case study_bill gates&steve jobs

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PREFACE BA650 Information Technology and Management Bill Gates Steve Jobs Microsoft Apple , Business Model,

TABLE OF CONTENTSSummary of the case Analysis What is the business model and strategies? What are the strategies/theories/concepts involved? What is the role of IT? Who are the stakeholders? What seem to be the issues? What are the problems/alternatives/tradeoffs/solutions? 1 18 19 25 26 27 29 30

What might have you done differently as the focal manager in the case? 33 What are the lessons learned from the case? How do you evaluate the case? 34 37

SUMMARY OF THE CASE

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SUMMARY OF THE CASE 1955 Bill Gates Steve Jobs Bill Gates Seattle Steve Jobs San Francisco Bill Gates Steve Jobs Gates Steve Jobs Steve Jobs Gates Allen teletype C-Cubed Jobs Wozniak Jobs Wozniak blue box Jobs blue box Berkeley Jobs $300

Blue Box Teletype Machine

~2~

Paul Allen Bill Gates Gates Havard University Steve Ballmer Gates Allen Gates Honeywell Gates Allen Altair8080 Gates Altar MITS, Micro Instrumentation Telemetry Systems

ALTAIR8080

~3~

MITS BASIC Altair Gates Allen BASIC Gates Allen Ed Roberts MITS Roberts Executive Gates MITS MITS Gates Allen Micro-Soft

Steve Jobs Steve Wozniak Steve Jobs 1972 Jobs Jobs Lewis Carroll Alice in Wonderland Wozniak Hewlett Packard Jobs 1975 Atari Jobs Jobs Jobs Jobs Wozniak Wozniak Jobs Atari Grand Pix Racer Wozniak Jobs ~4~

Breakout Breakout Jobs entry-level programmer top executive programmer Apple Wozniak

Breakout Video Game Gates Microsoft Gates Allen Monte Davidoff BASIC Altair Davidoff 2 Gates Allen Davidoff Intel microprocessors 3 4K 8K Gates $40,000 Gates Software Hobbyist BASIC 1. BASIC ( 10% Altair BASIC) 2. Hobbyist $2 Gates Hardware Software

~5~

Gates Software Gates Software Gates National Altair Computer Albuquerque 1976 Gates Software Software Software Intel Motorola NCR Microsoft BASIC Microsoft Software microchips MIST Microsoft BASIC MITS Altair Gates MITS Gates microchip MITS Gates Gates Microsoft BASIC Microsoft Weiland MIcrosft BASIC Steve Jobs chip 6502 MOS Technology Jobs Jobs Chip 6502 $25 Wozniak Altair Jobs Weiland BASIC Microsoft Commodore International PC Jobs Personal Electronic Transactor (PET) PC PC Hardware ~6~

Software CPU, Monitor Keyboard Microsoft BASIC Commodore Steve Jobs Jobs Wozniak Commodore PET Apple I Apple I PET Software Hardware Wozniak Jobs Paul Terrell Homebrew Computer The Byte Shop Apple I 500 $500 Jobs Apple I 500 Kieriluff Electronics Jobs

Apple I Wozniak Jobs 150 CPUs Apple I Commodore PET Terrell Jobs 150 CPUs Wozniak Jobs Apple II Apple II , , CPU Microprocessor Apple II Commodore Apple Jobs Commodore Apple $100,000 Jobs Wozniak $36,000 Commodore ~7~

Apple II Jobs Jobs McKenna Advertising Agency Apple II Jobs Wozniak McKenna Apple II Jobs Don Valentine McKenna Board Jobs Mike Markkula Markkula 30 stock option Intel Markkula Jobs 1977 Jobs Wozniak Apple II Microsoft BASIC Gates-Allen Jobs-Wozniak Microsoft Apple Microsoft Bob ORear Microsoft Microsoft IBM Microsoft IBM IBM Microsoft Gates Microsoft MSDOS MS-DOS Microsoft CP/M~8~

Digital Research Gary Kildall Gates Kildall Digital Research IBM Gates CP/M Kildall Gates Kildall IBM Kildall Gates Gates Allen Q-DOS Gates Allen Q-DOS $50,000 MS-DOS 1.0 PC IBM MS-DOS 2 75% IBM Apple Gates Havard, Ballmer Ballmer Charles Simonyi Microsoft Windows 1.0 1985 70s Apple II Apple Apple II $7.9 1978 $47.8 1979 Apple Dan Fylstra VisiCalc Apple Jobs VisiCalc Apple II Apple 600 Personal Computing Division Apple II Apple III Professional Office System Division Jobs Lisa Jobs Chairman Apple IPO $100 Scott 40 Jobs

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Jobs McIntosh McIntosh Apple Jef Raskin Xerox 1979 Jobs Xerox Apple $100,000 Apple

Lisa Computer Xerox Alto Steve Jobs Alto Apple McIntosh 3 Apple Apple II, Lisa McIntosh Jobs Lisa Mac GUI Technology Lisa Jobs McIntosh Wozniak 1981 1980 - 1980 Microsoft Apple

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- Apple GUI ( )

GUI - 50% - Gates - Gates low price, high volume strategy Paul Allen Gates - Gates

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- Apple GUI MacIntosh Gates PC Magazine 1983 MS-DOS

MacIntosh MS Word for MS-DOS - GUI Microsoft Windows 1.0

Windows 1.0~ 12 ~

- Jon Shirley Chief Operating Officer - 1987 Microsoft Windows 2.0 Microsoft Excel

Windows 2.0 MS Excel for Windows 2.0 - Microsoft Windows 1.0 Microsoft Windows 2.0 IBM Microsoft Windows MacIntosh Apple - 1983 Steve Jobs John Sculley CEO PepsiCo CEO Apple - Sculley 3 Apple II, Lisa MacIntosh - Sculley Lisa $9,995 $6,995 Lisa Apple 2 Apple II MacIntosh - 1984 MacIntosh GUI ~ 13 ~

- MacIntosh IBM Microsoft Windows MacIntosh 1984 70% Apple Apple II - 1985 Jobs NeXT - 1980 Microsoft Excel Lotus 1-2-3 Microsoft Word WordPerfect Microsoft Office - 1988 NeXT Jobs NeXT Computer - 1990 Windows 3.0

NeXT Computer

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1990- NeXT Computer NeXT Tim Berners-Lee world wide web NeXTSTEP NeXT Computer world wide web 1991 - 1995 Gates Gates IBM - Netscape 70% - Gates Netscape Netscape Windows Gates Internet Explorer Windows 95 $149 - 1996 Netscape Netscape Netscape 85% - 1996 Windows 95 45 Netscape 70% Internet Explorer 24% 1999 Internet Explorer Netscape 65%

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Market Share in 1996Internet Explorer Netscape

Market Share in 1999Internet Explorer Netscape

26%

35%

74%

65%

- 1992 NeXT Jobs - 1996 Apple NeXT Jobs - 1997 Jobs CEO Apple - Jobs CEO Apple 2 - Jobs Apple 2006 Gates Bill and Melinda Gates Foundation Jobs Gates Gates Bono U2 G8 Gates Bono person of the year Time Bono 2005 Bono Irish ~ 16 ~

Jobs U2 U2 How to dismantle an atomic bomb iPod Bono Apple Apple iPod iTunes , Apple Apple Jobs Jobs Pixar Disney Inc. 2006 7,400 Apple Apple Apple hardware (iBooks, iMacs) Hardware (Mac OSX) (iTunes, iMovie, Safari web browser, etc.) (iTunes Music Store) Apple Apple Adam smith Apple Apple 3 30 Apple II , the Macintosh the iPod

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ANALYSIS

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What is the business model and strategies?Business Model (Concept) (Logic) (Value) 1. Value proposition Gates Microsoft Windows ,Microsoft Office Gates Jobs Apple 2 2. Revenue Model Gates Gates Gates Microsoft Word Microsoft Windows MacIntoch Gates Microsoft Jobs Pixar IPO Jobs

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Apple , , Apple Apple iPod Apple iTunes iTunes 1 1 3. Market opportunity Apple Microsoft 50% Apple Microsoft NEXT SUN 4. Competitive environment Gates Jobs Gates Jobs Apple Microsoft MS-DOS 1.0 PC IBM 75% Apple Apple Apple II World Wide Web 1.0 NEXT 70% Microsoft 4% Gates IE Windows 95 Jobs Gates

~ 20 ~

5. Market strategy Steve Jobs Differentiation GUI MacIntosh Jobs Jobs Apple I Apple II Commodore Personal Electronic Transactor (PET) PC Bill Gates low price, high volume Gates Microsoft Bill Gates Product Bundle Gates Internet Explorer Windows 95 $149 Netscape Gates Gates Netscape Microsoft Excel Lotus 1-2-3 Microsoft Word WordPerfect Microsoft Microsoft Office

~ 21 ~

6. Organizational development (Spirit of inquiry) 1. (Respect for people) Steve Jobs Bill Gates 2. (Power equalization) Steve Jobs Bill Gates 3. (Confrontation) Steve Jobs Apple III Lisa Macintosh Bill Gate GUI Apple 4. (Participation) Steve Jobs Bill Gates Bill Gates Steve Jobs Top-down Bill Gates Steve Jobs Apple

~ 22 ~

7. Management team Microsoft - Microsoft Bill Gates Allen Microsoft Software Microsoft Bob ORear Microsoft IBM Gates Ballmer Havard Ballmer Charles Simonyi Microsoft Windows 1.0 1985 Jon Shirley Chief Operating Officer Apple - Apple Steve Jobs Wozniak Apple Apple McKenna Advertising Agency Mike Markkula Jef Raskin McIntosh 1983 Steve Jobs John Scully CEO PepsiCo CEO Apple

~ 23 ~

8. Competitive advantage - (First mover in the market) Microsoft BASIC Altair Apple GUI ( ) - Steve Jobs Bill Gates - Switching cost Steve Jobs Bill Gates Switching cost Microsoft Apple

Value proposition Competitive environment Competitive advantage

Market opportunity

BUSINESS MODEL

Management team

Market strategy Organization al development

Revenue Model

~ 24 ~

What are the strategies/theories/concepts involved?Steve Jobs 1. Steve Jobs Steve Jobs Apple 1) 1980 Apple GUI (Graphical User Interface) 2) iPod Steve Jobs iPod Sony Walkman Jobs Sony 3) iPhone Time 4) iPad Steve Jobs iPad iPod iPhone Steve Jobs 2. Steve Jobs Apple Apple

~ 25 ~