APPLE`S TURNAROUNDSteve Jobs (1955-2011)

Formation of Apple

Established in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne.

Incorporated in 1977 without Ronald Wayne. Initial Public Offering on 12 December 1980 at $22

per share. Generated more capital than any other IPO since Ford Motor Company in 1956.

During the first five years of operations, revenues doubled every four months, an average growth rate

of 700%.

Initial Product Portfolio

Apple I Apple II (Platform for VisiCalc

Spreadsheet) Apple III (To compete with IBM and

Microsoft in the Business and Corporate market)

Lisa ( Innovative GUI but high priced ) Macintosh (High Price but supported by

compatible devices )

Job Quits

In 1985, a power struggle developed between Jobs and CEO John Sculley. Jobs resigned from Apple and founded NeXT Inc. the same year.

Post Jobs Era

After Jobs` departure, the Macintosh product line went through a change and was turned into a high profit margin line. This policy backfired badly a few years later as the market became saturated with cheaper clones with same functionality.

In 1989 the stock price dropped by 20%.

Post Jobs` Product Portfolio

Macintosh Classic/LC Powerbook ( Ancestor of modern

laptop ) Accessory market – TV, Digital cameras,

Portable CD players, Speakers, Video consoles etc.

Jobs returns to Apple

In 1997, Apple Inc. was on the verge of being bankrupt when Steve Jobs was offered by the BoD to act as the interim CEO.

A deal was finalized and Steve Jobs returned as interim CEO and eventually became the CEO of Apple Inc.

How did Steve turnaround Apple?

In 1997, Steve Jobs received help from his friend Bill Gates. In an unprecedented move Microsoft made a $150 billion non-controlling investment in Apple Inc and announced to develop applications for the computers manufactured by Apple Inc. Microsoft also announced to develop MS Office for Mac so that Mac users don`t migrate over to Windows.

At the Macworld Expo Boston(1997) keynote address, Steve Jobs told the crowd that Apple needed to improve its relationships. "It needs help from other partners; it needs to help other partners."

“Help others on your way up, because you might meet them on your way down.”

Product Portfolio After Restructuring.

iMac Entered digital video editing market – Final

cut pro | iMovie Took over Astarte to acquire DVD authoring

technology. Entered music software industry by taking

over “Nothing real” and “Emagic”. Launched iPod in 2001. Launched iTunes store in 2003. In 2005 the first Intel powered Macbook was

launched and iMac series was retired.

Apple`s pre-positioning phase

A New Direction – Jobs` Factor

During his keynote speech at the Macworld Expo on January 9, 2007, Jobs announced that Apple had now shifted its emphasis from computers to mobile electronic devices.

New Era Portfolio – The Technology Revolution

iPhone series Macbook pro series Apple TV iPod Nano iPod Shuffle iPod Touch iPad

From being a nobody in the mobile industry in January 2007, Apple went on to become the third-largest mobile handset supplier in the world due to the popularity of the iPhone by October 2008.

Blue Ocean Strategy

What did we learn?

Be original, be creative. Money is important but don`t make it an object of your life, instead focus on your strengths. If others try to talk you down, take their criticism constructively and move on. Do not judge yourself by what others think of you. Because the world doesn`t know your potential.

Steve Jobs didn`t quit when he left Apple. He didn`t quit when he was diagnosed with Cancer. He kept on doing what he was best at and he revolutionized the whole world for ages to come.

Steve didn`t have a business background, he was an engineer but he created one of the most successful and most influential company we have in the world today.

Steve`s use of Blue Ocean Strategy changed the whole world. He didn`t have an MBA but he knew that in order to be the best you have to think out of the box. Which is why Apple is and as long as they continue with Steve`s policy, they`ll be trend setters.