Financial Management

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Financial Management

Two Tech Stock Companies That Attempted To Make Profits from Rising Consumer Demand after the Crash

The recent financial crash has hit almost all the sectors of business market. Similarly, recession has influenced the high tech industry and has shifted the consumer demand in many areas. Two of the tech stock companies that attempted to earn profits from increasing consumer demand after the crisis are Apple and Amazon. Both have developed initiatives and turned their strategic measures towards the rising consumer demand while meeting up the financial challenges after crash. These strategies include innovative and appealing products and services, and meeting the shift in consumer demand. This paper will illustrate how both companies have earned profits after crash and how the consumer demand of these companies have changed after the crisis. Further, it points out two strategies that MNCs can undertake to earn profits by leveraging the increasing consumer demand.

Analysis of How Selected Companies Attempted To Make Profit after the Crash

Despite the great recession world has just suffered and still some countries are suffering from, Apple and Amazon have undertaken some major initiatives and sustained their growth. In the year of 2009, when the recession was showing its great impact, Apple produced sparkling set of financial figures in fact more impressive given that they come in the depths of harsh economic crisis. The company reported quarterly revenues of more than $10 billion for the first time and they showed profit earning of around $28 billion even in that critical phase of economy (Jones, 2009). The hype of financial figures resulted in increase stick growth of the company. The measure reasons behind this profit making by the company is their incredible and demanding products including Mac, iPods, and iPhones. These are the measure products that helped Apple to earn the profits after recession as well. In 2009, all of these products i.e. iPods, iPhones, and Macintosh made profit around 22.7 million, 4.7 million, and 2.5 million respectively (Jones, 2009). According to the former CEO of the company, Steve Jobs, all these three products earned profit more than the year before and their further innovations were also in lead to enhance their growth in future as well (Kahney, 2009). Thus, it is very much evident Apple has attempted to make profits even after the crash through its innovative product lines that are highly in demand.

As far as Amazon is concerned, the company has busted through recession with profit surge. During financial crisis, the high street shops were struggling to meet their expected returns, while online retailer Amazon indicated tremendous increase in profit that also surprised the financial experts (Johnson, 2009). The company amazed Wall Street analysts by reporting profits of approximately $199 million in 2009, which was a huge jump of 68 percent from the year 2008 (Johnson, 2009). This successful profit making was majorly due to the Kindle electronic book reader that founder, Jeff Bezos, referred now as the mainstay of ...