Apple Incorporated Critical Analysis - Case Study Example

?Case Analysis: Apple Incorporated I. Company Overview A. Brief History of Apple Incorporated The Apple Incorporated is the current of the former Apple Computer Incorporated which was founded by Steve Wozniak and Steve Jobs after they have discovered a new product of computer structure and systems in the year 1976 at Cupertino, California. The change of the company name was an implication that the products of Apple will not only be limited to an innovative technology of computers but also to the expanding new ideas in creating different electronic devices such as phones, music players, and others. Consequently, the products of Apples such as the iPhones, iPods, iPads, and Mac have reached the awareness and preferences among consumers all around the world and known as the leading industry of innovative technologies. In relation this, the Apple Incorporated gradually updated their systems in order to give their consumers the technologies that will make their life easier, exciting, and more memorable (Sawayda, 2011; “Apple Incorporated,” 2012). B. Stakeholders The Apple Incorporated has a number of stakeholders that have an important role in progress and development of the company. The stakeholders of Apple Incorporated are the Apple management and employees, software developers, the lenders, customers, suppliers, and music industries. The company had employed a great range of employees that have a way of reaching out innovative technologies and with company management that has the vision of creating what is new to the world. The Apple products are designed with systems and software that are developed by innovative developers, which allowed Apple Incorporated to contract with different electronics suppliers and music industries that will complete or create the envisioned Apple products. Accordingly, customers from all around the world can purchase the Apple products through personal money or lending organizations, in which the Apple management has allowed them to purchase apple products in affordable prices (Unal, Uludag, Ozturk, Sever, & Boynukalin, 2012). II. External Environment A. General Environment The Apple Incorporated is operating in different parts of the world, in which the management distributed their Apple products in countries that belong to the American Regions, European Region, Middle East Region, Africa Region, and in Asia Pacific Region. In general, the Apple Incorporated had based their international operations, and trading in accordance to laws and provisions of the United States government because considering the company is founded within the American soil. For instance, the United States policies have forbidden the Apple management to have trading operation in North Korea, Sudan, Cuba, Syria, and Iran. In addition, the United States government had also limited different countries such as “Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Japan, Luxembourg, Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Turkey, and United Kingdom” in utilizing the Apple products for generating or developing atomic products, missiles, and chemical weaponries (“Export Compliance,” n.d.). Despite their compliance to the United States government, the Apple management will still comply with the regulations and rules of every country they are operating in order for the company to operate in the country effectively (“Export Compliance,” n.d.; “Warranty Obligor,” n.d.) However, the Apple Incorporated management has been dealing with a number of legal and social issues that can contribute to the operations of the company. Particularly, the Apple management had faced an issue with regard to the well being of the employees of Apple’s suppliers in China, in which the concern was on the poor, working conditions, low wages, and unjust treatment practices of management in Foxconn Technology Group. Consequently, the Apple management has endeavored to resolve their problems in order for the company to operate efficiently and be able to sustain and maintain the company idealities of having the extreme standards of social responsibility all over the world. Hence, the Apple management has gradually taken up each of the company problems in order for their stakeholders to recognize their capacity to straighten up the lapses despite their improvement global market (“Apple Supplier Responsibility,” 2012; Yee & Jones, 2012). The market sales of Apple Incorporated had reached an incremental value points from their customers despite the economic downturns and issue of global recessions. Through the novel development of Apple products, the Apple Incorporated has not been affected by the global recession because of how it manifests a technology that everybody wants to have. The success of the market sales in Apple Incorporated will not just help the company into having positive advantages, but the company success will also help the global economy in collecting money from the consumers. Hence, despite the downfall of the economy, the Apple Incorporated is considered to be one of the contributors that will increase the economy of every country (Ballagan, 2011). The Apple Incorporated was able to design and generate new electronic devices through modern technologies, which brought the company to the awareness of the general public and surpass the expectations of their stakeholders. However, the Apple Incorporated is struggling to win over legal cases in terms of patent rights that are violated by their competitors. The most concerning case was the dispute between Apple Incorporated and Samsung Corporation, in which the case was on the Apple and Samsung products. Nevertheless, the Apple Incorporated won their case trial in the United State while they are still in the battle for patent rights from different countries all over the world (Barrett, 2012). B. Competitive Environment The Apple Incorporated innovates and creates new electronic devices that started from computers (Macintosh), music players (iPods), tablets (iPads), and digital phones (iPhones). Consequently, the company has success market values because of the company’s new technologies and software designs that have in turn reached the awareness and preference, not only to consumers, but also to different technological companies in creating their own versions of Apple products. The Apple management core value of innovation and thinking differently is an outcome based on how the company designs a technology that will target the interests and expectations of the consumers (Ballagan, 2011; “Apple Incorporated,” 2012). Accordingly, the consumers have the need for technological usage in order to ease their daily living with responsibilities and leisure, and Apple Incorporated has answered the need of their customers for new technologies. However, Apple consumers tend to set up high standards of expectation with new Apple products, in which consumers evaluate new products based on their structured expectations. Hence, Apple management endeavored to create products that are well created based on the idealities and preferences of their customers in terms of luxury, entertainment, and affordability (Ballagan, 2011; Michele, 2011). Moreover, aside from the role of consumers in the success of the market in Apple Incorporated, the suppliers also play the vital role in allowing the company to create new electronic devices. The Apple management would ensure that the supplied products of their supplier have abided on the policies of the company in terms of patent rights in order to avoid any conflict of intellectual property violations. However, the agreement on the suppliers’ responsibility towards Apple will not hinder their suppliers in taking up clients from the company’s competitors. Accordingly, the Apple management and their suppliers have the claims and authority to ameliorate their agreement in order for both parties to operate effectively. Nevertheless, there are also suppliers who have gone beyond the terms of agreement with Apple Incorporated and in turn became as a competitor of the company (“Apple Supplier Responsibility,” 2012; Yee & Jones, 2012). The Apple Incorporated (16.9% shares) had successfully innovated technological devices that had gained awareness to consumers and also the company's competitors, namely the Samsung Electronics (32.9% shares), Google (68.1% shares), and Microsoft (3.5% shares) (see Appendix A). Particularly, the Samsung Electronics is one of the biggest competitors of Apple Incorporated in creating smartphones and also one of the important suppliers of electronic chips in creating Apple products. Secondly, the Google internet and software company is also a competitor of Apple Incorporated in terms of operating systems, in which the Android operating system of Google had powered the electronic devices of Samsung Electronics. Lastly, the Microsoft is one of the oldest competitors of Apple Incorporated in terms of computer technology and development, in which the Microsoft had dominated the computer market all over the world. However, despite the competition, the Apple Incorporated is still able to go on top of the market despite the increasing competition because of their potency to create and innovate new ideas and electronic devices (Lee, 2012; Unal et al., 2012). References Company Overview Apple Incorporated. (2012, October 30). The New York Times. (2012). Retrieved from http://topics.nytimes.com/top/news/business/companies/ apple_computer_inc/index.html Sawayda, J. (2011). Apple Inc.’s ethical success and challenges. Retrieved from http://danielsethics.mgt.unm.edu/pdf/Apple%20Case.pdf Unal, M., Uludag, O., Ozturk, S., Sever, S., & Boynukalin, U. (2012). Apple situation analysis - Apple’s world. Retrieved from http://appleanalyses.wordpress.com/ External Environment Apple supplier responsibility: 2012 progress report. 2012. Retrieved from http://images.apple.com/supplierresponsibility/pdf/Apple_SR_2012_Progress_Report.pdf Ballagan, C. (2011). Apple’s effect on the economy. Retrieved from http://econapple.blogspot.com/ Barrett, P. M. (2012). Apple vs. Samsung: Shaping the mobile battlefield. Retrieved from http://www.businessweek.com/articles/2012-07-29/apple-vs-dot-samsung-shaping-the-mobile-battlefield Export compliance. n.d. Retrieved from http://www.apple.com/legal/export.html Lee, T. (2012). Samsung’s relationship with Apple reduced to merely manufacturer according to report. Retrieved from http://www.ubergizmo.com/2012/10/samsungs-relationship-with-apple-reduced-to-merely-manufacturer-according-to-report/ Michele. (2011). The Apple phenomenon. Retrieved from http://theapplephenomenon.blogspot.com/ Unal, M., Uludag, O., Ozturk, S., Sever, S., & Boynukalin, U. (2012). Apple situation analysis - Apple’s world. Retrieved from http://appleanalyses.wordpress.com/ Warranty obligor for region or country of purchase. n.d. Retrieved from http://www.apple.com/legal/warranty/obligor.html Yee, L. C., & Jones, T. Y. (2012). Apple CEO in China mission to clear up problems. Retrieved from http://www.reuters.com/article/2012/03/27/us-apple-china-idUSBRE82Q06420120327 Appendix Appendix A: 2012 Market Shares of Smartphones Company Millions in Unit Percent Share Apple Incorporated 26.0 million units 6.9 percent share Samsung Electronics 50.4 million units 32.9 percent share Google 104.8 million units 68.1 percent share Microsoft 5.4 million units 3.5 percent share Sources: “Smartphone market shares Q2 full numbers- Samsung and android solidifying their leads. 2012. Retrieved from http://communities-dominate.blogs.com/brands/2012/08/smartphone-market-shares-q2-full-numbers-samsung-and-android-solidifying-their-leads.html The Associate Press. 2012. Worldwide market share for smartphones. Retrieved from http://finance.yahoo.com/news/worldwide-market-share-smartphones-220747882--finance.html Case Analysis: Samsung Electronics I. Company Overview A. Brief History of Samsung Electronics The Samsung Electronics was established in South Korea in the year 1969, in which it is a subsidiary company of Samsung Group that is responsible in creating and generating technological devices and electronic circuits. The Samsung Electronics is now becoming one of the principal electronics companies all over the world that has the preference of creating new and high quality products. Accordingly, the Samsung Electronics develops and sells electronic products such as semiconductors, flash memories, liquid crystal display monitors, digital phones, appliances, and other technological devices (“About Samsung,” n.d.). Consequently, the Samsung Electronics is known as the supersector leader in technological devices with a sustainable objective in creating devices with high designs and contents (Samsung Electronics, 2012a). B. Stakeholders The Samsung Electronics has endeavored to create an honest, trusting, and open relationship with their different stakeholders. Accordingly, the stakeholders of Samsung Electronics involve the customers, employees, non-government organizations, government, suppliers, and the company’s shareholders or investors. The stakeholders of Samsung have their own individual role with regard to attaining the corporate goals of the company. Particularly, the shareholders or investors are important for the company in creating company policies and keep in tract the present and future situations of the company through general meetings. Secondly, the suppliers are the industries that will furnish the Samsung Electronics with electronic parts in creating and innovating technological devices. Thirdly, the government and non government organizations will help the company in maintaining and sustaining the company’s ideality of following the state regulations and policies in order for the whole company to operate effectively and competently. Fourth, the employees are also important stakeholders of the company because they are the ones who will create the technological principles of the company. Lastly, the customers are the most important stakeholders of the company because of their preference in utilizing Samsung Electronics devices that will create an increasing market value for the company (Samsung Electronics, 2012b). II. External Environment A. General Environment The Samsung Electronics endeavored to extend their company operation beyond their domestic market in South Korea and be able to provide skillful workers abroad in order to suffice the need for effective and competent operations. As a result, the Samsung Electronics has approximately 285 foreign operations within 67 countries around the world. Accordingly, the Samsung Electronics has supplied and operated in countries that belong to North America, Latin America, Middle East, Asia Pacific, Europe, and Africa (“Samsung Press Information,” n.d.; “Visit Your Country,” n.d.). With Samsung Electronics’ increasing international operations, the company held principles that will aid the management in sustaining the capability and efficiency in creating new technologies (“Samsung Value,” n.d.). Accordingly, the Samsung Electronics uphold the principle that the company will conform and obey on rules and regulations of the country they are operating with respect, honor, and ethical standards. In relation to this, the Samsung Electronics has identified that their Chinese suppliers recognize the policy of not allowing underage workers. However, the company management found out that one of their suppliers in China has excessive overtimes and insufficient safety management which is in violation to the company policies and the government labor standards. Nevertheless, the company management exerted an effort to regularly inspect their suppliers for unjust and unequal work practices (J. Lee, 2012; “Samsung Value,” n.d.). Moreover, aside from abiding the company policies, the Samsung Electronics also upholds the principle of setting aside political perspectives and will not partake in any political disputes in order to sustain their impartial viewpoints. However, an issue had recognized that the company was creating television commercial that represents the tension between Israel and Iran, in which the advertisement was favoring on the success of Israeli government in destroying the nuclear plants in Iran. Nevertheless, the Samsung Electronics management had ensured that the television advertisement was not approved or notified by the company management (Political Issues, 2012; “Samsung Value,” n.d.). In addition, the Samsung Electronics also upholds the principle of being culturally, socially, and environmentally responsible as a corporate citizen. Accordingly, the company management had strived to augment their social contribution through launching educational programs for children in different parts of the world. However, the company was being alleged of child labor practices in China because of their suppliers who utilize child workers for Samsung operations. Nevertheless, the issues of child labor were recognized by the management and endeavored to cease those illegal practices (Arthur, 2012; “Samsung Value,” n.d.). Despite the labor problems of Samsung Electronics in China, the company was able to redound a great amount of value on the economy in different parts of the world. The global recession was not also a hindering factor for the company to compete with other big technological companies in market shares. Furthermore, with the incremental value of technology, the Samsung Electronics Company was able to establish devices in accordance to their ideality of innovation and their existing resources of electronic materials. However, the Samsung Electronics Company is in a struggle of legal cases in terms of patent rights against their competitors, the Apple Incorporated (Yoo-Chul, 2012). B. Competitive Environment The Samsung Electronics is a subsidiary company of Samsung group that creates technological devices such as home appliances, smartphones, digital phones, computers, and also electronic circuits or chips. However, the market products of Samsung Electronics have many competitors because there are now many technological companies that have the resources and manpower that can create the products similar to Samsung Electronics. Nevertheless, the Samsung Electronics consumers have the preference to buy Samsung products such as their smartphones while waiting for the new smartphone model of Samsung’s competitor, the Apple Incorporated. Hence, the consumers have the main function for the Samsung Electronics to have increase market sales and be able to create new devices with an affordable price in order to be in a lead against their competitors (Jin, 2011). In relation to this, Samsung Electronics has to consider the proficiency and efficiency of the suppliers in supplying the company with electronic parts for creating Samsung products. Accordingly, the operations of Samsung Electronics depend on the capacity of their suppliers in equipping the company with needed resources. The Samsung Electronics has a number of suppliers, and in turn, has authority over their suppliers with company policies. However, the suppliers have the total control on the operations of Samsung Electronics because the equipments that the suppliers are making are substantial for Samsung Electronics technology (“SWOT Analysis,” n.d.). With the increasing new market products of Samsung Electronics specifically the smartphones (32.9% shares), the company had garnered a number of competitors that have the interest on creating technological devices, and these competitors are the Apple Incorporated (26.0% shares), Nokia (6.7% shares), and HTC (5.8% shares) (see Appendix A). Particularly, the Apple Incorporated is one of the biggest consumers of Samsung Electronics chips in creating Apple products, and also considered as one of the biggest competitors of Samsung Electronics in smartphones with an operating system of Android from Google (T. Lee, 2012; Unal et al., 2012). Secondly, the Nokia is one of pioneering developer of mobile phones and is already part in the smartphones competition with its new operating system from Microsoft Windows (Fried, 2012). Lastly, the HTC is also supplying smartphones that are operated with Android operating system which will be a factor for Samsung Electronics to have a competitive rivalry with HTC despite their loss of percent shares. Nevertheless, the Samsung Electronics is still in the lead of an increasing value in market shares (Versace, 2012). References Company Overview About Samsung. n.d. Retrieved from http://www.samsung.com/us/aboutsamsung/corporateprofile/history.html Samsung Electronics. 2012a. Sustainability overview: 2011 highlights. Retrieved from http://www.samsung.com/us/aboutsamsung/sustainability/sustainabilityreports/download/2012/2012_introduction.pdf Samsung Electronics. 2012b. Sustainability overview: Stakeholder engagement. Retrieved from http://www.samsung.com/us/aboutsamsung/sustainability/sustainabilityreports/ download/2012/2012_stakeholder_engagement.pdf External Environment Arthur, C. 2012. Samsung accused of exploiting younger workers in China. Retrieved from http://www.guardian.co.uk/technology/2012/sep/05/samsung-accused-exploiting-workers-china Fried, I. 2012. Nokia grows its share of Windows phone market, but that market may not be growing fast enough. Retrieved from http://allthingsd.com/20120821/nokia-grows-its-share-of-windows-phone-market-but-is-windows-phone-market-growing-enough/ Jin, H. 2011. Samsung smartphone sales pass Apple’s in Q3 as customers waited for 4S. Retrieved from http://www.theglobeandmail.com/technology/mobile/samsung-smartphone-sales-pass-apples-in-q3-as-customers-waited-for-4s/article4183551/ Lee, J.-A. 2012. Samsung finds problems at Chinese supplier. Retrieved from http://online.wsj.com/article/ SB10000872396390443847404577629742237287710.html Lee, T. (2012). Samsung’s relationship with Apple reduced to merely manufacturer according to report. Retrieved from http://www.ubergizmo.com/2012/10/samsungs-relationship-with-apple-reduced-to-merely-manufacturer-according-to-report/ Political Issues. 2012. Samsung said it didn’t make ad that angered Iranians. Retrieved from http://politicalissues.blog.com/2012/02/04/samsung-said-it-didnt-make-ad-that-angered-iranians/ Samsung press information. n.d. Retrieved from http://www.planetpdf.com/planetpdf/pdfs/samsung_presskit2_duffj.pdf Samsung value & code of conduct. n.d. Retrieved from http://www.samsung.com/us/aboutsamsung/sustainability/sustainablemanagement/samsungvaluecodeofconduct/samsungvaluecodeofconduct.html. SWOT analysis of Samsung. n.d. Retrieved from http://www.scribd.com/doc/47312382/SWOT-Analysis-Of-SamsunG Unal, M., Uludag, O., Ozturk, S., Sever, S., & Boynukalin, U. (2012). Apple situation analysis - Apple’s world. Retrieved from http://appleanalyses.wordpress.com/ Versace, C. 2012. HTC is the latest smartphone bloodbath casualty. Retrieved from http://www.forbes.com/sites/greatspeculations/2012/10/08/htc-is-the-latest-smartphone-bloodbath-casualty/ Visit your country site. n.d. Retrieved from http://www.samsung.com/us/common/visitcountrysite.html Yoo-Chul, K. 2012. Samsung contributes a lot to US economy. Korea Times. Retrieved from http://koreatimes.co.kr/www/news/nation/2012/08/133_118443.html Appendix Appendix A: 2012 Market Shares of Smartphones Company Millions in Unit Percent Share Samsung Electronics 50.4 million units 32.9 percent share Apple Incorporated 26.0 million units 6.9 percent share Nokia 10.2 million units 6.7 percent share HTC 8.8 million units 5.8 percent share Source: The Associate Press. 2012. Worldwide market share for smartphones. Retrieved from http://finance.yahoo.com/news/worldwide-market-share-smartphones-220747882--finance.html Read More