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
Apple Computer Inc designs, manufactures, and markets personal computers and related personal computing and communication solutions. The return of Steve Jobs, the companies founder, as CEO has pulled the company’s stock price up 775-percent through his launch of innovative products such as the iMac computer line. On January 5, 2000, Jobs announced that he was dropping interim from his CEO title and taking the job full-time. With this news and Apple’s new products such as the iBook, a portable pc and Quick TV, an internet television access feature, Apple Computer is headed for success and is sure to increase their share in the computer market.
McDonald’s Corporation started out in the way that many businesses do, with one idea and a brilliant mind or two. The year was 1948, when two brothers by the names of Mac and Dick McDonald, set forth with the idea to provide a low cost, quickly produced meal. Thus, the restaurant we know today was born. The menu consisted of only nine items such as: hamburgers, cheeseburgers, soft drinks, milk, coffee, potato chips, and pie. The staple of this menu was the hamburger for only 15¢. In 1954, a milkshake salesman named Ray Kroc stopped by the brother’s hamburger stand to sell them more milkshake machines. Upon learning that the brothers were looking for a national franchising agent, he quickly realized his future would be in
Apple Inc. headquartered in Cupertino, California was founded in 1976 by three men named Steve Jobs, Steve Wozniak, and Ronald Wayne. Apple Inc. has a strong presence worldwide; the company currently has 478 Apple retail stores in 17 different countries. The company focuses primarily on designing, developing, and selling electronics, computer software, and online services. Some of the hardware products are; iPhone, Mac laptop, the Apple watch, and the iPad tablet. Apple Inc. has become one of the most important American companies due to its innovative skills. According to a Forbes article, “The Boston Consulting Group ranks Apple as the world’s most innovative company. Apple has topped BCG’s list of 50 companies every year since 2005.”(Adams,
Apple has been questioned by the United States Congress and the court of public opinion in regards to its growing horde of cash it keeps outside the United States. Apple insists that it has done nothing wrong and has not broken any laws, foreign or domestic. The cash in question comes from profits of operations outside the United States. Apple has pursued a plan to keep the offshore profits outside of the country in order to avoid the United States 39% corporate tax. The structure of companies Apple has created in Ireland have enabled the company to stockpile profits and pay little to no tax.
In today 's era, there are a lot of companies that provide services all around the world that benefit everyone. Some of those companies provide only internet, while others provide that and/or the device used with the internet. One of the most popular companies that exists as of today is the Apple Company. The Apple Company was founded back in 1976 and its main thing was to create and produce computers and other electronics such as music players, cellular phones, and other merchandises. But the company became quite known, and as of today, it sells from just phone cases to televisions.
As stated before, Apple is a multi-billion dollar technology industry. The major competitors that Apple and its products is Microsoft and its Windows platform, as well as Google, and Samsung smartphones. All of these companies are in the top 10 global brands, according to Interbrand (2015). Comparing strengths of all companies, Apple has a solid financial support system and it is highly innovative because of the success of the products and the leadership of Steve Jobs, however what weakens Apple is the premium pricing of their products. Microsoft also has the solid financial support due to its leader, Bill Gates. Microsoft also has the dominance over the operating systems. Windows based applications are on almost all computers in the market
As mentioned above, Apple Inc. is one of the well-managed companies in the world, and this is one of the pillars of its success in the market. The company’s core business is designing, manufacturing, and marketing mobile communication as well as media gadgets, in addition to supplying related software, and networking solutions. It is known for producing very unique and high-differentiated products such as the iPhone, iPod, iPad, Mac, Apple TV, and many more. The company has a culture of valuing its employees, because the management believes that the company is where it is today because of these employees. The employees are accorded...
Within the last decade Apple has become one of the largest growing companies in the world and the largest valued company in the United States. According to a recent article in The Guardian, a global financial news website, “Apple set a record by becoming the first company to be valued at over $700bn (£446bn).” (Fletcher, N. 2014) This comes as no surprise to the average computer aficionado and shareholder as Apple has been making a name for itself since its inception. From its earliest Macintosh models to today’s iPhones, Apple has been a trailblazer for software, technology and revolutionizing the way we communicate on a Macro level. Their dedication to innovation, quality and service has made them
Cutting costs by competitors is the most logical way for competitors to be more competitive in the market. By cutting costs, there are more profits to be made and to gain market share by offering lower cost substitute products. The industry is flooded by competition, but no other competitor of Apple really focuses on creating great technical upport or brand loyalty. (Elliot, 2014)Apple’s primary focus is to develop innovative products and create a unique product that consumers can depend on the being the most highly anticipated technological device while offering great service and support for these new products. Apple uses business model innovation which introduces new products that are compatible with each other such as iTunes and the iPhone or ipod. This has proven to be a very effective business model and competitors are trying to replicate the same model to their advantage. (Jakab, 2015) By being an innovator and first mover on this type of technology, it gave Apple the competitive advantage in the market. In order for competitors to be more effective in the industry, they must attempt to gain customer loyalty and offer a simliar business strategy to that of Apple if they are to be the industry
In 1984, Michael Dell invested $1,000 in start-up capital to register his business as Dell Computer Corporation, which was known as PC's Limited. The company becomes the first in the industry to sell directly to end-users by passing the dominant system of using computers resellers to sell mass-produced computers. Dell Computer also pioneers the industry first thirty-day money back guarantee. It became the cornerstone of Dell's commitment to expand its service offerings, superior customer satisfaction, and the industries first on site service program. It also established its first international subsidiary in the United Kingdom, and raised $30 million in its initial public offering.
Since 1997, Steve Jobs has led the MacWorld Keynote event addressing the Apple flock, with pride and power. From a majestic, seemingly mystical, pulpit set atop a wide, dramatically lit stage, he has regaled stockholders, software developers, and enthusiastic consumers, numbering in the millions, with Apple's plans for the coming year. His intimidating sense of control has afforded him the kind of command over this ever-growing audience that seldom belongs to individuals who don't draw their power from Government or God. It is easy to understand why every product launch, press release, news leak, or any one of a countless list of maneuvers, can cause measurable, even drastic, shifts in the stock market. With great power comes great liability.
is yet to reach its maximum potential. Truly a unique entity in its accomplishments and organization, apple through the conviction and leadership of Steve Jobs its founder and then CEO; have pioneered the revolution of mobile technology. When it comes to strength, apple Inc, has a great marketing team with great marketing and advertisement capabilities, strong brand awareness, a strong and extensive distribution channel, and most of all a vertical integration and the most obvious which is customer loyalty. With the acquisition of valuable companies such as Beats, WhatsApp, mobile payment systems with the IPhone 6, wearable gadgets like the IWatch, apple uses these opportunities to satisfy its loyal
Apple Inc.’s Financial Analysis case study will cover the nine-step assessment process to evaluate the company’s future financial health. The nine-step evaluation process will entail the following: 1) Fundamental analysis covers objectives, plan of action, market, competing technology, and governing and operational traits, 2) Fundamental analysis-revenue direction, 3) Investments to support the firm’s entities action plan, 4) Forthcoming profit and competitive accomplishment, 5) Forthcoming external financial requirements, 6) Accessibility to direct at sources of external finance, 7) Sustainability of the 3-5 year plan, 8) Strain examination beneath scenarios of calamity, and 9) Present financial plan (State University, 2013). The fundamental analysis will be explained primarily in the next section.
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.
Steve Jobs one of the founding fathers of Apple Inc used strategic planning to his advantage by making Apple’s mission a simple one- bringing easy to use computers to the general market, revolutionizing the computer market. In 2007, after thirty years, the organization changed its name from Apple Computer to Apple Inc., this was a significant move because the organization became more independent, and it was no longer known as a vendor to Macintosh personal computer line (Yoffie & Slind, 2008). This strategic move paid off; a year and half later, Apple Inc.’s third quarter net profit of $1.07 billion on a $7.46 billion in revenue (Yoffie & Slind, 2008). SWOT Analysis of Apple, Inc. Strengths (Competitive Advantage)