GROUP 8

Apple’s Case Study

IT 304
Management Information System

Sir Pramit Mazumdar

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 Team
Sr. No. Name Roll Number

1 Akash Prajapati 202051013

2 Apurv Patel 202051133

3 Prasoon Pathak 202051143

4 Suyash Jain 202051189

5 Amartya Singh 202052305

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 Index
Sr. No. Topic Page Number
1 Introduction 4
2 What were the Problems ? 5
3 Impact : Why Solve ? 6
4 Affected Parties and Deadline ? 7
5 Adopted Strategies 8
6 Other Adopted Strategies 9
8 Conclusion 10
9 References 11-12

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 Introduction
• Apple Inc. is a multinational IT company that has become one of the world’s most recognisable and
valuable companies since its inception in 1976.

• Since then Apple has set many benchmarks in the IT industry and the Global Market.

• However, Apple has also experienced a period of decline from 1985-1997, which is widely known as the
“Apple’s downfall”.

• During this period, Apple was on the brink of bankruptcy, facing a period of nancial uncertainty and
intense competition from rivals like Microsoft and IBM.

• This case study focuses on the reasons behind Apple's decline between 1985 and 1997.

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 What were the Problems ?
• There were multiple factors behind Apple’s Downfall.

• Firstly, Company’s Leadership was in Turmoil: In 1985, Steve Jobs, one of the company's co-founders,
was forced to resign from his position as chairman of the board by John Sculley (CEO) who himself was
offered by Steve Jobs to join Apple in 1983.

• Secondly, Apple’s Product Line was too Diverse and Complex: The company was creating too many
products at that time (350) which confused its customers and set production cost to go to high resulting
in dilution of the brand.

• Thirdly, Apple failed to keep up with the rapid changes in the IT Industry: The company's competitors
(IBM and Microsoft) were producing much faster and more powerful products at that time, and Apple was
struggling to keep up with the pace.

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 Impact : Why Solve ?
• Resign of Steve Jobs resulted in departure of several key employees (around 3000). As a result, Apple
lost its innovative edge and struggled to keep up with its competitors.

• Apple was trying to cater to too many markets and as a result ended up losing focus on its core products.

• Apple’s products were becoming outdated, boring, ugly, bulky and unattractive and as a consumer
response to this, were unable to compete in the market.

• These Problems were needed to be solved because Apple was loosing its market share and its Brand
Identity. Company’s Revenue was declining and its stock prices were dropping. If problem continued
Apple would have eventually gone Bankrupt, which would have adversely affected its shareholders,
employees and customers.

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 Affected Parties and Deadline ?
• Majorly affected parties by the problem were Apple's shareholders, employees, and customers.

• Apple's employees faced job insecurity and uncertainty due to layoffs and restructuring efforts

• Shareholders saw the value of their investments decline as the company struggled to remain pro table.

• Loyal customers also suffered from a lack of innovation and reliable products, leading many to switch to
competitors' offerings.

• There was no speci c deadline as such for solving the problem, but the longer the problem persisted, the
more severe its impact would turn for Apple’s and its Stakeholders. Thus, the problem was needed to be
solved as soon as possible to prevent further damage to the company's reputation and nancial stability.

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 Adopted Strategies
• Less is More: Apple brought back its co-founder, Steve Jobs, as interim CEO in 1997. Jobs brought a
fresh perspective to the company and focused on simplifying its product line and reducing the number
of products it produced from 350 to only 10. This allowed Apple to focus on its core products and
ventures and improve their quality and performance.

• Attention to minute details: Every company have its own design team, but Apple made a special
Unboxing Team of its own to simplify and minimise its product unboxing and packaging.

• Aspiration is Valuation: Apple worked on its customers aspirations from a product which helped
automatically generate the valuation for Apple. It worked on creating a sensation among its customers,
developing a cult, improving consumer experience and aligning itself with its customers.

• SAP ERP System: Apple improved its supply chain management by implementing an ERP System (SAP).

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 Other Adopted Strategies
• Facts Tell/Story Sells: Jobs believed that, “When you talk too many things, your message gets missed !”, Apple
brought signi cant changes in its packaging and focussed on changing the game by writing a single-line statement.

• Extremely Focussed Towards Goals: Apple mainly looks in its employees for the alignment with the company’s vision
over the knowledge one have.

• Build a Social Status: Apple has created a status of its own that its user always recommends apple over any other product
of similar kind thus providing apple with free marketing.

• Discount Kills Valuation: Apple focuses on maintaining a brand value of its own, that ultimately helps apple gain its
valuation.

• People Without Passion are Poison: Apple believes that when you’re tired and there are continuous setbacks, only
passion is the one that keeps you moving, which is a major trait for which Apple look in its employees.

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 Conclusion
The strategies adopted by Apple helped gain back its reputation and Brand Identity, making it the
World’s First Trillion Dollar Company in August 2018.

Also, it became the rst U.S based company to achieve a valuation of 2 trillion dollar in August 2020, just two years
after it became the rst trillion-dollar company.

Along with it, Apple’s iPhone 12 became best-selling smartphone globally in January 2021 (March 2021)

Recently, two decades after entering India, Apple has opened its rst retail store in Mumbai, signalling the tech giant’s
growing interest in the market.

In conclusion, Apple's journey from its downfall in 1985 to 1997 to its current growth has been remarkable. With a
strong nancial performance, continued growth in its product and services division, and a loyal customer base, Apple
has well-positioned itself to maintain its market position and continue to be a leader in the technology industry.

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References
 References
The following references were used by the team for preparing the presentation:

• Today in Apple history: The end of Apple’s worst ever nancial quarter, by LUKE DORMEHL, 6:00 AM,
JUNE 27, 2016. Article : cultofmac.com/435312/today-in-apple-history-the-end-of-apples-worst-ever-
nancial-quarter/

• Steve Jobs Biography in Hindi | Apple 10 Strategies | Case Study | Dr Vivek Bindra : Video https://
youtu.be/szTlrjF9TdM

• Case Study On Apple | BCG Matrix | Dr Vivek Bindra : Video https://youtu.be/w9CdIKYyxBM

• Class Notes along with previous little knowledge about Apple’s remarkable journey.

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THE END