Apple Computer: lessons learned in the deployment of a new product Jose Garcia BUS 177 Module 1 Professor Gosselin

n May 31, 2012

Apple Computer: lessons learned

Apple Computer: lessons learned in the deployment of a new product We are all familiar with the quote, Its not how you start, but how you finish, but for Apple this message is more than just inspirational, it embodies Apples short history. That is not to say that Apple has enjoyed a linear rise to the top. On the contrary, much like its current CEO and co-founder Steve Jobs, Apple has experienced its fair share of humiliating failures and triumphant successes. In this paper I will examine the differences between Apples unsuccessful attempts in gaining market share in the personal computer segment, and compare that to its new strategic approach in launching new products and innovations. Apple first enjoyed moderate success with its release of the Apple II computer. The Apple II was innovative in many aspects, [It was the] first personal computer to come in a plastic case and include color graphics (Sanford, 2010). The Apple II computer was also the first computer to come with a built in programming language, which made it ready to use right out the box. After establishing a firm footing in the marketplace, Apple released the Apple Disk II in 1978, which was the most inexpensive and easiest to use computer on the market. These were the types of enhancements and cost reduction efforts that gave Apple a competitive advantage over its competitors in the beginning. Unfortunately Apple was unable to sustain this momentum, and soon found it self struggling to stay relevant in the marketplace. The biggest blow to Apple was its failure to secure exclusive rights on its Graphic User Interface (GUI). In retrospect, it would have been better for Apple back in l985 to have licensed its entire [GUI] to Microsoft rather than just the visual displays that were included in Windows 1.0, and retain its claim

Apple Computer: lessons learned of exclusivity (Crittenden, Cullum, Rhodes, & Bartlett, 1994). Instead, despite years of litigation, Apple saw Microsoft essentially corner the computer software market by adopting Apples technology and making it their own. Further undercutting Apples

market share was the license agreement forged with Power Computing; who manufactured lower end Mac clones. Along with these two major issues, there were a series of missteps, failed launches, and leadership changes that contributed to Apples rollercoaster ride through out the 80s and early 90s. As it has been documented time and time again, a company without a clear vision has no future. It is up to senior management to provide this vision and long term strategy for a company. Apple had its visionary from the very beginning in Steve Jobs. However, it was Steve that took himself out of the driver seat in favor of a more corporate experienced person. Its hard to image, looking at Steve through todays lens, how he couldnt foresee how disastrous this would become for Apple. After a series of coups, eventual ouster, and short hiatus there is no doubt that Steve learned from his trials and tribulations at Apple. In Hills 12 Rules of Success (2009), he credits Steve in saying Own and control the primary technology in everything you do. If theres a better technology available, use it regardless of whether or not anyone else is using it. Be the first, and make it an industry standard. Through the lessons learned from his time at Apple, Steven has emerged stronger and more driven then ever. Apples current success in the deployment of new products has been fueled by quality, design, and aggressive marketing. With widespread discontent over Microsofts products, Apple has been able to capitalize from this public opinion by offering an array of high-end, quality products. Despite a higher price point, Apple has continued to enjoy

Apple Computer: lessons learned escalating sales year after year. The higher price point has also played well with our

societys perception which correlates expensive with quality. Apples uniform design is not only esthetically pleasing, but it adds tremendous brand equity by separating itself from all other competing products in the Marketplace; thus promoting brand recall. Apples design strategy isnt all looks, the simplicity of its design is also inviting, which has opened Apple products to enthusiasts and novices alike. Without question, the biggest difference between Apple Computer back then and Apple of today is in its marketing strategy. Apples has had two main objectives with their market strategy, which is to build brand appeal (cool, young, hip, etc) and openly and aggressively challenging Microsoft in the public domain. This is far different from how they dealt with them before, challenging them in court. Apple has been so successful in its marketing campaign that [it] has overtaken Google to become the worlds most valuable brand with an estimated brand value of more than $153 [billion] (Palmer & Baxter, 2011). In conclusion, Apples amazing story of innovation, defeats, and redemption has brought me to note some similarities to other companies who shared similar fates. These similarities a drawn from key events in the companies history where things take an unexpected turn. First, when completing the development of a new product always obtain exclusive rights through patents. Also, partner with others who will develop complimentary goods or services to your product. Similar to what Apple has done with iPod and iTunes, and partnering with the Music industry. Finally, develop an aggressive market strategy that will propel your company from the pack, and promote why your company matters. References

Apple Computer: lessons learned Bartlett, D., Crittenden, J., Cullum, J., & Rhodes, M. (1994, October). Federal Appellate Court Rejects "Look and Feel" Copyright Protection For Apple Macintosh Graphical User Interface. Retrieved May 24, 2011, from http://www.timestream.com/stuff/neatstuff/lookfeel.html Baxter, A., Palmer, M. (2011, May 8). Apple is worlds most valuable brand. Retrieved May 26, 2011, from http://www.ft.com/cms/s/2/5807b944-798d-11e0-86bd00144feabdc0.html#ixzz1LqQRF518 Hill, B. (2009, September 9). Apple CEO Steve Jobs 12 Rules of Success. Retrieved May 24, 2011, from http://www.businessbrief.com/apple-ceo-steve-jobs-12-rulesof-success Sanford, G. (2004, N.D). Company History: 1997-2000. Retreived May 26, 201, from http://www.apple-history.com/?page=history&section=h1