Apple - Organization Profile Strategic Analysis - Research Paper Example

Download file to see previous pages By mid 2011, Apple had approximately 364 retail stores based in at least 13 countries, as well as a robust online store. Towards the end of 2011, Apple had 60,400 permanent, full-time employees globally. Its global annual revenue for the year 2010 was $65 billion and $ billion in 2011. The company’s shares are highly demanded in the stock exchange market with the latest sale price totaling $570 per share. Foundation Steve Jobs, Ronald Wayne and Steve Wozniak, established Apple in 1976, focusing on the sale of Apple 1 personal computer kit, which were hand-built by Wozniak. The company’s incorporation took place in early 1977 exclusive of Wayne who sold his shares to Jobs and Wozniak (Lashinsky 27). Ownership Apple Inc. is publicly owned after the company launched its IPO, in 1980, generating more capital than any other company since Ford Motor in 1956. Apple Inc. is a for-profit, C Corporation trading under the AAPL ticker on the NASDAQ stock exchange. Business The company’s business has evolved significantly since the early 1980s when its main products included the Mac. Today, the company concentrates more on the design and production of personal electronics such as iPhones and iPads than Macs since its iPads and iPhone generate more income than Macs. Industry The company is among the key players of the consumer electronics or devices industry, which encompasses some of the world’s biggest corporations. Research shows that the consumer electronic device industry generated revenues totaling $512 billion in the 2011 financial year (Lashinsky 115). This indicates a growth rate of 12% compared to the total revenue in 2010. Furthermore, in 2011, the industry experienced 29% positive growth in unit sales. This is indicative of the overall profitability of the industry. Competitors The industry is highly competitive encompassing large multinational corporations dealing in the manufacture of hardware such as computers and handset phones, software and operating systems. Apple’s main competitors include Microsoft, Motorola Solutions, Samsung Electronics, AdMob, Songbird (POTI Inc.), Sony, Adobe Systems, Research in Motion, MUBI, SlideRocket, Hewlett Packard, LG, HTC, Palm, Nokia and Dell among others (Lashinsky 84). Industry Leaders While the consumer electronics industry is highly competitive, there are few companies that lead the rest in terms of market share, capitalization and profitability. The industry leaders are companies that continue to redefine their products in accordance to the latest technology. The leaders include Microsoft with regard to the provision of software and operating systems, market capitalization, revenues and market share. Nokia and Samsung are also leaders in the consumer electronics industry with regard to sales of handsets and market share for cell phones. Apple Inc. is also a key leader in the industry. Industry Structure The industry is highly competitive and dynamic and is currently enjoying relative maturity, which is characterized by declines in overall profitability, as well as intense market competition (Lashinsky 72). In this context, leading brands resort to improving competitive advantage through expansion. This results in the adoption of strategies such as brand consolidations, acquisitions and mergers. These structural approaches help companies to maintain their positions in the highly lucrative ...Download file to see next pagesRead More