Apple Computer

Apple Computer

1. What were the features of the Apple III in 1978 and what were its competitive advantages over other products in the market? How had this changed by 1980?

Apple III features:

· It had 80 column screen which simplified word processing

· Word processing had improved due to upper and lower case capability

· Built in disk drive made computer disk easier and faster

· The new operating system (SOS) was much easier to use

· The expanded internal memory of 96k provided larger work space with more complex programs

· The numeric pad and standard typing keyboard were much easy to use

2. Why did Apple III fail?

Problems:

· Poor reliability due to stress and heat related defects

· Too limited user based software

· Limited number of peripheral equipments

· Delivery problems due to inefficiency in delivering products on time

Causes:

· Development was too rapid without conducting enough R&D on the product.

· Very less attention was paid on manufacturing the product line which leaded to inefficient manufacturing

· The poor functional integration as executives were not committed

· The software problems were not taken seriously which lead to loop holes in software development

· Poor quality management and insufficient testing led to reliability problems with stress and heat

3. What should Houde recommend to the executive committee, why?

There were three options for Houde, the Vice president of Apple Computer

Drop the Apple III:

· Pros: The short term problem of fixing the machines could have been eliminated

· Cons: Apple would have major financial loss and could lead skepticism in consumers mind to withdrawal of the product

Halt production and re-introduce the improved version:

· Pros: product would have opportunity to succeed again

· Cons: would be expensive for Apple and again cuts down the source of money

Allow Apple III to fail:

• Pros: maintains the market presence

· Cons: Customers will gradually lose faith in company’s brand image and problems would continue requiring follow up.