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Highly successful integration in

acquisitions

1 + 1 = 3

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Downfall ofApple

Outdated and weak operating system andintroduction of windows 95.

Hardware sales were poor and the unsellableinventory was increasing day by day

Apple's financial losses reached $816 millionin 1996 and a staggering $1 billion in 1997.

The company' stock, which had traded atmore than $70 per share in 1991, fell to $14per share.

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The road to Success

Steve Jobs called Amelio to discuss Apple's OSstrategy and to offer him advice .

Jobs pitched NeXT as Apple's only hope atgetting its OS back on track.

OPENSTEP was a proven technology

OPENSTEP OS was still five to seven years

ahead of its time and perfectly suited toInternet and multimedia creation, two of theMac's few remaining strongholds.

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The success story

Apple and NeXT had surprisingly complementary

products, technologies, and services.

Apple needed a truly modern operating system

and NeXT had an exceptional operating system

with modern services and APIs.

NeXT needed a high-volume installed base and

Apple one of the world's largest personalcomputer manufacturers has sold more than 26

million Macintosh systems.

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The Changes

After the merger the traditional Mac OS

followed a very simple release pattern: major

releases once a year, plus minor updates half a

year later.

Apple got rid off the clone hardware

manufactures who were competing in local

markets

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Jobs surveyed every single product team in

the company, calling them in one by one in

Apples conference room.

There was no sentimentality: if the product

was not making a profit, it usually had to go.

Steve jobs cut down products from 50 to ten

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The Tech Changes

A new desktop computer was desingned andwas named iMac. It evolved from networkcomputer into a new consumer desktop

computer. Apple made bold choices in developing iMac.

It was the first mainstream computer to offerUSB connectivity, a technology developed byIntel that was almost non existent in the PCspace.

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The iMac

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The extraordinary enthusiasm unleashed by

iMac not only boosted sales, but it reinforced

confidence in the companys future.

Apple was back to profitability. For the first

time since 1996, it had made a $45 million

profit in the last quarter of 1997.

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The i story

After two years as interim CEO, Steve Jobs

completely turned Apple around. He restoredthe companys public image, implemented asuccessful and focused new strategy andlaunched highly innovative and awe-inspiringproducts on the marketplace.

He declared he had accepted his de factosituation and become the companys full-time

CEO

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Organizational changes

Apple's organizational hierarchy underwent

sweeping reorganization , Jobs replaced the board

with his own picks most of them his co workers from

NEXT. Jobs closed plants, laid off thousands of workers, and

sold stock to rival Microsoft Corporation, receiving a

cash infusion of $150 million in exchange.

Employees were given performance reviews and

raises every six months based on performances

All employees had full access to the payrolls.

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Cultural changes

Apples cultural changes included no more pets atwork , no smoking in campus ,no business classtravel

Loose Lips Might Sink ShipsJobs had acomplete ban on talking to the press without a PRofficial watching.

One of the most appreciated change was the new

cafeteria, which Steve had run by Palo Altosfamous Italian caterer, It is still considered one ofthe finest cafeterias in the Valley.

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Marketing

The incredible power of the Apple brand wasdisplayed , focusing only on the companysculture of rebellion and artistic creativity.

This was the gem of the Think Differentcampaign.

Apple unveiled a retail strategy. Jobs opened 149Apple stores within stores in locations across

the country.

Apple opened the first official Apple retail storesin Virginia and California.

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Apples online store one of the first of its kind

was launched. It would soon become a model

to several other tech companies.

Apples' stock mustered a remarkable rebound,

climbing 140 percent to $99 per share in 1999.

It became a profitable company once again.

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Experts speak

Jobs tendency towards micromanagement

and perfectionism has been heavily criticised,

but has resulted in the high quality of

products developed under his influence.

As a prospective manager, he isn't very

attractive. However, as a figurehead for the

corporation, he can't be bettered.

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Experts Continue

To both Apple employees and users, Steve

Jobs represents a corporate ethos that is a

Golden Age of success for Apple. He is also

possibly the best ever public demonstrator.

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Game changers

Apple Moves beyond PCs to Phones,pods

Pads, and Music/Movies/TV.

The Mac, iPod, iTunes, iPhone, and iPadbecame the five pillars ofApples business.

These products were successful because of

marketing and Jobss genius at design.

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Apple Logos

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