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Quizlet Consumer Behavior
Apple inc. industry
Quizlet Consumer Behavior
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Introduction
This report reveals the study of economic environment of Apple Inc. Apple Inc. is a well- known manufacturing company in U.S.A. The study will help to know briefly about Apple Inc. and its products as well as the production factors and the cost structure, reveals the market structure and performance of the company. MACRO analysis provides information about the political, economic, legal and technological factors which helps to know the economic condition of USA and Apple Inc. Finally, it reported the sustainability of the business and positive and negative externalities from the production and consumption of Apple.
The Business and Competitive Environment
2.1: Company
Apple Inc. is a manufacturer Multinational Corporation also
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Segmentation of target market can be categorised in four parts: geographic, demographic, psychographic and behavioural (Kotler, Roberto & Lee 2002). Target market of Apple is teenagers, college and university students, business people, young children, kids, adults, enterprise and government customers (Apple Inc, 2014). Apple Inc. manufactures products according to the demand and choice of their customer which meets with latest technology..
The main competitors are Microsoft, Hewlett-Packard, Dell and smart phone companies such as HTC, Sony, Samsung, Motorola, RIMM and Nokia. Sony has created a portable music player known Walkman is a direct competitor of iPod. The other external threat is related to security which may be exploited by hackers. Security is a main competitive advantage of Apple products. Apple and Samsung are most dominant in smartphone industry. It is very difficult for new firm to enter in the smart phone market because of control over market and main raw material and the loyalty of customers on the Apple
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Apple has both fixed and variable costs. Depreciation on the buildings and equipment’s are some fixed costs. These would be constant each year. The admin cost, rent and salaries would also be fixed.
Variable Cost- Total cost is a sum of fixed cost and variable cost. The expensive that are fluctuated with the output quantity called variable cost. (book references). The variable cost of Apple is labour that is depended on production of new product, meet the needs of existing orders, the need of labour can be fluctuated. All costs on material used in production, wages, and utilities of Apple Company are variable costs.
Retail Costs-Retail margin and retail operating costs (ROC) are key element of retail costs. ROC costs are linked with IT system, billing and revenue collection.
Macro business environment
Apple is investor’s favourite brand because of high return on investments and strong revenue growth. It is reported that the total revenue was $ 224.34 billion on 30th of June, 2015. In second quarter of 2015, sales were $50.77 billion and predicted sales are 233.02 billion in the current fiscal year. The profit margin was 21.52 in the second quarter of 2015 (Makos, 2015). To gain a deep understanding about the stability of political, social and technological system and economic situation of Apple, PEST analysis is a best
Fixed expenses are those that will be there everyday the lodge is open regardless of the number of skiers. The Lodge is open 200 days per year and the cost of running the new lift is $500 per day for the entire 200 days giving us $100,000 in fixed costs. Variable costs are the expenses based on the number of customers. There is an additional $5 expense per skier per day associated with the new lift. If there are 300 skiers multiplied by $5 each multiplied by the 40 days that they are expected to be on the lift, we will have $60,000 in variable expenses.
1) Total Variable Costs are 60% of Total Costs; While the other 40% are from fixed costs.
reported that 59% of its revenues were generated outside of the Americas region (Stastista, 2016). This factor alone increases the influence of the various government and legal factors that may be faced. Throughout the various countries that purchase Apple products, the company will be forced to contend with various trade, safety, and tax regulations as they sale and distribute their products. Various political unrest and government tensions may also affect Apple’s ability to continue its business with the same revenue stream. Additionally, Apple had chosen to outsource the manufacturing of its products to various foreign countries, any issues within these countries may delay their products reaching the market in a timely
Apple Inc. originated out of California in 1976. Steve Jobs and Steve Wozniak dropped out of college together to begin making technology in their garage. Apple’s technology skyrocketed becoming one of the top technology producing companies. They fell short in the nineties though, companies began to catch up and now there was more competition than before. Apple released their ipod in 2001, putting them back in the leadof the technology industry (The History of Apple). Presently, Apple is still exceeding other companies in the technology industry, such as Microsoft, Blackberry, Google and Hewlett Packard. Microsoft is Apple’s largest competitor, which is revealed through the Dupont analysis and other activity ratios, these particular ratios also make known that Apple’s numbers are not all accurate.
Variable costs: “Variable costs are costs that vary with the volume of activity”2 and they are: direct labor, Materials, Material spoilage & direct department expenses.
Tyrsina, R. (2013). [Graph illustration of Apple’s revenue from 2007 to 2010]. Apple and its
This report will analyze and discuss the most important elements of the marketing environment for the launch of the iPhone, that is to say the main three levels of the marketing environment: the micro-environment through the customers, competitors and distributors, the macro-environment through technological, economical, social, political and environmental forces and finally the internal environment through the relation of Apple with its employees and its marketing philosophy. The analysis for the micro-environment is based on Porter’s 5 forces model and the one on the macro-environment is based on PEST analysis. The report will also give an interpretation for each of these aspects, a conclusion with a rating of the attractiveness of the UK current marketing environment in which the iPhone is launched.
Apple Inc is a multinational organization in America and has its headquarters in California. The organization specializes in the design as well as development of consumer electronics including: computer software 's, and also personal computers. The organization has for long been offering a broad range of communication mobile communication as well as its own company software’s. The organization has quite an upright name in the business world. For a long period it has been producing quality product and their designers really bring out uniqueness in their products (Linzmayer, 2004). Apple Inc has established itself as being the world’s leader in innovation. Thus according to statistics; it is classified as being the fourth most valuable technology
The company not only produces the number of highly technological devices, but also has a great brand ideology lying behind. The following chapters would review each of factors determining Apple`s success.
Apple Inc. works by using the particular Apple brand name to be able to be competitive across many very aggressive market segments, including the computer system market having its Macintosh distinctive line of personal computers and linked computer software, the customer gadgets market using products such as the mp3, electronic audio supply through it is iTunes New music Retailer, the particular smart phone market place while using the New iphone, magazine, publication, video game titles and applications submitting through the particular Apps Store intended for new iphone 4 plus the apple ipad tablet processing gadget, and motion picture and TV SET written content supply using Apple TV SET. Regarding internet marketers, the organization is usually creating an extremely solid existence to be able to compete with The search engines from the promotion market place, through it is Programs company and iAd community.
The Apple brand name is a household name, the brand value of Apple, Inc. improved to $13,724 million in 2008 from $11,037 million in 2007 (Datamonitor PLC, 2009). Apple is different from its competitors because it produces high quality products, its products are also unique and attractive and this has helped to increase its market shares. Since Apple is known globally, 54% profits come from foreign markets (Datamonitor PLC, 2009). Apple products are easy to use and carry around, majority of its products are light, small and very easy to carry around and it has a major advantage of product diversity, there is something for every one of all ages.
Apple Inc. is one of those companies that continues to introduce new innovations into the market every year. They are a leading multinational technology company specializing in the development, design, and sell of software, online services and applications, and personal computing devices. As with any business risk or uncertainty is always a concern (Byrd, Hickman, & McPherson, 2013). Apple’s success is often contributed to their past leadership, with Steve Jobs at the helm. However, following his death in 2011, there was a lot of speculation on whether or not the company would continue to be a leader in the market without Steve Jobs (Tetzeli, 2015). This is just one of the uncertainties that Apple has faced in the past few years. Through
has a competitive advantage over their competitors. One of the methods that Apple uses to maintain a competitive advantage in international markets is tying their hardware and applications together with an integrated operating system. This means that one of their devices, such as the iPad works very much like the iPhone and many of the apps run one device just as they do on the other. The only difference would be the size of the product. Apples laptop is larger than the iPad which is larger than the iPhone. Otherwise these products share the same functionality and information through connectivity. They share functionality and information seamlessly through connectivity, constantly updating customer’s lives through simple plug-in. I think this is the number one reason why Apple has an edge over their
Apple Inc. was established by Steve Jobs and Steve Wozniak on April 1, 1976 as a computer designer, developer and seller company. However, the company shifted its focus from only personal computer to include other consumer electronics such as portable media player and mobile phone in 2007. Apple Inc becomes one of the most popular makers in its field since it seems that its popularity has increased according to a report on www.statista.com that Apple Inc’s products sales was generally increasing throughout the first quarter of 2006 to the first quarter of 2014. On the one hand, it has increased its revenue from about 14 billion US dollars to more than 170 billion US dollars in 2013. All in all, the company is highly successful corresponding to its products’ development and their sales growth in world’s market.
Apple benefits from excellent brand recognition and a stellar reputation. Apple’s reputation attracts new customers and its performance retains existing customers, making its brand a valuable strength. Also, Apple profits from being a vertically integrated company, which allows it to control many elements in relation to its products, like the processor, hardware and software designs, operating system, and cloud services. It ensures that customers stay within their brand for all their technological