Segments Of The General Environment That Would Rank Highest In Their Influence On Apple Inc.

Segments Of The General Environment That Would Rank Highest In Their Influence On Apple Inc.

Introduction

Today Apple Inc, is one of the most influential businesses in technology with $76B in cash reserves surpasses US government operating balance of $73.8B. (Josh Ong. www.appleinsider.com. 28th Jul 2011) However it has been facing the challenges of fierce competition in hardware and software markets since the very beginning, rivalry that has been able to compete by using innovative and attractive design for its products, increasing customers' loyalty and so, sales.

Discussion

The focus of this project is to outline the strategic issues of Apple,Inc in the United States. Apple is a publicly owned Fortune 100 company based in Cupertino, California. The firm operates primarily in the personal computer industry of the wider technology sector. Apple designs, produces, and sells a line of personal computers as well as mobile phones, portable digital media devices, software, and related peripherals and accessories. The firm sells internationally though a mix of direct sales, online and retail stores, wholesalers, and resellers.

PAST

During 1976, Steve Jobs and Steve Wozniak started a company to sell a primitive computer located at Steve Jobs garage. With Wozniak as the designer and Jobs possessing the entrepreneurial skills, they expanded the Apple Computer's business.

Their first product launched was called Apple I. The disadvantages of Apple I are such as no case, keyboard and exposed power supply installed. Soon after, they are join with Mike Markkula (as an capital, connections and business savvy) resources and Michael Scott as management which then they Introduced Apple II in 1977 equipped with Motorola microprocessor, keyboard, power supply, monitor and Microsoft BASIC software

Apple II was designed by Jobs in a way that it had attractive case and no visible screws or bolts. The additional of disk drive in Apple II to allow third parties developers to write software programs loaded through floppy disk. The increase in the sales of Apple II due to the existence of VisiCalc software was successful. Its success placed the company as one of the leader embryonic personal computer industry. Nevertheless, the next developed Apple III was a failure and Apple II has become one of the top computers being used as classroom standard in America

CURRENT

With all the product success, Apple remained a niche player in computer industry. The trend of unbranded or locally branded “white box” computers (self assembled), often selling machines at discount to globally branded products. This existence of “white box” computers create tight price competition in the market (E.g. Dell computers VS Hewlett Packard)

Advantages of “white box” computers is an open architecture of dominant PC standard based on Intel-compatible microprocessor, Microsoft operating system, low-tech nature of the assembly process and components could be purchase separately of the shelf cheaply. However there is still high demand of branded computers (E.g. Apple) in developed countries such as United States, Western Europe and Japan, instead of “white box” computers

Dells came out with the strategic ...