QuestionQuestion

Answer the following questions:

1. How changes that occurred in the five forces in the PC industry during the 1980s and mid-1990s contributed to the dramatic decline of Apple's PC business during that period. (Students must rely only on the information in the Apple 2012 case to do this assignment. No further research is required.)
In your follow up posts, consider the conclusions they have come to and whether those conclusions are justified by the evidence in the Apple 2012 case. Your responses should be constructive, indicate whether you agree or disagree, and offer suggestions for improving their arguments.

2. Why did the actions of Sculley, Spindler and Amelio (Apple's CEOs from 1985 to 1997) fail to reverse the decline of Apple's PC business?

3- Why were Steve Jobs' actions, when he took over Apple's PC business in 1997, more effective in countering the threats posed by the five forces in the PC industry?

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Answer 1:
One of the major forces that had occurred during the 1980s and mid-1990s was that IBM had come up with an open system which could be easily copied by other producers. This had led to an increase in bargaining power of consumers since the switching costs for the consumers had declined. With the help of an open system, they could buy the components as per their wishes and preferences. The market share of Apple was declining since it had been using a full integration strategy and the compatibility of Apple’s products with other brands was very less. Moreover, the Macintosh products were also priced at premium prices compared to the competitors and so only strongly loyal consumers were inclined to buy Apple’s products...
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