As losses mounted Jobs was brought back as the CEO who realized that licensing Mac operating system had contracted the market by taking away the customers (Bryson et al., 2006). The strategy was changed immediately and Apple began to sell directly by phone and internet.This strategy did bring about better sales but the market was saturated and there were miscalculations on the consumer demand. Since they were performing poorly and the sales were shrinking as competition had set in, the company changed their strategy and business objectives. Having performed poorly in the traditional computer market they decided to integrate the product development strategies with the digital technologies in the consumer electronics market. Their strategy was to innovate. Based on the new direction provided under the new CEO, the company was steering towards growth and it was subsequently ranked number one as Fortune’s most admired company for innovation. Apple was no more seen in a battle for PC market share — instead, as the platform becoming a premium PC, capturing selective demand (Bryson et al., 2006). The objective of the company was to position Apple products as an integrating platform for a range of household products like cameras, video recorders, and music players. Apple’s strategic business units now include personal computers, software, iTunes, QuickTime, iMac, and support as per the chart below:With the changed strategy, the company was operating in an environment that provided several opportunities but competition and its own damaged reputation posed threat to its existence. Nevertheless, the strengths of the company saw it through the threats.The main strengths of the company were the vision of the CEO, Steve Jobs, the iPod, and the brand loyalty.