THE MASTER PLAN BEHIND APPLE CORPORATION’S REVOLUTION

Apple Corporation, from its earliest days in the late 70’s, has tried to be the most innovative company around.  This has not always been the case. The ill-fated introduction of “Lisa,” the $9,995 unbelieveably clunky computer in 1983, was a painful one for the company and founder Steve Jobs. That certainly was their low point. They have had many hi-points to their credit, and the lessons they have learned along the way have made them a model for any aspiring new corporation. For instance, in more recent times they have had two incredible winners: iPod which sold more than 10 million units and set records for breakthrough products; Secondly is the iPhone which leaped over all other similar products in inovation, and they are headed to record sales in the years ahead. Their stock as well has sprinted ahead to record levels.

In his new book, The Apple Way” by author Jefferey  L. Cruikshank, documents their rise, but the real outlook of the book is to develop case history lessons for management of any young developing companies. First, Jefferey says that managers should think about market share and also should stretch further? Next is to control every aspect of development and manufacturing. Then, develop consistency and continuity for the non-tech customers. Also, consider the gross margin carefully. Make sure it is flexible enough to absorb market conditions.  Don’t neglect product shortcomings. They will always whack your margins.

The future belongs to those companies that invest in a serious way in research and development. Apple found a low point in their development when they reduced their research dollars by half in 1997-98. The other serious precept, that they learned well, is to make the product look great and also to make it look and act friendly. The rest of the marketing effort will take care of itself.  This is a great management book to study and a great company to emulate. You will always find many lessons in every paragraph.