Institute
BOS022
How Apple 's Corporate
Strategy Drives High Growth
10/2012-5860
This case was written by Oh Young Koo, Institute Fellow of the INSEAD Blue Ocean Strategy Institute, under the supervision of W. Chan Kim and Renée Mauborgne, Professors at INSEAD. It is intended to be used as a basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation.
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Blue Ocean Strategy Institute
Apple Computer was founded in 1976 by Steve Wozniak (24 years old) and Steve Jobs (20) in the garage of the latter’s parents.1 Their first product, the Apple I, was a personal computer kit, engineered and hand-built by Steve Wozniak. In 1979, Apple Computer introduced its second product, the Apple II. Equipped with colour graphics and open architecture, the Apple
II was aimed at enlarging the customer base beyond ‘hobbyists’ – 98% of whom were males aged between 25 and 45 with the knowledge to program their own routines.2 Apple wanted to erase the perception of a computer as something scientific and complex, and make it easy to use for ordinary people. Whereas the PCs in the market were kits for hobbyists to assemble with no monitor, no keyboard and no software, the Apple II was designed to be of practical use for the consumer. With an all-in-one design in a plastic casing, including the keyboard, power supply, and graphics, it came with software for home and office use such as the Apple
Writer word processor and the VisiCalc spreadsheet. The Apple II was a considerable success and helped the company stand out among other garage start-ups in the newly formed US$3 billion industry.3 In December 1980, Apple