In 2001, Apple launched its revolutionary product: the iPod, a jewel of technology, which will give rise to a new market; that of the numerical walkman with a hard disk. A forerunner in its field, Apple has always been an innovative firm.
Its progress was, for a long time, attributed to its capacity to distinguish itself from others, and to unceasingly anticipate the market trends. But, in the nineties, Apple had major difficulties relating to an environment in deep change, and the firm showed the limits of its model and especially the bad definition of its orientations and strategic intentions.
How did the launching of the iPod enable Apple to come back to the growth? This study will analyze in a precise way the impact from a strategic point of view which the launching of iPod has had on Apple and its results.
The Company is committed to bringing the best personal computing and music experience to students, educators, creative professionals, businesses, government agencies, and consumers through its innovative hardware, software, peripherals, services, and Internet offerings.
The Company believes continual investment in research and development is critical to facilitate innovation of new and improved products and technologies. Besides updates to its existing line of personal computers and related software, services, peripherals, and networking solutions, the Company continues to capitalize on the convergence of digital consumer electronics and the computer by creating innovations like the iPod and iTunes Music Store.
The Company's strategy also includes expanding its distribution network to effectively reach more of its targeted customers and provide them a high-quality sales and after-sales support experience.
Since its creation, Apple has claimed to be a specialized firm; it concentrates on a core trade: micro processing. The founder of Apple, Steve Jobs, very quickly applied a strategy of extremely sophisticated innovation within its firm.
Nevertheless, this concern for the innovating character of the products, allied with a desire to cover a whole segment belonging to the market of the micro data processing, lead the firm to difficulties. The crisis starts with the launching of the Macintosh but it is especially the consequence of a chaotic marketing organization.
From the nineties, Apple had a long process of decline, which accelerated from 1996 onwards. The share of the firm on the market of the microcomputers frequently eroded. This crisis helped Steve Jobs to figure out the many strategic errors made by Apple.
Apple thus completely re-orientates its strategy and starts its first steps towards diversification. These efforts do not represent a simple need for a firm which has many financial problems. The wish is clearly to enter a new era.
Until then, Apple somewhat drowned in the innovations but did not manage to market them (certain products are too technological and elaborate to be attractive for consumers). Apple was already contributing to the advent of a tendency called the "Digital Hub" which includes production of numerical cameras, readers of DVDs, and readers of music to the numerical format. Later one saw how perfectly it fit with the launching of the iPod.
Tags: Apple, iPod, business strategy
[...] • Application of a system of projects management. • Capacity to design innovative products related to the technological control of the data-processing parts and especially the capacity to combine them. • In bond with the competence above, design becomes the key and distinctive competence of Apple at the time of the launching of the iMac. However, in its first years of life, the exploitation of the resources and the management of competences are far from being optimal at Apple. No brand strategy is defined. [...]
[...] 22: 12, p18-19. Dalrymple, Jim. “Nano Problems.” Macworld Dec 2005: Vol. 22: 12, p28. United States Securities and Exchange Commission, Washington, D.C Form 10-K. Apple Computer, Inc. [...]
[...] This model is available into 40 and 60 GB. In February 2005, the iPod photo price fell (the 60 GB model lost nearly $270) and the 40 GB model was replaced by one of 30 GB.[16] The Shuffle iPod In January 2005, Steve Jobs presented the shuffle iPod, an iPod with a very small format, using a memory flash of 512 MB or 1 GB.[17] It does not have the screen like all its predecessors but has a very low cost. [...]
[...] The Little Kingdom : The Private Story of Apple Computer, New York : W. Morrow Snell, Jason. “A Christmas Crunch for iPod Lovers.” Business Week Dec 5. 2005: Vol p14. Michael Kobrin. “Inventor Crafts a Venture.” U.S. News & World Report Dec 5. 2005: Vol. 139:21, p14. [...]
[...] It wishes that Jobs go more quickly to develop new projects. • 1983: The LISA is launched and becomes the first micro-computer using a graphic interface and a mouse. In spite of its revolutionary character, the LISA is sold very badly, mainly because of its very high price: $10,000. Whereas Apple undergoes the failures of Apple III and the LISA, Mike Markkula resigns. Steve Jobs calls upon John Sculley, chair of Pepsi, to become head of Apple.[4] • 1984: Launching of the Macintosh, first computer with graphic interface. [...]
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