Apple Inc. is an international brand that manufactures and distributes computer software, personal computers, cell phones, portable digital music players, consumer electronic products, media devices and mobile communication, and renders software services, networking solutions, peripherals, and digital applications and content. The brand embraces such popular products as the Macintosh series, the iPhone, iPod, Apple TV, and the iPad. The company holds powerful software resource consisting of the Mac OS X, iLife, iWork suite, iOS and OS X, iCloud, the iTunes media browser, Aperture, Airprint, and AirPlay.
The brand provides service and support offerings, accessory, and digital content and apps in its App Stores, iTunes Stores, Mac App
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Strategically, Apple creates substantial value through diversification. Such remarkable innovations as iPhone and iPod prove the company’s capacity to innovate and further create digital lifestyle convergence. Apple seamlessly integrates into the creation of outstanding user experience by providing the next must-have electronics products.
The corporate vision “Think Different” embraces four core philosophies, including never-ending innovation drive, customer-oriented services, direct sale business model, and the power of Apple brand. This way the company successfully innovates, sells its products directly to the customers, and renders quality customer-oriented services (Apple Inc, 2015).
(3) External Assessment
a. Porter Five Force Analysis of the industry
Intensity of rivalry within the industry Pursuant to this force under Michael Porter’s model, over the years Apple has created substantial technical support framework, won customer loyalty, and introduced innovative quality products. The company maintains high level of productivity while the branded offers never lose popularity even though the rivals’ offers often gain market share owing to lower prices.
Bargaining power of suppliers
Apple may lose profits because of bargaining power of suppliers. Permanent increase of corporate capacities forces the company to seek new suppliers. At that, Apple allows new suppliers to decrease their bargaining power by registering on the Apple’s website.
Apple Inc. designs, manufactures, and markets personal computers, mobile communication devices, and portable digital music and video players and sells a variety of related software, services, peripherals, and networking solutions. The Company sells its products worldwide through its online stores, its retail stores, its direct sales force, and third-party wholesalers, resellers, and value-added resellers. (Source: Company Form 10-K)
Apple Incorporation is one of the largest organizations dealing into Information Technology. Apple has a host of products ranging from Laptops, Desktops, Mobile Phones and Multimedia Devices. The company has been extremely innovative in the field of multimedia and it owes it success to one of the greatest innovators, Steve Jobs. The company has always believed in innovation and that is the major reason why it has been so successful in the mobile phone segment. In recent years Apple is second only to Samsung in the Global Mobile Phone industry. However the operations have been largely based in the United States and in times of recession any organization needs to focus on economies of scale and thus focus on growth
It is quite obvious from the case that Apple is facing many obstacles. It has way more competitors today than it had two or three decades back. Part of it has to with the highly globalized environment that companies are operating in these days. Another major obstacle is the technological environment which is rapidly changing compared to the one that Apple experienced when it first emerged on the global scene. But the most important of it all seems to be a mental thing. It appears that Apple, over a period of time, developed a rigid mental model that related success of Apple with sheer innovation. This same mental model has lead to demise of many companies in the past, Xerox Corporation being the prime example of that.
A competitive strength assessment reveals that Apple’s success is unmatched. They have been able to maintain the leading industry position while developing and introducing new products. Stock price is continuously rising and products are always improving. The current products are improved with software updates and new products are improved by
Apple Inc. is a North American multinational company that starts operating in the field of electronics and computers becoming famous by making trademark computers, Macintosh, which operates with its own operation system, MAC OS, among other products. Founded by
Apple is a global company represented in many parts of the world, but born in the United States by computer wizards by the names of Steve Jobs and Steve Wozniak who founded the company back in 1976 (Capon, 2008). The organization deals with the design and sale of computer hardware, software and offers tech support to its customers. Examples of the hardware the company manufactures and sells include mobile phones, personal computers, iPads, tablets and iTunes with associated brands, like the MacBook and iPhones that represent Apple’s driving force towards its success. It is recognized as a brand leader in consumer electronics by the world in terms of quality and customer satisfaction and despite the wide product range, Apple manages each product in a distinct way that is a single business unit (Mittan, 2010).
Apple was established as an IT company dealing in exclusively in computers. However, competition in the technology sector forced the firm to focus on other consumer products. The diversification strategy has seen Apple’s sales grow tremendously in the last decade, earning the firm the No. 1 brand position at Forbes. The Apple brand is recognized on an international scale and enjoys a strong recognition thanks to its aggressiveness when it comes to creativity and innovation (Tar, 2013). It has a large number of loyal customers who would purchase the new products regardless of the market price, which guarantees profits from the new division.
Technology change has naturally been a major factor in Apple's success. The company played a major role in the shift to a mobile computing society, by developing the personal technology devices that would
I learned that Apple is a juggernaut when it comes to their technological products and marketing goals. Apple focuses on the needs of customer’s light years ahead of their competition and even before most consumers have realized they want Apple’s products. Through their innovative marketing involving social media, word of mouth, Apple Stores they have convinced consumers about the high value of their product even lending to the formation of a “Mac cult” for its diehard fans. The way ahead for Apple is not to lose sight of its brand loyalty and continue to service the customers and entice them with the brand’s prestige. Even with the death of Steve Jobs, I believe Apple forge ahead to differentiate itself from the markets they are in.
Apple Inc. has been dedicated to innovation ever since the company was first formed. Apple's recent breakthroughs were a result of a new technologies convergence upon the "digital hub" strategy (Mortensen, 2010). This strategy has served Apple well; especially during the last few years. The iPad, iPod, and iPhone were all born from this strategy. Furthermore, producing these innovative, user friendly, and design oriented products has earned them a considerable amount of customer loyalty.
The multi billion-dollar corporation, Apple Inc., designs and manufactures some of today’s highest technological gizmos and gadgets. Among their best known products are the Apple and Macintosh computers, iPods, iTunes, iPhones and iPads. Apple is one of the most powerful and influential high tech companies in the world. The success of Apple Inc. stems from the innovation and visions of co-founder and entrepreneur, Steve Jobs, the excellence of the stylish, user-friendly products, and the ability to create innovative products that consumer’s desire.
Even though Apple has encountered many setbacks, it continues to bring new and improve products to the market. Apple’s competitive strategy has been innovation. They have made an extraordinary effort developing, implementing, and executing its very unique strategy through innovation which has resulted in new product, and the enrichment of the existing ones. More specifically, Apple attempts to meet and supply the needs of a global market, by offering eager and enthusiastic consumers with innovated and high-quality products and services. Apple has employed a differentiation strategy linked to innovation with its three core products (computers, personal media player, mobile phones, tablets and other accessories). A key piece of their strategy involves meeting the needs of the converging digital electronics and computer markets. Apple has elected to implement its strategy by designing and developing proprietary operating systems and software technologies, thus allowing for strict protection of its intellectual rights.
Nowadays, Apple has positioned itself to be an innovator in the personal computer industry and Apple has developed by offering modern products compared to its competitors. According to Apple’s mission statement last year, “Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App store, and is defining the future of mobile media and computing devices with iPad.” (Business Management,
Porter’s Five Forces model is used to evaluate the degree of rivalry between competitors in a given industry through assessing the four forces that lead to this outcome. These forces are the threat of new entrants, the bargaining power of suppliers, the bargaining power of buyers, and the threat of substitute products.
Apple Inc. is an American multinational organization that design, manufactures and sells the high technological electronics, online services, computer software and accessories. The product and services of Apple Inc. consist of iPhone, iPod, iPad, Mac, Apple watch, software (ios operating system, icloud) and so on. Apple is the leading brand in the mobile market across the globe. Apple delivers the applications through iTunes store, Mac App Store developed by the Apple Inc itself. The company offers its product worldwide via different retail stores, showroom, online stores,