Apple Inc. is an American multinational corporation (MNC) that designs and manufactures consumer electronics and computer software products. The company's best-known hardware products include Macintosh computers, the iPod and the iPhone. Apple software includes the Mac OS X operating system, the iTunes media browser, the iLife suite of multimedia and creativity software, the iWork suite of productivity software, Final Cut Studio, a suite of professional audio and film-industry software products, and Logic Studio, a suite of audio tools. The company operates more than 250 retail stores in nine countries and an online store where hardware and software products are sold. Apple has about 70,000 employees worldwide and had worldwide annual sales of US$ 28.27 billion in its fiscal year ending September 24, 2011. Due to its all-inclusive stylish design to its peculiar advertising campaigns, Apple has established a unique reputation in the consumer electronics industry. This includes having a customer base that is fond of the company and its brand, particularly in the United States. Fortune magazine named Apple the most admired company in the United States in 2008 and in the world in 2009. “Apple’s goal is not to make money but to design and develop and bring to market good products,” says Jonathan Ive, Apple Inc’s design chief.
In the current 21st century, about 32.7% of the world’s population are Internet users. Personal computers (PC) or smartphones are needed to access the Internet. By looking at the figures, we can assume that people are now more tech-savvy as compares to in the 19th and 20th century. Lesser developed countries that wants to become 2nd or 1st world countries would have to focus on technology and this will in turn create more business opportunities for Apple Inc.
Advance in communications will help Apple Inc. in keeping in touch with their staff through email and phone calls as compared to the past when staffs have to use memos to convey messages. Meetings can now be held online instead of having to be present in a meeting room. This allows work at Apple to be efficient, convenient and helps to boost the company’s activities. Information processing, with the help of computers software will help in designing products. This allows the hardware designers to make changes to the product designs as and when they want to and send them to the manufacturers. Transportation technologies allows products to be transported more efficiently as most products would be transported by plane as compares to the past when they are only transported by ships or trains.
The power of a supplier increases when there are a few other sources of supply, when the supplier has many other buyers, when there are no good substitutes, and when the cost of switching suppliers is high. By having a big network of suppliers and establishing webs of production activities across markets, costs of production can be lowered and achieving the highest quality becomes possible. Products can now be manufactured quickly as they are made by machines and not by hand as compared to the past. This allows the company to be able to explore more varieties of production activities.
Global Consumer Preferences
Apple Inc. can design their products according to what consumers want. The company have constantly been involved with design copying issues with many other consumer electronic companies. Apple Inc. has sued those companies for copying their designs for smartphones. This problem can be dealt with by implementing a standardized design for all consumer electronics.
General Business Environments
The general business environment in a country consists of all the factors that combine to affect the benefits, costs, and risks, both political economic and legal, of doing business in that country. Take for example, Israel. It is not easy to do business in...