Unit 1 Apple Case Study

Running head: CASE ANALYSIS OF APPLE, INC., 2008

Case Analysis of Apple, Inc., 2008

GB520 Strategic Human Resource Management

Marija Santos

Kaplan University

December 16, 2013

Analysis of Situation (Background)

In 1976 Steve Jobs founded Apple Computers with Steve Wozniak producing their first personal computer, Apple I. The computer business grew swiftly and so did their company. They sold 200 computers in their first few months then added a business partner, A.C. “Mike” Markkula, to help finance the future of the company. Over 30 years later Apple Computers became Apple Inc. signifying their expansion from just personal computers to also include non-PC products such as iPods, iTunes, and iPhones. Apple’s sales in 2007 were 24% greater than the prior year at over $24 billion (Yoffie, Slind, p.1). Although Apple’s personal computers never held over 3% of the market, their non-PC products soared in popularity and profits.

Identification of issues/Problems in the Case

Some of the issues are highlighted by the roller coaster performance over the years and have been associated with Steve Jobs’ absence and return. When Jobs was forced to leave, the board of directors replaced him with CEO after CEO, attempting different strategies trying to create the same success Jobs had. It didn’t work out as they had hoped, even mild successes didn’t compensate for the challenges faced by the company. So they chose to bring back Steve Jobs depending greatly on the founder of the company.

Their low market share worldwide for their PC products, only 3% in 2007, is another issue. Their competitors, HP and Dell, held must greater shares, 18.8% and 14.9% respectively. Both used aggressive marketing as well as manufacturing and distribution strategies to secure the lead in the market. Apple suffered from its high pricing and low compatibility with non-Apple products. It was, “viewed as the ‘BMW’ of the computer industry.” (Yoffie, Slind, p.3) Consumers who could...