to bring out a rhapsodic product
Design as motivation for continued Innovation
Strategy to get bolder than play it safe
Beautiful Products
INNOVATION & PRODUCT DEVELOPMENT
Exemplified the way of using computing device
Apples computer managed to develop
Design integrity
Fanatical fan base, leading to adoption of its product
Developed from scratch
Featured proprietary and unique hardware
Beautiful object never far from mind
Polycarbon plastic and snow superseded by aluminum
White colour iPod to multi colour Mini
Thinking out of box
Integrated customer experience into the design
Perceived to be new
Imitation by competitors
1984 brought Macintosh in a Super Bowl
advertisement
Co - founded animation company Pixar studio
Ready to take risk
Set top boxes for TVs
Personal digital assistant


INNOVATION & PRODUCT DEVELOPMENT
JOBS AS CHIEF INNOVATOR
Jobs imprinted Apple with his own personality characteristics
Few traits of Steve Jobs making him as chief innovator are as
follows:
Strong influence over company
Confident in his design sense
Hired like-minded people
Inspired others with his temperament and dictatorial attitude
Jobs vision held Apple products as the solutions to individuals
problems rather creating enterprise solutions
Belief in presenting products to Public through periodic events
that are shrouded in elaborate secrecy beforehand
Jobs moved Apple to new spaces and brought evident changes
with a signal that simplicity is the ultimate sophistication
STRATEGY TO LAUNCH DIFFERENT STORES
Decision to move into retail was a bold one:
technology bubble erupted
failure of similar attempts of retail stores by computer company
Gateway
web-based purchasing was in more demand as in the case of Dell
allowing customers to configure their products online
limited products available at Apple stores at the time of its launch

Benefits of retail store
Attracted non Apple customers through
Huge fan base
Elegant surroundings in the store
Inclusion of genius bar to carry out the products repair work
Created music repository with launch of Apples iTunes music
store
Launched book store after iPad launch in 2010

EFFORT FOR PRIVACY
Ignores open source movement Apple unlike in case of
linux
Designs its own chips for iPods, iPhones and iPads, a
backward migration with respect to the computer industry
Attacks websites and authors that dares to speculate on
the companys plan
Keep its suppliers mouth closed with the concern that a
slip of tongue can forfeit business
Focus web cams on landing docks to monitor the products
from manufacturers
Manages to create products that people want and win
awards and recognition worldwide for the company and its
leaders


FUTURE OF APPLE
Steve Jobs remained on medical leave in 2011

Resigned from the post of CEO in August; died in October

Tim Cook appointed CEO

172 Mn post PC devices sold in 2011; 76% of fourth quarter revenue

362 retail outlets; 1 million daily footfall in 2012

Apple`s share price increased 60% since Tim Cooks rise to helm

Apple`s share price peaked to $ 705

Cash in hand $159 billion

CHALLENGES FACING APPLE
Saturation in higher end smart phone market

Large screen and low cost requirement of customers
Technological complications and process modification

Exodus of top management Tony Fadell God father of I-pod

Excessive focus on inside R&D
I-cloud help from Amazon and Microsoft
Open innovation??

Competition for space in electronics industry

Reduction in time to market