Case Analysis Of Apple Inc.

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Since its founding in 1980, Apple Inc. has witnessed tremendous success. In 2015, it became the first U.S publicly traded company to close above $700 billion in market value, making it the most valuable company in the world. Although Apple Inc. was experiencing major success in the technology market, it had inevitable problems to face in the future because the company’s innovation had slowed. The reduction in modernization raised concerns from investors who believed that the demand in Apple’s flagship product would diminish, while rumors about a reduction in the suppliers of Asian components deepened the impact of investor’s skepticism. Thus, Apple’s stock price had dropped nearly 24 percent in 2013. Steve Jobs’ successor, CEO Tim Cook, eased …show more content…

An example would be the store layouts of the Apple Inc. stores; how bright the store is; how simple the store layout is; and how many stores and customer support employees would all be factors in having a great store layout. This strategy relates to the diversification strategy because Apple Inc. would be diversifying themselves by having better customer service, store layouts, and operations (including the simplicity of the assembly plant). This method would reduce costs because it would involve less complex operations, and the workers might achieve six sigma/TQM at a more efficient rate. It may also reduce cost based on the layout of the store. If the store is more simply laid out, then it will be less cost to construct the building. Consequently, a simpler building structure adds to Apple’s motto of a simpler, easy-to-use product, therefore, foot traffic in the stores might increase if consumers can look inside and notice what appeals to them, which may marginally boost sales! A downside to this alternative would be the need for international expansion. Some markets, like in the South Eastern/Asia Pacific market, prefer the cheaper alternative due to economic reasons. Therefore, the Asia Pacific market would buy stock Android phones because the phone is cheaper than the flagship iPhone, and Apple Inc. may risk losing to competitors in these types of markets because they will not gain enough market share to sustain growth. This is a similar situation for Microsoft’s Zune, which was discontinued because Microsoft did not have the market share to compete with the iPod. Furthermore, the process may be costly because expanding into international markets will require regional

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