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Global Business Environment Analysis of Apple

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Submitted By jnnygrnwd
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1 The volatility and evolution of computer industry
Starting from 1976, Apple computer created the personal computer (PC). After IBM transformed the PC from proprietary systems into open structure, PC has been dominated by Wintel (Windows + Intel) structure. Apple insists in adopting proprietary and niche market strategies made them keep losing market share till less than 3% in 2001. However, its strategy with ignoring the market trends makes it lose the market after years.

1.1 Industrial changes: Apple lost PC market because of ignoring industrial changes
The PC industry has evolved in the past decades. There are 3 phases. Let’s take a look at these phases and Apple’s position in each phase.

Before 1981: Proprietary Systems.
Every PC producer had to develop self own hardware and software. It was proprietary. Most buyers were technical people. There were 2 main streams in the market: Apple style machine and IBM style machine. During this period, Apple was the leader. Its strong developing ability made the Apple II became a family commodity. However, Apple didn’t use patent or trade secret to protect its products. Many computer companies re-engineered Apple II and made cheaper similar products to compete in the market. For example, Acer copied Apple II and developed the Little Professor Series.

1981- 1997: Open structure.
IBM turned the PC into open structure. Compaq, HP and many other producers started to show in the market to produce IBM compatible PC. During this period, hardware can be separated into CPU, mother board, power, disk drive, and other peripheral businesses. Software can be separated into basic input output system (BIOS), operation system (DOS, Unix, Windows), tool systems (Norton doctor, Anti-virus), computer language (C, Basic, Clipper, FoxPro), office applications (spreadsheet, word process), graphic applications (Adobe,

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