Apple Inc. has had a prosperous past, rising to become one of the most successful companies in the world and the most prosperous company in the United States of America. The value of the company in the year 2015 was $714 billion making it one of the most valuable brands in the history (Forbes, 2015). Several factors are in place and have ensured the catapulting of the firm into the top spot and managed to achieve its standards. Visionary leadership, marketing strategies that are ambitious and the belief in ensuring the delivery of value for money was used to prepare the company for its growth in the future. The attributes above are the top most in ensuring that the company's target is reached and surpassed. This capstone project investigates and models the way the different factors for example business operations, modeling statistics, and various scenarios combine to enable the success of Apple Inc. company.

Steve Jobs vision, style of management, the products model, market style and the journey to profitability are some of the needs that current and the prospective business owner should ensure they understand. In the same context, the project seeks to outline the stages of growth of the company, with a particular keen emphasis on the mistakes made by the company, how the affected company managed to pull a turnaround.

INTRODUCTION

The Birth of Apple Inc

Apple came into existence in the year 1976 on April 1st, it was under three individuals that are Steve Jobs, Steve Wozniak, and Ronald Wayne and their main objective were to sell the Apple 1 personal computers. Steve Jobs and Steve Wozniak had equal shares of forty-five percent while Wayne had only ten percent share. Apple had built a good reputation. Individuals consumers of Apple products were enthusiastic about the products offered by Apple as they were of quality hence they the client were loyal to the firm. For the individuals who had not experienced the products offered by Apple, they were full of criticism as they thought that the products were too expensive.

BACKGROUND INFORMATION

Being an American based Corporation, it designs and manufactures hardware that is meant for computers, computer software, and several consumer electronics. Apple Inc. is well known for its Macintosh personal computer line which is a key loyal user base, media applications such as iTunes and the personal music player referred to as an iPod. The headquarters for the company is in California, a place known as Cupertino. The co-founder and the CEO of Apple Inc were Steve Jobs and (is there supposed to be another name here?). Furthermore, the firm has around two hundred and eighty-four retail stores that span over ten different countries.

Apple's Vision and Mission

The firm ensures that they provide the best computing experience to creative professionals, educators, students and clients all around the world through innovative hardware, internet offerings and software they offer. The mission of the firm is to ensure they provide the best personal computers, revolutionize music and reinvent mobile phones.

Apple's Values and Culture

The values set by Apple Inc ensure that they accept mistakes, and they provide the production of goods that are of quality and simple and also strengthen collaboration with other firms. The company believes in simplicity and that it is on the face of the earth to make great products for great people. They also have a culture of owning and controlling the essential technologies they make. In markets where they believe they can make significant contributions, they always participate and focus on few and truly important projects that are meaningful. One of the firm’s cultures that have always kept them going is that they do not settle for anything other than success and excellence.

Apple Inc. Business Strategies

Like the mission, the vision and values set by Apple Inc. are clearly laid out. They have specific plans and goals to enable them to achieve and be the best. Apple Inc. is committed to ensuring they offer the best experience to its clients through it innovative software, hardware, services, and peripherals. The firm's strategy leverages their ability to develop and design their operating systems, application software, hardware and services to offer its customers new solutions and products with integration that is seamless, superior ease of use and design that is innovative. Investment in research, development, marketing, and advertising are the firm’s key priority as they enhance the development and sale of the new and innovative products and technologies. In addition to their strategies, the firm continues to expand its platform for discovery and delivery of digital content that is the third party and enhance its application through the iTune stores. The firm's App Store and iBook through Window-based computers or Mac or iOS devices for example iPhone, iPad, and IPod touch, allow customers to discover and download applications and books. Another strategy set by Apple Inc. is the expansion of its distribution network to reach more clients efficiently and also provide them with sales that are of high quality and post-sales support experience that is effective.

APPLE'S INC GENERAL ENVIRONMENT

There are various factors that are associated with the general context of the Apple's Inc company that ensure the success of the firm which include:

i. Technological segment

The success of the enterprises in the computer hardware industry is determined by technology which is the key factor. Better, faster and cheaper electronic products are produced every year due to the progress of technical innovation and they also enhance the production of a market segment due to the production of new products and market. It is therefore very clear that technological innovation makes the industry fierce. As states on the Gartner website, the demand for Personal Computers is slowly declining with 0.1 percent, form the second quarter of 2011. In 2011, PC shipment in the United States of America was 15.9 million units which were a decrease of 5.7 percent from the same period the previous year (Gartner, 2012). In 2012, the IDC press release proved that the worldwide shipment of tablets was estimated to be twenty-five million units for the second quarter of 2012 this was a 66.2 percent increase from the second quarter of 2011 which was fifteen million units (IDC group, 2012). The shipment sales indicate that the interest of consumers is shifting from PC to smartphones and tablets. Statistics brought forth by the Tablet Technology, and Market report prove that in the year 2016, the Global tablet sale will reach 232 million (eMarketer, 2012). One of the threats that face Apple Inc. is the introduction of new products from rival firms such as Acer and ASUS as they are unveiling mini notebooks that might gain clients quickly due to the high-end market tablet. Any sluggish delay when it comes to technology, Apple might lose its market.

ii. Socio-cultural segment

Socio-culture is a critical factor to organizations that are developing worldwide as the cultures of different states can be a restrictive factor when it comes to the profitability of Apple Inc. Adapting to the different cultures and managing to be successful within the international segment is not an easy task. A good example is Apple firm in the Asian market. The development of the 3G and 4G technology has not been developed and popularized in the Asian market. In addition to the technology, Asian trades in cash as the computer industry has not been developed, making it another problem. Another example is China, in which the people prefer to see what they are purchasing first and somehow credit card transaction is not preferred.

iii. Demographic Segment

There has been a dramatic increase of home access to the internet over the last decade. Simultaneously there has been a dramatic increase in the use of tablets, computers, cell phones and electronic books. From the census conducted in 2012, the population of United States is estimated to be 314,440,891 and over 110 million individuals in the United States own a particular type of smartphone. 43.2 million users that are in the age bracket of an 18-34 log into the mobile web according to the research conducted in the year 2012. Out of ten children who are aged 3-17, six of them use the internet at home which is an increase from 22 percent in 1997 to 57 percent in 2010 (Child Trends, 2012). According to the New Media Trends, the new demographic profile of U.S smartphone users in 2011 indicate that the age ratio ranges 39% (18 to 34 years), 48% (35 to 54 years) and 13% ( for individuals above 55 years), the gender ratio is 49% female and 51% male users, the level of education rate 11% for high school, 26 % for college and associates and 63% for University and according to household income ratio is 6% for less than 25 dollars, 23% from 25-50 dollars and 71% for more than 50 dollars(eMarketer, 2012). The increase in the use of internet offers an outstanding opportunity for Apple Inc innovative success specifically when it comes to tablets and smartphones as these enhances the demand for the devices. Apple's success is high due to the expanding sales that are offered by consumers.

APPLE'S INDUSTRY

According to the Annual Report of Apple Inc., the firm is engaged in designing, manufacturing and marketing media services, personal computers, mobile communications, portable digital music players and also selling of software that is related to the services. The firm is in information technology equipment, software, and consumer electronics (is this a repeat?)

Apple Inc. now is on the computer hardware, computer software, digital distribution industries and consumer electronics whose key factors are technology. Apple's Inc. popularity of technological innovation helps it be the top company by creating competitive advantages however in return it brings more competitors in the market. Apple's leadership provides a strategy which enhances competitive advantage and in addition to that investment in research and development has put Apple in the forefront to being successful. The products they produce have a short life cycle like the products produced by other firms, for example, a product can be outdated in less than a year.

The industries in which Apple is in are very unpredictable as they have the constant growth of technology. The introduction of the iPods in the market led to a quick change in the industry. In the sector, different strategic groups exist. Price is one of the strategic groups that should be analyzed due to the popularity of the technology and the supply chain, and the products are provided globally. The different levels of customers are also another strategic group to be focused on as it enables them to focus on their core products for example physical asset and digital asset. Due to the innovative success that Apple Inc. is facing, the organization focus on the high-tech market providing them with both physical and digital assets. Apple Inc. Sets a premium price when it comes to most competitive products as it defines itself as a high-class technology Company. The firm not only focuses on the production and selling of hardware but also develops its software that provides support for the line of products. In a more simplified manner, Apple Inc. strategies in the industries are well laid out and defined making the firm stand out more than the other companies in the industry.

I. Organizational structure of Apple Inc. and leadership

The organization structure of Apple is one of the key factors that have facilitated its success. In the firm, there are eleven executive departments that work directly under the CEO. The CEO has the authority and the power all the departments that are headed by Senior Vice Presidents. The different departments include iOS Software, Operations, Retail, Product Marketing, Global Communication, CFO, COO, Legal Design and Software Engineering. The Companies Key Structural Approach is simplicity. Without and matrix relationship the executives responsibilities are straight forward to the different departments (I didn’t understand this sentence). Their decision-making process is centralized as the Board of Directors of Apple and the CEO glue their decision together and the decision will run down the line to every employee in the firm. This process was also active in the days of Steve Job as the employees knew what the CEO wanted even though at most of the times they have never met up. For Apple Inc., they do not find it difficult in making immediate decisions that are related to the products and the services as they have the straight approach and the decisions from the top executives are instantaneous. This method makes Apple grab opportunities that come their way if the board identifies and missing ideas about their products.

II. Target Market

It is not realistic when a firm has great products and no target market for the products. The focus of Apple Inc market is quite particular with different petite characteristics. Apple Inc. primary focus is on the Middle and Upper-class income individuals as for the demographics it is very clear they are always willing to pay more for an experience that is best or better for them as 500 US dollars is not a big deal for them. Technological innovators for example, Apple focuses on individuals who like to have fun with technology, and their extensive level of entry have become appealing to individuals of all ages and not only the 18 to 34-year demographics that was enthralled by the company, its products, and services. Thanks to iPods and iTunes, Apple Inc. can target a large group of individuals who are music enthusiasts who fit in a large age demographic. Even though Apple's products are quite expensive, for example, an iPhone might cost 800 dollars and an iPad almost 2000 dollars; they still appeal to different demographics and ages. This is because of their impressive technological breakthroughs.

III. Suppliers

When it comes to supplying chain management, Apple Inc. is known for its superiority besides its popular products. According to the annual Supply Chain Top 25, ARM ranked Apple Inc. at the top in the list of retailing and manufacturing heavyweights. The primary factor that leads to Apple Inc. having an efficient supply chain is due to the firm's unparalleled demand-shaping capability. Inclusive to its unparalleled demand, the organization can ramp up volumes both in software and hardware while still redefining what a cell phone is supposed to be and this is from a supply chain perspective. To have a supply chain that is effective, a firm should have as many contracts as possible with different suppliers all over the world. According to the Apple Supplier Responsibility Report, Apple has 229 audits that have a connection with the company whereby more than 100 of the above are in the manufacturing sector. The most prominent manufacturers are located in the China due to the low-cost purposes while the LCD panels suppliers are based in Korea, which explains the issue of quality control; having all these shows that the firm's supply chain is active, efficient and effective.

IV. Supply chain Issue

The firm has problems with the high-tech company system despite the numerous praises for its supply chain. Foxconn, which is the largest assembling partner for Apple, has reported working conditions that are very low. From a report dated 2010, in Foxconn factory, there were over 900,000 employees and most of the individuals were students whose age ranged between 16-18 years and they were forced to work on the line for at least two years (Chan, 2010). In the factories located in China, most of the employees are obligated to work overtime on a regular basis. In the same article, survey proves that 73.3 percent of the employees in Apple's firm work for ten hours or more in a day of which the normal working hours should be eight hours, this makes the average overtime be 83.2 hours in a month. The pressure at work research indicates that twenty workers have attempted to commit suicide and fourteen of them did succeed in their efforts in recent history. At Foxlink, which is supplier component of Apple, a Chinese man jumped out of the sixth floor on 29th Sept 2012. This brings us to the attention that the working conditions at factories are wanting (Kan, 2012).

Another issue that faces Apple Inc. supply chain is the relationship between the company and the suppliers. The high-tech firm Apple at some point was in a dilemma to archive the expectation number of sales by the end of the year due to the insufficient supply chain. The current demand for Apple products is high, and the suppliers do not have the capability of producing parts that are enough. Despite the fact that Apple has suppliers all over the world, assessing of the supply chain piece by piece, it is clear that there are some components which are crucial to the products that Apple produces. These include LCD panels and Chips. The LCD screen supplier for Apple is Samsung, and it is the largest provider although at some point they had plans of not providing their products to Apple. In the case of lack of cooperation between the supplier that is Samsung and Apple, the firm would be left with suppliers who lack experience. Lack of a vast and experienced provider would have cost Apple, as the number of products to meet the increasing demand would be inadequate. Lack of control when it comes to the manufacturers would cause a delay in the orders that have been placed by already existing customers.

V. Competitive Position of Apple Inc.

For a very long time, Apple has been a leading when it comes to innovation. Even though Apple might not be the first to introduce the product in the market, they just lower the price and enhance a mass production of the product. After the firm has taken the product to a whole new level they raise the prices and watch as the business rolls in. Mimicking by competitors is a must after the product had developed. A good example is the iPod, which is a device that is not bigger than the palm, that enables individuals to store their entire music library.

Apple focuses on high-tech persons who would purchase great products regardless of the amount and the design of the first iPod whose design, which was white sleek, won the interest of many consumers. The features that make the iPod fascinating is because it is virtually virus free, it is easy, and it is user-friendly , unlike other operating systems. Currently, Apple is leading in music players since 2001 and the introduction of the iPod has led to the introduction of new features such as shuffle. IPod touch, nano, and many other products that have been tailored to close the market niche that the firm tends to focus on.

Apple is an entirely different electronic manufacturer. They have a very distinct and unique approach to launching their products. It is the ind of consumer goods that are fast moving, with the production of new products every six months or a year. When Apple's product is launched, it is supported by a campaign of advertisement which results in the significant generation of sales. This approach used by Apple makes the clients or people excited about the product. Therefore, Apple remains the leader when it comes to the technology industry.

VI. Marketing / Advertising

For the past couple of decades, Apple has been for it advertisements (this is confusing) which are designed to reflect the business plan of the company. The individuals who are targeted for marketing are very creative, and the products are marketed through various campaigns, for example, the famous Super Bowl commercial in 1984, the “Think Different” Campaign in the 1990s and the “iPod People” Campaign in 2000s.

The innovative advertising success is due to their advertising budget where they spend a significant amount of money on advertising. Form 2007 their amount dedicated to advertising has steadily risen from $467 million in 2007, $486 million in 2008 and $501 million in 2009 (Nudd, 2011). The budget seems like an overabundance of money, but the amount is depreciating since the time of advertisement in the year 1980s.

VII. Retail Strategy

Apple takes an integrated approach to its products that is from the operating system to the user interface to the hardware design and finally to the selection of the individual parts in the device. Unlike other PC manufacturing firms, Apple does not compete for shelf space, promotions, positions and much more at the retail stores. Apple has over 320 retail stores in eleven countries, and 87 of the stores are outside the United States of America. Apple invests heavily on retailing stores as it enables the firm to interact with the customers and understand their needs and by manufacturing both software and hardware it gives Apple a strong competitive advantage.

VIII. Financial Analysis of Apple Inc.

· Growth Ratio

In the year 2012, Apple was in third Place behind Hewlett-Packard Co and Dell in the PC market with a total share of 12 percent. The revenue of the firm increased from 23 percent that is $28.6 billion to $35 billion. In 2015, iOS market share declined by 22.3 percent with 47.5 million shipments. Despite the fact that the season dropped, Apple managed to have an enormous amount of success due to the insatiable appetite of the consumers for the large screened iOS devices ("Apple Inc (AAPL) Financial Strength", 2016). The popularity of the iPhone 6 Plus continued to grow in the most critical market that is China, and the smartphone saw a revival growth of 6.7%. Form 2013 there has been the growth of iOS Market that is 12.9 percent to 11.6 percent and 13.9 percent in 2015.According to the Smartphone reports released in January 2016, Apple was ranked the top most smartphone manufacturer with 43.6 percent OEM and in the smartphone market share, Apple was ranked position two after Android (52.8%) with a 43.6%.

· Valuation and Financial Strength Ratio

The interest coverage of Apple Inc. for the quarter year that ended in March 2016 was 43.57, and its debt-revenue ratio was 1.58. According to the Guru Focus, it states that if a company ranks a high financial strength it is likely to withstand and recessions or slowdowns that the business might encounter ("Apple Inc (AAPL) Financial Strength", 2016). The calculation performed for Apple Inc. in which the interest expense in March 2016 was $-320 Million, and it operating income was $13,987 Million with a long-term debt of $69,374 Million that ended the same period the interest coverage was obtained to be 43.57.As stated, the higher the ratio, the stronger the financial strength of the firm ("Apple Inc (AAPL) Financial Strength", 2016). For Apple Inc. in March 2016, the debt to revenue ratio was 1.58 and therefore the lower the rate, the better for the company.

· Profitability Ratios

In the past three years, Apple Inc. has increased its annual dividend. A clear indication of the growth in profits is due to the maintenance of the dividend Payout ratio that is below 30 percent. As of February 2015, the twelve-month dividend payout ratio was 21.6%, this was attractive as it had $21.12 billion in cash and cash equivalent according to their annual report at the time. The dividend yield of the company is in line with the average of the industry which is at 2.16% ("Apple Inc (AAPL) Financial Strength", 2016). In 2017 fiscal year, the annual dividend is likely to raise due to the introduction a new iPhone release as the earnings are bound to increase.

Apple's return on equity is on an upper end of its ten-year range and by this, the stock becomes very attractive. During the 2014 fiscal year, the company's net income was $39.51 billion but in the 2015 fiscal year, the net income of the firm increased significantly to $119.36 billion. In 2014, Apple's return on equity was 33.61 percent, and it increased to 46.25 percent in 2015, this was a ten-year high point. The growth in demand for the iPhone will apparently lead to the generation of more net income for the technology giant in 2016 and 2017 consecutively ("Apple Inc (AAPL) Financial Strength", 2016).

The gross margins for Apple experienced various ups and downs, but so far they are increasing steadily from 28.98% in 2006 to 43.87% in 2015. The net margin for Apple saw 26.67% high and 10.3% level over the past ten years. Apple translated its revenues to high degrees of profits from December 2014 to December 2015.

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Growth Ratio

Profitability ratio

Financial strength

(Inc., 2016) where does this go?

· Management effectiveness.

The inventory turnover of Apple is 82.7 which is higher than the industries average of 81.3; this is due to the high sales that Apple experiences. One of Apple's powers is their ability to make people excited about the products they are launching. Apple is a firm that is efficient in using its assets in the generation of sales with high asset turnover regardless of their pricing strategy and the profit margin.

· Balance Sheet and Summary

From results of the profit margins, it is very clear that Apple is relatively stable financially. According to Apple stock, their cash is most liquid with very many assets that can be converted to cash with Apple's cash and cash equivalent increasing by $110 billion (Apple, Inc, 2012). Apple has over 60 percent assets in cash and market securities, and this gives them an advantage as they can react quickly to the market changes and the opportunities that might develop. Over three years Apple repurchases back it shares, and this helps them inflate their earnings per share as it reduces the number of shares that are outstanding.

SWOT ANALYSIS

The success of Apple Inc is linked to the ability of the firm to overcome its threats and weakness by using their strengths and opportunities just like any other firm. The analysis performed gives insight on the measures that have been taken by Apple Inc in maximizing the growth on the strengths and the opportunities. The study also highlights the issues that should be strictly looked into for instance the issue of competition that is facing the firm. The internal and the external strategic dynamics provide a better understanding to the investors in evaluating Apple's Business. Practically the SWOT analysis is most convenient for the leaders, manager, investors and fellow business counterparts (Helms & Nixon, 2010).

Strengths

· Apple's financial position

Apple has a strong financial position as it has a percentage of assets which are estimated to be more than 50 percent. In the capital market, Apple has become number one as the company holds the largest amount of cash in hand ("Apple Inc (AAPL) Financial Strength", 2016). By examining Apple more closely is that it has very little capital debt and at times it settles the debt and has no debt at all making them very flexible in investing more. The more the investment, the more they remain the leading, and their gross profit margin remains impressive.

· The difference in the products they offer

One of the key strengths of Apple is in its differentiated products. The operating systems of Apple's computers are highly secured, and they are not subjected to hackers and viruses which tend to affect the Microsoft's Windows software. The products produce by Apple are mainly designed to address the issue that faces the lifestyle of the consumers this makes the graphics system and the design of Apples Products superior as compared to their rivals in the same market segment. The software of Apple Inc. is entirely different from their competitors and so is their hardware as it is of the upper class. All Apple's products are made of materials that are of high quality for example aluminum, and the elements are combined with comfortable designs making them classic. The features make the client feel they have products that are valuable (Chan, 2010).

· Apple's marketing (image and name) which is always successful in their techniques

According to technology news, the advantage that Apple has is their marketing strategies as the firm understands what will enable most people to get excited about its products and then they work and execute on that vision. In the advertisements, they rarely talk about the features of the technology in the product. Instead, they focus on how they care about the lifestyle of the consumers. They advertise that the products they bring to the market offer a better life to customers, and they make the lifestyle appeal crucial and the trend aesthetic. Apple is also one of the unique electronic manufactures as their marketing approach is similar to the fast moving products from other industries who consumer goods have a short lifespan of half a year or a year. After the launching of the products, the new product is supported by an advertising campaign who result is the generation of a lot of sales. In their marketing sector, they invest the huge amount of money, and they have one of the most creative marketing team and by this Apple remain the leader in the technology industry.

· The retail strategies that Apple applies.

Unlike other PC manufacturing firms, Apple does not compete for shelf space, promotions, positions and much more at the retail stores. Apple has over 320 retail stores in eleven countries, and 87 of the stores are outside the United States of America. Apple invests heavily on retailing stores as it enables the firm to interact with the customers and potential clients and understand their needs. This makes Apple stay ahead in the competition by adapting and evolving needs of the consumers. By manufacturing both software and hardware, it gives Apple a strong competitive advantage.

· The ability to produce both software and hardware

Apple has a strong competitive advantage as it manufactures both software and hardware, unlike other firms which struggle with differentiation and depend on software provider to improve their products. Apple has an integrated approach that is vertical when it comes to its product that is from the operating system to the user interface to the design of the hardware and finally to the selection of the parts to be used in the devices. By being a high-tech company, it produces the best experience to its clients.

· Efficient management of digital assets.

One of the smartest strategies that Apple invested in is the digital asset management. Apple became one of the largest digital retailers in the universe as they acquired over 100 million consumers’ credits accounts through iTunes. According to consumer’s psychology, it is stated if an individual or a customer create an account and gives his or her credit card information the chances of them making purchases in the future are very high. The digital assets make customers use the Apple products even more because after buying the digital contents they can use it in any smart product produced by Apple. This is a strength as it enhances continuous use of Apple Inc. products by the consumers while increasing the sales in the digital market.

Weaknesses

· Changing of the executive

On October 5th, 2011, the genius behind Apple Inc. and the successful CEO, Steve Jobs passed away. This was a great loss to the firm as they had lost individuals who in the past decade ensured the success of the business and its continuous growth. Tim Cook, Senior Vice President of worldwide operation of Apple Inc., was appointed the CEO after Job's death. Tim was a master in the operational field especially when it came to the supply chain, reducing the cost for Apple Inc. but not in enhancing innovative products. During Tim Cooks time, he released the iPhone 5 in an aggressive manner and to date it has failed in the consumers experience as it had many complaints ( e.g. leaking light, screen issues, and scratches). The above point makes iPhone 5 the worst product ever to be produced by Apple despite it numerous praises in developing quality products.

· Lack of a protective strategy

After a successful introduction of the iPad, iPod, and iPhone, Apple has opted to play a safe strategy whereby they are focusing less on innovation but are producing more and more similar products to keep their customers satisfied. A good example is the iPhone 4s, the 2011 iPad and the iPhone 5 introduced in 2012, they all have very few differences, and little innovation has been done, unlike the previous versions which were very successful. One of the firms that played the safe strategy and failed significantly is Microsoft, and therefore this is a clear indication to Apple of risks.

· The leak of products information before they are released.

Unlike the previous times during the introduction of the iPhone 3,3GS, 4 and 4S, people can now get information about the new Apple products which include their designs and features through the internet before the products are launched. The leak reduces the excitement and the curiosity which are the two key strategies for marketing.

Threats

· The elevation of other operating systems and Google Android.

After the first introduction of Android Smartphone in October 2008, Google operating system has become more popular. In the year 2010, Android was the leading smartphone in the world. Some of the features that made people prefer Andriod to iOS is their different designs, their low prices and its easy modification options.

The giant of the technology industry in the days has introduced new operating systems for example Windows RT, Windows Phone 8 and Windows 8 and they are putting in a lot of resources in the marketing sector to capture more market share. This clearly shows that Apple's product will be faced with very stiff competition in the market.

· Innovation can serve as both either negative or positive to the company.

Technology innovation can serve both as an opportunity or a threat for Apple Inc. the company faces more innovative competitors. A good example is Samsung, which has taken advantage and become one of the strongest competitors for Apple. The technology that is growing provides chances for different firms to venture into the high-tech market and shorten the lifespan of a technological product.

· The systems of supply

The firm has issues with the high-tech company system despite the numerous praises for its supply chain. Foxconn, which is the largest assembling partner for Apple, has reported working conditions that are very low. From a report dated 2010, in Foxconn factory, there were over 900,000 employees and most of the individuals were students whose age ranged between 16-18 years and they were forced to work on the line for at least two years (Chan, 2010).

Opportunities

· The bigger market of business that is uncovered

The business segment offers a bigger market, but Apple has not focused on it. Big companies, businesspeople, and government organizations are the primary customers in the business sector as they have very high income, and they will be willing to pay for technology products and also have high expectations when it comes to security. For Apple to capture more profit, they should venture in corporate fields and business segments.

· Though customers have different experiences about the firm, most of them are loyal.

Research proves that Apple has built a great experience for its clients, and this has made them loyal to the enterprise. The firm should ensure that they retain their loyal customers as most of them are willing to promote Apple in the future products they are to produce while some are ready to pay whatever price for the products.

STRATEGIES

A. The use of Blue Ocean Strategy – I would define this a bit more if you can / maybe give an example?

By applying the Ocean Blue strategy, Apple will continue to be successful. In the strategy, apple creates the need for its innovation and then it provides the new products into the market quickly. By this, they improve on the firm's sales and the loyalty of the customers as they manage to satisfy the consumers (Heracleous, 2013). Under Tom Cook leadership, the vision is to maintain the balance between the successful core products and the new demand.

B. Expansion of the geography Apple's Inc Market.

Another strategy is the expansion of the market share in China, India, and other developing countries. The countries stated to provide a ready market for Apple products as their cultures are conducive for the selling of Apple products. In most of the countries, the 3G and 4G technology have been developed making it possible for having a market for the Apple's products. The countries are also experiencing growth with the Middle and the Upper-class members increasing especially in China, and this provides a ready market for Apple.

C. Application of iCloud and Siri for the future generation.

The iCloud is a feature that would enable consumers to link and to integrate all their ecosystem devices. It is a convenient product, and it could easily be part of customer day to day life. The main aim of the stated project is to compete with Google Plus and Amazon with the competitive characteristics that come with it. Siri is an intelligent voice assistant which Apple believes can replace the physical keyboard, touch screen, and mouse (Heracleous, 2013).

CONCLUSION

In conclusion, from the analysis performed above it is clear that good organization governs the success of the firm. Thanks to the vision, strategies, culture and goals of the firm which has enable the form to be the leading innovative and successful firm in the technology industry. Since the business came into existence, the main aim was always to ensure quality products that enhance customer loyalty regardless of the price to be set. Having very high margin profits enables them to engage in the research process that ensures innovation and the right leadership styles is also another strength. The financial strength of Apple has a great input in the success of the firm as it defeats the fiancé of Microsoft and Google while combined. A growing and a good business firm do not lack weakness or threats, and a reliable company manages to overcome them and emerge the best such as Apple. Overcoming the imitators and the competition which is very stiff enhances its success.

Apple Inc. has maintained its leading position in the technology industry by first ensuring that they keep their loyal customers as they ensure to capture more clients by promoting efficient policies for the clients. By maintaining high-quality products makes the customers faithful to the firms as they believe in the enterprise's products and services. Ensuring that the firm is developing products both software and hardware that meet the consumer choice and preference. The development of new products that meets the new demand and enhancing leadership that is efficient and runs down in the company.

Do you have any recommendations for them to succeed even further? Or any actions plans?

GOOD JOB ( ( ( (

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