Apple Computer, Inc. Case Description:This case basically walks you through the ups and downs of Apple's company history. Steve Jobs and Steve Wozniak founded the company in 1976 with the Apple I. In 1984 the company expanded with the Macintosh, which was the first affordable computer. After the introduction of the Macintosh, the company continued to grow and introduced the Mac II, Powerbook, iMac, and most recently, the iPod line. Apple was the market leader until the mid-1980s, when IBM was introduced to the public. Gateway, Dell, and HP would soon follow, and they too captured some of the market share that once belonged to Apple. Apple has consistently failed to gain market share over the past decade and even posted quarterly losses, something unheard of to begin with. Apple's recent advertising and distribution initiatives seem to be a success, but the company still has to endure the economic uncertainty that reigns in the market today and at the same time find a way to compete with Microsoft and other leaders of the computer industry . Symptoms: Apple's steady loss of market share and losses in 2001 and 2002 are signs that the company is facing an underlying problem. Problems: The problems Apple faces are wide-ranging. First, the company must improve its competitive strategies to regain some of the market share it has lost to companies like Dell, IBM, HP and Gateway. Apple must also position itself to "steal" PC users and convince them that Apple software and operating systems are superior to those available on PCs. SWOT Analysis: Strengths - Apple has maintained a good reputation for quality. - The company uses innovative advertising campaigns. - Their new products are producing large revenues (iPod). - They have a good balance in their distribution channels. - Apple has the most stable operating system available. Weaknesses - They do not have the ability to convert PC users to their system.-The company spends too much on advertising. - Apples are seen as computers for professionals. - A good sales forecasting method is missing. Opportunity - Apple can expand with switching program and new stores.