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HOW DOES ENTREPRENEURIAL

ORIENTATION HELP A BUSINESS


SUCCEED IN THE TECHNOLOGY
SECTOR?
A CASE STUDY ON
APPLE AND MICROSOFT

Wednesday, 22 December 2010


CHANGING OF THE GUARD
“I’m convinced that about half of what separates the successful entrepreneurs from
the non-successful ones is pure perseverance.” Steve Jobs

In May 2010, Apple surpassed Microsoft in market capitalization


for the first time in the company’s 34 year history

In 1997, Apple
were on the verge
of bankruptcy.
Now they have a
market value of
$222 billion.

Wednesday, 22 December 2010


IN THE BEGINNING 1970’s

Microsoft - Bill Gates & Paul Allen


๏ Est. 1975 developing and selling BASIC
๏ Gates developed a white hot drive, expecting employees to
be the same
๏ Growth exploded increasing staff from 25 to 128 in 3 years

Apple - Steve Jobs & Steve Wozniak


๏ Like Gates, Jobs dropped out of college
๏ Est. 1976 with the creation of Apple 1
๏ Jobs used high school computer enthusiasts to assemble
circuit boards and design software

Autonomy 1234567
Wednesday, 22 December 2010
GETTING BIGGER
“When the PC was launched, people knew it was important.” Bill Gates
1980’s

Microsoft introduce MS-DOS

Apple unveil the ‘Lisa’ and the GUI


(Graphical User Interface)

Pro-activeness 1234567
Wednesday, 22 December 2010
“APPLE VS MICROSOFT”1990’s
“Rule 1: Life is not fair... get used to it!” Bill Gates

Microsoft release Windows 95 and Internet


explorer

Anti competitive behaviour


Microsoft had 80% of the market

Poor management and Jobs gone, Apple lost their


innovative flair (and profits)

Competitive Aggressiveness 1234567


Wednesday, 22 December 2010
NEW AVENUES 2000
“Innovation distinguishes between a leader and a follower.” Steve Jobs

Apple Computers Inc.

Manage music

Listen to music

Buy Music
Innovation & Risk 1234567
Wednesday, 22 December 2010
TAKING RISKS 2000
"It's really hard to design products by focus groups. A lot of times, people
don't know what they want until you show it to them." Steve Jobs

High
With a limited number Develop already
of products.
Problems can damage existing products
reputation Windows Vista and 7
iPhone 4 antenna

Innovation is based on Business acquisitions


Jobs perception of to expand services
market needs
iPad
Hotmail $500m

Innovation & Risk


Low 1234567
Wednesday, 22 December 2010
THE OUTSIDE WORLD
“The system is that there is no system. That doesn't mean we don't have process. Apple is a very
disciplined company, and we have great processes. But that's not what it's about.” Steve Jobs

Recession Legal

Innovate through Lost 7 year court


recession battle against
Microsoft

Continued developing Fined a record


current products $690m for breaking
anti-trust rules

External Factors 1234567


Wednesday, 22 December 2010
ON THE INSIDE
“Technology is just a tool. In terms of getting the kids working together and motivating them, the
teacher is the most important.” Bill Gates

Start Up
Workforce
growth
Corporate
Influence

Apple do not micromanage workers


Microsoft focus on getting things done
Internal Factors 1234567
Wednesday, 22 December 2010
THE PRESENT...
“Nobody has tried to swallow us since I've been here. I think they are
afraid how we would taste.” Steve Jobs

$14bn 49,500
Apple
17%
$18bn 89,000

Microsoft “Who do you believe to be more


83% successful?”
Wednesday, 22 December 2010
AND BEYOND
“Great companies in the way they work, start with great leaders.” Steve Ballmer

Apple stock value dependent on Jobs health

Steve Ballmer becomes CEO

Wednesday, 22 December 2010


QUESTIONS?

Wednesday, 22 December 2010