Capstone

General Environment, Forces of Competition, Future Improvement, Opportunities, Strength and Weaknesses of Apple Inc.

Introduction

Apple Inc. is a multinational company that was found by Steve Jobs and Steve Wozniak in the year 1976. Since then, the company has able to produce mobile phones, iPads, personal computers and operating systems (Finkle, & Mallin, 2010). The company is successful under the current leadership of Timothy Donald. This paper will discuss the general environment, opportunities, threat, strength and capabilities of the company.

General Environment

The main segments of the general environment that affect Apple is the technology and social-cultural aspects. Technology has enabled the company to produce innovative and attractive products which attract customers. The socio-cultural segment of general environment involves values and attitude of people about products of the organization.

Technological Segment of the Environment

The technological segment of the environment influences how business operations are conducted—the segment use of advanced techs to design new and innovative products. Apple is ever-growing due to adoption of new and advanced technology. Advancement in technology has stiffened competition in the market. Apple uses better technologies such as wireless technology, cloud services and software to stay ahead in the competition.

Socio-Cultural Segment of the Environment

Social-Cultural segment refers to values and beliefs of people towards products and services of the organization. The positive interest and beliefs of people towards communication and entertainment results in the development of industries that deal with ICT. As a result, Apple incorporation continues to grow due to the interest of society towards its products and services. Similarly, the popularity of internet ad mobile phones leads to the success of the company. The company has prioritized to meet the demands of its customers by producing goods that are innovative and attractive.

Forces of Competition

The forces of competition are five. They include rivalry among competitors, threats of new entrants, threats of substitute commodities, bargaining power of suppliers and bargaining power of customers. In this assignment, rivalry among competitors and the bargaining power of suppliers is discussed.

Rivalry Among Competitors

Apple uses advanced technology and innovation to produce goods that are uniquely designed. The company make use of brand management to ensure its products are unique and innovative. The company has introduced produced products with a new feature, designs and performance to maintain market distinctness. All these changes have enabled Apple to stay ahead of the competition.

Apple should launch more products with unique design and features to stand out in the market. The company should also products other products and software to maintain market distinctness. The products should have new and updated features, version and high performance to maintain leadership in the market segment.

Bargaining Power of suppliers

The company has less bargaining power to its suppliers. For instance, the company cannot fully influence Samsung, which is the main supplier of the company. Samsung is not only the main supplier of Apple but also the main competitor of the company. Samsung supplies quality screens and other fundamental components to Apple. Apple depends on the supplier for its components.

Apple should negotiate with other suppliers, such as LG to minimize overdependence on Samsung. Similarly, the company should reduce the supplies of essential components such as micro-processors and screens from Samsung to reduce its influence and control. Apple should establish a production site of its own to manufacture quality and fundamental components. This will reduce the powers of suppliers and ensure the production of quality components.

Future Improvements

Apple Inc. should adopt advanced technology to stay ahead in the competition. This will ensure that the company will produce better goods and services that will attract more customers. The company should introduce new features, design and high-performance devices to stand out in the market. The company need to invest in diverse products and software to increase its market. Apple should not switch its suppliers to different competitors; rather, it should set up its production site to reduce the powers of its suppliers.

Threats to Apple Inc.

Rapid advancement in technology favor competitors of Apple. As a result, it is a major threat facing the company. Secondly, the increase in taxation reduces the profits of the company. Additionally, the rise in the cost of labor in different countries reduces the profits of the company.

Opportunities of Apple Inc.

Customer loyalty to the products of the company is one of the opportunities that Apple can use to expand its market and sales. The company also has a good reputation for producing quality and attractive goods which are embraced by the market positively. The company should take advantages of this opportunities to stay ahead in the competition (TAN, 2013).

Strengths and Weaknesses of the Company

Apple has various strengths which enable it to enjoy a competitive edge. It has successful brand management and strong customer loyalty who remain the ecosystem for a very long time. The company also have an effective marketing technique which enables it to penetrate deeply into the market and strengthen its brand. Apple is creative and innovative; hence many people wait for the launch of its products and services.

Even though Apple has various strength, the company also have weaknesses. Firstly, they produce software and hardware that are incompatible with devices of their competitors. Therefore, some people may not prefer to buy products from Apple. Secondly, the products and services of Apple are exorbitantly high and are not affordable. Moreover, stiff competition has led to a reduction in shares of the company. Finally, the company is overdependent of its competitors for most of its components.

Capabilities and Core Competencies of Apple Inc.

The company is well known for its quality and unique products and services. They products come with new features and version which is attractive to customers. Apple is a leading brand in the market and has effective marketing strategies and successful brand management which strengthen their brand (Montgomerie, & Roscoe, 2013). The company is popular for prioritizing the concerns of its customers. The competencies of the company include research and development that is useful in producing quality and unique products and software that attract customers. Apple adopts advanced and innovative technology, as well as effective strategies in marketing its products (Smith, 2008).

Sources

TAN, J. (2013). A strategic analysis of Apple computer Inc. & Recommendations for the Future direction. Management Science and Engineering, 7(2), 94-103.

Finkle, T. A., & Mallin, M. L. (2010). Steve Jobs and Apple, Inc. Journal of the International Academy for Case Studies, 16(7), 31.

Smith, R. (2008). Harnessing competencies, capabilities and resources. Research-Technology Management, 51(5), 47-53.

Montgomerie, J., & Roscoe, S. (2013, December). Owning the consumer—Getting to the core of the Apple business model. In Accounting Forum (Vol. 37, No. 4, pp. 290-299). Taylor & Francis.