Changing the world through technology

APPLE: A CASE STUDY ANALYSIS

Angel Cruz

Delvin Ellis

Lykeisha Thompson

Manhattan College

Strategic Planning (PSLS 450.31)

10/15/2013

HISTORICAL OVERVIEW

Apple Inc. is an innovative manufacturer of personal computers and peripheral devices that connect to computers. In addition, the company develops and publishes computer software. Moreover, Apple operates services for distributing music, audio books, videos, and other medias over the Internet. Apple Computer was founded, on April Fools Day in 1976 by Steve Wozniak and Steve Jobs. The two sold a van for some extra start-up cash, set up shop in Jobs' family garage, and started building the Apple I. Wozniak was the technical mind behind the construction process. On the other hand, Jobs' took care of the business aspect of things, such as creating advertisements and finding investors and buyers. There was a third co-founder, Ronald Wayne, who after fearing financial ruin relinquished his 10 percent stake in the partnership for only $800.

The Apple I was a kit computer priced for $666, which had little commercial success. However, it marked the first of many innovative products to come from the company. Jobs received consultation from retired Intel Corporation marketing manager, Michael Markkula regarding the future of Apple Computer. During this consultation, Markkula worked with Jobs in coming up with a solid business plan and even purchased one-third of the company for $250,000.

On January 3, 1977, Apple Computer was officially incorporated. Jobs and Markkula hired Michael Scott as the company's first president and Chief Executive Officer. Michael Scott brought professional management and corporate infrastructure to Apple. In April of that same year, Apple decided it would be useful to their marketing strategies if they updated their image before putting the Apple II on the market. To create their new logo, Jobs contacted Robert Janoff. Aside from some color alterations, Janoff's iconic 1977 design remains as the official logo of Apple Inc.

The Apple II was the first personal computer designed for the consumer market, its attractive low-slung case, standard keyboard, power supply, and color graphics capability made it attractive to consumers. In 1978, the company released the Apple Disk II external drive, which stored 110k on 5.25-inch floppy disks. Wozniak creation was half as expensive as competitive floppy drives and much more reliable than cassette tape storage systems. In 1979, Apple's software division released VisiCalc. It was the world's first spreadsheet available exclusively on the Apple II, which sent Apple's hardware sales through the roof.

In 1980, Apple Computer Inc. went public. Apple was the largest Initial Public Offering (IPO) since Ford went public in 1956. They debut on the stock market with a valuation of $1.8 billion. Forty percent of Apple's 1,000 employees became instant millionaires because of their stock options. After the success of the Apple I and Apple II, the company began work on the Apple III, which turned out to be their very first project failure, with engineer Wendell Sander at the wheel. The firm's flagship business computers flopped badly due ...