Apple Incorporated: Corporate Risk Management

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Corporate Risk Management Section 1: Assess the risks faced by Apple Inc. as follows: Design a process to identify and analyze the nature, source and scale of any significant risks or uncertainties faced by Apple Inc. Apple operates with fierce competition in the consumer electronics segment which comes in many different forms. There are a large number of competitors in the different market niches who offer many similar products. Furthermore, many of these competitors' products are priced much less than an Apple branded products. Just as soon as Apple releases a new product, major companies begin imitating it immediately. In the personal computer industry, market pressure is continuously being exerted from such companies such as IBM, Dell, HP, and Toshiba (Wildstrom, 2009). Furthermore, with its flagship product the IPhone, Apple competes with companies like HTC, Palm, Blackberry, and Motorola (Wortham, 2011). Apple has had significant success despite the competitive environment because Apple commands a brand loyalty and dedication to innovation that few companies have ever achieved. However, since Apple's is so heavily dependent on its consumer bases and customer loyalty, its brand image must be protected at all times. If Apple lost any of its brand value from a consumer perspective then they could lose considerable market share. However, Apple has outsourced their production operations to strategic partnerships overseas to companies in Asia; the most notable one

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