Introduction
This paper will critically analyze and review the biography of the American entrepreneur, Steve Jobs a founder of Apple and its CEO until his death in 2011. Steve Jobs is known for having two separate spells with Apple – first as its founder in 1976 and secondly, as a visionary leader who turned the company around in 1997 when it was under serious crisis. The purpose of this paper is to conduct a review and assessment of how the company was founded and ran and how it became successful under Steve Jobs. This will include the examination of the situation at the time of founding, the background of Steve Jobs and concepts of entrepreneurship that are relevant to the biography of Steve Jobs.
Situation Analysis
As of 1976 when the major breakthrough by Steve Jobs and his young friend Steve Wozniak founded the Apple I computer, a computer was viewed in its most basic form. At that time, a computer was defined as any electronic device in which data could be input, stored and retrieved. Computer research was fundamentally confined to the military units of the most advanced countries since the 1940s because they were seen as an important tool that could give a country’s military a competitive advantage in wars.
However, in the 1950s and 60s, some major companies had surfaced and they concentrated on developing computers and electronic entities like televisions, calculators and retrieval devices that could store information like IBM and Hewlett Packard. These companies invested heavily into research and they provided computers that were very basic for large public entities and for governments and militaries around the world. Due to the nature of the research and development, the companies were not so attractive since the economic booms that led to consumerism and demand for electronic products had not occurred yet. Hence, demand for computers and electronic products was limited to large entities like global banks, governments and major companies.
Information on Marketplace
The demand for computers was mainly bespoke in the early 1970s. This means that in most cases, computers were designed if and only if they were preordered by a given entity. Hence, creating a computer without a definite demand for it was meant to lead to a disappointment on the part of the developer.
Therefore, going by the S-Curve model, in 1975/76 where Steve Jobs worked towards building the first Apple Computer, the market was at its infancy. This is because there were a few computer manufacturing and developing companies, but all of them were not producing much. The essence of a computer for the broader population was not widely known, although the few who knew about electronic devices that could store and retrieve data like calculators at that time found it to be extremely intriguing.
Consumer Behavior and Purchase Criteria
At the point of creating apple in 1976, there was little or no consumerism. This is because consumers were mainly focused on buying what was necessary. They bought things they needed to survive and most other things were done in pen and paper. The use of computers was not so common because software and computer hardware was generally bespoke. There was a small market for governments, government agencies and large corporations that ordered these computers to be created for them.
The family unit in the United States and Western Europe was generally traditional in the 1970s. There was typically a father who was the breadwinner for the family and a mother who acted as a housewife. Family sizes were generally larger – there were 2 or more children and the quality of life was generally bad.
When compared to the second phase of Steve Jobs’ involvement in Apple, the market of the 1970s was collectivized and the level of consumerism was extremely low. Individuals did not have any reason to own a computer. Computers were for large entities that could prove they could pay a huge amount of money for a computer to be designed for them. However, in 1997, it was quite popular to have a computer in an office for a lower level manager or even an operative. It was common to have computers in a middle class home in 1997 when Steve Jobs rejoined Apple. At that time, the S-Curve of the computer market showed that there was an expansion phase in the computer industry, because the lower middle class and the poor Americans as well as individual users were still not properly served.
Background of Steve Jobs
Steve Jobs was born in 1955 in San Francisco. He was raised in California which was a growing hub for electronic and technological companies. And through that, he was able to learn a lot about new electronic products from electronic toys to other devices that were commonly produced nearby.
In high school, Steve Jobs met Steve Wozniak and they were hired for internships by HP and some other electronic companies. Through this, Steve Jobs had a front-row in learning about how electronics functioned and this gave him an insight into an industry that was quickly growing and was known to just a few people in that time of the early 1970s.
Jobs entered university but dropped out and continue to self-educate himself. He learnt about creativity and other things that helped him to develop himself as an individual. In 1976, Jobs and Wozniak founded the company, Apple in the family garage of his parents. In the process of experimenting, the two created the Apple I which they realized they could sell for a profit. So with that mindset, they continued working around with the development of the Apple computer.
Venture Concept at Launch
In 1977, they developed the Apple II which became one of the first highly successful microcomputer system that could be used by the ordinary person at home or in an office to create things. The Apple II was introduced in a fair in California where it was sold for about $1,200 which is over $5,000 in today’s terms when adjusted for inflation. The computer’s introduction caused Apple to become a recognized corporate entity and the Apple II was further developed for the mass markets.
In the first six months, Apple sold $775,000 worth of the Apple II. Afterwards, the company expanded and production lines grew. In this process, Apple increased the sales from September 1977 of under $1 million to $118 million by September 1980. This is testament to the fact that the Apple computers were popular and the market was waiting for a product like that to hit the market.
The period of the late 1977 created an elevator pitch which allowed the company to enter the market and create the need for the product to ordinary Americans. This is because it was possible to tell the world what the Apple II could do for them and how it could work to achieve results for the users. With people realizing the ability of microcomputers and how these microcomputers could cause efficiency in administrative work and entertainment to trickle down to ordinary members of society, the company experienced an elevated pitch and there were people who could bear witness to the importance of the Apple II personal computer and how it could be used as a tool for efficient and effective completion of tasks.
Competitive Advantage
The central source of competitive advantage in Steve Jobs’ leadership style is “innovation”. Steve Jobs is known for trying to present products that meet the consumer at the point of need. Due to this, Apple’s first computer was a product that could simplify and give the benefits of computing to the ordinary member of the society. Thus, he sought to reduce the size of mainframe computers that were previously available only to top military personnel and enable the ordinary person get benefits from them.
Steve Jobs was also in support for constant product development. This is because Jobs was able to improve the product from time to time. This is evident in the second era of Jobs when he was called to save the failing Apple in 1997. Jobs sought to simplify Apple products and ensure that the products were of a higher quality and could meet consumer needs better than their predecessors. Through this, the iPod and iPad and other products were created in that time. Thus, the source of Jobs’ competitive advantage is centrally and fundamentally based on the quest for competitive advantage through innovation.
Conclusion
Entrepreneurship has to do with providing a solution to a need that people in a given society might have. The S-Curve system is such that most products are best presented when they are at the initial stages. That is where a firm can come up with the best of results. Looking at the case of Steve Jobs, it is apparent that Jobs created a product that was needed at a time when the conditions were right – people were seeking better and more flexible tools to do administrative work and pursue entertainment, society was moving towards consumerism and the earning capacity of nations around the world was growing. Hence, the invention of a pioneering product that provided answers gave Steve Jobs a competitive advantage. This laid the foundation for elevated pitch when investors and venture capitalists contributed to the growth and expansion of the production lines and systems.
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