This week in Case Studies, we focus on one of the biggest brands in the world, Apple, and show you how this giant organization almost went out of business and then made the biggest comeback in history by using one simple habit.
Apple currently is the biggest brand in the world worth over $1.3 Trillion. Apple actually became the world’s first company to record a market capitalization of $1 trillion, and then passed the $1.3 trillion thresholds in Dec. 2019.
How Apple Started
Apple launched it’s IPO in 1980 at $3.59. What started out as a rebel organization in a garage, turned into a multi-million dollar company overnight. Apple’s success was tremendous from the get-go, but that success was short lived.
In 1985 the board forced Steve Jobs out of Apple due to various reasons. Over the next decade, Apple, just like most organizations tried to get their hands in multiple different projects and was spread way too thin.
The Downfall Of Apple
During the final quarter of 1996 Apple’s sales had dropped by 30 percent. Microsoft had now become the “dominant” computer company in the market.
A Fortune magazine story from that time said…
Apple Computer, Silicon Valley’s paragon of dysfunctional management and fumbled techno-dreams, is back in crisis mode, scrambling lugubriously in slow motion to deal with imploding sales, a floundering technology strategy, and a hemorrhaging brand nameFortune Magazine
With the brand on the verge of failure, the board decided to bring Jobs back as an advisor and then eventually as the CEO of the organization.
The Resurgence Of Apple
The first thing Steve Jobs did when he came back was review the numerous products Apple was selling. He asked his top line managers, “Which ones do I tell my friends to buy?” When he didn’t get a simple answer, he reduced the number of Apple products by 70 percent.
Jobs famously said…
Deciding what not to do is as important as deciding what to do, It’s true for companies, and it’s true for products.Steve Jobs
The move to a smaller product line and a greater focus on quality and innovation paid off. The first fiscal year when Job’s returned to Apple the company had lost over a billion dollars and was 90 days away from being shut down.
Just one year later, Apple turned a $309 million profit.
Jobs was able to create a $1.3 billion dollar shift, and this was before introducing the iPod and iPhone. His decision to Simplify his organization laid the foundation for Apple’s innovation and eventually made them the number one brand in the world.
Simplification has been the secret to success of some of the top companies of our time. Jobs had a vision and he simplified it for his entire team, which helped them work towards a common goal.
Simplification is just one of the 5 habits you need to adapt to create a culture of Growth, Innovation, & Excellence, or GIE. That is why I’ve created a free mini course called Growth = Innovation & Excellence. Click on the link below to check it out right now, or go to velaniconulsting.com/gie again that’s velaniconsulting.com/gie to check it out right now.