Unit 2 Individual Project - Essay Example

Apple’s lack of debt may also be a weakness because it could be susceptible to a stock acquisition by a group of companies. Since it has not issued dividends to its investors for several years, this could be a cause for loss of confidence.(Salkever, 2004) The possibility to gain from the widespread use of the new wireless system called Nike +iPod, where the wearer’s running shoes will be gauge how many miles have been run and how many calories burned.(Fox News Report, 2006). Threats posed by fluctuating exchange rates, because most of Apple’s sales are international.

A value in the value of the US. Dollar would decrease the net receivables while an appreciation would reduce demand due to higher prices. 2. There are some important elements that must be noted from the above analysis, which serve to explain the reasons for Apple’s continued strength in the computer market. The ability to create brand and customer loyalty has played a significant role in Apple’s success, especially because it also allows its employees participation in the Company’s profits which has improved their motivation and retained skilled employees within the Apple corporate framework.

Apple’s constant innovative strengths have also been a factor helping it to weather the changes in the market and emerge resilient despite those changes. Its product diversification has ensured that its product lines are tailored to suit a variety of customers. Moreover, since Apple is financed mainly through its own equity, there is less risk posed to investors in Apple stocks because the Company also has extra cash available to help it deal with an emergency. But this ownership of equity is also operating as a weakness from the shareholder point of view.

The Apple Company has not been paying dividends to its stockholders, which is one of its greatest weaknesses. The attractiveness of Apple stocks is