Case Analysis of Apple Incorporation

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Case Analysis of Apple Incorporation

Executive Summary

Apple Computers started the movement into the personal computing arena

in 1977 but through changes in management and differences of opinion

together with missed opportunities it lost its competitive advantage

to companies like Microsoft, Dell, and Gateway. Apple operates in

various lines of the computer and music industry today and its

operations include not only the designing but also the manufacturing

of its computers and software. Apple continues to pursue the personal

computer market but not as intently as in the years before. It has

opted to change directions a little by venturing into the music world

through the marketing of iPod, a digital music player, and iTunes. The

opening of 65 new retail outlets, including one in Japan, has

precipitated its move into this new world.

Apple continues to work on providing innovative products for its

customers but marketing to such as small market has caused some

problems. Its market share has been reduced to below 5% and its

operating system differs considerably from the Wintel operating system

used my dominant Microsoft. Costs of maintaining this difference have

increased in comparison to those utilizing the competitive operating

system. Software designers are not as enthused about writing programs

to support Apple's operating system because of limited potential

sales. The advantages that seem to come into Apple's laps are quickly

removed because competitors are able to copy, steal, and share them.

The one advantage that Apple possesses is its operating system but it

has failed to convince the world of its superiority. The operating

system in possession has not encountered the problems that Microsoft

and its fellow operating systems have encountered. Microsoft upgrades

have been plagued with virus and other programming problems, including

the ability of hackers breaking into the system and accessing ones

computer from another remote spot.

Apple has not capitalized on these problems. It has gained a few

customers but nothing in the numbers required to turn the company

upwards in reclaiming considerable market share.

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