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Paper Abstract: Background & development, leadership, industry framework, products, strategy, competition, organization, strengths & weaknesses. Paper Introduction: The growth of Apple Computer, Inc. provides one of the greatest success stories of recent times. The organization was established in 1975 by electronics wizard Steve Wozniak and entrepreneur Steve Jobs. Wozniak and Jobs started their business on a shoestring. Together, they barely had $1,000 to invest, and their first computers were built in the garage of Jobs' home. Their first model, the Apple I, sold only a couple of hundred units. However, the improved Apple II quickly sold in the tens of thousands. By 1980, Apple Computer was worth $117 million (Depke and Brandt, 1991, p. 61). In 1984, the year that Apple introduced its popular Macintosh model, the company attained more than $1 billion in sales. In 1990, Apple Computer's annual revenues were worth well over $5 billion (McCarroll, 1991, p. 46). In 1985, Apple underwent dramatic changes when John Sculley Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. 313). Rukeyser, Louis, ed. Love at first byte. In this way, the aspiring partnersraised a total of $1,3 (Edelhart and Garr, 1984, p. Later, Scott left the company overdifferences of opinion, and he was replaced by John Sculley, the formerPresident at PepsiCo. Sculley's leadership brought the company to newfinancial heights in the mid-198 's. In 1985, Apple underwent dramatic changes whenJohn Sculley took over control of the organization. (1988). (1988, August). The recently proposed alliancebetween Apple and IBM will undoubtedly change this market structure inyears to come. Business Week: pp. Apple Computer, Inc. He was ayoung electronics genius who worked as an engineer at Hewlett-Packard. Fire in the valley:The making of the personal computer. 4 ). Some have argued that the name was chosen to reflect thesimplicity of the computer's design (Slater, 1987, p. Rose, Frank. IBM and Apple: Can two lonerslearn to say 'teamwork'? has undergone some major organizational changessince it was first founded in the mid-197 's. Althoughboth Wozniak and Jobs left Apple Computer as a result of conflicts with thenew president, Sculley was able to regain the company's place in the marketby the year 1987. The first structure asdeveloped by Mike Scott was based on divisions along product lines. In 1984, the year that Apple introduced its popularMacintosh model, the company attained more than $1 billion in sales. This growth was good in terms of corporate success. Portraits in silicon. Wozniak retired from Apple in 1981 because hewanted to move on to new projects. 46-47. Although Apple's productswere substantially cheaper, IBM became an "industry standard" because thecompany had already established its reputation among American businesses bythat time (McCarroll, 1991, p. New York: Viking Penguin. This money was veryimportant in the early expansion of the organization. 313). He had practicedmeditation for many years and had even traveled to India in search of hisspiritual roots. In addition, the Apple III proved to be adisastrous failure for the corporation. Apple Computer provides an interesting case study because itsinnovations clearly show both strengths and weaknesses. In 1977, Jobs and Wozniakintroduced an improved version of their computer which was called the AppleII. 31). When Apple Computer was first established in the late 197 's, therewas no computer industry to speak of. Like Wozniak beforehim, Jobs decided that he wanted to move on to new projects, and in 1985 hequit the company. Edelhart, Michael, and Douglas Garr. 29-32.----------------------- 13 Furthermore, Sculley's leadership haskept the company successful since then. (1987). Inhis spare time, Wozniak developed a small personal computer which was muchsimpler to use than the huge machines which existed at that time. In 1977, two importantfigures were added to the executive staff of the company. Their first model, the Apple I, sold only a couple of hundredunits. West of Eden: The end of innocence at AppleComputer. As noted byFrank Rose, this system of division had both its good points and its badpoints. 58-64. Powell, Bill, and Joanna Stone. Others haveclaimed that the name was chosen in homage to the Beatles' Apple Records(Freiberger and Swaine, 1984, p. Introduced in 198 , many of theApple III's turned out to be defective. [and] this imbuesthe company with a desire for innovation not often found at firms concernedonly with the bottom line" (Webster, 1988, p. Despite such problems, however, Apple has not only survived but hasmaintained its status as the second largest computer supplier in thecountry. 57). However, the improved Apple II quickly sold in the tens ofthousands. Apple also obtained a numberof early customers through the popularity of its VisiCalc program.VisiCalc is a spreadsheet program which many consumers found both efficientand easy to use. Having started out as a spunky small company in direct touch withconsumer needs, Apple had grown into a huge corporation by the time Sculleytook over. Together, they barely had$1, to invest, and their first computers were built in the garage ofJobs' home. Consumers today no longer want to be forced to choosebetween one format or another. The first product created by Jobsand Wozniak was known as the Apple I. The plan for Apple and IBM to share technology will change thissituation and give both companies renewed advantages in the marketplace.Specifically, it will enable the two companies to collectively take backthe market from competitors such as Compaq Computer Corporation (a maker ofIBM clones), as well as various Japanese manufacturers (Depke, 1991, p.25). Working out of Jobs' parents'garage, the two partners produced the first 5 Apple computers, which weresold to the Byte Shop in Mountain View, California. As reported byWebster, many Apple employees at the end of the 198 's had beguncomplaining that "nobody seems to know fully what's going on, that theyaren't willing to take action or make a decision" (p. 65).Thus, for example, there were often conflicts of interest between theMacintosh division and the Apple II division. By 1984, IBM was claiming 35 percentof the total computer market, while Apple's share had dropped to 19 percent(Slater, 1987, p. Macintosh redux. With Wozniak's computer, however, Jobs was prepared toabandon his spiritual lifestyle in order to strive toward becoming amillionaire. 46). However, in the early 198 's, IBM joined the personalcomputing industry and became Apple's leading competitor in the field.This competition was soon expanded by the development of numerous IBM"clones" - models by other companies which were compatible with IBM'ssoftware. 46). However, in the long run, Sculley's reorganization has been provensuccessful. By contrast, the IBM computer provides more flexible programs,but it has lost a large portion of the consumer market because it is not aseasy to use as the Macintosh or Apple's other products. When John Sculley took over that role, he immediately went towork on reorganizing the company. Thus, the framework for the currentcomputer industry was built around the innovations which were forged by theApple Corporation. Freiberger, Paul, and Michael Swaine. The inventor of the first Apple computer was Steve Wozniak. In the words of ThomasMcCarroll, this alliance could "reshape the computer industry" (McCarroll,1991, p. 316). Despite its many ups and downs overthe years, Apple Computer provides an example of one of America's mostfascinating business successes. However, the company turned down the idea as beingimpractical. McCarroll, Thomas. For example, the company's Lisa computer failedto reach a viable market. The slump occurred because themarket had become saturated by the competition. In order to obtain the start-up capital that they needed toestablish their new computer business, Jobs sold his Volkswagen van andWozniak sold his electronic calculator. This alliance, ifsuccessful, will open new markets for both Apple and IBM, and will thusincrease the profitability of both firms. Wozniakand Jobs started their business on a shoestring. However, it also caused Jobs to leavethe company. IBM and its clones, on the other hand, cornered the personalcomputer market within the business world. 46). Time 138:pp. (1984). This strategy paid off, because it pushed the productinto the realm of business and thereby helped bring Apple out of theindustry slump ahead of its competition. This drive to fill theneeds of the consumer market has enabled Apple to become the industryleader that it is today. From this, it can be seen that Apple and IBM have more or less splitthe market between themselves. In addition, consumerswere attracted to the fact that a variety of software programs could beadded on in the Apple II's "open system" (Slater, 1987, p. 57). References Depke, Deidre A. Webster in BYTE, the major strength of Apple has always been its"vision." From Jobs' original vision of a world filled with personalcomputers, company goals have always provided a guiding force for Apple'sleaders and a motivation for its employees. 319). Many employees were laid offin the transition, and even Steve Jobs found himself being shuffled out ofpower. PCs: Whatthe future holds. This situationchanged dramatically in 1981 when IBM, known as "Big Blue" in the industry,entered the field of personal computers. The organization was established in 1975by electronics wizard Steve Wozniak and entrepreneur Steve Jobs. Within two years, IBM had seized28 percent of the market (Slater, 1987, p. 315). Apple Computer has certainly come a long way from its humble originsin 1975. In response to the crisis,John Sculley went "door to door" to the nation's major companies, sellingcorporate leaders on the idea that the Apple "was easy to use" (Rukeyser,1988, pp. Steve Jobs had experimented with a number of alternative lifestylesbefore deciding to become a computer entrepreneur. Its founding partners are no longer part of the company, and theorganization has reached the point where it is ready to form a massivealliance with its former competitor. 316). (1991, July 15). Thus,each major product offered by the company had its own organizationaldivision, with its own staff and its own marketing goals. IBM's chairman, John Akers, has been criticized for taking part inthis plan, because it will probably force him to break previous allianceswith companies such as Microsoft (provider of IBM software) and Intel(maker of IBM chips) (Powell and Stone, 1991, p. Slater, Robert. Along with all these successful innovations, Apple Computer had itsshare of failures as well. Scott had a talent for organization, and through his leadershipApple Computer attained its first successes in the industry. In its early years, the company's major fault could be foundin the organizational divisions which kept various employees and executivespitted against one another. 447-448). Business Week: p. The alliance between the two companiescan only be good for the industry as a whole, because making theirrespective products more similar to one another will "end much of theconfusion prevalent in the industry over the lack of standards" (p. In the late197 's, Apple Computer had few competitors in the consumer marketplace.The few that existed, like Commodore and Radio Shack, were easily beat outby Apple's marketing strategies (Rose, 1989, p. 315). Rather, they want to have the best thatboth IBM and Apple have to offer. However, thealliance between IBM and Apple will have a positive impact in terms of theoverall market because it will help make IBM more popular whilesimultaneously making Apple more standardized. Although they have long been competitors,recent changes in the computer market have created a situation in whichworking together is of mutual benefit for the two companies. (1991, July 22). The complete computercompendium. 213). Webster, Bruce F. According to BruceF. With his radical changes, Sculley was able to regain Apple'splace in the 1985 computer market. From the verystart, Apple's approach to the computer industry was based on Steve Jobs'unique vision of a low-cost product which the consumer would find to be"user-friendly." The strategy adopted for carrying out this visioninvolved "humanizing" the computer in the public mind (Rukeyser, 1988, p.448). In addition toraising $6 , from investors, Markkula took a chance by providing$91, of his own money (Slater, 1987 p. Although the company makes far less than the IBMconglomerate, it has nonetheless done remarkably well for a company whichwas started with little more than $1 and a garage. (1991, July 15). At that time, thecomputer industry as a whole was experiencing a decline in sales. For a few years, Apple was the uncontested leader inpersonal computers. In 1984, Apple Computerredeemed itself with the introduction of the Macintosh. This strategy was in line with Jobs' vision because itwas intended to "excite the general public's imagination" on the idea ofusing a personal computer (Freiberger and Swaine, 1984, p. In 1985,the computer industry as a whole began to experience a slump in sales andthis required new strategic thinking. Depke, Deidre A., and Richard Brandt. On the other hand, Apple's visionary quest has also shown a number ofweaknesses. 212). By the early198 's, however, the organizational structure of the company began toundergo some major changes. Cambridge: The MITPress. In addition, it has been the source for Apple'sfinancial success. The Apple is easier for consumers to use, but it lacks themarket share of IBM because its system is not compatible with IBM'ssoftware. 235). 61). The massive returns of the producthad a damaging impact on Apple's finances, as well as hurting the company'sreputation (Freiberger and Swaine, 1984, p. The other person whowas added in 1977 was Mike Scott, who served as the company's firstPresident. 312). Because of IBM's phenomenal success, Apple's ownsuccess was seen as being simply due to the fact that it provided an easier-to-use alternative to IBM and its various clones (Depke and Brandt, 1991,p. Another important innovation which set Apple Computerapart from its competitors was the "mouse." The mouse has been describedas "a pad with a rolling ball that permitted one to move the cursor on themonitor without using the keyboard" (p. In particular, Sculley trimmed down theorganizational structure so that there were only two main divisions - theMacintosh division and the Apple II division. Sculley "hadcome to the conclusion that Jobs was a drag on the firm and had begun toease him out of his direct supervisory role" (p. In addition to being an innovator in terms of product, Apple hasalways been an innovator in terms of marketing strategy. 6 ). BYTE 13:Special Section, pp. Altogether, about 2 Apple I's were sold locally in the San Francisco Bay area, as well asnationally through mail order (p. However, the Macintoshregained Apple's status in the marketplace because it was cheap and becauseits employment of pictures and the "mouse" made it the easiest computerever to use (Slater, 1987, p. In addition tothis, both companies have recently begun to suffer from a general declinein sales resulting from "relentless low-cost competitors and rapidly agingtechnology" (McCarroll, 1991, p. Louis Rukeyser's business almanac.New York: Simon and Schuster. This model was an instant success, selling over 1, units in thefirst year (Edelhart and Garr, 1984, p. The floppy disk was an importantdevelopment in personal computing because it is provides faster and moreefficient memory storage than cassette tapes. In199 , Apple Computer's annual revenues were worth well over $5 billion(McCarroll, 1991, p. Apple made its mark in the computer industry through the introductionof several innovative products. However,it has been criticized for having put a damper on the innovative spiritwhich made the company successful in the first place. Atfirst, Wozniak wanted Hewlett-Packard to manufacture and market his newcomputer design. At the same time, an alliance between Apple and IBMmakes a great deal of sense. For example, the company was instrumental in thedevelopment of floppy disk drives. These boxes enabled people to make long-distancecalls without being charged for them. By contrast, a friend of Wozniak's named Steve Jobs wasstrongly interested in the marketing possibilities of the new computer.Prior to forming Apple Computer in 1975, Jobs and Wozniak had workedtogether on an illegal business in which they sold "blue boxes" (Edelhartand Garr, 1984, p. This model appealed to the general public because it wasrelatively small, inexpensive, and easy to use. 56). There are manyquestions regarding why Jobs and Wozniak chose the name "Apple" for theirnew business. 1 ). In the words of Webster,"Apple sees its products as a force for social change... Although Jobs and Wozniak founded the company, Apple Computer'sleadership has always been provided by other men. Reading: Addison-Wesley. Specifically, the approach "pinpointed responsibility fordifferent projects, but it also created rivalries" (Rose, 1989, p. By extension, it can be seen that thecontinued development of both companies is dependent upon a reconciliationof that market. The leaders of the corporation wisely focused their marketing onschools and home users. In 1981, following thefailure of the Apple III, Mike Scott resigned as President of AppleComputer. 25. 46). (1991, August 12). Although computers were being usedin some businesses, schools, and scientific labs, there was no program formarketing them to the general public. Apple'srapid development in the late 197 's and early 198 's was aided by otherproduct innovations. As part of itsearly strategy, Apple ran advertisements in popular magazines such asPlayboy, rather than limiting their promotions to specialized computerjournals like BYTE. The first wasMike Markkula, former head of marketing at Intel Development Corporation.Markkula joined on as Chairman of the Board at Apple, and he played aleading role in finding investors for the new company. In his effort to seize control of the organization, Sculleylimited Jobs' role to that of heading the Macintosh division. This was a wise decision because IBM's entry intothe market virtually shut Apple out of the business market. (1984). 46). Many industry analysts weresurprised to hear that this proposed innovation involved a cooperativeagreement with IBM. Berkeley: Osborne/McGraw-Hill. 3 ). The introduction of IBM into the marketplace established anindustry framework which has continued to exist to the present day.Specifically, Apple found its market limited for the most part to schoolsand homes. 4 . By the early 199 's, the company had reached the point where itwas ready for its next big innovation. By 198 , Apple Computer was worth $117 million (Depke andBrandt, 1991, p. provides one of the greatestsuccess stories of recent times. Newsweek 118: p. Later, after John Sculley's reorganization,Apple could be faulted for having grown beyond its early, simple vision.Thus, in the words of Webster, the Apple Computer corporation of the late198 's was "getting a bit too complacent, smug, and fat" (Webster, 1988, p.31). 219). The deal of thedecade. (1989). In 1991, a surprise announcement was made in which itwas revealed that Apple Computer was planning a cooperative alliance withits traditional enemy, Internal Business Machines (IBM). At that time, IBMwas rapidly taking over the computer market, and the failures of Lisa andApple III had done little to stop this fact. The first big money-maker for the companywas the Apple II. The growth of Apple Computer, Inc. If this paper is not what you are looking for, you can search again: Search for: or Click here to request an essay written just for you.