apple incorporated
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Apple Inc.
Apple Incorporated
Name
Class
Course
Affiliation
Date
1
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Apple Inc.
Introduction
Apple Inc. is an American corporation that is a designer and seller of electronics which
include software’s for personal computers. Apple Inc. is one of the world’s best known
technology company that deal with the design and development of personal computers
consumer electronic such as the smart phone and the table and other software for running the
computer devices. Apple is best known for its products that include! the i"od i"ad i"hone and
the #acintosh computer $%chneiders &'11 p. 1(). In addition there is apple is recogni*ed for the
#ac +% ,. Apple was established on April 1 1-/ in California after which it was incorporated
in 1-. Initially it was known as Apple Computer Inc. and this continued for a period (' years.
0ater on the word Computer on the company name was removed in the year &''. 2his
happened at the same time the company was shifting its focus from personal computers to the
now much growing area of consumer electronics.
1. Apple External analysis
2he %martphone 2ablet Industry
In recent years Apple has become a ma3or player in the global %martphone tablet industry
with a loyal consumer growing base. 4or instance in the year &'11 had a total of (5 stores in
about ten countries worldwide. #oreover apple has a wide presence in the online market with
online stores. Apple is also among the ma3or corporations which are traded in the stock e6change
by measure of the market capitali*ation. In revenue and profit terms Apple has become one of
the world largest technology corporations and more #icrosoft and 7oogle combined $8ach
&'' p. 19).
2he idea behind the development of the smartphone and tablet technologies has been in
e6istence for a while but their introduction into the consumer electronics market has become
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serious within the last two years. 2he best e6ample to illustrate this is the Apples’ i"ad and
i"hone which have revolutioni*ed the tablet and the smartphone markets ever their launch into
the market. It has been predicted that tablet and smartphone industry will continue to grow in
sales to about ('' million by the year &'15 $%chneiders &'11 p. &). 2his means that technology
firms such as Apple will continue to grow since they need to e6pand in order to meet the
growing demand. Currently this industry is considered enormous and with the forecast of the
industry is now so big and with such immense growth continued immense growth it is e6pected
that more firms.
Apple’s "roducts
• 2he i"od: 2he i"od is one of the most successful products for Apple computer. 2he most
recent i"od is available 78 which has the capability of playing both audio and video
files.
• 2he i"hone : 2he i"hone is evolution to the area mobile communication which designed
to combine email mobile phone internet as well as other information services. 2he
i"hone has been designed as a consumer electronic device that has all things in one place.
• 2he #ac mini : 2his is the company’s lowest costing desktop computer. It has become to
be widely used globally for both leisure as well as business.
• 2he i#ac : 2he i#ac is designed using the same idea 3ust like the original #acintosh
personal computer which is that both the computer as well as the monitor is within a
single unit. Currently the i#ac is the third ma3or design widely used globally and is
always upgraded as time passes together the changing needs of the consumer or the end
users $"ark ;ong < #oon &'1& p. ().
#erging =merging Industry
(
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Apple Inc.
Apple Inc. is a ma3or player within several very competitive markets which include the
personal computers with its #acintosh consumer electronics with its i"od and i"hone. Apple
computer is engaged in the distribution of digital content which is owned by a third:party by
using the online music store called i2unes %tore. It is important to take note of the fact that this
area of content distribution is e6tremely competitive and hence re>uires aggressive marketing
strategies. 2he company has gained the reputation as a ma3or technology innovator in the area of
consumer electronics and personal computers. Apple Inc. has a belief that a sufficient investment
in the area of research advertising marketing and development is very critical in its efforts to
remain relevant as well as competitive in the highly technological market $8ach &'' p. &5).
Apple’s Competitor Analysis
Apple computer is faced by very tough competition from all areas of the technology
business. 2he consumer electronic markets software markets personal computers and other
peripheral products have become e6tremely competitive. 2he main features of the fast growing
technology markets which include both software and hardware is that it has substantially grown
in the ability as well as use of digital electronic products such as the smart phone and tablets and
desktop computers. In the recent years the aspect of price competitions in the technology market
has become more intense. #ost of the competitors of Apple Inc. tend to sell their personal
computers which use the operating systems of other developers. 2his has had an impact on their
performance in that their prices have been greatly reduced as well as the market share. 2he ma3or
factors of competition include! "rice ?elative "erformance "roduct @uality and ?eliability
Design Innovation Availability of %oftware "roduct 4eatures #arketing and Distribution
Capability %ervice and %upport and Availability of ;ardware "eripherals.
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+pportunity and 2hreats to the Industry
2hroughout the whole of anuary &''5 Apple opened more than 1'& retail stores.
Although these e6pansions were beneficial most of the Apple retail stores are negatively
affecting the businesses of the resellers and this can cause their downfall $Cusumano &''B p.
&). 2his can have a much significant impact on Apple since the resellers account for more than
5' of the domestic sales. 2here are many >uestions going around as to why Apple holding a lot
of cash. the aspect of having plenty of cash reserves might imply that Apple computer is not in a
strategic position as to how to invest the cash and this can lead to the rise of a negative
perception on it future potential investment.
Apple is among the ma3or technology companies where the growth as well as the fortunes
of the company always appears to be closely connected to the person in charge. 2he visionary
talents which are associated with %teve obs contribute to growth and success of the company.
2herefore the news of cancer surgery on %teve ob and subse>uent demise might have lead to
the rise of succession problems and perception of a not so bright future for the company.
%martphone and 2ablet Industry 0ife Cycle
2he growth of the smartphone and tablet industry can be best emphasi*ed by this fact
that it took the radio about (B years to get to 5' million users but it has taken the tablets and the
smartphone only 1year to get to 5' million users $IC;A# &'11 p.((). 4ollowing the launch
of the i"ad one of the ma3or tablets many other technology companies sprung to design and
produce tablets and this has led to the increase as well as growth of the smartphone and tablet
market.
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Apple’s main Competitors
GOOG E 7oogle Inc.
HPQ E ;ewlett "ackard Company
RIMM- ?esearch in #otion 0imited
+thers in the 2echnology Industry E "ersonal Computers
Competitor Dynamics
Apple computer has an e6pectation of intensified competition as more and more
competitors have began to imitate Apple’s marketing strategy by using introducing products of
almost similar >uality and employ the marketing strategies that Apples uses. A few of the current
potential competitors have a lot of resources at their disposal which gives the ability to become a
formidable force against Apple in the coming future. +ne of the ways they have started to use
their strength in their efforts to increase their market share is by selling their products. 2here is
no assurance that ma3ority of these technology companies will continue to offer products as well
/
AAPL GOOG HPQ RIMM Industry
#arket CapF 5(1.(58 1-.998 9.598 /.198 5&B.598
=mployeesF /'9'' ((' (9-/'' 1/5'' 1'/.'
@uarterly ?ev 7rowth 5B.-' &9.1' :.'' :&9./' &9.('
?evenue 19&.(/8 (-.-B8 1&9.-B8 1B.998 19&.(/87ross #argin 9(.-5 /9.BB &(.&9 (5./ 9(.-5
+perating #argin (5./- (&.11 B.91 1'./- (-.&/
Net Income (B./&8 1'.B(8 5.-98 1.1/8 NGA
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as services which are competitive in the market. Apple computer may be re>uired to address the
issue of price competition where it would end up lowering it prices in order to deal with the
competition of from the other companies $IC;A# &'11 p.&-).
Issues that Apple is not aware in the 2echnology Industry
2here are several issues that Apple is not aware of within the technology industry. %ome
are related to and affect the users on a daily basis such as the troubling issues with Hi:4i in the
company’s operating software the +%, 0ion. 2he i"hone (.& which is used on the i"ad does not
renew the D;C". 2here are common problem with the Apple #ail. 2hese are issues that appear
to be minor but tend to have a profound effect on the future perception and eventually
performance of the company in terms of sales. 2he fact that Apple products are designed for the
high end market has led to the emergence of negative image of Apple as more and more people
see it as a company that is for the select few. 4or the company’s competitors this is an advantage
as they have started to make consumer electronic products that target the different consumer
purchasing powers in the world.
2. Apple Internal Strategic Audit
Apple’s 4inancial Data
The Annual Financial Data
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Period Sep !" #$$ Sep %" #$# Sep &" ##'
Total Re(enue $#)"%'"### *&"&"### %"'#&"###
Cost of ?evenue /99(1''' (-591''' &5/B('''
Gross Pro+it %!")$)"### &"*)%"### $,""###
+perating =6penses
?esearch Development &9&-''' 1B&''' 1((('''
%elling 7eneral and Administrative 5--''' 551''' 919-'''
2otal +perating =6penses : : :
Operatin Inco.e or Loss !!",'#"### $)"!)&"### $$",%#"###
Income from Continuing +perations
2otal +ther IncomeG=6penses Net 915''' 155''' (&/'''
=arnings 8efore Interest And 2a6es (9&'5''' 1B59'''' 1&'//'''
Interest =6pense : : :
Income 8efore 2a6 (9&'5''' 1B59'''' 1&'//'''
Income 2a6 =6pense B&B(''' 95&''' (B(1'''
#inority Interest : : :
Net Income 4rom Continuing +ps &5-&&''' 19'1(''' B&(5'''
Non:recurring =vents
Discontinued +perations : : :
=6traordinary Items : : :
=ffect +f Accounting Changes : : :
+ther Items : : :
/et Inco.e &"'"### $%"#$!"### )"!&"###
B
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"referred %tock And +ther Ad3ustments : : :
/et Inco.e Applica0le To 1o..on Shares &"'"### $%"#$!"### )"!&"###
2he Currency is in % Dollar
Apple’s Inc. 4inancial "ro3ections
Apple2s 3arnins
3sti.ates
1urrent Quarter /e4t Quarter
#$ #$!
Avg. =stimate 1'.&B 1'.99 9/.B 5(.-(
0ow =stimate B.-' B.5- 91.5- 9B.(/
;igh =stimate 1&.51 1(.(/ 51./' /9.'/
Apple2s Re(enue
3sti.ates
1urrent Quarter /e4t Quarter #$
#$!
Avg. =stimate (.5&8 (B.B&8 1/&.9'8 1-5.(/8
0ow =stimate (9.9'8 ((.B(8 15(.98 1.--8
;igh =stimate 91.98 9.158 19.918 &&B.(-8
Jear Ago %ales &B.58 &B.&8 1'B.&58 1/&.9'8
%ales 7rowth (1.(' (.(' 5'.'' &'.('
2he Currency is in % Dollar
Kalue chain analysis
8y delivering superior electronic products to its consumers Apple has managed to not only maintain a
constant customer base but continues to e6pand its market share in the smartphone and tablet industry. 2his has led
to the growth of its ca sh re se rv es as we ll as ga in s a mu ch co ve te d po si ti on in th e
t e c h n o l o g y w o r l d . = v e r y A p p l e s t o r e i s d e s i g n e d t o c r e a t e a c u s t o m e r
f r i e n d l y w o r l d w h e r e t h e c u s t o m e r s h a v e a n o p p o r t u n i t y t o i n t e r a c t a n d
e6 pe ri en ce th e pl ea su re th at co me s wi th th e Ap pl e pr od uc ts . In order to identify
which areas that Apple has developed and established its critical capabilities an analysis of the value chain linkages
is essential. 2he primary activities of Apple consist of production sales and marketing product design consumer
and legal services. 2he product design and technology activity forms the base or the core the Apple Corporation.
Apple Inc. has a histo ry of desi gning technology tha t i s cutting:edge. Apple is focused
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on being the best as well as the first technology firm globally. Its Apple operat ing system is
globally recogni*ed and appreciated as a more reliable as well as a stable +%
compared to Hindows. %ince Apple has for long re3ected the calls to make give out
its +% license to othe r firms. 2he combina tion of both the hardware and software
forms the cornerstone of the production process for Apple Inc. 2his is a competitive advantage
for the firm. Although not all of its products introduced have been successful Apple continues to
believe in the component production process as a natural e6tension of the product design
process.
Internal Configuration
2he main goal for Apple Inc. is to bring new customers. In addition it involves the
e6pansion of the e6isting base of loyal consumers buying working towards increasing the sale if
different electronic products. 2hrough the approach of running its stores as well as designing the
stores within locations that have high traffic of consumers Apple Inc. is in a position to
effectively control the e6perience of the customer as well as increase the attraction of new
customers. 2he manner in which the Apple stores are designed is meant to make simple and to
enhance how the products are presented.
2he 4inancial and ?esources Appraisal
8y the year &'11 Apple had about /'9'' permanent employees who work on a full time
basis &-'' temporary employees. In &'11 the company had total global revenues of 1'B billion
dollars up from /5 billion dollars in the year &'1'. 2he fortune maga*ine listed Apples as the
most admired corporations in the united states in the year &''B and globally it is still the most
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time to come. In addition this is e6pected to have an influence in the politics as
well as management decisions of the firm in the coming decades. 2his is e6pected
to maintain the growth and the market share of the firm in the period beyond &'11.
nowledge #anagement
In the end the configuration of retail stores has changed into different si*e so as to
accommodate demands of the market. 2he retail stores use competent e6perienced as well as
knowledgeable staffs that provide product information to customers on the different products
available. 2he stores provide a variety of hardware software and other products for computing
that have been approved by third party. In addition the Apple retail stores offer platform where
Apple Inc. is in a position to provide speciali*ed service as well as personali*ed training.
Apple’s ?eputation with %uppliers
2here is the threat of a strong supplier power. 2he need to be supplied with low cast
materials for manufacturing of smartphone and tablets is very central to most technology
companies like Apple. 2here are only very few manufacturers who are currently manufacturing
processors for smartphone and tablets therefore this gives the manufacturers as well as suppliers
a lot of weight in the industry. 2here is the threat from the power of the buyer. 2oday the trends
in the technology world have left the buyer with no choice when it comes to buying smartphone
and tablets.
4ocus on Apples Internal %trengths and Heaknesses
Apple is a designer a developer as well as a marketer of several computing product and
service. Apple sells its electronic products to an array of different consumers such as the
education consumers creative professional consumer and government and business customers.
Hhile the computer tends to showcase a variety of computing products as well as carry out
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business at different levels it can be challenging to specify what the company best at. 2here
company has been diversifying greatly and most say can cause the down fall for the company.
2hroughout the whole of anuary &''5 Apple opened more than 1'& retail stores. Although
these e6pansions were beneficial most of the Apple retail stores are negatively affecting the
businesses of the resellers and this can cause their downfall. 2his can have a much significant
impact on Apple since the resellers account for more than 5' of the domestic sales.
Apple is among the ma3or technology companies where the growth as well as the fortunes
of the company always appears to be closely connected to the person in charge. 2he visionary
talents which are associated with %teve obs contribute to growth and success of the company.
2herefore the news of cancer surgery on %teve ob and subse>uent demise might have lead to
the rise of succession problems and perception of a not so bright future for the company.
Apple’s Competitors
Apple knows that at the moment it has a competitive advantage from the point of
innovation as well as being in a position to integrate its whole solution that involves software
hardware software and content distribution. A few of potential current competitors do have
considerable hence they are in a position to offer similar products and services at a cheaper price.
2he future of Apple Inc. operating results as well as financial status is critically dependent on the
ability of the Company to continue to improve its line of computing products. Apple plans on
preventing or reducing the potential risks that are caused by the growing competition by closely
working with the key suppliers on the planning on the introduction of new products introduction
new and better inventory strategies and planning on manufacturing internal as well as e6ternal.
A Culture of 4ast:"aced Hay of Horking
He are living in a global village and the need for people to become more connected and
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in constant contact is greatly growing as a result of the growth of the internet. "eople have
e6perienced how technology can make working or sociali*ing become sweet cost effective as
well as efficient and therefore there is constant growing demand for even better technology
devices such as smartphone and tablets.
Apple and oil companies
2here are many >uestions going around as to why Apple holding a lot of cash. the aspect
of having plenty of cash reserves might imply that Apple computer is not in a strategic position
as to how to invest the cash and this can lead to the rise of a negative perception on it future
potential investment.
Apple Inc. is a ma3or producer of different consumer electronic products which include
the #acs the i"od the i"hone the i"ad as well as other softwares. 2he company’s cash reserves
have been reported to increase to about M5.B/ billion when it was announced this uly. +n the
other hand the nited %tates government made earnings that reached only M(.B/ billion which
means Apple made more cash the most powerful government in the world by over two billion
dollars. In the similar manner Apple has been reported to have a lot bash reserves compared to
some oil companies such as =66on #obil Corporation. In addition Apple has been reported as
having a higher market capitali*ation than =66on #obil.
3. Stakeholder engagement
A stake holder can be defined as individuals that have invested in shares in a business or
industry. At Apple Inc stakeholders include preferred and common shareholders apple
employees lenders suppliers software developers customers music industry players
manufacturers and nongovernmental organi*ations. 2he coordination of the above and their input
is what makes the organisation be among the best performing in the business front today.
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In the recent past Apple has made considerable efforts in involving stakeholders more
with the environmental issues being the main agenda. Apple made efforts and forged an alliance
with N7+s in China to better its supply chain management. It is known to be very secretive and
reacts slow to criticism from outside. Increased pressure from environmental N7+s from China
and the nited %tates loosened apple rigidness prompting a review of their strategies. Apple’s
supplier code of conduct enlists rules on control and ha*ardous and other pollutants as a way of
involving stakeholders the environmental cleanliness. =very supplier is vetted seriously to check
environmental friendliness and preserve its reputation. 2he measures have however not worked
as e6pected as criticism on the way the environmental issue is handled is dissatisfactory.
Information from some its supplier’s states that high density "C8s used in i"hone and i"ad
re>uire a lot of power and water to manufacture and large >uantities of chemicals. 2he process
results to air and water pollutions among other environmental violations. Apple in response to
the allegations has provided tables that will be used to solve the issues. 2hey have planned to
visit their various players in the supply chain to ensure the issues are resolved which is a good
start than the silence that loomed previously.
=thics approach
=thics can be defined as the code of conduct of an organisation in the day to day
businesses. It can also be termed as best practice in the corporate world. Apple is a highly ethical
organisation. @uality touch is in all ideologies that form the organisation. 2he organi*ation’s
code of conduct has been put to a test after the 4o6conn factory saga. 4o6conn is a ma3or Apple
supplier that manufactures i"ad. A certain e6plosion occurred in the organi*ation’s premises in
china killing two people and in3uring several. 2he saga put Apple on the limelight after a 8ritish
news paper secretly investigated the supplier and discovered some inconsistencies. Horkers
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reported long working hours in very crowded dorms. 2his statement does not reflect apple’s code
of conduct. ;owever Apple conducts over three hundred audits a year on employees where
violations like involuntary labor underage workers and improper disposal of ha*ardous waste
are among issues of ethical behavior that crop up.
Apple has in turn spurred some changes to compliment the audits. 2hey have championed
for continued performance improvements and better working conditions. 2hey have also
increased the number of audits every year to eliminate any chances of in appropriate corporate
behavior that might taint their image. Apple has also trained very many workers about their
rights and methods of in3ury prevention among others to help promote best practice in the
organi*ational environment. In a move to ensure that best practice is adopted maintained and
upheld Apple forced some of its suppliers to reimburse more than M/. million to employees
who have been underpaid or charged irrelevant fees. Apple is a global leader in underage labour
prevention a good reason why ethics is part of the organisation.
?eputation management
2his is a process where actions of one entity are tracked and the opinion of others in the
business environment. ?eputation in the business world today is a basic performance
determinant in the corporate world today. ?ecent developments in Apples supply chain has seen
the organi*ation put on the spot over various issues. 2he 4o6conn saga especially has tainted
Apples reputation seriously not forgetting the recent allegations of trackers being inserted in
i"hone’s.
Crisis reputation management
Apple has been highly critici*ed for its slow response to issues. In the management of
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crisis the organisation has resulted to transparency a reputational tool. 2his is a move that is
meant as a way round the crisis rather than defending itself. Apple hopes through this the world
will reali*e that they hold with high regard values that are considered ethical modern business
practices. 2he organisation has even gone beyond the detailed supply chain reports by asking the
fair labor association to carry out special voluntary audits of its final assembly suppliers. It is
important to note that the today corporate world does not 3ust look at the way best practices are
upheld in the organi*ation but also the consistency of the same organisation in upholding the
modern business values. 2he use of transparency as a reputation tool has led to increased
reputation audits and other processes that are aimed at ensuring the corporation’s image is not
tainted.
C%? concepts
2he corporate social responsibility is an integral part of the business world today. Apple’s
breakthrough was in the uni>ueness of game changing product few years ago. 2he i"ad i"od and
i"hone are some of its products scrutini*ed heavily about how they are made the working
conditions of the companies they contract and their corporate practices. ?esearch has established
that consumers define corporate social responsibility as an important characteristic while making
decision about a product thus it is interesting to e6amine Apple’s C%? considering it has a
prestigious status in the world.
2he corporate social responsibility today is mostly focused on restoring the degraded
environment to its purity. Apple created a website called 7reen my apple to the core to help
reduce the use of ha*ardous waste to the environment. 2he initiative was founded in China by
N7+s working together with Apple. 2ransparency is another C%? strategy used by apple as it
helps the private consumer evaluate the organisation more easily. 2his also creates a positive
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attitude among consumers towards the corporation.
Corporate social responsibility that is related to the brand helps in its identity. Consumers
today are very informed and will most likely go for product that they feel are cater for their
beliefs. Apple has been able to fit C%? to their brand making them gain the customer’s
confidence. 2he organisation is the most popular in the world today after several new
innovations that have changed technology. 2his only means that more corporate responsibility is
re>uired as demanded by the consumer today. %everal steps have been taken by the organisation
to as corporate social responsibility. 2his involves communicating to the consumers on various
environmental friendly practices among other things. ?eputation strategies of the company have
been integrated with the social responsibility to increase their efficiency. Corporate social
responsibility plays a crucial role in marketing strategies because of the customer’s perception of
the company. It is therefore important to show the other side of the AppleO like Apple
incorporation.
%takeholder applications and integration
2he competitiveness of the business environment has forced many organi*ations to come
up with various strategies to gain a competitive edge. Integration in the supply chain is very
common in the business environment today. Apple is no e6ception and has integrated with
various corporates in the industry for effectiveness. #erlin is a commercial pro3ect management
software application for #ac +% , developed in 7ermany that integrates with Apple. Kertical
integration has been Apples strategy. It has control over all aspects of the value chain where
most stakeholders are. 2he company has opted to broaden their control by including ownership
of chip manufacturers strict software standards and proprietary retail stores in their system.
Kertical integration has been bad for companies in the past as it has resulting to killing
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innovation and promoting unhealthy business practices.
Horking with partners is usually unpredictable making it a big challenge to knock out
everyone and doing everything like Apple. It is however possible with well planned strategies in
place. Innovativeness in companies will probably find a way to leverage partnerships and truly in
open platformO strategies the main challenge is how long it will take and at what cost to
shareholder value and society at large. Apple has managed to work its magic on the supply chain
and succeeded in creating harmony in its industry where it has many suppliers and others that
they contract.
Recommendations
Apple is among the global innovators making it very interesting to study and understand
its strategies. He have noted that it has shortcomings too especially in regard to responding to
issues which is rather slow. Apple strength as we saw earlier is the uni>ue technology they
posses. 2heir i"hone and i"ad are their best selling products with sales of B1./ million dollars in
&'11. It is estimated that they will gather around 1'B billion dollars this year and a1' billion
dollars income. ;owever the innovation of an +% called Android by 7oogle Inc is a big threat
because it is half cheap making it easily affordable. "rice is the biggest setback in e6panding and
maintaining a market. It is the biggest weakness that could re>uire re:evaluation because of the
future of their products. Although their product is very superior to their competitors it is wise to
note the competitors will always try to improve to match the leader hence very important
continuously improve our products.
Apple Inc is considered a marketing company making value chain analysis very critical.
#arketing a product re>uires very smart strategies that are all rounded covering the interests of
all stakeholders. 2he organisation has previously failed in trying the to do it their ownO
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approach. 2he lessons from the failures previously are >uite productive as Apple is the most
successful after implementing the integration strategy. 2hey have complemented the today’s
corporate competition basics and are firmly on top. 2he continous improvement policy is
necessary in order to maintain these standards.
2he diagram below shows a porters value chain analysis.
4ig 1. 2he value chain analysis
Culture in an organisation determines its effectiveness in service delivery as it defines
the social interactions inside the organisation. Apple’s culture of >uality products among
others principles make it the most admired organisation according to a research in &''B.
?esource appraisal is taken very seriously by the organisation. 2his helps maintain set
standards and continually improve the standards. 2he organisation has recently engaged in
increased audit on every department and player in the supply chain. 2he reports from these
audits are used to make informed decisions in approaching various problems. Apple Inc
organi*ational structure is very simple and flat. 2his makes it very easy to communicate
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the organisation. Apple has been able to successfully take control of its supply chain it is
important that the same relationship is maintained to ensure that nothing slows down service
delivery to the customer. 2he move that is aimed at ensuring suppliers adhere to the
environmental code is strategic in the overall social responsibility compliance of the
organisation. #ore persuasive strategies should be adopted to encourage the suppliers to take the
environment friendly measures on their own.
Corporate social responsibility is essential in the success of any company in the organisation
today. Apple has been critici*ed for not being sensitive to the environment. 2his forced the
organi*ation to ally with N7+s to ensure that the organisation takes the environment friendly
aspects seriously. 2he green apple initiative meant to conserve the environment is a step in the
right direction in ensuring that the organisation participates in reducing carbon footprint in the
environment. 2he management should do more than even with regard to alleged mis:treatment of
workers by other players in the supply chain. 2his is important because the customer today is
informed and is working hard to conserve the environment and will not support any brand or
organisation that does not believe in the same.
It has been noted that the mistreatment of employees is because they do not know they are a
resource. 2his has seen apple offer enlightening sessions on employee rights to ensure they are
aware they are the most important resource. 2he management should carry out 4ollow up audits
to ensure that the employees know their rights. %take holders are important in the overall success
of an organisation. Apple is among the ma3or multinationals that has successfully controlled its
supply chain where it is the ma3or player. Apple should consider even bigger challenges like
ac>uiring its competitors to gain a more competitive edge as well as e6pand. It should also
ensure that the other players in the supply chain adopt the same reputation based ideologies to
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ensure they effectively e6pand their market and gain a competitive edge over their rivals.
2he ethical approach practiced by Apple is still not very effective because cases of
malpractices among suppliers and other contracted firms are still eminent. 2he 4o6conn saga
showed that employees are being overworked. Audit reports still reveal underage employment
among players in the supply chain. 2his cannot be termed as best practice and puts the firm in
the spotlight and taints it’s the reputation. 2he firm should design ways and means of
overcoming responding to issues a lot faster than they do. 2his is because increased calls for a
more >uick response to issues can overshadow the transparency tool the organisation uses for
reputation management. Crisis reputation management is one of the shortcomings Apple
e6periences. 2he saga where the organisation was being critici*ed for inserting tracking devices
in the i"hone was one of the crises that the organisation faced. 2he consumers still have that
perception which is not good for business at the time. 2he politics in nited %tates at the time
feel their privacy is being invaded by the government because of its counter terrorism measures
that involve tapping citi*en’s phone calls. Apple did not respond >uick enough to e6plain
themselves from the allegations which did auger well with the consumers who felt some truth in
the allegations. 2he incorporation should adopt new ways of reacting to crisis in order to protect
its image.
Integration of stake holders has been one of the main strategies adopted by apple as its moves
to gain competitive edge over its competitors. 2he management should continuously adopt other
integration strategies to e6pand their portfolio as it has proved successful for Apple. 2he
corporation can also consider trying hori*ontal integration. Apple incorporation is really a game
changer in the technology arena. 2he ideologies that comes with the LIL technology revolution has
come with new ways of handling things. It is important that other corporations adopt Apple’s
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method as it is the beginning of another revolution in the corporate world.
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