Thursday, 18 June 2015.
Apple’s external and internal environments
Apple Computer Company began operations in the field of personal computers in 1978, but due to changes in management, lost opportunities, and variations in views, the company lost its competitive edge to corporations, such as Dell and Microsoft. Apple, however, tried to differentiate brands to restrict customers from switching to competing brands. The company currently faces a challenge, which is to maintain its central marketing skills, originality, brand management and communication, as it uses a wider range of brands and provides additional markets (Naraine, 2004). This document is an analysis of the factors that affect Apple’s internal and external environment
General analysis of the environment
Since 2000, there has been a subversion of the financial system, computer business computer system of bulkhead. The legal and economic segments are the main environmental sectors that influence the company
The demographic segment
Statistics from the 2003 U.S. Census were completed by 281, 421, 05 citizens and in 2007-294 444,44,407. This was an increase of 13 million citizens for less than 4 years. The increase in the number of inhabitants, compounded by technological improvements, will continue to lead to improved transactions in emerging technology markets. Americans are starting to use the computer in the first years. When drawing pictures, it is easy to rebuild a large number of people in America to use computers in different styles or different forms. However, some of these generations use computer applications for research. The local population consists of 85 per cent of the population over the age of 24, with a minimum secondary school and 28 per cent with the first degree or master’s degree (Hitt, Ireland, &Hoskisson, 2013). It was conceived that 12 per cent of the population lived in poverty. The estimated population of the world in 2005 was 6,450,000,000 inhabitants and in 2010 it was 610,810,000 (Rezvani, Gilaninia and Mousavian, 2011). Statistics show that further increases will occur in the future. This increase in the population forces Apple Incorporation and the entire computer world to ensure production growth to meet growing demand. Computer industry is rapidly growing on the Asian continent and in line with statistics, most of the population growth will be within the region
Apple faces legal issues at the national and foreign levels. At the national level, the State and the federal administration are still gestures in environmental matters that hinder the production and disposal of units. Ecology is a problem that affects all computer companies. In 1995, the Environmental Protection Agency changed the computer industry policy report. The report contains declarations, followed by companies that are involved in the production of computer components. The Apple intentionally encourages the spout as well as the proper discharge of the components of the computer while attempting to provide support for the production from the point of view of the environment. Various countries have also imposed restrictions on parts of the computer and their applications. China is a good example that provides clarification on some of these issues. China began to allow computers to enter the country in the mid-1990s, but has limitations on applications (Rezanani et al., 2011). In addition, Apple is facing a struggle for excessive dominance in the personal computer market, although it is more likely to be in the world of music. Apple and other U.S. computer corporations have come to realize that doubling and piracy are widespread in the United States and other countries. This action, which is illegal, has a direct impact on the successful functioning of corporations in the electronics industry
In all markets and in the world of business, the use of the five hypotheses about the use of Porter’s force is being evaluated. Porter 5 forces; obstacles to entry, degree of influence of supplier, degree of competition, buyer power and risk of replacement as elements that help to examine the company’s condition along with competitors. The risk of substitution, as well as the degree of competition, are some of the most important factors affecting Apple’s operations today
Apple Corporation faces a high risk of replacing components that can be obtained at once. Intervals like Dell and IBM, which convince buyers that they have brands better than Apple. Apple, however, has tried to differentiate its brands to limit buyers from making the switch rival brands. Apple Brands, an additional market price command, which is high compared to other competing brands. Even though the prices on Apple are higher, the company provides price justification. A team of specializations of the Apple operating system, but the skyscraper costs of their delivery to the ingenious designer of the population compared to the buyers of individual computers, except where they are looking for superior graphics capacity (Boutelier, Gassmann, & Von Zedttwitz, 2008)
Apple is working in a competitive environment with companies that benefit from most of the market. Therefore, the company has to compete with companies such as IBM, Hewlett-Packard and Dell. However, secondary firms, such as the Gateway, also pose a huge risk. In the manufacturing industry, competition is flawed and the cost of switching to other computers is low. Apple also depends on improving its operating system. The possibility of success is minimal, as competitors chase niche markets, rather than trying to compete with larger firms. Apple placed its years in front of competitors as such, it has made a place in the industry of computers such as Dell, Gateway and IBM (Naraine, 2004)
Apple should continue to work with the innovative expert and educational markets. Apple is a company where the most efficient systems for such markets, as such, should focus on providing funding for each regulatory approach. It is assumed that the support costs associated with the market niche should be redesigned from an economic standpoint in such a way that the costs of research and development are not dragged into a situation that is not feasible for the return (Bouteiter et al., 2008). Apple also has the ability to use its operating systems so that it can work in Wintel’s work program, but it should not be limited to the failure data of Wintel. Apple has also proven itself to be the managing system, which is more and less sensitive to what Microsoft has encountered with Microsoft software and its operating system (Naraine, 2004)
The speed of the technological revolution and competition are the threats that are most seriously related to Apple Computer Company
Apple can use its variants of the operating system by turning it into a Macintosh program to achieve more design and additional advantages over its competitor. Various computer viruses, as well as cyberpunk violations, present fairly impressive prospects for the company to impersonate a small segment of such a rough market
Investing in the world of music with its iTunes is a good idea for raising the level of knowledge about the brand. The introduction to the iPod Music Shop also includes germ loads exceeding 2 million downloads in 15 days. All downloads were launched on the Macintosh’s mainframe. The creation of the company of its international music store is an ideal perspective
Microsoft clients believe that software updates are less practical, except when they are actually able to take advantage of the money for the money. Recent improvements in Microsoft are in error, which are the main great prospect that Apple can take advantage of its advantages only if it avoids the same error in updating it
In the mid-1980s, when the company was first in the market, its brand distinguished it from other brands of the company and to date, it is capitalized on this fact for its products. The system is still a strong point for Apple, because its operating system is not exposed to computer bugs and intrusions on other systems. The market for a limited part, which holds Apple, increases every time Microsoft faces problems
Identity and Reputation
Product brands help customers upgrade their products. Whenever a firm has a trendy brand name or reputation, it has several advantages. There are a number of advantages associated with brand reputation, and they include the ability to reduce production in terms of confirmation. Apple computers have got business data from Steve Job’s, and it has borne fruit
The Apple management is working on a combination of software and hardware development and does not make any suggestions for the dismissal of its employees as employees contribute to the success of the company. Apple will continue to work, while management techniques of software and computers, which even some of the toughest opponents themselves, are considered the best. The company does not create software and computer components for its computers, since it is able to regulate its design to bring them into line with the operational applications as well as the customer’s artistic requirements
The company’s functional operations are influenced by political and fiscal uncertainty, which at the same time is malignable by the US. Educational institutions are sometimes placed in procurement because of budget deficits and means of deterrence. Business enterprises are also not expanding, and the reduction in employment reduces disposable income, which reduces sales. Failback in the recovery process can thus have an impact on the firm as well as on the unconstructive activities of suppliers. The entire market has been severely damaged by political and fiscal uncertainty as well as by other constraints
Apple worked extremely hard to achieve this, and as such, has incurred more development and research costs than its competitors. Increased costs have an unconstructive impact on profits and lower commodity prices, and therefore become difficult under equal conditions
Growth in international trade points has led to an increase in the company’s costs. The marketing costs of promoting their exclusive operating system and its innovative equipment also influence the bottom line, although costs are necessary. Contestants can also use the usability of operating systems that control a significant amount of shared resources, so they cannot be used as such for the purposes of operating system advertising
Apple can increase diversification by introducing new products into the market. Because new products use new products, they will be able to steal their market share, as most people have a desire to become attractive and the latest products on the market. Apple is also known as a model in the fields of personal computers, operating systems, separate music computers, applications, mobile phones, as well as advertising and retail. The Apple seeks to concentrate its central strengths on top management of iPod, Macs, applications, international marketing and computer engineering. In the approach to differentiation, Apple is trying to be exclusive in the industry on issues that customers respect (Moriane, 2004). He chooses one or more functions, which most buyers in the industry consider to be important and are solely responsible for such wishes. Apple has also developed its basic understanding of buyers and product development in order to improve the digital way of life. Exceeding to increase the knowledge of customers, the company has turned lessons into products that represent exclusive attributes that require high prices
The company’s company is focused on training markets and innovative expert fields. Apple has already established the rule in both fields and continues to focus on them. It has already started to expand its retail outlets to get its products for people and to reach big steps in the world of music. These improvements also ensure targeted client activity and income generation. The engineering, innovation capabilities of Apple, as well as the scientific potential of development, are very important aspects, which are competitive assets of the company. In the long term, the company’s most important source of competitiveness is an outstanding creativity. The most important capabilities and resources of the corporation are the top management of the company, Steve Jobs, and integrated the system of software and hardware that the company effectively promoted and established for the receipt of value. While the company’s designers, engineers, and IT experts make up core resources, the company’s ability to use its talents to build products is its main feature (Zhouying & Ying, 2011)
Apple’s main actions in the supply chain are slightly different from the usual model, where the materials receive the finished goods for retail sale to the buyer, the seal on each step of the process. In its value chain, the company’s core business depends heavily on actions to strengthen human resources and management. Apple is also constantly trying to use the most experienced and capable people to ensure that it will be made available in the process of developing and researching its programs and technologies (Naraine, 2004). In fact, Apple repeatedly offers exams and skills to help recruiters sort the data using the huge biographical data that they get. A significant part of the cost structure relates to systems and infrastructure. Apple’s software and computers allow it to perform services, operations, sales and deliveries. Each action is added to the value chain by increasing the company’s revenue
By geographical transfer, Apple can exploit the benefits of diversity in terms of human resources, dropping wages in other countries, except the United States. The application of Apple’s competence in different product markets reduces Apple’s dependence on profit from the same market. Related diversification allows the company to share its activities, technologies and resources between different product lines, as well as the transfer of skills and intangibles, also ensures a successful opportunity to obtain a significant market share. In addition, the affiliation with other powerful branding helps to stimulate the promotion of Apple and improves customer confidence (Zhoying & Ying, 2011)
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