Apple’s analysis
Institute
of Educational Leadershipof Jyväskylä
’s
analysis
Course
code: EDLS 820's Name: Jukka Alava
Introduction:
In the last hundred years
Information technology has developed from its very basic shape to its unlimited
powerful applications which touch every single aspect of our today’s life.in
the last 40 Years electronic communication devices, computers, and digital news
and media developed from being used only by big companies or scientific labs to
be used by everyday man.and digital devices has strongly evolved from huge
chunky room sized machines to pocket size mobile devices, Information transfer
has rapidly increased both vertically and horizontally (Size of data, amount of
data), new innovations appeared and the missing link between the benefit of
electronic devices and the average human need has decreased.
The Apple revolution
Today’s business and IT news, blog
entries and articles recognize Apple’s advantage over Microsoft. In the short
report Rosoff (April, 2011 “Apple’s profit is now higher than Microsoft”) shows
the financial difference between these two companies, which is $0.76 billion,
$5.99 billion of apple versus Microsoft’s $5.23 billion. Both companies are
used to publish their quarter profits, and it is first time during this
competition when Apple takes the first place. According to these data, Apple’s
gadgets are the most demanding on the market. From the strategic planning point
of view it means that company’s vision is aware of people’s needs and ready to
respond any demand.it was not always like this. The free encyclopedia Wikipedia
gives very good and detailed information on the topic. Both companies were
founded in the 1970, and since those days it is the first time when Apple wins.
Apple Business maturity cycle
Apple has gone through several ups
and downs since its early days until present. The struggles and the rises Apple
has gone through can typically fit the vicious learning circles illustrated
below (Alava, 1999).
1. Vicious circle
and the organizational learning
The following point’s demonstrates
the vicious learning circles applied on Apple Inc.
1. Continuous learning balance
Apple started as a home based
computer factory in 1976 where Steve Jobs, Steve Wozniak and Ronald Wayne
assimpled what is called the Apple 1 computer board. They could produce up to
200 computer and sell them to a local computer store. That encouraged jobs to
move on and introduce Apple 2 computer in 1977which was much advanced and more
close to a full computer with a display on TV. Apple 2 computer has been well
established and widely sold in the market however that did not stop Jobs from
moving on and producing Apple 3 computer. With Apple 3 computer in 1980 Jobs
decided to take the IBM personal computers at that time into the business
environment by providing a bundled PC with a Screen and desk drive.
2. Adapting to change and
reaction is not sufficient
Apple 3 computer had a better design
and improved features which was more sufficient for the market, Jobs had made a
decision to not assemble a cooling fan into the computer case box thinking that
the chips and the computer board would circulate the heat itself. This
assumption was wrong and caused the company thousands of computers to be returned
from not satisfied customers due to heating problems. That failure forced Apple
to dedicate a separate group to design a new computer which could change the
world. Also to try to make up the great loss they had by the Apple 3 computers.
So they came out with LISA computer, 1978-1982. LISA computer was the first
computer to introduce the mouse, the Icon and the desktop, which at that time
was a revolutionary innovation from apple to the computer world. But LISA was
very expensive to be buying by wide range of customers. And because of its high
price it has failed to penetrate the market.that Apple came up with a new
computer (an upgrade of LISA) in 1984 and bundled it under the name Macintosh.
Macintosh was introduced to the world with a better design, fancy writing and
painting software. That was introduced to the world through a huge multimillion
marketing campaign however it has not penetrated the market as expected since
it was not empowering the command line users which was the main strength point
of Apple before that.though the marketing difficulties Apple suffered, the
Macintosh name was still in power especially after the partnership with Adobe
Systems which supported apple to provide software for desktop publishing and
computer animation. That made apple position stronger as a Technology provider
in the media, advertisement and publishing business.adapted to changes when
they came out with LISA, They found out that the market is changing and new
companies like Xerox, IBM and Adobe are pioneering the market with there new
innovations and ideas. The way LISA was designed was based on deep analysis for
the market needs. However that creation of such a new idea was not sufficient
due to the pricing problems apple had.
3. Great unbalance Insecurity
In 1985, due
to an internal power struggle Jobs resigned from Apple however he was still a
main shareholder in the company. First, John Sculley was introduced as the new
CEO, then Gil Amelio. At that time the company was about at great unbalanced
insecurity stage. During that era the board did not introduce completely new
strategy, but some insignificant or non-profitable changes. Even though the
introduction of new products such as Quadra
<#"560835.files/image002.gif">2, Apple Vs.
Microsoft revenue/income
Reference:
1. Rosoff, M. (April, 2011)
Apple’s profit is now higher than Microsoft [Electronic version]
<http://www.businessinsider.com/its-official-apple-earns-more-than-microsoft-2011-4
3.05.2011>
. <http://en.wikipedia.org/wiki/Apple_Inc>
4.05.2011
. Yarrow J., Angelova K,
(2010) CHART OF THE DAY: Apple Trumps Microsoft In Revenue For The First Time
In 14 Years [Electronic version]
<http://www.businessinsider.com/chart-of-the-day-microsoft-apple-revenue-income-2010-10>
3.05.2011