Discussion about the Apple - Research Paper Example

Whereas one may wish to assume that accompany as profitable and established as Apple Inc. is no longer constrained by the laws of supply and demand to the same extent that a much smaller firm might be, the fact of the matter is that Apple Inc. has built its empire specifically upon being able to fulfill key market needs in a timely fashion. As a means of fulfilling the demands of the current market, Apple Inc. engages in a very high degree of market research as well as product investment and technological innovation.

In such a way, all of these processes feed directly back in to the means by which Apple seeks to leverage the demands of the customers to gain a higher level of overall profitability. However, it must also be noted that Apple Inc. seeks to manage the supply and demand of their products by only producing a certain level of initial offerings as a means of stirring up a greater level of interest and support among potential clients. The firm has determined that it is more profitable to encourage individuals with an understanding that the exclusivity of the product in its entry phase is part of the overall appeal.

Lastly, with regards to how the US government impacts upon a company such as Apple, it can be said that the relatively high levels of taxation that exist within the United States in conjunction with the exponentially higher labor costs have encouraged Apple to seek out third-party nations to assemble and partially developed their products. Although the ethics of this remaining question, the role and extent to which the United States government has acted in encouraging firms such as Apple to seek out the highest level of profitability possible is measurable in such a case.