Apple Computer

Successes and Failures In 1976, The Apple Computer Company is founded by Steve Jobs and Stephen Wosniak. The first computer was little more than a kit computer that sold for $666 dollars and had limited mass market appeal. The following year, the Apple II is introduced and represents the first computer that is designed for the mass market. In 1978, the Apple Disk II is introduced and represents a disk storage solution that is half the price of its competitors and more reliable. In 1984 the original Mac is introduced and is the dubbed “The computer for the rest of us”. At $2,495, the computer is priced for mass market appeal and features an easy to use graphical interface and a push button mouse that revolutionizes the way people will use the computer. Gone are the days where endless commands will need to be memorized in order to harness the utility of the computer. In all of these cases, Apple responds to a previously untapped market with a new innovative product at an attractive price and establishes domination of the personal computer market for several years to come. IBM continues to make advances, closing the gap between their product and the critically acclaimed Mac. They partner with Microsoft to develop the GUI interface and then propose a new approach to development by opening their platform to outsiders to help them erode Apples’ dominance in the marketplace. In their arrogance, Apple decides to maintain proprietary rights to their technology and as result decides to compete against the world at large. By the time they realize their mistake, IBM and its clones have virtually eliminated the domination of the personal computer market once enjoyed exclusively by Apple. Apples inability to sustain a technological edge and loss of focus on cost reduction is what leads to their decline and is considered by some their biggest failure.

Corporate Culture Apple’s corporate culture, from its inception, is predicated on an anti-establishment renegade attitude that defies conventional thinking and is symbolized by the pirate flag. Their credo: Create your own thing, defy the naysayers and one person can change the world. The very culture that led to its success would prove to be its undoing. Steve Jobs’ uncompromising attitude and unwillingness to accept market realities would leave the company in turmoil and chaos. Jobs was finally forced out by John Scully who tries to keep the culture intact for fear of losing his most creative minds. Their maverick mentality, while fostering the creative spirit, made these people a difficult group to manage. Their inability to adjust to increasing marketing demands and a steadfast belief that technological breakthroughs would sustain their market dominance would ultimately lead to their downfall. A balance between the creative spirit and harsh pragmatism of the business world was never achieved and this led to the continued loss of market share.

Importance of Innovation Innovation drives the marketplace. Apple’s ability, first to recognize an opportunity in the market, and then to introduce an innovative product that would satisfy the consumers’ thirst for new technology would help propel them to a dominate position in the personal computer market. More than any one thing, Apple’s ability to offer quality products at affordable prices was the driving force in their early success. Their unique interface technology transformed an existing technology into one that was suitable for mass consumption. It was their creative thinking that would enable them to capture the imagination of the world.

References
BusinessWeek. (1996, Feb 5). The Fall of an American Icon. Retrieved July 5, 2011, from BuisnessWeek: http://www.erik.co.uk/applesun/busyweek.html
Macworld. (2006, Mar 30). 30 pivial moments in Apple's history. Retrieved July 5, 2011, from Macworld: http://www.macworld.com/article/50112/2006/03/30moments.html