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Apple Case

Case summary:
Apple Computers:
The company Apple was first established by pair of college dropouts Steve Jobs and Steve Wozniak, on the April 1 of 1976. Casual garage effort sustain in the world market with several ups and downs. The significant blow on their PC market share was suffered when IBM PC entered the market in 1981. The silver lining for the persisting decline was met when Steve Job retuned back to apple as CEO. His visionary business strategy and his leadership turned around the apple putting it back in the race of technological market leader. The first product after Job rejoined the apple was iMac with compatibility for windows based machine different than their conventional apple product based. He continued restructuring an organization to reenergize apple’s image. With continuous innovation, research and development, Steve Job could make himself stand strong with his Apple. His strategy of intensifying R&D, outsourcing the manufacturing tasks, reinitializing the distribution system boosted Apple’s presence.
After considering the main root cause of a failure in personal computer market, which was closed network system, Apple concentrated on MP3 market with new feature of iPod such as the iPod Nano with high storage capacity, sleek design and appealing functionality. Its distinctive point is the open network system which can get along well with Windows rather than allowing only Macs (developed by Apple) like the former generation of Apple PC. Also, the iPod allows users to download music from on-line iTunes Music Store. Unanticipated, the introduction of iTunes had a galvanic impact on iPod’s sales from 113,000 units up to 733,000 units per quarter. This can be considered to be an indirect network effect of iTunes on iPod.