Apple Inc. was incorporated in 1977, and is engaged in designing, manufacturing and marketing mobile communication and media devices, personal computers, and portable digital music players. Today, Apple ranks 75 on the Forbes Global 2000 list of Companies, and is a leader in the technology industry (Forbes). Apple values innovation and creativity, and is constantly looking to employ people with these qualities in all segments of their company, from the executive office to their Software engineering department. The company’s products and services include the iPhone, iPad, Mac, iPod, a portfolio of consumer and professional software applications, and operating systems. The company also sells and delivers digital content and applications through the iTunes Store. In 2011, the company, as part of a consortium, acquired Nortel Networks Corporation’s patent portfolio. In February 2012, the Company also acquired the app-search engine Chomp (Reuters). In June 2007, Apple launched the iPhone, which combines a mobile phone, an iPod, and an Internet communications device in a single handheld product. The iPhone has been one of the most successfully sold phones in the world, with over 100 million phones sold worldwide. Apple IPhone: Value Funnel Assessment
Level I: Global Business Community- Macroenvironmental Factors A.
As a publicly traded global business, that is operating culturally and socially it is important to respond to customer demand to create progression and growth. Being located in 13 countries (USA, Canada, U.K., Japan, Italy, Australia, China, Switzerland, France, Spain, Hong Kong, Germany and Netherlands), they have to deal with a diverse workforce and customer base. Apples ability to create reliable products such as the Mac computer, iPod, iPhone and the iPad has played an important part in how customer needs are being fulfilled. Apple Co-Founder Steve Wozniak believes in a simple concept, “we'll let people use their cell phones in our store and then the buying customer gets to see physically this is really what they want and the stores don't have to keep as much inventory.” They take this concept and apply it to society and subcultures (geographic, age, gender, ethnic etc..) in that they listen and respond to what the customers need.
Demographically, there is a wide range of Apple users. Key target market for apple users are fans ages 12-35, Music enthusiasts, Middle/Upper income, Professionals in media and design etc… However, there are policies on creating an Apple ID Account. For example in the United States, minimum age is 13 years old. This creates a demographic barrier as to whom they are able to issue accounts to. By appealing to the need of customers across all social boundaries, globally they are able to provide excellent service and customer satisfaction socioculturally.
There are economic factors that can affect the productivity of Apple. An example of this would be the ability of the Company to deliver to the marketplace and stimulate customer demand for new programs, products, and technological innovations on a timely basis. The effect of introductions and transitions of a product, changes in product pricing or mix, and/or increases in component costs could have on the Company’s gross margin. The inventory risk associated with the Company’s need to order or commit to order product components in advance of customer order. The effect of the Company’s dependency on manufacturing and logistics services provided by third parties may have on the quality. There could be risks associated with the Company’s international operations. Another thing that can have an effect on Apple is the product and service quality problems could have on the Company’s sales and operating profits. D.
There are natural and physical factors that can have an effect on Apple’s profitability. By...
Please join StudyMode to read the full document