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Word Count: 500
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 Apples 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 Apple to undertake drastic changes Sculleys ambitious plan was a repositioning of Apples entire business It began with a new lower-priced line of computers designed to increase Apples market share This strategy was successful in increasing the share which in theory should have increased the incentive for software manufacturers to write applications for the Apple platform To complement the lower end sales Sculley wanted to increase hit products that could rapidly generate revenue This seems to demonstrate that Apple had learned from its fiasco in its earlier attempts at overworking the portable computer but it would still be a hard road to successfully and consistently follow The greatest detriment to Apples long-term financial health was its dedication to an expensive in-house production methodology that reduced the companys flexibility absorbed above industry-average amounts of RD capital and added to the cost of practically every computer component The success of Sculleys attempts at increasing outsourcing and reducing the reliance on sole manufacturers would in turn help define Apples 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
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