Apple Case Study
When it comes to the comparison of the computer industry in 1980s and 1990s, there was a significant change that was seen since the technological developments were improving drastically. Let’s have a look at the trends in computer industry in 1980s. The machines that were used at that time were quite simple and did not possess any out-of-the-box or state-of-the-art technology. In this decade, IBM joined the industry where it strived to remove the compatibility issues for the users; and as a result, it launched the desktop computers for the first time in history. Previously, Apple had already launched its APPLE II that was relatively simple in usage for the people; moreover, it started selling quickly and by the end of 1980, its sales reached more than 100,000. Therefore, Apple became the leader of computer industry at that time, was making sufficient money, and hence went public by launching IPO. When IBM came, the market share of Apple dropped due to the launch of the new operating system, DOS, and microprocessor chip by Intel. Although Apple launched its MAC then, but its slow speed could not raise its market share and profits.
The computer buyers at that time were mostly businesses
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Also read about Apple differentiation strategy
In 1990s, more developments were seen when IBM and Apple went in a joint venture for the development of a new OS that could provide the users with utmost speed, even though it was very costly. Another venture was laid that resulted in a huge loss for Apple, after which it brought serious improvements in MAC that were loved by the users. But later on, they were overpriced and this was seen as an opportunity to penetrate and increase the market share by Microsoft, who then offered softwares and hardwares at cheaper rates. Nevertheless, MAC did adopt a differentiation strategy by offering different operating system, different software, and applications that were user-friendly and reliable.