On October 5, 2011, Steve Jobs tragically died of cancer. The
recently retired CEO of Apple Inc. was a legend: he had changed Apple
from a company near bankruptcy to one of the largest and most
profitable companies in the world. Moreover, he had revolutionized
several industries in the process, including music, phones, and
computer tablets. This case explores Steve Jobs' successes and the
challenges facing his successor, Tim Cook. Could Cook continue to
revitalize the Macintosh? With iPod sales declining for four straight
years, would Cook be able to continue the iPhone's dominance of
smartphones in the face of growing competition from companies such as
Google and Samsung? Would Apple's newest creation, the iPad, continue
to dominate the tablet market, or would the new competitors, ranging
from Amazon to Samsung, steal, share and drive down profits? And could
Apple thrive with Tim Cook rather than Steve Jobs at the helm?
What created the initial opportunity for Apple?
What was their strategy at this point?
What changed when the IBM PC came onto the market?
How did Apple respond?
How did Apple survive its near bankruptcy in 1996?
What trade-offs has Apple made since Jobs began the Apple Turnaround in September 1997? Why were these trade-offs made?
Describe how Apple brought a sense of "fit" into its product line.
What kind of strategic positioning does Apple employ?
Where does Apple fit in the price/features matrix?
Why did Apple embrace the Intel processor in 2006?
Using Exhibit 1a, describe Apple's financial history. Look specifically at sales and net income.
Using Exhibit 1b, what products were driving this financial performance?
Should Apple be concerned about the rising popularity of the Google (Android) ecosystem? Should their strategy change at all?