business- powerpoint

1

Figures title: 8

Week 6 Assignment 2

Tamika Brown

BUS499 Business Administration Capstone

Joseph Keller

May 17, 2020

Week 6 Assignment 2

The success of a business organization depends on various factors. Effective business and strategic planning are however the most basic and essential elements that determine the level of success that a business has. Moreover, having strong, qualified, dedicated, and innovative employees support the success of an organization. However, dealing with competition coupled with effective identification of market segments are imperative to businesses. Nevertheless, healthy competition and provision of quality services are helpful in winning the loyalty of customers. Apple Inc. has over the years acquired tremendous success hence making it one of the biggest business companies in the globe. This paper however intends to offer a comprehensive analysis of Apple Inc. with regards to the market segment and environment, the forces of competition the company forces. It will consequently analyze the strengths and threats affecting the company.

General Environment

Apple Inc. like other companies operate in an environment that faces stiff competition. To remain solvent and compete effectively in such environments, an organization needs to conduct efficient studies on the different segments of the market. Through such analysis, Apple Inc. will establish various characteristics of the identified segments hence offering services depending the particular needs of such segments (Powell, 2015). The basic factors used by the company to segment its market include demographic and geographical elements, psychological and behavior facets. The two most important segments of the general environment that influences the company’s performance are youths and the working class. The products and services offered by Apple Inc. are mostly consumed by the youths and people working in various occupations. The segments of the wider market therefore determine the level of success of the company.

.

Youth

Youths especially those in learning institutions such as colleges and University widely use iPad tablet computers, iPhone smartphones, and Mac personal computers amongst other products offered by Apple Inc.

People Working in Various Occupations

People working in different industries and occupations consequently consume such products. Factors affecting the spending ability and income levels of the two segments of the market therefore affect the company’s sales volume. The two segments consequently determine the overall sales volume and performance of the computer and technology industry hence their importance to Apple Inc.

Five Forces of Competition

Competition is regarded as an imperative element that ensures quality service provision to customers. Suppliers often try to provide quality goods and services to win the loyalty of customers hence increasing their floor of operation (Perdana, Roshetko & Kurniawan, 2012). Close analysis however reveals that the level of competition in an industry is determined by five basic forces. The five forces of competition are substitute products, suppliers, potential new market entrants, power of customers, and competition in the industry (Perdana, Roshetko & Kurniawan, 2012). Understanding the influence of these factors is important in ensuring that a company remains competitive in the market and industry. However, the power customers and competition in the industry are the most important forces of competition to the company.

Power Customers

The power of customers has been influential in determining the volume of sales and overall profits made by the company. Customers have the power to lower the prices of goods and services offered by Apple Inc. and other players in the industry. It is consequently expensive for the company to get new customers.

Competition in the Industry

The company therefore uses a lot of resources in monitoring the changes in customer behavior, hence affecting its performance. The level of completion in the industry is high due to the high number of players. As the number of suppliers increases, the power of the company to control the market reduces. To effectively deal with the power of customers and high levels of competition, Apple Inc. has improved its level of innovation thereby coming up with high quality products that satisfy the needs of their customers.

Future Improvements

Apple Inc. has effectively dealt with the two forces of completion, there is still a massive room for improvement. The company should therefore invest highly on activities and processes aimed at reducing the negative impacts of customers’ power and high levels of competition to the company. To further address the issue of competition, the company should target new markets thereby expanding their floor of operation. Other steps to address competition include conducting studies to know their customers and their needs, establish their main competitors and how to address each differently and using effective marketing techniques (Cook, 2014). Use of powerful marketing strategies is important in identifying the needs of customers hence tailor-making products and services that satisfy the customers. Lastly, the company should use differentiation to help their existing and potential customers to distinguish their products from others in the market (Cook, 2014). Dealing with the power of customers however requires provision of personalized services to customers with a view to winning their loyalty. The company should therefore manufacture products that meet needs of specific customers, hence winning their loyalty.

Greatest External Threat

Despite its success in the recent years, Apple Inc. faces several threats that if not effectively addressed could jeopardize the company’s progress. High level of competition is the most outstanding external threat the company faces. Technology and computer industry have attracted many business organizations hence leading to stiff competition. The factor poses a big threat to the company. Secondly, the company suffers from high costs of production. With increased costs of production, it forces the company to increase the prices of their products. Increased levels of competition coupled with high costs of production are therefore the main external threats affecting the company.

Greatest Opportunity

However, despite facing several internal and external challenges, the company has vital opportunities to improve of its sales volume. Product diversification is one of the main opportunities the company enjoys. Through diversification, Apple Inc. can produce products along different lines hence acquiring more customers (Johnson, Li, Phan, Singer & Trinh, 2012). Other opportunities are the rising demand for technology and mobile gadgets and manufacturing of compatible products. There is an upsurge in the demand for mobile gadgets in recent years. This offers an imperative opportunity for the company to make good sales. The company should therefore make good use of the opportunities available to them to reduce the impacts of both internal and external threats.

Strengths and Weaknesses

Apple Inc. is the market leader in technology and computer industry. The quality of products and services it offers to customers is responsible for its high levels of success. Nevertheless, company has enthusiastic and innovative employees who are responsible for the quality products the company offers (Johnson, Li, Phan, Singer & Trinh, 2012). While the company enjoys several strengths, its greatest strength is its valuable brand. Customers often strive to get durable and valuable products and services. The company’s brand has been ranked as the most valuable across the industry for seven consecutive years. The high level of innovation prompts production of quality products. Many customers therefore buy Apple Inc.’s products due to their perfect value. Its greatest weakness however is dependence on sales from high-end market segments (Johnson, Li, Phan, Singer & Trinh, 2012). This weakness is often detrimental especially when the high-end market segments are affected.

Resources, Capabilities, and Core Competencies

The company enjoys several resources such as qualified, competed, enthusiastic and innovative employees. Other resources include smart chief executive office, Steve jobs, smartest suppliers and retail shops, programmers, and engineers (Haslam, Tsitsianis, Andersson & Yin, 2013). Its capabilities on the other hand are innovation capability, unique design capability, and powerful brand image. The capabilities often ensure the company is ranked ahead of others hence remaining the market leader. Lastly, the company’s success is greatly attributed to its core competencies which include strong customer service, effective and strong financial performance, innovation, simplicity, and marketing (Haslam, Tsitsianis, Andersson & Yin, 2013). These factors have been instrumental in Apple Inc.’s performance.

In conclusion, it is right to infer that Apple Inc. has enjoyed a tremendous success in recent years. The company is the market leader within the industry. Its success is however attributed to its resources, capabilities and core competencies that often make it out-compete other players. Care should however be taken by the company’s management to ensure that all threats and weaknesses affecting activities and processes within the company are effectively addressed. Proper strategic planning should thus be conducted to offers solutions to such challenges.

.

Sources

1. Cook, T. (2014, September 9). Apple reveals the Apple Watch. Fortune. Retrieved from http://fortune.com/video/2014/09/09/apple-reveals-the-apple-watch/

2. Haslam, C., Tsitsianis, N., Andersson, T., & Yin, Y. P. (2013, December). Apple's financial success: The precariousness of power exercised in global value chains. In Accounting Forum (Vol. 37, No. 4, pp. 268-279). Taylor & Francis

3. Johnson, K., Li, Y., Phan, H., Singer, J., & Trinh, H. (2012). The Innovative Success that is Apple, Inc

4. Perdana, A., Roshetko, J. M., & Kurniawan, I. (2012). Forces of competition: smallholding teak producers in Indonesia. International Forestry Review, 14(2), 238-248.

5. Powell, M. J. (2015). Developments in the Regulation of Lawyers: Competing Segments and Market Client, and Government Controls. Social Forces, 64(2), 281-305.

.

.