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Highly successful integration in acquisitions

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Apple Acquires Next


Feb. 7, 1997 Apple Computer, Inc. acquired NeXT Software, Inc. Its dubbed as the most successful acquisition that changed Apple. The total purchase price, including the fair value of the net liabilities assumed, was $427 million.

Downfall of Apple
Outdated and weak operating system and introduction of windows 95. Hardware sales were poor and the unsellable inventory was increasing day by day Apple's financial losses reached $816 million in 1996 and a staggering $1 billion in 1997. The company' stock, which had traded at more than $70 per share in 1991, fell to $14 per share.

The road to Success


Steve Jobs called Amelio to discuss Apple's OS strategy and to offer him advice . Jobs pitched NeXT as Apple's only hope at getting its OS back on track. OPENSTEP was a proven technology OPENSTEP OS was still five to seven years ahead of its time and perfectly suited to Internet and multimedia creation, two of the Mac's few remaining strongholds.

The success story


Apple and NeXT had surprisingly complementary products, technologies, and services. Apple needed a truly modern operating system and NeXT had an exceptional operating system with modern services and APIs. NeXT needed a high-volume installed base and Apple one of the world's largest personal computer manufacturers has sold more than 26 million Macintosh systems.

The Changes
After the merger the traditional Mac OS followed a very simple release pattern: major releases once a year, plus minor updates half a year later. Apple got rid off the clone hardware manufactures who were competing in local markets

Jobs surveyed every single product team in the company, calling them in one by one in Apple s conference room. There was no sentimentality: if the product was not making a profit, it usually had to go. Steve jobs cut down products from 50 to ten

The Tech Changes


A new desktop computer was desingned and was named iMac. It evolved from network computer into a new consumer desktop computer. Apple made bold choices in developing iMac. It was the first mainstream computer to offer USB connectivity, a technology developed by Intel that was almost non existent in the PC space.

The iMac

The extraordinary enthusiasm unleashed by iMac not only boosted sales, but it reinforced confidence in the company s future. Apple was back to profitability. For the first time since 1996, it had made a $45 million profit in the last quarter of 1997.

The i story
After two years as interim CEO, Steve Jobs completely turned Apple around. He restored the company s public image, implemented a successful and focused new strategy and launched highly innovative and awe-inspiring products on the marketplace. He declared he had accepted his de facto situation and become the company s full-time CEO

Organizational changes
Apple's organizational hierarchy underwent sweeping reorganization , Jobs replaced the board with his own picks most of them his co workers from NEXT. Jobs closed plants, laid off thousands of workers, and sold stock to rival Microsoft Corporation, receiving a cash infusion of $150 million in exchange. Employees were given performance reviews and raises every six months based on performances All employees had full access to the payrolls.

Cultural changes
Apple s cultural changes included no more pets at work , no smoking in campus ,no business class travel Loose Lips Might Sink Ships Jobs had a complete ban on talking to the press without a PR official watching. One of the most appreciated change was the new cafeteria, which Steve had run by Palo Alto s famous Italian caterer, It is still considered one of the finest cafeterias in the Valley.

Marketing
The incredible power of the Apple brand was displayed , focusing only on the company s culture of rebellion and artistic creativity. This was the gem of the Think Different campaign. Apple unveiled a retail strategy. Jobs opened 149 Apple stores within stores in locations across the country. Apple opened the first official Apple retail stores in Virginia and California.

Apple s online store one of the first of its kind was launched. It would soon become a model to several other tech companies. Apples' stock mustered a remarkable rebound, climbing 140 percent to $99 per share in 1999. It became a profitable company once again.

Experts speak
Jobs tendency towards micromanagement and perfectionism has been heavily criticised, but has resulted in the high quality of products developed under his influence. As a prospective manager, he isn't very attractive. However, as a figurehead for the corporation, he can't be bettered.

Experts Continue
To both Apple employees and users, Steve Jobs represents a corporate ethos that is a Golden Age of success for Apple. He is also possibly the best ever public demonstrator.

Game changers
Apple Moves beyond PCs to Phones,pods Pads, and Music/Movies/TV. The Mac, iPod, iTunes, iPhone, and iPad became the five pillars of Apple s business. These products were successful because of marketing and Jobs s genius at design.

Apple Logos

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