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MRKT 1001 Principles of Marketing Spring 2017 Prof. Howarth Project 1: Due April 6th Organization Introduction, SWOT Analysis, & Competition Analysis – (150 Points) This project is to be completed in a team of 2 people. Please choose an organization to study for the term. This organization needs be part of a publicly traded company so they will have financial information filed with the Securities & Exchange Commission (SEC). There are grading rubrics that accompany the projects. Please refer to them for additional details. Before we make marketing decisions we need to know what is going on in organization we represent as well as the marketing environment. These analyses will be crucial to term project #2. I will provide tables for you to create your SWOT and Competition Analysis. Please develop each section of the introduction in essay format. From the questions please develop headings and subheadings to organize your paper. Please omit the numbers in your paper. They are only used here for organizational purposes. One work cited at the end of the project should include research done for each component of the project. Organization Introduction (20 Points) 1. Please provide a brief history of this organization. a. Where is the location of organization’s headquarters and its main address? b. If the organization has additional offices, stores, chains or franchises, where are they located? c. What does this organization do? What is it’s product/product line? d. What is the organization’s current initiatives (see media or press relations on the organization’s website). 2. Financials a. What is the organization’s ticker symbol? b. What was the organization’s 2016 gross sales revenue? c. Is the organization for profit, non-profit, or not for profit? d. How many employees does the organization have? Where are they located? 3. Marketing a. Is their marketing done locally or by an outside agency? If it is an agency, what agency? b. Who do they sell their products to (what markets)? c. Describe their logo (include an example in your paper). d. What is their website address? e. Are they on social media? Which ones and what are their addresses? 1 MRKT 1001 Principles of Marketing Spring 2017 Prof. Howarth SWOT Analysis (100 Points) For each micro and macro environmental factor there are 4 parts that you need to complete. 1. Research – for each micro factor find what is being said about your company – strength and weakness. For each macro factor find what is being said about your industry – opportunity and threat. You are likely to find some strengths on the company website, but you are likely to find the rest of the information in the JWU Library Databases. Make the information direct quotes in your table. 2. Citations – put in-text citations after the quotes and put the full citation in your work-cited at the end of the project. 3. Explain – in your own words explain why this quote is a strength, weakness, opportunity, or threat. 4. Recommendation – once you have completed each factor section, please offer a recommendation that your team thinks is wise for the company to do based on the information. Competition Analysis (20 Points) Based on your knowledge of competition, please list and provide information for each level of competition: product form, product category, general, and budget competition. Please include citations in your work cited at the end of the project. Format (10 Points) Please include a cover page, table of contents, page numbers, in-text citation when citing direct quotes and when requested, and work cited. The paper should be 12-pt. font double spaced, either Times New Roman or Arial. The charts should be 10 pt font and single-spaced. Do not break the chart cell over a page break. Start a new row on the next page, but make sure to copy the heading row so the reader knows what they are reading. Please make sure to proofread and spell check. If you need additional help please contact the writing tutor in the Learning Center. Please post the project as 1 complete file to Turnitin and submit a hard copy to me in class on the due date. 2 Running head: APPLE INC. MARKETING ANALYSIS Apple Inc. Marketing Analysis Student’s Name Institutional Affiliation Instructor Date of Submission 1 APPLE INC. MARKETING ANALYSIS 2 Table of Contents Abstract ........................................................................................................................................... 3 Principles of Marketing..................................................................Error! Bookmark not defined. Part 1: Organization Introduction............................................................................................... 3 History of the organization ...................................................................................................... 3 Financial Status of the Company ................................................................................................ 4 Marketing Strategies ................................................................................................................... 6 Part 2: SWOT Analysis.................................................................................................................. 7 The Strengths of Apple Inc Company ......................................................................................... 7 Weaknesses of Apple Inc Company............................................................................................ 9 Opportunities of Apple Inc. Company ...................................................................................... 10 Threats to Apple Inc Company ................................................................................................. 11 Part 3: Competition Analysis ....................................................................................................... 12 Conclusion .................................................................................................................................... 14 References ..................................................................................................................................... 16 Appendix 1 Competitors Information……………………………………………………………..17 Appendix 2 SWOT Analysis ...…………………………………………………………………………………………………………………19 APPLE INC. MARKETING ANALYSIS Abstract Marketing strategies vary from one company to another. The application of the principle of marketing is well visible at both the local and the international analysis. For actual internalization of the concepts under the principle of marketing the research will mainly focus Apple Inc. The study will cover on three major segments; the introduction of the enterprise where the paper will offer the background history, the financial and the marketing analysis. On the second part, the study will provide a SWOT analysis for the company where it discusses on the strengths, the weaknesses, threats and the opportunities of the business. Finally, the research will also focus on the competition evaluation of the enterprise. Conclusively the paper will offer an overall conclusion. Part 1: Organization Introduction History of the organization The initiation of Apple Inc. company was by three men; Steve Jobs, Steve Wozniak and Mike Markkula in the late 1970’s. The founders together designed and marketed the series of computers that were under production. The company is located in Cupertino, California in the United States. The current CEO of the business is Tim Cook who took leadership after the death of Steve Jobs. In 1983 the company began to become commercially successful in the line of industry upon the production of the 1st computer that applies graphical user interface. Later after one year the company successfully brought forth the Macintosh technologies which gave an origin to the firm being a legend. 3 APPLE INC. MARKETING ANALYSIS 4 The rise and fall of Apple Inc. Company has been witnessed in many instances. For example, in 1985 Steve Job was alleged to have left the company he helped to create due to endless conflicts with the board. In 1986 Apple Company took a different direction where his primary focus was on the Lucas film Ltd. The specialization at this juncture settled on the production of graphically generated animated videos. In 1996, the company began world domination where apart from being a niche computer platform it was subject to expansion. In 2001 the firm introduced the iPod which was a significant intervention in the music industry. The company received a lot of praise for the successful implementation of a technology that could facilitate people to store music in a minuscule device electronically. Later in 2007, the company invented the iPhone which was the technology people wanted. Other businesses in the industry began to emulate Apple. Currently, the firm specializes in the manufacture of diverse products; computer electronics, personal computers, computer soft ware’s, servers and also acts as a digital distributor of media content. Financial Status of the Company The revenue accumulation for the enterprise increases annually by an average of 26% annually while the profit margins continue to expand by 34%. The cash reserves of Apple Inc. Company began to grow in 2006 the company chose to create the Braeburn Capital so as to facilitate the management of its assets. To maximize the gross margin the company does not necessarily produce the products. On the contrary, it contracts other electronic manufacturing businesses to help in assembling of some parts of the products under production (Schneiders, 2010). The firm, therefore, avoids being a manufacturing plant because it is rather very expensive. In this regard, it has put in place an effective supply chain management. The gross APPLE INC. MARKETING ANALYSIS margin of the firm upon reduction of the production costs it reads at approximately more than 40%. The sales of the company continue to grow annually. As the products advance periodically, Apple ecosystem continues to develop. For example in 2015, the average growth rate for the past five years read at 29.08%. Due to the increased sales growth and profit margins, the total revenue also continues to grow (Cruikshank, 2006). The process of sales growth has been very pivotal in the facilitation of the transition of the company and the establishment of a new market. Price to earnings ratio is associated with the continuous earning which is unlike the speculative multiples of the enterprise. The valuation of the growth on earnings, gross profit margins and sales gives rise to strength by the investors of the firm. The financial position of Apple Inc company is such that it is strong to enough to facilitate the expansion of the company and the future of the enterprise as well. (The figure below shows Apple’s Income Statement trend between the years 2012-2016) 5 APPLE INC. MARKETING ANALYSIS 6 Marketing Strategies The marketing strategy of the company factors in elements like market segmentation, targeting and the positioning of the brand. The Apple Company has segmented the market in three major factors (Cruikshank, 2006). The segmentation of market is based on the lifestyle whereby the urban population is the major communities because they have a higher purchasing power. The urban population is early adopters of life and gives preference to elevated levels of technology which is Apple’s priority. The target market for the company comprises of three groups. Firstly, it is music lovers who are objected at Apple IPod and ITunes (Woellner, 2013). Secondly, it is the professionals and the teenagers whose target is Tablets, MacBook, Apple iPhone and other gadgets that follow the demands of the given age group. Thirdly, it is the crowd which can use other services and products like the Apple TV and the Apple Watch (Schneiders, 2010). Apple Company has achieved a given level of competitive advantage following the adopted marketing strategy. The distribution in the commercialization strategy is structured such that it has a potential retail setup. In the United States, the company has approximately 450 stores where the stores are oriented within helping the clients and making them feel comfortable. In 2016, Apple achieved the highest level of brand equity in marketing strategy in the world. Most importantly, Apple is considered to have the most elegant advertisements in any print ads and the newspapers (Woellner, 2013). The announcements are clear and crisp in their message. The advertisement and the brand promotion are heavily used primarily at the launch of a new product. The marketing strategy has served a great lesson to other companies on differentiation, brand building, and innovation. APPLE INC. MARKETING ANALYSIS 7 Although the positioning in the United States of America is efficient in developing nations like Africa, Asia, and others, the company needs to expand the coverage. Part 2: SWOT Analysis Apple being among the top brands in the world, it has more strengths than the weaknesses. However, the challenge is that threats to the company continue to rise because it is in target radar of many businesses. In this context, the analysis will cover on SWOT evaluation of Apple Company and how it manages to be a leading company in the world. The Strengths of Apple Inc. Company Firstly, the company has devoted to the production of innovative products. Over many years the company is well known for the production of highly innovative products (see Appendix 2). Year after year the company has produced hit products in the product line up. The conducted research shows that the corporation creates an imitation lag of approximately two years in the industry. As a result, it accrues the firm an advantage of market domination. Firstly, it produced the Macbooks, later on, created the iPod, watch and the iPad. The products capture the differing interests of the customers. Most importantly is that in the application of innovations the products are modeled to meet the gap and the demand of the customers. Customer satisfaction is a high strategy for winning a market share in the industry. Apple Inc. Company has maintained a leadership position in the world. The enterprise holds the world’s largest revenue in the technology industry. Additionally, it holds second place as the second biggest manufacturer of mobile phones (see Appendix 2). In 2014 it maintained a record of the largest traded company having passed the cross of 700 billion in the United States. APPLE INC. MARKETING ANALYSIS 8 In the leadership game, Apple is far much ahead. Being the in the top leadership position it translates that the brand equity also has to uphold a high standard. In 2016 the company held the 1st number position of the most valued brand among all other companies. The good will price for the brand value accounts to approximately 118.9 billion dollars. The most challenging element of Apple is that the design and the technology under application are at high levels (see Appendix 2). In the designs, Apple has always been suave and elegant. The packaging of the products is such that it captures the interest of the clients. The products are structured with the highest level of simplicity in use despite the sophistication of the models. In distribution strategy, the company has established approximately 470 of its stores in 17 countries in the world. Besides the physical stores, the company conducts online transactions which offer premium retail channels. The retails are designed such that they offer a fantastic experience upon entering the stores. Most importantly, the company has launched the Apple genius bar which directly solves all the problems of the clients. The pricing strategy of the company is standardized in all areas and thus does not break in given stores. Furthermore, the company will always put the customers’ needs at heart in the analysis of the future (Cruikshank, 2006). The innovation strategy focuses on the introduction of new products which have not yet crossed consumers mind (see Appendix 2). Apple is vertically integrated with other companies which accrue the company a better chance to manage four lines of business at a single time (Hasan, 2013). For example, the company handles the hardware business, software, service provider and retailer as well. All the elements are integrated as one variable. It is commendable how the company manages the entire APPLE INC. MARKETING ANALYSIS 9 supply chain, unlike other competitors who have a limited capacity in the area. An essential element that forms the strength of the enterprise is that the firm has a sound financial management with one of the strongest cash flows (see Appendix 2). Since the business is experiencing a high growth rate, it is uncommon how the company manages to achieve the high levels of success. Financial stability and growth have given root to the rapid development of the enterprise in the industry (Tar, 2013). Currently, the firm has set a low level of expenditures on the research and the development compared to other companies. It is for the reason that there are few numbers of innovations in the market than it was previously. The % of spending on research currently accounts for 3.4% of the total revenue. The % of expenditure on research determines the expansion of the firm into new ventures. Weaknesses of Apple Inc. Company The underlying weaknesses of the company are that the corporation fails to match up customer expectations (Tar, 2013). Since 1980’s Apple has a growing market share globally as are the expectations of the enterprise. Due to high established reputation of the company, it within the expectation of individuals that the firm will produce more unique and quality products meeting the growing demands may be in some instances a major challenge (see Appendix 2). An additional underlying problem is the incompatibility of the goods with other goods and accessories. Therefore, one a user buys Apple’s products they have to maintain the same product line. As a result, it influences the decision making of the customers. In addition, the company has challenges with the management. APPLE INC. MARKETING ANALYSIS 10 The company has only 7-8 products in the portfolio unlike the competitors like Microsoft and Google. The company, therefore, has a high dependency level on a few products. Furthermore, the direct distribution channel depicts some challenge in the essence that it contributes to 26% of the total sales (see Appendix 2). For example, in India which is the 3rd largest smartphone market, the company has not established any official stores. Opportunities of Apple Inc. Company In 2020 Apple Company plans to establish the Apple Car. Like other companies Facebook whose expansion covers Instagram, Whatsapp while Google development is over ten more companies. Technological advancement is an underlying opportunity (see Appendix 2). Technology grows taking a rapid and dynamic nature. Therefore, within such expectation, the enterprise will adopt high levels of innovation as time advances. It is expected that more advanced phones, tablets, and MacBooks will be developed. Most importantly is that the company growth is still persistent and the market is growing as well. In the developing nations, the GDP continues to rise annually; the company stands a chance to explore new markets for example, in Africa. Any growing market requires a strong market base, and the availability of market is pivotal in enhancing the sales for the firm. The company can consider venturing into the health-related wearable gadgets. In 2015 the Apple watch was introduced in the market. It was the first company to come up with wearable devices in the market. The growth in this line is expected to rise by 35% annually. Since there exists towards wearable health devices the company, therefore, stands a high chance to endeavor in this line of the venture. The company could, therefore, manufacture an array of different products. For example, the company can consider the introduction of gadgets which can APPLE INC. MARKETING ANALYSIS 11 read the intake of calories in the body, monitor the blood pressure and heartbeat rates or the infusion of drugs through the skin. The expansion of mobile payment is a potential strategy in the mobile transfer of funds. People show a greater interest in the transactions via phones whereby in 2015 the amounts that were transferred through mobile payment accounted to approximately US$ 8.7 billion in the United States. The e-markets research suggests that the mobile payment transactions will grow by 210% annually. It is for the reason that if Apple expands its innovation to the sector, it will stand a potential opportunity to thrive (see Appendix 2). In 2015 the company introduced the Apple Pay application which enables the users of iPhones, and the Apple Watch users to settle their payment successfully. Threats to Apple Inc. Company The technology industry is highly competitive which acts as the principal source of threats. Some of the main competitors include the Microsoft, IBM, Dell, and HP. Since Apple launched the iPhones and the iPods the competition has shown that it continues to increase (see Appendix 2). Samsung and Google also form one of the competitors in the sector. The challenge comes in the fact the Apple products are overpriced which puts the middle and lower income buyers (Cruikshank, 2006). The emerging markets in Asia like Huawei, Techno and others are producing similar gadgets with almost same features at a subsidized rate. All the categories that the firm ventures are under threat because the competitors are posting high levels of standards in innovation. APPLE INC. MARKETING ANALYSIS 12 The United States dollar is getting stronger every day. As a result, any multinational firm is under threat. For example, Apple Company earns its revenue both internally and externally. The global market offers 65%. According to the currency forecasts, the exchange rates continue to rise among other foreign currencies. The implication of the case is that the earned revenue from abroad may decrease as a result of the exchange rates. The legal suits on infringement of patent laws have on high capacity ruined the reputation of the company. In the markets, it is common that the lawsuits on infringements are often overlooked. The company has no immunity, and therefore unintentionally it may infringe others as well. The company has previously violated other people over the years. The trend is postulated to continue due to the complexity of the products. The Unified patents propose that Apple Company is the most targeted company for infringements (see Appendix 2). The data under storage is under the threat of breaches. In the transactions, the company uses clients’ partners and business personal identification information. The information includes the names addresses, the credit and debit cards and other personal information. It happens that the stakeholder’s data and personal information may be stolen and passed on from time to time. Examples of companies that have been affected by data security include the Amazons, eBay, and Google. Consequently, they have lost a lot of clients due to the failure of protection of the stakeholder's security. The Apple Inc. company forms one of the major threats to data security considering the increasing numbers of cyber safety issues. Part 3: Competition Analysis In conducting the competitive analysis, it is a struggle to identify the particular firm that Apple should be compared with. The core strategies of the company are designed such that to APPLE INC. MARKETING ANALYSIS 13 help in the differentiation of the products from other businesses. The constant innovations define the boundaries of the firm (Hasan, 2013). Furthermore, the strategy and structure represent the culture of the organization. In the personal computer industry, there is ultra-competition with firms like Dell and other companies which have been dominant in the sector. The company entered the venture with the intention of imposing the vision of how the personal computers should be. The argument is that the enterprise is first positioned for the PC industry because that’s where the company established its roots (see Appendix 1). Apple’s strategy to integrate the software and hard wares has denied the firm the opportunity to significantly win a larger market share as other companies like Microsoft. The consumer’s electronic industry is the source of the company’s success. The research and design under the sector offer uniqueness for the brand and the products. The invention of iPod acted as a primary source of competitive advantage which aided in the market domination through sleek designs. The devices are structured with a simple user interface, and they also have a large storage capacity. The design of the Apple is structured to help in the lucrative emergent market which is a major target to Sony, Samsung, and LG (see Appendix 1). Apple Company has built on a strong competitive strategy through the application of the structuralized approach, for example, Porter’s differentiation. The strategy is highly effective because the company differentiates the products and the services. The competitive strategy is depicted to be a little underway because the company has spent a small amount in research compared to its competitors who have approximately more than five times of Apple Company (see Appendix 1). APPLE INC. MARKETING ANALYSIS 14 Apple offers a broad range of products which makes it a fierce competitor in the technology industry. Under the personal computers, the Microsoft operating system has remained to be a favorite brand for many (see Appendix). However, Apple has maintained a higher level of loyalty from the users. The primary competitors under the category include Packard (HPQ), Acer and the Lenovo’s. Under the mobile computers, iPod brought along a significant transition in the industry which attracted a lot of imitators on the field. The main competitors under the category include Nokia, Asus, and Google. Under the mobile payment category, the firm managed to operate highly successfully under the category (Cruikshank, 2006). In the 1st 72 hours of introduction, more than a million users showed a high level of interest on the application. The major competitors in this category include Google and PayPal. In the budget competition analysis, Apple holds a relatively small level of budget especially in the research and design than the competitors. In comparison to HP, Cisco, IBM, Microsoft and Google, Apple has a relatively small budget (see Appendix 1). First, the attributing reasons are that the other competitors they have more product lines than Apple. The rationality beside the reduced cost is that the company spends less to polish up on fewer products during the process of market launch. In many cases, in the final stage of research and design, the product development is usually very expensive, unlike Apple whose initial stages of research and design are usually very expensive. Conclusion In the technological industry, Apple has shown a significant level of success despite the present challenges. The Company is resourceful in offering inference on principles of marketing. Being an international company, the firm satisfies broad categories which need to be met. For APPLE INC. MARKETING ANALYSIS instance, the firm has successfully being a top leader in the technology industry with respect to the levels of innovations the sales and the revenues. The theoretical case studies like the background, financial and the marketing analysis offers inference on virtues like the marketing strategies, the importance of financing in marketing and such related variables. The SWOT analysis opens up on real application of business in the exploration of the opportunities, mitigation of threats and risks and how the strengths help to accrue the competitive enterprise advantage. Additionally, the composition analysis is highly educative on how the company achieves high levels of success despite the high levels of competition. 15 APPLE INC. MARKETING ANALYSIS 16 References Cruikshank, J. (2006). The Apple Way. Mc Graw Hill Professional. Hasan, M. R. (2013). Apple Inc. An Analysis: PESTLE Analysis, Porters 5 Forces Analysis, SWOT Analysis, Comprehensive Analysis of Finacial rations, Comprehensive Analysis of Share Performance of Apple Inc. Grin Verlag. Schneiders, S. (2010). The Secrets of Appl's Success: Traditionelles Marketing and Kult Marketing. Diplom.de . Tar, A. (2013). Apple SWOT Analysis. Grin Verlag Publishers. Woellner, J. Z. (2013). Corporate Strategy for Apple Inc Company. Grin Verlag Publishers. https://www.google.com/finance?fstype=ii&q=nasdaq:aapl 17 APPLE INC. MARKETING ANALYSIS Appendix 1: Competitors Information Company Information Apple Inc Company 1 Infinite Loop Cupertino, CA 95014 408-996-1010 115,000 $46.9 billion Mobile communication, media devices, personal computers, portable digital music players, software and accessories All customers worldwide Your Organization Headquarters Address Number of Employees Annual Sales Product Line Market(s) it Pursues Product Form Competition Organization Headquarters Address Samsung Phone Number: (201) 229-4000 Fax Number: (201) 229-4029 Website: http://www.samsung.com Number of Employees 392,305 Annual Sales Product Line $45.6 billion Mobile communication, media devices, personal computers, portable digital music players and accessories All customers worldwide Because it offers the same services just like the Apple company to the similar customers Product Category Competition LG Phone : +61-2-8805-4139 Address : 2 Wonderland Drive, Eastern Creek, NSW 2766 Market(s) it Pursues Reason it is a Product Form Competitor Organization Headquarters Address • • Number of Employees Annual Sales Product Line Market(s) it Pursues 220,000 47.06 billion Mobile communication, media devices, personal computers, portable digital music players All customers worldwide 18 APPLE INC. MARKETING ANALYSIS Reason it is a Product Category Competitor Organization Headquarters Address Number of Employees Annual Sales Product Line Market(s) it Pursues Reason it is a General Competitor Because it offers the same services just like the Apple company to the similar customers General Competition HP 1501 Page Mill Road, Palo Alto, CA 94304 P.C. 94304-1112 Palo Alto Contacts :1-650-857-1501 317,500 $50.1 billion Mobile communication, media devices, personal computers, portable digital music players and software All customers worldwide The company supplies the same product as Samsung Budget Competition Organization Headquarters Address Number of Employees Annual Sales Product Line Market(s) it Pursues Reason it is a Budget Competitor Microsoft Microsoft Campus Building 92 Redmond, WA 98052 120,849 $93.6 billion All customers worldwide All customers worldwide Microsoft competes with the Apple company such that it offers same products at a cheaper price 19 APPLE INC. MARKETING ANALYSIS Appendix 2: SWOT Analysis both Internal and External SWOT Analysis: Internal Company Strength: Management: Weakness: Recommendation: Marketing: Strength: Weakness: Recommendation: Finance/ Accounting: Strength: Weakness: Recommendation: Operations: Strength: Weakness: Recommendation: Customers: Strength: Weakness: Recommendation: Suppliers: Strength: Using the insight from Apple management team to help designate new division leaders Lack of motivational management can inspire and motivate The company should ensure a diversified management team Ability of the company to come up with innovative products Corporation fails to match up customer expectations The company should make sure that the customer expectations are met in all areas Ability to carry out the research and the development compared with low level of expenditures compared to other companies A lot of finance has been used in global marketing The company should ensure that marketing is carried out at a standard price Apple has a strong process and system Inability to meet the growing demands in the market. Apple should come up with diversified products that meets the growing demand in the modern world Ability to have a quick products delivery to the customers Inability to meet the customers’’ expectation Meeting of the customers’ expectations should be the first priority Ability to maintain a good relationship with the APPLE INC. MARKETING ANALYSIS Weakness: Recommendation: Distribution Channel(s): Strength: Weakness: Recommendation: 20 suppliers No identified weakness related to the suppliers Apple should maintain such good relationship with the suppliers Ability to have a smooth flow distribution channel Some distribution channels such as the internet channels experiences delay The company should improve on the delaying distribution channels SWOT Analysis: External Economic: Opportunity: Threat: Recommendation: Social, Cultural, Demographic: Opportunity: Threat: Recommendation: Political/Legal: Opportunity: Threat: Recommendation: Technological: Opportunity: Opportunity to expand its international market that will ensure increase in the annual sales Customers’ may opt to buy their products form other competitors such as Microsoft which offer its products with a cheaper price Apple is recommended to employ pricing strategy The social connection that could be created with such quality products could make a huge difference in the world socially. Connecting families in a new manner Maintaining a social responsibility can be time consuming and requires attentiveness that could require full time attention from employees. The company should use media and technology to connect the society Create a legal/ethical disclaimer that releases responsibility. Ability to acquire patent The company may face huge tax charges that are required in international markets. Also, the company operations may be interrupted by the political issues when engaging in global market The company should ensure that the political influences has nothing to do with the company operations Ability to incorporate technology in the company’s 21 APPLE INC. MARKETING ANALYSIS Threat: Recommendation: Natural: Opportunity: Threat: Recommendation: operations Superior technology being developed by a competitor The company should be in line with the modern technology in the market Ability to function smoothly due to environmentally friendly location Could be hard to maintain all area’s environmentally friendly The company should analyze the market natural factors first before the expansion Outline Apple Inc. Marketing Analysis Abstract ..........................................................................................Error! Bookmark not defined. Principles of Marketing..................................................................Error! Bookmark not defined. Part 1: Organization Introduction..............................................Error! Bookmark not defined. History of the organization .....................................................Error! Bookmark not defined. Financial Status of the Company ...............................................Error! Bookmark not defined. Marketing Strategies ..................................................................Error! Bookmark not defined. Part 2: SWOT Analysis.................................................................Error! Bookmark not defined. The Strengths of Apple Inc Company ........................................Error! Bookmark not defined. Weaknesses of Apple Inc Company...........................................Error! Bookmark not defined. Opportunities of Apple Inc. Company .......................................Error! Bookmark not defined. Threats to Apple Inc Company ..................................................Error! Bookmark not defined. Part 3: Competition Analysis ........................................................Error! Bookmark not defined. Conclusion .....................................................................................Error! Bookmark not defined. References ......................................................................................Error! Bookmark not defined. Appendix 1 Competitors Information……………………………………………………………..17 Appendix 2 SWOT Analysis ...…………………………………………………………………………………………………………………19 Running head: APPLE INC. MARKETING ANALYSIS Apple Inc. Marketing Analysis Student’s Name Institutional Affiliation Instructor Date of Submission 1 APPLE INC. MARKETING ANALYSIS 2 Table of Contents Abstract ........................................................................................................................................... 3 Principles of Marketing..................................................................Error! Bookmark not defined. Part 1: Organization Introduction............................................................................................... 3 History of the organization ...................................................................................................... 3 Financial Status of the Company ................................................................................................ 4 Marketing Strategies ................................................................................................................... 6 Part 2: SWOT Analysis.................................................................................................................. 7 The Strengths of Apple Inc Company ......................................................................................... 7 Weaknesses of Apple Inc Company............................................................................................ 9 Opportunities of Apple Inc. Company ...................................................................................... 10 Threats to Apple Inc Company ................................................................................................. 11 Part 3: Competition Analysis ....................................................................................................... 12 Conclusion .................................................................................................................................... 14 References ..................................................................................................................................... 16 Appendix 1 Competitors Information……………………………………………………………..17 Appendix 2 SWOT Analysis ...…………………………………………………………………………………………………………………19 APPLE INC. MARKETING ANALYSIS Abstract Marketing strategies vary from one company to another. The application of the principle of marketing is well visible at both the local and the international analysis. For actual internalization of the concepts under the principle of marketing the research will mainly focus Apple Inc. The study will cover on three major segments; the introduction of the enterprise where the paper will offer the background history, the financial and the marketing analysis. On the second part, the study will provide a SWOT analysis for the company where it discusses on the strengths, the weaknesses, threats and the opportunities of the business. Finally, the research will also focus on the competition evaluation of the enterprise. Conclusively the paper will offer an overall conclusion. Part 1: Organization Introduction History of the organization The initiation of Apple Inc. company was by three men; Steve Jobs, Steve Wozniak and Mike Markkula in the late 1970’s. The founders together designed and marketed the series of computers that were under production. The company is located in Cupertino, California in the United States. The current CEO of the business is Tim Cook who took leadership after the death of Steve Jobs. In 1983 the company began to become commercially successful in the line of industry upon the production of the 1st computer that applies graphical user interface. Later after one year the company successfully brought forth the Macintosh technologies which gave an origin to the firm being a legend. 3 APPLE INC. MARKETING ANALYSIS 4 The rise and fall of Apple Inc. Company has been witnessed in many instances. For example, in 1985 Steve Job was alleged to have left the company he helped to create due to endless conflicts with the board. In 1986 Apple Company took a different direction where his primary focus was on the Lucas film Ltd. The specialization at this juncture settled on the production of graphically generated animated videos. In 1996, the company began world domination where apart from being a niche computer platform it was subject to expansion. In 2001 the firm introduced the iPod which was a significant intervention in the music industry. The company received a lot of praise for the successful implementation of a technology that could facilitate people to store music in a minuscule device electronically. Later in 2007, the company invented the iPhone which was the technology people wanted. Other businesses in the industry began to emulate Apple. Currently, the firm specializes in the manufacture of diverse products; computer electronics, personal computers, computer soft ware’s, servers and also acts as a digital distributor of media content. Financial Status of the Company The revenue accumulation for the enterprise increases annually by an average of 26% annually while the profit margins continue to expand by 34%. The cash reserves of Apple Inc. Company began to grow in 2006 the company chose to create the Braeburn Capital so as to facilitate the management of its assets. To maximize the gross margin the company does not necessarily produce the products. On the contrary, it contracts other electronic manufacturing businesses to help in assembling of some parts of the products under production (Schneiders, 2010). The firm, therefore, avoids being a manufacturing plant because it is rather very expensive. In this regard, it has put in place an effective supply chain management. The gross APPLE INC. MARKETING ANALYSIS margin of the firm upon reduction of the production costs it reads at approximately more than 40%. The sales of the company continue to grow annually. As the products advance periodically, Apple ecosystem continues to develop. For example in 2015, the average growth rate for the past five years read at 29.08%. Due to the increased sales growth and profit margins, the total revenue also continues to grow (Cruikshank, 2006). The process of sales growth has been very pivotal in the facilitation of the transition of the company and the establishment of a new market. Price to earnings ratio is associated with the continuous earning which is unlike the speculative multiples of the enterprise. The valuation of the growth on earnings, gross profit margins and sales gives rise to strength by the investors of the firm. The financial position of Apple Inc company is such that it is strong to enough to facilitate the expansion of the company and the future of the enterprise as well. (The figure below shows Apple’s Income Statement trend between the years 2012-2016) 5 APPLE INC. MARKETING ANALYSIS 6 Marketing Strategies The marketing strategy of the company factors in elements like market segmentation, targeting and the positioning of the brand. The Apple Company has segmented the market in three major factors (Cruikshank, 2006). The segmentation of market is based on the lifestyle whereby the urban population is the major communities because they have a higher purchasing power. The urban population is early adopters of life and gives preference to elevated levels of technology which is Apple’s priority. The target market for the company comprises of three groups. Firstly, it is music lovers who are objected at Apple IPod and ITunes (Woellner, 2013). Secondly, it is the professionals and the teenagers whose target is Tablets, MacBook, Apple iPhone and other gadgets that follow the demands of the given age group. Thirdly, it is the crowd which can use other services and products like the Apple TV and the Apple Watch (Schneiders, 2010). Apple Company has achieved a given level of competitive advantage following the adopted marketing strategy. The distribution in the commercialization strategy is structured such that it has a potential retail setup. In the United States, the company has approximately 450 stores where the stores are oriented within helping the clients and making them feel comfortable. In 2016, Apple achieved the highest level of brand equity in marketing strategy in the world. Most importantly, Apple is considered to have the most elegant advertisements in any print ads and the newspapers (Woellner, 2013). The announcements are clear and crisp in their message. The advertisement and the brand promotion are heavily used primarily at the launch of a new product. The marketing strategy has served a great lesson to other companies on differentiation, brand building, and innovation. APPLE INC. MARKETING ANALYSIS 7 Although the positioning in the United States of America is efficient in developing nations like Africa, Asia, and others, the company needs to expand the coverage. Part 2: SWOT Analysis Apple being among the top brands in the world, it has more strengths than the weaknesses. However, the challenge is that threats to the company continue to rise because it is in target radar of many businesses. In this context, the analysis will cover on SWOT evaluation of Apple Company and how it manages to be a leading company in the world. The Strengths of Apple Inc. Company Firstly, the company has devoted to the production of innovative products. Over many years the company is well known for the production of highly innovative products (see Appendix 2). Year after year the company has produced hit products in the product line up. The conducted research shows that the corporation creates an imitation lag of approximately two years in the industry. As a result, it accrues the firm an advantage of market domination. Firstly, it produced the Macbooks, later on, created the iPod, watch and the iPad. The products capture the differing interests of the customers. Most importantly is that in the application of innovations the products are modeled to meet the gap and the demand of the customers. Customer satisfaction is a high strategy for winning a market share in the industry. Apple Inc. Company has maintained a leadership position in the world. The enterprise holds the world’s largest revenue in the technology industry. Additionally, it holds second place as the second biggest manufacturer of mobile phones (see Appendix 2). In 2014 it maintained a record of the largest traded company having passed the cross of 700 billion in the United States. APPLE INC. MARKETING ANALYSIS 8 In the leadership game, Apple is far much ahead. Being the in the top leadership position it translates that the brand equity also has to uphold a high standard. In 2016 the company held the 1st number position of the most valued brand among all other companies. The good will price for the brand value accounts to approximately 118.9 billion dollars. The most challenging element of Apple is that the design and the technology under application are at high levels (see Appendix 2). In the designs, Apple has always been suave and elegant. The packaging of the products is such that it captures the interest of the clients. The products are structured with the highest level of simplicity in use despite the sophistication of the models. In distribution strategy, the company has established approximately 470 of its stores in 17 countries in the world. Besides the physical stores, the company conducts online transactions which offer premium retail channels. The retails are designed such that they offer a fantastic experience upon entering the stores. Most importantly, the company has launched the Apple genius bar which directly solves all the problems of the clients. The pricing strategy of the company is standardized in all areas and thus does not break in given stores. Furthermore, the company will always put the customers’ needs at heart in the analysis of the future (Cruikshank, 2006). The innovation strategy focuses on the introduction of new products which have not yet crossed consumers mind (see Appendix 2). Apple is vertically integrated with other companies which accrue the company a better chance to manage four lines of business at a single time (Hasan, 2013). For example, the company handles the hardware business, software, service provider and retailer as well. All the elements are integrated as one variable. It is commendable how the company manages the entire APPLE INC. MARKETING ANALYSIS 9 supply chain, unlike other competitors who have a limited capacity in the area. An essential element that forms the strength of the enterprise is that the firm has a sound financial management with one of the strongest cash flows (see Appendix 2). Since the business is experiencing a high growth rate, it is uncommon how the company manages to achieve the high levels of success. Financial stability and growth have given root to the rapid development of the enterprise in the industry (Tar, 2013). Currently, the firm has set a low level of expenditures on the research and the development compared to other companies. It is for the reason that there are few numbers of innovations in the market than it was previously. The % of spending on research currently accounts for 3.4% of the total revenue. The % of expenditure on research determines the expansion of the firm into new ventures. Weaknesses of Apple Inc. Company The underlying weaknesses of the company are that the corporation fails to match up customer expectations (Tar, 2013). Since 1980’s Apple has a growing market share globally as are the expectations of the enterprise. Due to high established reputation of the company, it within the expectation of individuals that the firm will produce more unique and quality products meeting the growing demands may be in some instances a major challenge (see Appendix 2). An additional underlying problem is the incompatibility of the goods with other goods and accessories. Therefore, one a user buys Apple’s products they have to maintain the same product line. As a result, it influences the decision making of the customers. In addition, the company has challenges with the management. APPLE INC. MARKETING ANALYSIS 10 The company has only 7-8 products in the portfolio unlike the competitors like Microsoft and Google. The company, therefore, has a high dependency level on a few products. Furthermore, the direct distribution channel depicts some challenge in the essence that it contributes to 26% of the total sales (see Appendix 2). For example, in India which is the 3rd largest smartphone market, the company has not established any official stores. Opportunities of Apple Inc. Company In 2020 Apple Company plans to establish the Apple Car. Like other companies Facebook whose expansion covers Instagram, Whatsapp while Google development is over ten more companies. Technological advancement is an underlying opportunity (see Appendix 2). Technology grows taking a rapid and dynamic nature. Therefore, within such expectation, the enterprise will adopt high levels of innovation as time advances. It is expected that more advanced phones, tablets, and MacBooks will be developed. Most importantly is that the company growth is still persistent and the market is growing as well. In the developing nations, the GDP continues to rise annually; the company stands a chance to explore new markets for example, in Africa. Any growing market requires a strong market base, and the availability of market is pivotal in enhancing the sales for the firm. The company can consider venturing into the health-related wearable gadgets. In 2015 the Apple watch was introduced in the market. It was the first company to come up with wearable devices in the market. The growth in this line is expected to rise by 35% annually. Since there exists towards wearable health devices the company, therefore, stands a high chance to endeavor in this line of the venture. The company could, therefore, manufacture an array of different products. For example, the company can consider the introduction of gadgets which can APPLE INC. MARKETING ANALYSIS 11 read the intake of calories in the body, monitor the blood pressure and heartbeat rates or the infusion of drugs through the skin. The expansion of mobile payment is a potential strategy in the mobile transfer of funds. People show a greater interest in the transactions via phones whereby in 2015 the amounts that were transferred through mobile payment accounted to approximately US$ 8.7 billion in the United States. The e-markets research suggests that the mobile payment transactions will grow by 210% annually. It is for the reason that if Apple expands its innovation to the sector, it will stand a potential opportunity to thrive (see Appendix 2). In 2015 the company introduced the Apple Pay application which enables the users of iPhones, and the Apple Watch users to settle their payment successfully. Threats to Apple Inc. Company The technology industry is highly competitive which acts as the principal source of threats. Some of the main competitors include the Microsoft, IBM, Dell, and HP. Since Apple launched the iPhones and the iPods the competition has shown that it continues to increase (see Appendix 2). Samsung and Google also form one of the competitors in the sector. The challenge comes in the fact the Apple products are overpriced which puts the middle and lower income buyers (Cruikshank, 2006). The emerging markets in Asia like Huawei, Techno and others are producing similar gadgets with almost same features at a subsidized rate. All the categories that the firm ventures are under threat because the competitors are posting high levels of standards in innovation. APPLE INC. MARKETING ANALYSIS 12 The United States dollar is getting stronger every day. As a result, any multinational firm is under threat. For example, Apple Company earns its revenue both internally and externally. The global market offers 65%. According to the currency forecasts, the exchange rates continue to rise among other foreign currencies. The implication of the case is that the earned revenue from abroad may decrease as a result of the exchange rates. The legal suits on infringement of patent laws have on high capacity ruined the reputation of the company. In the markets, it is common that the lawsuits on infringements are often overlooked. The company has no immunity, and therefore unintentionally it may infringe others as well. The company has previously violated other people over the years. The trend is postulated to continue due to the complexity of the products. The Unified patents propose that Apple Company is the most targeted company for infringements (see Appendix 2). The data under storage is under the threat of breaches. In the transactions, the company uses clients’ partners and business personal identification information. The information includes the names addresses, the credit and debit cards and other personal information. It happens that the stakeholder’s data and personal information may be stolen and passed on from time to time. Examples of companies that have been affected by data security include the Amazons, eBay, and Google. Consequently, they have lost a lot of clients due to the failure of protection of the stakeholder's security. The Apple Inc. company forms one of the major threats to data security considering the increasing numbers of cyber safety issues. Part 3: Competition Analysis In conducting the competitive analysis, it is a struggle to identify the particular firm that Apple should be compared with. The core strategies of the company are designed such that to APPLE INC. MARKETING ANALYSIS 13 help in the differentiation of the products from other businesses. The constant innovations define the boundaries of the firm (Hasan, 2013). Furthermore, the strategy and structure represent the culture of the organization. In the personal computer industry, there is ultra-competition with firms like Dell and other companies which have been dominant in the sector. The company entered the venture with the intention of imposing the vision of how the personal computers should be. The argument is that the enterprise is first positioned for the PC industry because that’s where the company established its roots (see Appendix 1). Apple’s strategy to integrate the software and hard wares has denied the firm the opportunity to significantly win a larger market share as other companies like Microsoft. The consumer’s electronic industry is the source of the company’s success. The research and design under the sector offer uniqueness for the brand and the products. The invention of iPod acted as a primary source of competitive advantage which aided in the market domination through sleek designs. The devices are structured with a simple user interface, and they also have a large storage capacity. The design of the Apple is structured to help in the lucrative emergent market which is a major target to Sony, Samsung, and LG (see Appendix 1). Apple Company has built on a strong competitive strategy through the application of the structuralized approach, for example, Porter’s differentiation. The strategy is highly effective because the company differentiates the products and the services. The competitive strategy is depicted to be a little underway because the company has spent a small amount in research compared to its competitors who have approximately more than five times of Apple Company (see Appendix 1). APPLE INC. MARKETING ANALYSIS 14 Apple offers a broad range of products which makes it a fierce competitor in the technology industry. Under the personal computers, the Microsoft operating system has remained to be a favorite brand for many (see Appendix). However, Apple has maintained a higher level of loyalty from the users. The primary competitors under the category include Packard (HPQ), Acer and the Lenovo’s. Under the mobile computers, iPod brought along a significant transition in the industry which attracted a lot of imitators on the field. The main competitors under the category include Nokia, Asus, and Google. Under the mobile payment category, the firm managed to operate highly successfully under the category (Cruikshank, 2006). In the 1st 72 hours of introduction, more than a million users showed a high level of interest on the application. The major competitors in this category include Google and PayPal. In the budget competition analysis, Apple holds a relatively small level of budget especially in the research and design than the competitors. In comparison to HP, Cisco, IBM, Microsoft and Google, Apple has a relatively small budget (see Appendix 1). First, the attributing reasons are that the other competitors they have more product lines than Apple. The rationality beside the reduced cost is that the company spends less to polish up on fewer products during the process of market launch. In many cases, in the final stage of research and design, the product development is usually very expensive, unlike Apple whose initial stages of research and design are usually very expensive. Conclusion In the technological industry, Apple has shown a significant level of success despite the present challenges. The Company is resourceful in offering inference on principles of marketing. Being an international company, the firm satisfies broad categories which need to be met. For APPLE INC. MARKETING ANALYSIS instance, the firm has successfully being a top leader in the technology industry with respect to the levels of innovations the sales and the revenues. The theoretical case studies like the background, financial and the marketing analysis offers inference on virtues like the marketing strategies, the importance of financing in marketing and such related variables. The SWOT analysis opens up on real application of business in the exploration of the opportunities, mitigation of threats and risks and how the strengths help to accrue the competitive enterprise advantage. Additionally, the composition analysis is highly educative on how the company achieves high levels of success despite the high levels of competition. 15 APPLE INC. MARKETING ANALYSIS 16 References Cruikshank, J. (2006). The Apple Way. Mc Graw Hill Professional. Hasan, M. R. (2013). Apple Inc. An Analysis: PESTLE Analysis, Porters 5 Forces Analysis, SWOT Analysis, Comprehensive Analysis of Finacial rations, Comprehensive Analysis of Share Performance of Apple Inc. Grin Verlag. Schneiders, S. (2010). The Secrets of Appl's Success: Traditionelles Marketing and Kult Marketing. Diplom.de . Tar, A. (2013). Apple SWOT Analysis. Grin Verlag Publishers. Woellner, J. Z. (2013). Corporate Strategy for Apple Inc Company. Grin Verlag Publishers. https://www.google.com/finance?fstype=ii&q=nasdaq:aapl 17 APPLE INC. MARKETING ANALYSIS Appendix 1: Competitors Information Company Information Apple Inc Company 1 Infinite Loop Cupertino, CA 95014 408-996-1010 115,000 $46.9 billion Mobile communication, media devices, personal computers, portable digital music players, software and accessories All customers worldwide Your Organization Headquarters Address Number of Employees Annual Sales Product Line Market(s) it Pursues Product Form Competition Organization Headquarters Address Samsung Phone Number: (201) 229-4000 Fax Number: (201) 229-4029 Website: http://www.samsung.com Number of Employees 392,305 Annual Sales Product Line $45.6 billion Mobile communication, media devices, personal computers, portable digital music players and accessories All customers worldwide Because it offers the same services just like the Apple company to the similar customers Product Category Competition LG Phone : +61-2-8805-4139 Address : 2 Wonderland Drive, Eastern Creek, NSW 2766 Market(s) it Pursues Reason it is a Product Form Competitor Organization Headquarters Address • • Number of Employees Annual Sales Product Line Market(s) it Pursues 220,000 47.06 billion Mobile communication, media devices, personal computers, portable digital music players All customers worldwide 18 APPLE INC. MARKETING ANALYSIS Reason it is a Product Category Competitor Organization Headquarters Address Number of Employees Annual Sales Product Line Market(s) it Pursues Reason it is a General Competitor Because it offers the same services just like the Apple company to the similar customers General Competition HP 1501 Page Mill Road, Palo Alto, CA 94304 P.C. 94304-1112 Palo Alto Contacts :1-650-857-1501 317,500 $50.1 billion Mobile communication, media devices, personal computers, portable digital music players and software All customers worldwide The company supplies the same product as Samsung Budget Competition Organization Headquarters Address Number of Employees Annual Sales Product Line Market(s) it Pursues Reason it is a Budget Competitor Microsoft Microsoft Campus Building 92 Redmond, WA 98052 120,849 $93.6 billion All customers worldwide All customers worldwide Microsoft competes with the Apple company such that it offers same products at a cheaper price 19 APPLE INC. MARKETING ANALYSIS Appendix 2: SWOT Analysis both Internal and External SWOT Analysis: Internal Company Strength: Management: Weakness: Recommendation: Marketing: Strength: Weakness: Recommendation: Finance/ Accounting: Strength: Weakness: Recommendation: Operations: Strength: Weakness: Recommendation: Customers: Strength: Weakness: Recommendation: Suppliers: Strength: Using the insight from Apple management team to help designate new division leaders Lack of motivational management can inspire and motivate The company should ensure a diversified management team Ability of the company to come up with innovative products Corporation fails to match up customer expectations The company should make sure that the customer expectations are met in all areas Ability to carry out the research and the development compared with low level of expenditures compared to other companies A lot of finance has been used in global marketing The company should ensure that marketing is carried out at a standard price Apple has a strong process and system Inability to meet the growing demands in the market. Apple should come up with diversified products that meets the growing demand in the modern world Ability to have a quick products delivery to the customers Inability to meet the customers’’ expectation Meeting of the customers’ expectations should be the first priority Ability to maintain a good relationship with the APPLE INC. MARKETING ANALYSIS Weakness: Recommendation: Distribution Channel(s): Strength: Weakness: Recommendation: 20 suppliers No identified weakness related to the suppliers Apple should maintain such good relationship with the suppliers Ability to have a smooth flow distribution channel Some distribution channels such as the internet channels experiences delay The company should improve on the delaying distribution channels SWOT Analysis: External Economic: Opportunity: Threat: Recommendation: Social, Cultural, Demographic: Opportunity: Threat: Recommendation: Political/Legal: Opportunity: Threat: Recommendation: Technological: Opportunity: Opportunity to expand its international market that will ensure increase in the annual sales Customers’ may opt to buy their products form other competitors such as Microsoft which offer its products with a cheaper price Apple is recommended to employ pricing strategy The social connection that could be created with such quality products could make a huge difference in the world socially. Connecting families in a new manner Maintaining a social responsibility can be time consuming and requires attentiveness that could require full time attention from employees. The company should use media and technology to connect the society Create a legal/ethical disclaimer that releases responsibility. Ability to acquire patent The company may face huge tax charges that are required in international markets. Also, the company operations may be interrupted by the political issues when engaging in global market The company should ensure that the political influences has nothing to do with the company operations Ability to incorporate technology in the company’s 21 APPLE INC. MARKETING ANALYSIS Threat: Recommendation: Natural: Opportunity: Threat: Recommendation: operations Superior technology being developed by a competitor The company should be in line with the modern technology in the market Ability to function smoothly due to environmentally friendly location Could be hard to maintain all area’s environmentally friendly The company should analyze the market natural factors first before the expansion Apple Inc. Marketing Analysis Ning Wang, Linfeng Wang MRKT 1001 Professor Howarth 4.10.2017 Abstract Marketing strategies vary from one company to another. The application of the principle of marketing is well visible at both the local and the international analysis. For actual internalization of the concepts under the principle of marketing the research will mainly focus Apple Inc. The study will cover on three major segments; the introduction of the enterprise where the paper will offer the background history, the financial and the marketing analysis. On the second part, the study will provide a SWOT analysis for the company where it discusses on the strengths, the weaknesses, threats and the opportunities of the business. Finally, the research will also focus on the competition evaluation of the enterprise. Conclusively the paper will offer an overall conclusion. Part 1: Organization Introduction History of the organization The initiation of Apple Inc. company was created by three men; Steve Jobs, Steve Wozniak and Mike Markkula in the late 1970’s. The founders together designed and marketed the series of computers that were under production. The company is located in Cupertino, California at the United States. The current CEO of the business is Tim Cook who took leadership after the death of Steve Jobs. In 1983, the company began to become commercially successful in the line of industry upon the production of the 1st computer that applies graphical user interface. Later, after one year the company successfully brought forth the Macintosh technologies which gave an origin to the firm being a legend. The rise and fall of Apple Inc. Company has been witnessed in many instances. For example, in 1985 Steve Job was alleged to have left the company he helped to create due to endless conflicts with the board. In 1986 Apple Company took a different direction where his primary focus was on the Lucas film Ltd. The specialization at this juncture settled on the production of graphically generated animated videos. In 1996, the company began world domination where apart from being a niche computer platform it was subject to expansion. In 2001 the firm introduced the iPod which was a significant intervention in the music industry. The company received a lot of praise for the successful implementation of a technology that could facilitate people to store music in a minuscule device electronically. Later in 2007, the company invented the iPhone which was the technology people wanted. Other businesses in the industry began to emulate Apple. Currently, the firm specializes in the manufacture of diverse products; computer electronics, personal computers, computer soft ware’s, servers and also acts as a digital distributor of media content. Financial Status of the Company The revenue accumulation for the enterprise increases annually by an average of 26% annually while the profit margins continue to expand by 34%. The cash reserves of Apple Inc. Company began to grow in 2006 the company chose to create the Braeburn Capital so as to facilitate the management of its assets. To maximize the gross margin the company does not necessarily produce the products. On the contrary, it contracts other electronic manufacturing businesses to help in assembling of some parts of the products under production (Schneiders, 2010). The firm, therefore, avoids being a manufacturing plant because it is rather very expensive. In this regard, it has put in place an effective supply chain management. The gross margin of the firm upon reduction of the production costs it reads at approximately more than 40%. The sales of the company continue to grow annually. As the products advance periodically, Apple ecosystem continues to develop. For example, in 2015, the average growth rate for the past five years read at 29.08%. Due to the increased sales growth and profit margins, the total revenue also continues to grow (Cruikshank, 2006). The process of sales growth has been very pivotal in the facilitation of the transition of the company and the establishment of a new market. Price to earnings ratio is associated with the continuous earning which is unlike the speculative multiples of the enterprise. The valuation of the growth on earnings, gross profit margins and sales gives rise to strength by the investors of the firm. The financial position of Apple Inc company is such that it is strong to enough to facilitate the expansion of the company and the future of the enterprise as well. (The figure below shows Apple’s Income Statement trend between the years 2012-2016) Marketing Strategies The marketing strategy of the company factors in elements like market segmentation, targeting and the positioning of the brand. The Apple Company has segmented the market in three major factors (Cruikshank, 2006). The segmentation of market is based on the lifestyle whereby the urban population is the major communities because they have a higher purchasing power. The urban population is early adopters of life and gives preference to elevated levels of technology which is Apple’s priority. The target market for the company comprises of three groups. Firstly, it is music lovers who are objected at Apple IPod and ITunes (Woellner, 2013). Secondly, it is the professionals and the teenagers whose target is Tablets, MacBook, Apple iPhone and other gadgets that follow the demands of the given age group. Thirdly, it is the crowd which can use other services and products like the Apple TV and the Apple Watch (Schneiders, 2010). Apple Company has achieved a given level of competitive advantage following the adopted marketing strategy. The distribution in the commercialization strategy is structured such that it has a potential retail setup. In the United States, the company has approximately 450 stores where the stores are oriented within helping the clients and making them feel comfortable. In 2016, Apple achieved the highest level of brand equity in marketing strategy in the world. Most importantly, Apple is considered to have the most elegant advertisements in any print ads and the newspapers (Woellner, 2013). The announcements are clear and crisp in their message. The advertisement and the brand promotion are heavily used primarily at the launch of a new product. The marketing strategy has served a great lesson to other companies on differentiation, brand building, and innovation. Although the positioning in the United States of America is efficient in developing nations like Africa, Asia, and others, the company needs to expand the coverage. Part 2: SWOT Analysis Apple being among the top brands in the world, it has more strengths than the weaknesses. However, the challenge is that threats to the company continue to rise because it is in target radar of many businesses. In this context, the analysis will cover on SWOT evaluation of Apple Company and how it manages to be a leading company in the world. The Strengths of Apple Inc. Company Firstly, the company has devoted to the production of innovative products. Over many years the company is well known for the production of highly innovative products (see Appendix 2). Year after year the company has produced hit products in the product line up. The conducted research shows that the corporation creates an imitation lag of approximately two years in the industry. As a result, it accrues the firm an advantage of market domination. Firstly, it produced the Macbooks, later on, created the iPod, watch and the iPad. The products capture the differing interests of the customers. Most importantly is that in the application of innovations the products are modeled to meet the gap and the demand of the customers. Customer satisfaction is a high strategy for winning a market share in the industry. Apple Inc. Company has maintained a leadership position in the world. The enterprise holds the world’s largest revenue in the technology industry. Additionally, it holds second place as the second biggest manufacturer of mobile phones (see Appendix 2). In 2014 it maintained a record of the largest traded company having passed the cross of 700 billion in the United States. In the leadership game, Apple is far much ahead. Being the in the top leadership position it translates that the brand equity also has to uphold a high standard. In 2016 the company held the 1st number position of the most valued brand among all other companies. The good will price for the brand value accounts to approximately 118.9 billion dollars. The most challenging element of Apple is that the design and the technology under application are at high levels (see Appendix 2). In the designs, Apple has always been suave and elegant. The packaging of the products is such that it captures the interest of the clients. The products are structured with the highest level of simplicity in use despite the sophistication of the models. In distribution strategy, the company has established approximately 470 of its stores in 17 countries in the world. Besides the physical stores, the company conducts online transactions which offer premium retail channels. The retails are designed such that they offer a fantastic experience upon entering the stores. Most importantly, the company has launched the Apple genius bar which directly solves all the problems of the clients. The pricing strategy of the company is standardized in all areas and thus does not break in given stores. Furthermore, the company will always put the customers’ needs at heart in the analysis of the future (Cruikshank, 2006). The innovation strategy focuses on the introduction of new products which have not yet crossed consumers mind (see Appendix 2). Apple is vertically integrated with other companies which accrue the company a better chance to manage four lines of business at a single time (Hasan, 2013). For example, the company handles the hardware business, software, service provider and retailer as well. All the elements are integrated as one variable. It is commendable how the company manages the entire supply chain, unlike other competitors who have a limited capacity in the area. An essential element that forms the strength of the enterprise is that the firm has a sound financial management with one of the strongest cash flows (see Appendix 2). Since the business is experiencing a high growth rate, it is uncommon how the company manages to achieve the high levels of success. Financial stability and growth have given root to the rapid development of the enterprise in the industry (Tar, 2013). Currently, the firm has set a low level of expenditures on the research and the development compared to other companies. It is for the reason that there are few numbers of innovations in the market than it was previously. The % of spending on research currently accounts for 3.4% of the total revenue. The % of expenditure on research determines the expansion of the firm into new ventures. Weaknesses of Apple Inc. Company The underlying weaknesses of the company are that the corporation fails to match up customer expectations (Tar, 2013). Since 1980’s Apple has a growing market share globally as are the expectations of the enterprise. Due to high established reputation of the company, it within the expectation of individuals that the firm will produce more unique and quality products meeting the growing demands may be in some instances a major challenge (see Appendix 2). An additional underlying problem is the incompatibility of the goods with other goods and accessories. Therefore, one a user buys Apple’s products they have to maintain the same product line. As a result, it influences the decision making of the customers. In addition, the company has challenges with the management. The company has only 7-8 products in the portfolio unlike the competitors like Microsoft and Google. The company, therefore, has a high dependency level on a few products. Furthermore, the direct distribution channel depicts some challenge in the essence that it contributes to 26% of the total sales (see Appendix 2). For example, in India which is the 3rd largest smartphone market, the company has not established any official stores. Opportunities of Apple Inc. Company In 2020 Apple Company plans to establish the Apple Car. Like other companies Facebook whose expansion covers Instagram, Whatsapp while Google development is over ten more companies. Technological advancement is an underlying opportunity (see Appendix 2). Technology grows taking a rapid and dynamic nature. Therefore, within such expectation, the enterprise will adopt high levels of innovation as time advances. It is expected that more advanced phones, tablets, and MacBooks will be developed. Most importantly is that the company growth is still persistent and the market is growing as well. In the developing nations, the GDP continues to rise annually; the company stands a chance to explore new markets for example, in Africa. Any growing market requires a strong market base, and the availability of market is pivotal in enhancing the sales for the firm. The company can consider venturing into the health-related wearable gadgets. In 2015 the Apple watch was introduced in the market. It was the first company to come up with wearable devices in the market. The growth in this line is expected to rise by 35% annually. Since there exists towards wearable health devices the company, therefore, stands a high chance to endeavor in this line of the venture. The company could, therefore, manufacture an array of different products. For example, the company can consider the introduction of gadgets which can read the intake of calories in the body, monitor the blood pressure and heartbeat rates or the infusion of drugs through the skin. The expansion of mobile payment is a potential strategy in the mobile transfer of funds. People show a greater interest in the transactions via phones whereby in 2015 the amounts that were transferred through mobile payment accounted to approximately US$ 8.7 billion in the United States. The e-markets research suggests that the mobile payment transactions will grow by 210% annually. It is for the reason that if Apple expands its innovation to the sector, it will stand a potential opportunity to thrive (see Appendix 2). In 2015 the company introduced the Apple Pay application which enables the users of iPhones, and the Apple Watch users to settle their payment successfully. Threats to Apple Inc. Company The technology industry is highly competitive which acts as the principal source of threats. Some of the main competitors include the Microsoft, IBM, Dell, and HP. Since Apple launched the iPhones and the iPods the competition has shown that it continues to increase (see Appendix 2). Samsung and Google also form one of the competitors in the sector. The challenge comes in the fact the Apple products are overpriced which puts the middle and lower income buyers (Cruikshank, 2006). The emerging markets in Asia like Huawei, Techno and others are producing similar gadgets with almost same features at a subsidized rate. All the categories that the firm ventures are under threat because the competitors are posting high levels of standards in innovation. The United States dollar is getting stronger every day. As a result, any multinational firm is under threat. For example, Apple Company earns its revenue both internally and externally. The global market offers 65%. According to the currency forecasts, the exchange rates continue to rise among other foreign currencies. The implication of the case is that the earned revenue from abroad may decrease as a result of the exchange rates. The legal suits on infringement of patent laws have on high capacity ruined the reputation of the company. In the markets, it is common that the lawsuits on infringements are often overlooked. The company has no immunity, and therefore unintentionally it may infringe others as well. The company has previously violated other people over the years. The trend is postulated to continue due to the complexity of the products. The Unified patents propose that Apple Company is the most targeted company for infringements (see Appendix 2). The data under storage is under the threat of breaches. In the transactions, the company uses clients’ partners and business personal identification information. The information includes the names addresses, the credit and debit cards and other personal information. It happens that the stakeholder’s data and personal information may be stolen and passed on from time to time. Examples of companies that have been affected by data security include the Amazons, eBay, and Google. Consequently, they have lost a lot of clients due to the failure of protection of the stakeholder's security. The Apple Inc. company forms one of the major threats to data security considering the increasing numbers of cyber safety issues. Part 3: Competition Analysis In conducting the competitive analysis, it is a struggle to identify the particular firm that Apple should be compared with. The core strategies of the company are designed such that to help in the differentiation of the products from other businesses. The constant innovations define the boundaries of the firm (Hasan, 2013). Furthermore, the strategy and structure represent the culture of the organization. In the personal computer industry, there is ultra-competition with firms like Dell and other companies which have been dominant in the sector. The company entered the venture with the intention of imposing the vision of how the personal computers should be. The argument is that the enterprise is first positioned for the PC industry because that’s where the company established its roots (see Appendix 1). Apple’s strategy to integrate the software and hard wares has denied the firm the opportunity to significantly win a larger market share as other companies like Microsoft. The consumer’s electronic industry is the source of the company’s success. The research and design under the sector offer uniqueness for the brand and the products. The invention of iPod acted as a primary source of competitive advantage which aided in the market domination through sleek designs. The devices are structured with a simple user interface, and they also have a large storage capacity. The design of the Apple is structured to help in the lucrative emergent market which is a major target to Sony, Samsung, and LG (see Appendix 1). Apple Company has built on a strong competitive strategy through the application of the structuralized approach, for example, Porter’s differentiation. The strategy is highly effective because the company differentiates the products and the services. The competitive strategy is depicted to be a little underway because the company has spent a small amount in research compared to its competitors who have approximately more than five times of Apple Company (see Appendix 1). Apple offers a broad range of products which makes it a fierce competitor in the technology industry. Under the personal computers, the Microsoft operating system has remained to be a favorite brand for many (see Appendix). However, Apple has maintained a higher level of loyalty from the users. The primary competitors under the category include Packard (HPQ), Acer and the Lenovo’s. Under the mobile computers, iPod brought along a significant transition in the industry which attracted a lot of imitators on the field. The main competitors under the category include Nokia, Asus, and Google. Under the mobile payment category, the firm managed to operate highly successfully under the category (Cruikshank, 2006). In the 1st 72 hours of introduction, more than a million users showed a high level of interest on the application. The major competitors in this category include Google and PayPal. In the budget competition analysis, Apple holds a relatively small level of budget especially in the research and design than the competitors. In comparison to HP, Cisco, IBM, Microsoft and Google, Apple has a relatively small budget (see Appendix 1). First, the attributing reasons are that the other competitors they have more product lines than Apple. The rationality beside the reduced cost is that the company spends less to polish up on fewer products during the process of market launch. In many cases, in the final stage of research and design, the product development is usually very expensive, unlike Apple whose initial stages of research and design are usually very expensive. Conclusion In the technological industry, Apple has shown a significant level of success despite the present challenges. The Company is resourceful in offering inference on principles of marketing. Being an international company, the firm satisfies broad categories which need to be met. For instance, the firm has successfully being a top leader in the technology industry with respect to the levels of innovations the sales and the revenues. The theoretical case studies like the background, financial and the marketing analysis offers inference on virtues like the marketing strategies, the importance of financing in marketing and such related variables. The SWOT analysis opens up on real application of business in the exploration of the opportunities, mitigation of threats and risks and how the strengths help to accrue the competitive enterprise advantage. Additionally, the composition analysis is highly educative on how the company achieves high levels of success despite the high levels of competition. References Cruikshank, J. (2006). The Apple Way. Mc Graw Hill Professional. Hasan, M. R. (2013). Apple Inc. An Analysis: PESTLE Analysis, Porters 5 Forces Analysis, SWOT Analysis, Comprehensive Analysis of Finacial rations, Comprehensive Analysis of Share Performance of Apple Inc. Grin Verlag. Schneiders, S. (2010). The Secrets of Appl's Success: Traditionelles Marketing and Kult Marketing. Diplom.de . Tar, A. (2013). Apple SWOT Analysis. Grin Verlag Publishers. Woellner, J. Z. (2013). Corporate Strategy for Apple Inc Company. Grin Verlag Publishers. https://www.google.com/finance?fstype=ii&q=nasdaq:aapl Appendix 1: Competitors Information Company Information Your Organization Apple Inc Company Headquarters Address 1 Infinite Loop Cupertino, CA 95014 408-996-1010 Number of Employees 115,000 Annual Sales $46.9 billion Product Line Mobile communication, media devices, personal computers, portable digital music players, software and accessories Market(s) it Pursues All customers worldwide Product Form Competition Organization Samsung Headquarters Address Phone Number: (201) 229-4000 Fax Number: (201) 229-4029 Website: http://www.samsung.com Number of Employees 392,305 Annual Sales $45.6 billion Product Line Mobile communication, media devices, personal computers, portable digital music players and accessories Market(s) it Pursues All customers worldwide Reason it is a Product Because it offers the same services just like the Apple company to the similar customers Form Competitor Product Category Competition Organization LG Headquarters Address• Phone : +61-2-8805-4139 • Address : 2 Wonderland Drive, Eastern Creek, NSW 2766 Number of Employees 220,000 Annual Sales 47.06 billion Product Line Mobile communication, media devices, personal computers, portable digital music players Market(s) it Pursues All customers worldwide Reason it is a Product Because it offers the same services just like the Apple Category Competitor company to the similar customers General Competition Organization HP Headquarters Address 1501 Page Mill Road, Palo Alto, CA 94304 P.C. 943041112 Palo Alto Contacts :1-650-857-1501 Number of Employees 317,500 Annual Sales $50.1 billion Product Line Mobile communication, media devices, personal computers, portable digital music players and software Market(s) it Pursues All customers worldwide Reason it is a General The company supplies the same product as Samsung Competitor Budget Competition Organization Microsoft Headquarters Address Microsoft Campus Building 92 Redmond, WA 98052 Number of Employees 120,849 Annual Sales $93.6 billion Product Line All customers worldwide Market(s) it Pursues All customers worldwide Reason it is a Budget Microsoft competes with the Apple company such that it Competitor offers same products at a cheaper price Appendix 2: SWOT Analysis both Internal and External SWOT Analysis: Internal Company Management: Strength: Using the insight from Apple management team to help designate new division leaders Weakness: Lack of motivational management can inspire and motivate Recommendation: The company should ensure a diversified management team Marketing: Strength: Ability of the company to come up with innovative products Weakness: Corporation fails to match up customer expectations Recommendation: The company should make sure that the customer expectations are met in all areas Finance/ Strength: Ability to carry out the research and the development Accounting: compared with low level of expenditures compared to other companies Weakness: A lot of finance has been used in global marketing Recommendation: The company should ensure that marketing is carried out at a standard price Operations: Strength: Apple has a strong process and system Weakness: Inability to meet the growing demands in the market. Recommendation: Apple should come up with diversified products that meets the growing demand in the modern world Customers: Strength: Ability to have a quick products delivery to the customers Weakness: Inability to meet the customers’’ expectation Recommendation: Meeting of the customers’ expectations should be the first priority Suppliers: Strength: Ability to maintain a good relationship with the suppliers Weakness: No identified weakness related to the suppliers Recommendation: Apple should maintain such good relationship with the suppliers Distribution Strength: Ability to have a smooth flow distribution channel Channel(s): Weakness: Some distribution channels such as the internet channels experiences delay Recommendation: The company should improve on the delaying distribution channels SWOT Analysis: External Economic: Opportunity: Opportunity to expand its international market that will ensure increase in the annual sales Threat: Customers’ may opt to buy their products form other competitors such as Microsoft which offer its products with a cheaper price Recommendation: Social, Cultural, Opportunity: Apple is recommended to employ pricing strategy The social connection that could be created with such quality products could make a huge difference Demographic: in the world socially. Connecting families in a new manner Threat: Maintaining a social responsibility can be time consuming and requires attentiveness that could require full time attention from employees. Recommendation: The company should use media and technology to connect the society Political/Legal: Opportunity: Create a legal/ethical disclaimer that releases responsibility. Ability to acquire patent Threat: The company may face huge tax charges that are required in international markets. Also, the company operations may be interrupted by the political issues when engaging in global market Recommendation: The company should ensure that the political influences has nothing to do with the company operations Technological: Opportunity: Ability to incorporate technology in the company’s operations Threat: Superior technology being developed by a competitor Recommendation: The company should be in line with the modern technology in the market Natural: Opportunity: Ability to function smoothly due to environmentally friendly location Threat: Could be hard to maintain all area’s environmentally friendly Recommendation: The company should analyze the market natural factors first before the expansion Part 2: SWOT Analysis Apple being among the top brands in the world, it has more strengths than the weaknesses. However, the challenge is that threats to the company continue to rise because it is in target radar of many businesses. In this context, the analysis will cover on SWOT evaluation of Apple Company and how it manages to be a leading company in the world. This isn't the required format The Strengths of Apple Inc. Company Firstly, the company has devoted to the production of innovative products. Over many years the company is well known for the production of highly innovative products (see Appendix 2). Year after year the company has produced hit products in the product line up. The conducted research shows that the corporation creates an imitation lag of approximately two years in the industry. As a result, it accrues the firm an advantage of market domination. Firstly, it produced the Macbooks, later on, created the iPod, watch and the iPad. The products capture the differing interests of the customers. Most importantly is that in the application of innovations the products are modeled to meet the gap and the demand of the customers. Customer satisfaction is a high strategy for winning a market share in the industry. Apple Inc. Company has maintained a leadership position in the world. The enterprise holds the world's largest revenue in the technology industry. Additionally, it holds second place as the second biggest manufacturer of mobile phones (see Appendix 2). In 2014 it maintained a record of the largest traded company having passed the cross of 700 billion in the United States. In the leadership game, Apple is far much ahead. Being the in the top leadership position it translates that the brand equity also has to uphold a high standard. In 2016 the company held the W Comi Analy Look at Direction on sheet Didn't follow format Appendix 2: SWOT Analysis both Internal and External SWOT Analysis: Internal Company Management: Strength: Weakness: Using the insight from Apple management team to help designate new division leaders Lack of motivational management can inspire and motivate The company should ensure a diversified management team Recommendation: Marketing: Strength: Weakness: Ability of the company to come up with innovative products Corporation fails to match up customer expectations The company should make sure that the customer expectations are met in all areas Recommendation: Strength: Finance/ Accounting: Ability to carry out the research and the development compared with low level of expenditures compared to other companies A lot of finance has been used in global marketing The company should ensure that marketing is carried out at a standard price Weakness: Recommendation: Operations: Strength: Weakness: Apple has a strong process and system Inability to meet the growing demands in the market. Apple should come up with diversified products that meets the growing demand in the modern world Recommendation: U2 the first prio Suppliers: Strength: Weakness: Recommendation: Ability to ma suppliers No identified Apple should the suppliers Distribution Channel(s): Strength: Weakness: Ability to have Some distribut channels expel The company distribution cha Recommendation: SWOT Analysis: External Industry not Economic: Opportunity: Apple Threat: Opportunity to will ensure incr Customers' ma other competito products with a Apple is recom Soul Recommendation: Social, Cultural, Demographic: Opportunity: Threat: The social conne such quality pro difference in the families in a nev Maintaining a so consuming and r require full time The company she connect the socie Recommendation: Political/Legal: Opportunity: Create a legal/eth responsibility. Ability to acquire Category anics Grammar Spelling Format 10 Points No errors in grammar, spelling, or formatti...
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Running head: APPLE INC. MARKETING ANALYSIS

Apple Inc. Marketing Analysis
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APPLE INC. MARKETING ANALYSIS

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Abstract
Marketing strategies vary from one company to another. The application of the principle
of marketing is well visible at both the local and the international analysis. For actual
internalization of the concepts under the principle of marketing the research will mainly focus
Apple Inc. The study will cover on three major segments; the introduction of the enterprise where
the paper will offer the background history, the financial and the marketing analysis. On the second
part, the study will provide a SWOT analysis for the company where it discusses on the strengths,
the weaknesses, threats and the opportunities of the business. Finally, the research will also focus
on the competition evaluation of the enterprise. Conclusively the paper will offer an overall
conclusion.

APPLE INC. MARKETING ANALYSIS

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Part 1: Organization Introduction
History of the organization
The initiation of Apple Inc. company was by three men; Steve Jobs, Steve Wozniak and
Mike Markkula in the late 1970’s. The founders together designed and marketed the series of
computers that were under production. The company is located in Cupertino, California in the
United States. The current CEO of the business is Tim Cook who took leadership after the death
of Steve Jobs. In 1983 the company began to become commercially successful in the line of
industry upon the production of the 1st computer that applies graphical user interface. Later after
one year the company successfully brought forth the Macintosh technologies which gave an origin
to the firm being a legend.
The rise and fall of Apple Inc. Company has been witnessed in many instances. For
example, in 1985 Steve Job was alleged to have left the company he helped to create due to endless
conflicts with the board. In 1986 Apple Company took a different direction where his primary
focus was on the Lucas film Ltd. The specialization at this juncture settled on the production of
graphically generated animated videos. In 1996, the company began world domination where apart
from being a niche computer platform it was subject to expansion. In 2001 the firm introduced the
iPod which was a significant intervention in the music industry. The company received a lot of
praise for the successful implementation of a technology that could facilitate people to store music
in a minuscule device electronically. Later in 2007, the company invented the iPhone which was
the technology people wanted. Other businesses in the industry began to emulate Apple. Currently,
the firm specializes in the manufacture of diverse products; computer electronics, personal
computers, computer soft ware’s, servers and also acts as a digital distributor of media content.

APPLE INC. MARKETING ANALYSIS

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Financial Status of the Company
The revenue accumulation for the enterprise increases annually by an average of 26%
annually while the profit margins continue to expand by 34%. The cash reserves of Apple Inc.
Company began to grow in 2006 the company chose to create the Braeburn Capital so as to
facilitate the management of its assets. To maximize the gross margin the company does not
necessarily produce the products. On the contrary, it contracts other electronic manufacturing
businesses to help in assembling of some parts of the products under production (Schneiders,
2010). The firm, therefore, avoids being a manufacturing plant because it is rather very expensive.
In this regard, it has put in place an effective supply chain management. The gross margin of the
firm upon reduction of the production costs it reads at approximately more than 40%.
The sales of the company continue to grow annually. As the products advance periodically,
Apple ecosystem continues to develop. For example, in 2015, the average growth rate for the past
five years read at 29.08%. Due to the increased sales growth and profit margins, the total revenue
also continues to grow (Cruikshank, 2006). The process of sales growth has been very pivotal in
the facilitation of the transition of the company and the establishment of a new market.
Price to earnings ratio is associated with the continuous earning which is unlike the
speculative multiples of the enterprise. The valuation of the growth on earnings, gross profit
margins and sales gi...


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