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Apple Computer 1992

Apple Computer set about in the early 1990s to achieve the revolutionary goal of

de-commoditizing the $50 billion computer industry. The established task was not an easy one but one that Apple had to undertake, as the last large remaining proprietary computer company, in order to remain competitive, and even solvent, in the increasingly cutthroat computer industry.

Apple's computers had always been regarded as technologically superior to "Wintel" computers but, as the case demonstrates, these differences had dramatically decreased over time. In conjunction with the lower product differentiation aspect, Apple faced competitive pressures on both its price structure and its distribution practices. CEO John Sculley correctly identified the need for App


The greatest detriment to Apple's long-term financial health was its dedication to an expensive in-house production methodology that reduced the company's flexibility, absorbed above industry-average amounts of R&D capital and added to the cost of practically every computer component. The success of Sculley's attempts at increasing outsourcing and reducing the reliance on sole manufacturers would in turn help define Apple's financial success. The end of the "not invented here" mentality would also mean alliances with other computer and software companies and joint ventures to help defray costs and to move the company forward on cutting-edge technology which could help with its product differentiation.

One true error of Sculley's was his plan, mentioned briefly at the end of

Some common words found in the essay are:
John Sculley, Apple Computer, Apple's GUI, Overall Sculley, market share, product differentiation, apple computer, expensive in-house, expensive in-house production, apple undertake, computer industry, in-house production, sculley correctly, financial success, competitive pressures,
Approximate Word count = 526
Approximate Pages = 2 (250 words per page double spaced)


  

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