Mergers, Acquisitions, Alliances and Synergies Case Study

Case Title:

Apple and Intel's Alliance : From Competition to Cooperation

Abstract:
During the 1970s, the computer industry had a large number of start-up manufacturers offering various computer parts that could be assembled to construct computer kits. Due to the advancement in technology in different components of computers, at regular intervals, one manufacturer concentrating on all the components has become impossibility. This forced different players, with expertise in their respective arenas to come together through alliances to offer better products to the customers. One such example is the alliance between IBM and Apple, where IBM supplied microprocessors to the products of Apple. As of 2005, IBM has almost 1% of its revenue flow from Apple. In the same year Apple has replaced IBM with Intel.

Pedagogical Objectives:

• To discuss how far this move of Apple and Intel would help them in adding value to the existing technology and provide better services to the customers in the era of commoditisation of computer hardware
• To discuss the effects thereof on the industry that has entered into a post technology period of applications and service.

Keywords : Mergers,Acquisitions,Alliances Case Study;Global information technology industry; Commodotisation of computer hardware; Digital networking; Computer kits; Single chip microprocessors; Thirdparty developers; Multitasking; Power Macintosh computers; Cloning strategy; Post-technology period for computers; Hardware and software platforms; Converging technologies; Intel Inside; Virtualisation technology; Longhorn