Apple Case Study Essay

6447 Words Jan 17th, 2013 26 Pages
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STRATEGIC PLANNING AT APPLE INC.1

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Fabrizio Di Muro wrote this case under the supervision of Professors Kyle Murray and Miranda Goode solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Management
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In 1980, the company introduced its third computer, the Apple III.13 This PC had eight applications, with its price ranging from US$4,340 to US$7,800, depending on the configuration.14 The initial Apple III had technical problems so it was withdrawn from the market and eventually relaunched in 1981.15 Despite the fact that the newer model had 128 KB RAM, an updated software system and a lower price (US$3,495)16 than the previous version, it still was not successful. After launching Apple III, the company focused on developing a new computer with innovative features, such as a hand-held mouse and graphic user interface (GUI). This new product was codenamed ““Lisa,”” and it was supposed to take the industry by storm. However, its high price (US$9,995) prevented high sales.17 A significant problem with Apple’’s first three models was that they all ran on different operating systems, thus limiting the company’’s market share. Jobs recognized this and tried to create a new computer, as well as an operating system for it. To that end, Apple combined the talents of hardware and software designers and created an atmosphere where their creativity could flourish. The result was the MacIntosh (Mac). Priced at US$2,495,18 this PC had 128 KB of memory, as well as a 32-bit microprocessor. The Mac was released in 1984, along with its operating system, Mac OS, which could run on all Apple computers. Overall, the Mac was quite

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