The Industry

TheIndustry

a) AppleInc. is the world’s most valuable brands according to Forbes(Apple).The multinational American corporation was founded on April 1, 1976by three individuals, Steve Jobs, Ronald Wayne and Steve Wozniak.Apple Inc. is the manufacturer, designer and marketer of mediadevices, mobile phones, and portable digital players. The companyalso sells software, networking gadgets and other digital contents.However, the company is notably known for its product line ofsmartphones which are referred to as iPhones and the company’sdesktop which is referred to as the Mac. Recently, the company hasbeen involved in the sale of high performance headphones beats bydre(AppleInc. Profile ).

AppleInc. is the largest company in the U.S stock exchange, the companycurrently has a market capitalization of $700 billion is the firstand only U.S company to be valued at $ 700 billion. The Company’sshares are currently trading at $119 by the end of October 27th2014 (Macke).The company deals with consumer goods in the electronic equipmentindustry.

b) TheCompany however faces stiff competition from several rival firmswhich operate in the electronic equipment industry. One of theCompany’s fiercest rival is Samsung Electronics especially when itcomes to the consumer goods sector. Samsung Electronics is a Koreanbased firm and is the largest technology based Company in terms ofrevenue sales. For instance, in 2013 Samsung Electronics reportedsales revenue of $ 327 billion and a net income of over $ 30 billionin the same year. However, the rival between the two firms is basedon their dominance of the market share of smart phones. Over theyears, the two firms have gone head to head in smart phone wars withSamsung’s smartphones getting the better of Apple’s iphones.However, the tide seems to have turned in favor of iphones due totheir successful 2014 iphone 6 campaigns. On the other hand, Samsungsmartphones recorded as much as 20% slump in sales and a 49% declinein profits in the year ending 2014. In the U.S, Apple Inc. is headhigh over its three main competitors in the electronic equipmentindustry. The three competitors are namely: Blackberry Limited,Google Inc. and Hewlett-Packard Company. BlackBerry Limited recordedrevenues of $4.05 billion and a net loss of $ 5 billion for the year2014. BlackBerry is a consumer goods Company that deals with phonedesigning and manufacturing. Google Inc. reported sales revenue of $67.9 billion and a net income of $ 12.9 billion. Google Inc. is aninternet based company that offers an array of services to itsclients such as cloud computing and advertisement services. Finally,Hewlett Packard Company reported sales revenue of $ 111.45 billionand recorded a net profit of $5 billion in the year 2014. HewlettPackard is an American Company that manufactures and designscomputers and computer accessories. From this numbers, it is evidentthat Apple Inc. has outperformed its competitors in both sales andincome figures (Competitors).

c) Theelectronic equipment industry seems to be growing. This can beattested by the increased revenue and profits recorded by Apple Inc.This shows that there is still demand for new products for electronicconsumer goods. The electronic equipment industry will experiencegrowth thanks to constant developments in innovation.

d) Innovationis the key factor influencing the firm’s performance. As citedearlier Apple Inc. is one of the largest technology companies whichhave thrived as a result of innovation. This corporate culture wasinspired by its founder Steve Jobs who was a great innovator. Inaddition the rate of internet penetration in the world has increasedin leaps and bounds over the years. Research shows that mobile phonesand smart phones are the most widely used devices consumers use toaccess the internet. As a result, this has boosted the demand forsmartphones among consumers.

Operations,Organizations and Technology

b) AppleInc. has operations in all parts of the world. The company hassubsidiaries in countries that pay low taxes such as Luxembourg,Ireland, the Netherlands, the British Virgin Islands and China. Thecompany’s operation in these countries has however received lots ofcriticism especially from the government. The government viewsApple’s Inc. offshore operations as an alibi to avoid taxation bythe U.S government (Johnson,Li and Phang).In addition, the government argues that the company should set up itsmanufacturing facilities in the U.S in order to offer more U.Sresidents employment opportunities. On the other hand, the companydefends the move by stating that it operates offshore in an effort tokeep its operations cost low and thus the low wages for itsemployees. The company has over 96,000 employees all over the world.As of October 2014, Apple Inc. had over 437 retail stores in variousparts of the world. The company has a presence in 15 countriesworldwide. Apple Inc. consumer products are sold the company onlineor through its retail stores and through its direct sales team. Thecompany also avails its products and services through wholesalers,retailers and cellular network carriers. The company customer’sincludes: small and medium enterprises, individual consumers and thegovernment.

c) AppleInc. is no doubt the leading innovative technology company in theworld thanks to Steve Jobs who inculcated a culture of innovation inthe corporation. Apple Inc. success can be attributed to the iPhoneand iPad products. Recent studies show that Apple Inc. is mostnotable for the two technologies since most consumers can relate withthem. The iPhone and iPad are most notably easy to relate to due totheir multi functions. For example the iPhone is a phone and hasapplications that can enable a consumer to do a lot of things on theinternet. In addition, the Company was also able to introduce iTunes.iTunes is the world’s largest online music retail store thatenables consumers to have access to digital music for just $0.99 persong. Unlike other music retailers consumers can conveniently buy acouple of songs instead of the whole album. iTunes has now penetratedthe film, games and television markets (Johnson,Li and Phang).

AppleInc.’s organizational structure is one of the main reasons why thecompany is such as success. The company has a centralized structurewhere all crucial decisions in the Company are made at the corporateheadquarters. The company is headed by the CEO, Tim Cook who is incharge of all the eleven departments in the company which are headedby the Senior Vice Presidents of the respective departments. AppleInc. organizational structure is centralized but the decisions madeby the CEO and board of directors are effectively communicated downto the employees of the company. It said that anyone in the companyknew what Steve Jobs wanted though 90% of the employees had never methim (Johnson,Li and Phang).

WorksCited

Apple.&quot2014. Forbes.27 November 2014 &lthttp://www.forbes.com/companies/apple/&gt.

&quotAppleInc. Profile .&quot 2014. Yahoo.27 November 2014 &lthttp://finance.yahoo.com/q/pr?s=AAPL+Profile&gt.

&quotCompetitors.&quot2014. Yahoo.27 November 2014 &lthttp://finance.yahoo.com/q/co?s=AAPL+Competitors&gt.

Johnson,Katherine, et al. &quotThe Innovative Success that is Apple Inc.&quot1 January 2012. MarshallUniversity.27 November 2014&lthttp://mds.marshall.edu/cgi/viewcontent.cgi?article=1420&ampcontext=etd&gt.

Macke,Jeff. &quotApple`s value hits $700B, Tiffany shines and Pandorainvestors tune out.&quot 25 November 2014. YahooFinance.27 November 2014&lthttp://finance.yahoo.com/news/apple-s-value-hits–700b–tiffany-shines-and-pandora-investors-tune-out-170454450.html&gt.