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April 10, 1988

SCALABILITY IS THE WATCHWORD AS APPLE RESTRUCTURES US, WORLDWIDE MARKETING

By CBR Staff Writer

With annual sales approaching $3,000m, Apple Computer Inc has to accept that it is now a large company and to put in place a corporate marketing structure that recognises the diversity of customers to which it now sells its products, and their differing needs. Sun Microsystems really started something when it called its RISC the Scalable processor, and now scalability seems to be the quality everyone seeks. Accordingly, Apple says that it needs to build an organisation that is scalable – adaptable enough to keep pace with growth. And last week, the Cupertino company announced a top-to-bottom reorganisation in its quest for scalability, creating three world marketing companies: Apple USA, Apple Europe and Apple Pacific. Apple USA, formerly US Sales and Marketing, will in turn be divided into six groups: Business Markets, Apple Education, Marketing and Support, and the Eastern, Western, and Central operations. All six will report to Charles Boesenberg, senior vice president and group executive, Apple USA. The key Marketing and Support group under Joseph Schoendorf will develop and implement strategies for Apple that bring it closer to its customer and ensure customer satisfaction. It will include marketing communications, customer support, strategic alliances, market intelligence, US field operations and distribution. Schoendorf joined Apple in Novemberas vice president of marketing, coming from Ungermann-Bass Inc. Apple is also responding to the major challenges posed by the increasing penetration by the Macintosh of the corporate market by laying plans for a fee-based End User Services organisation, providing installation and service for large, complex Macintosh networks and related systems – something that US analysts say they have been asking the company to do for some time. Apple’s European headquarters office in Paris will combine marketing and operations all in one location. And Apple Europe will be divided into four business regions – France, Germany, Nordic and General European Area. Apple Pacific is vieged as a long-term opportunity that needs sustained investment today and at its head, David Hancock, previously managing director, Apple Computer (UK) Ltd, will be responsible for strengthening Apple’s mature markets in Canada, Australia and Japan, and also investigating emerging Pacific Rim and Latin American markets.

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