APPLE INC.

Apple Case Study

Apple Case Study

Introduction

The purpose of this report is to give a brief description about an organization known as “Apple”. It provides information about Apple's back ground, operations and external analysis of the company. The report also highlights the challenges that Apple is facing and the identification of Apple's business strategies.

The company came into being in 1977, founded by Steven Wozniak and Steven Jobs. The key operations of Apple include designing, developing and marketing of PCs, cell phones, media tools, and digital music players which are portable. Apple sells a wide variety of software, peripherals, and solutions for networking, services and digital content applications for the other companies. Geographic markets of Apple include North and South America, Japan, Asia-Pacific, and Europe (Data monitor, 2011, pp.4-5). The most common products of Apple Inc include Mac computers, IPads, IPod, iphone, television, and software. It comes under the industry of information technology. Apple is using the differentiation strategy as it is focusing on being more innovative rather than saving the costs.

The mission and vision of Apple Inc is bringing to the best personal computing experience for its consumers all around the world by being highly innovative. Apple values the health, safety and improvement of employees, consumers and global communities.

Discussion

External analysis

PESTEL Model

As the company operates in many countries, it is facing many political issues including the war against terrorism, geographical uncertainty, health issues of public in different countries. Political issues have a direct impact on the sale and image of Apple.

World's economic conditions impact the operations and selling of company's product. When the consumer's purchasing power reduces worldwide, the demand decreases for Apple's products. Apple faces legal issues in countries like China. China doesn't have perfect laws for the copied products; this problem impacts the sale of Apple's product in Chinese market (Changhua et al, 2011, pp.7).

Protection of environment, health and safety is issues that Apple is facing in countries where it operates. The implementation of regulations and laws has a negative impact on the company's financial performance. Due to rapid change in technology, Apple has to invest more in research and development to compete effectively in the world. Increase in technology assist competitors to come up with innovative products.

Porter's five forces

Products of Apple are facing high threats of substitutes. Products like ThinkPad and T series are substitutes for apple's products that meet the need of many consumers. Products by Dell to offer solutions for home and businesses are also making it difficult for apple to compete effectively.

Apple is facing high threat of existing rivals in the field of computers and music players. Existence of many large companies in the market is brining wars for prices. However, Apple is still having a better condition than its competitor. Threat of new entrants is very low because of the barriers that exist to enter the market. Copyrights of the products and a large amount of initial required to enter in the market are the main barriers for ...