Apple: Economics - Essay Example

Download file to see previous pages... The brand value of the company is incomplete in today’s world. Effective use of technology provides the company with brand recognition, enabling it to stand out among its competitors. The collaborative work of its employees has paved the way for the success of the company, which follows a collaborative work culture. Apple Inc. is recognised as the biggest start-up in the world, formed by the efficient hands of Steve Jobs. There are frequent team meetings in each department in order to discuss the current business scenario, and the company values and encourages the participation of its team members in the decision-making processes. Apple has a reputation of valuing individuality and excellence that help in the company’s decision making (Apple Inc, 2012). Products/services and geographic scope Formerly named Apple Computer Inc., the company is an American multinational corporation which specialises in the design and sale of electronic goods and high-technology personal computers, along with computer software. The best-known products of the company are the Macintosh series of computers and the iPhone. In 2007, the company shifted from offering only computers towards making and selling consumer electronics. In terms of market capitalisation it is the largest public limited company. The company manages its business on a geographic basis, with five operating segments, in America, Japan, Europe and some other regions. The operating segment offers similar hardware as well as software products (Datamonitor, 2009:3). Competitors Apple Inc operates its business in multiple industries, the main one of which is personal computers. Apart from this, the company produces software and consumer electronics. In the personal computer industry, Apple’s main competitors are IBM, Hewlett Packard, Dell Inc. etc. In the consumer electronics industry, the main market competitor is Samsung, which has a similar type of product on the market; Apple has also been facing competition in developing countries. Apple’s direct competitors are Google, Microsoft and RIMM (Research in Motion Limited). In all these industries, Apple is the leader, and no one comes close to this company in terms of revenue and profit or of innovation and brand recognition (Grady, 2009:5-6). PEST Analysis PEST analysis deals with the current situation of an organisation, identifying the political, economic, social and technological influences. It provides a glimpse into the future performance of the company. Political influences: it was reported in the year 2007 that 52% of the company’s sales were made outside its country of origin. Apple has no influence on political scenarios. Wars, terrorist activities and natural disasters can all have an influence on the overall sales of the company, and it has to take all these factors into account when determining its strategies for the future. Apple produces many of its key parts outside the United States. If the United States involves itself in any sort of conflict with the countries from which Apple sources its parts, the production process of the company will come under threat (Henry, 2008:99-100). Economic influences: Apple’s products are viewed as luxury items, and therefore if consumers do not have enough disposable income available, they will not opt for Apple products. Consequently the economic condition of the countries in which the company’ ...Download file to see next pagesRead More