Apple Inc. a 30 Year Business Strategy Essay
A response to Harvard Business School Case Study 9-708-480 Apple Inc., 2008
Apple’s fundamental business model has not changed since it first began business in the late 1980’s. While being a leader in innovation, Apple has consistently produced proprietary hardware and software, eventually leading to a loss of market share in any particular market they have ventured into. Even though it has learned from some mistakes, Apple’s actions in the past few years have not shown a change from the core reasons for its failures and unless new actions are taken its current market lead will eventually dwindle.
This analysis will look at the various stages of the Life Cycle of Apple, what type …show more content…
Apple vs. the PC
The Apple PC currently holds approximately a 3% share of the world PC market. As the inventor of the Personal Computer and continued leader in quality, why is it that Apple cannot attain a larger share of this market?
Examine the history of the personal computer market. When initially offered Macs controlled a large portion of the market. It is not hard to see why: They were the new substitute in the computer world and as yet had no threat from new entrants (which lasted all of about three years). There were no standards yet for components so their suppliers had little bargaining power. With no alternatives for easy to use computers, their consumer base likewise had little bargaining power.
In comparison, the standardization and flexibility of the PC (resulting in lower prices) has been one of the main reasons for the success of the PC over time. In order to compete with the PC market Apple has repeatedly attempted to reduce prices and become more versatile. Since the mid-80’s this has been a driver of the Mac business model. Apple CEO John Sculley once commented that they were “increasingly viewed as the BMW of the computer industry… Without lower prices we would be stuck selling to our installed base.” (Yoffie, pg. 3).