Apple Case 30: Taking a Bite Out of the Competition Essay

778 Words Apr 21st, 2008 4 Pages
Apple Case 30: Taking a Bite Out of the Competition


• Apple had the highest brand and repurchase loyalty of any computer manufacturer
• Low market share always
• Recognized as being innovative and considered to have a niche status
• iPod and iTunes examples of innovation
• Personal computer line to transition to Intel processors (BootCamp make run windows on mac machines)
• Apple’s personal computers are known for their stylish design, ease of use, seamless integration of peripherals, and high performance NEVER were able to capture a great market share partly because of the proliferation of Windows in the business consumer production.

Q1: Now that the switching costs are removed, could Apple gain market share and
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• Spindler allowed other companies to produce Mac clones which were cancelled by Jobs later.
• Later Amelio came and he intended to reposition Apple as a premium brand but sill stock price was low. He bought Next and brought Steve Jobs back again.

Steve Jobs’ Return

• One of the first strategies was to strengthen the relationships with third party software developers including Microsoft.
• In 1997 alliance with Microsoft to create a version of Microsoft Office for Mac
• In 1998, Apple introduced the iMac personal computer with translucent plastic case and was considered as a hallmark of industrial design.
• From 1999 to 2001, Apple began acquiring software companies and creating entertaining software products such as Final Cut and DVD studio pro video editing programs to complement their reputation as a professional digital imaging destination.
• In 2001, Apple introduced Mac OS X based on NextStep and Unix that provided dual operating system environments to ease the transition.
• Also, in 2001 Apple stores were opened to influence customers to switch to Apple environments and overcome competition with other brands via third-party sellers.
• In 2001, the new strategy of Apple was to position Mac as a digital hub through creating iTunes, the new digital lifestyle.
• In late 2001, Apple introduced iPod, an MP3 music player. With iPod Apple has invented a whole new category of digital music

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