Apple Inc.
Is a Closed System a Problem?
Authors: Edward Lee, Katrina Jones, Michael Brown, and Steve Bodnar
Agenda
Company Overview What is a Closed
System? Apple’s Systems Potential Solutions Evaluation of Solutions Final Recommendation
Company Overview
Founded in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne in California
Worldwide and publicly traded company
Over 35,000 employees (and counting) and 160 executives
Changed name from Apple Computer Inc. to Apple Inc. in January 2007
Steve Wozniak & Steve Jobs 1976
Company Overview
Acquired 8 companies since 2002
Revenue and Net Income in 2009, $42.9 and $8.2 billion, respectively
Apple’s Systems
A closed system is an “isolated system that has no interaction with its external environment”
(Anonymous, www.businessdictionary.com/definition/closed-system.html)
OS X
Apple’s OS X can only be run on Apple computers!
iTunes and iPod
iTunes is a digital media program that allows users to play any music,movies,or apps on their computer
iPod is a portable media player that uses itunes to load media files onto the device
iPhone
A revolutionary cellular phone in both design and features.
iPad
On January 27, 2010, CEO & Director of Apple Inc., Steve Jobs, introduced Apple’s latest innovation, the iPad
Solutions for Apple’s Closed Systems- Open Systems
Most common systems
Integrate with the most common languages/ software
Loss of “niche”
Solutions for Apple’s Closed Systems- Do Nothing
“Since the iPod was introduced in October 2001, its share price has multiplied by more than 23 times from $8.78 to $207.88” (Foremski, 2010).
Halo effect- “customers who buy an iPod become hooked on Apple’s products and their ease of use, and then buy a Macintosh as their primary or secondary PC” (Gibson, 2005)
Evaluating Solutions- Open Systems
Standard IT and consumer electronics business practice
Evaluating Solutions- Do Nothing
Apple has evolved, somewhat
Staying innovative has it’s benefits
It’s business model is working
Recommendation
Recommendation
References
Anonymous. Retrieved from www.businessdictionary.com/definition/closed-system.html
Cartwright, D. (2006). Do you still need a Mac? ITNOW, 48(5), 30-31.
Cohen, P., (2007). Apple 100 Million iPods sold, and Counting. Retrieved from http://www.macworld.com/article/57233/2007/04/ipodmilestone.html\
Cusumano, M. (2008). Technology strategy and management: The puzzle of Apple. Communications of The ACM, 51(9). 22-24 doi:10.1145/1378727.1378736.
Dalrymple, J., (2005). Analyst: iPod Halo Effect Should Continue. Retrieved from http://www.macworld.com/article/45964/2005/07/halo.html
Foremski, T., (2010). Apple Becomes More Closed With Each New Device. Retrieved from http://blogs.zdnet.com/Foremski/?p=1089
Gibson, B., (2005). Analysts Agree: Apple’s ‘Halo Effect’ Might Be the Real Deal. Retrieved from http://www.macobserver.com/tmo/article/Analysts_Agree_Apples_Halo_Effect_Might_Be_the_Real_Deal
Hoovers, Inc. (2010).Retrieved from http://hoovers.com/company/Apple_Inc/rtjcci-1.html
References
Johnson, M.W., Christensen, C.M., Kagermann, H. (2008). Reinventing you business model. Harvard Business Review, 51-59.
Jordan, A., (2009). Apple’s Computer Market Share Falls Slightly In Q1 of 2009. Retrieved from http://www.mactropolis.com/apple-news/apples-computer-market-share-falls-slightly-in-q1-of-2009
Kane, Y.I. & Clark, D. (2009, April 30). In major shift, Apple builds its own team to design chips. The Wall Street Journal.
Krazit, T., (2005). Mac OS On A Dell? Dell Favors, Apple Opposes. Retrieved from http://www.pcworld.com/article/121421/mac_os_on_a_dell_dell_favors_apple_opposes.html
Mickalowski, K., Mickelson, M., & Keltgen, J. (2008). Apple’s iPhone launch: A case study in effective marketing. The Business Review, Cambridge, 9(2). 283-289
O’Dell, J. (2009, October 4). Adobe announces full Flash player for Blackberry devices & 35 funded Flash apps. Retrieved from: http://www.readwriteweb.com/archives/full_flash_player_coming_to_blackberry_devices.php
References
O'Brien, J., & Marakas, G. (2009). Management Information Systems. New York, NY: McGraw-Hill.
Ricker, T. (2007). Apple drops “Computer” from name. Retrieved from: http://www.engadget.com/2007/01/09/apple-drops-computer-from-name/
Yoshida, J. & Ojo, B. (2009, December 14). The case for Apple, and the case against it. Electronic Engineering Times, 4-10.