Apple Inc. as a Potential Business Partner

Executive Summary

Apple is one of the leading companies in the information and technology sector. The success of this organization is attributed to the growth strategies formulated and implemented by the management. The firm has put in place ethical codes of conduct that inform the activities of its various stakeholders. It encourages innovation among the employees.

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The marketing strategies adopted by the company have ensured that it remains a leader in the industry. It has entered into partnerships with mobile phone operators and other business organizations dealing with similar products in the sector. The current organization is looking for a company to invest in. The need for investing is informed by the firm’s growth in the recent past. A number of businesses were reviewed, but Apple Inc. emerged the best alternative. The factors highlighted above informed this decision.

Introduction

In the past few years, this company has witnessed a positive growth due to the collective efforts of the employees. The entity has managed to outperform competition in the market. The performance is one of the major reasons why the firm has decided to invest a considerable amount of capital in another business. Initially, suggestions from all the employees were sought. Each of them suggested a different company, which they believed was the best to invest in.

In light of this, it was decided that it is important to carry out a comprehensive evaluation of a suitable company to work with. The following report illustrates the findings of this analysis. An in-depth research on several viable businesses was carried out. Finally, the author of this report settled on Apple Inc. The decision was based on a number of factors, which are discussed in detail in this report.

An Analysis of Apple Inc. as a Potential Business Partner

What the Company Entails

Apple is an American multinational corporation operating from California (Flynn and Flynn 23). It produces and sells computer hardware and software, as well as other consumer electronics. Some of its most popular brands include the iPhone, iPad, iPod, and Mac desktops and notebooks. The products are high quality and very attractive to the consumers. As such, Apple Inc. is one of the most successful and healthy IT brands in the United States and beyond. It is a leader in the electronic industry (Mallin and Finkle 65).

The high quality of Apple’s products is attributed to the adoption of technology and emphasis on innovation in the company. The entity focuses on building a loyal customer base by fostering the relationships with consumers. The company’s link with the consumers is so strong to the extent that people save money for years just to buy an Apple product (Mallin and Finkle 66).

Business Ethics at Apple Company

Business ethics is a key consideration when investing in any business. In light of this, an analysis of Apple Inc. reveals that the company ensures that all the stakeholders adhere to ethical standards at all times (Lashinsky 56). The firm demonstrates integrity in every business engagement it is involved in. The employees are guided by four major principles, which Apple believes contribute to integrity. They include honesty, respect, confidentiality, and compliance (Rubenstein and Murray 41).

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The company has formulated a code of conduct that informs the activities of all stakeholders, including the employees. Employees from different parts of the world are expected to report any cases of unethical conduct. The company has put in place channels to enhance this form of reporting. Submissions are made to the firm’s Audit and Finance Commission (Mallin and Finkle 70).

Many of the company’s products are manufactured overseas. They are assembled in regions where labor is cheap. The chances of unethical business conducts in such situations are high. The reason is the varying labor standards in the different countries. In addition, the supervision of factories in some parts of the world is reduced. The realization is one of the reasons why the company requires the suppliers to sign its code of conduct. In addition, regular factory audits are carried out to enhance compliance with these principles (Lashinsky 78).

The company has the rights to terminate contracts with stakeholders who breach its code of conduct. To underscore its commitment to ethical practices, the company has put in place a number of reporting mechanisms. For example, it publishes a Supplier Responsibility Report every year (Lashinsky 78). The report highlights the expectations of these stakeholders and the company’s conclusions. Corrective measures are recommended for those factories that were found to have performed below the standards (Rubenstein and Murray 42).

Business Growth Strategies

Apple applies a wide range of business strategies to support its growth and strategic positioning of ideas. For instance, the organization strives to provide consumers with the best products in the market to enhance their experiences. To achieve this, the company designs and develops its own unique hardware and software components (Lashinsky 24). The ability to design its products makes it possible to survive in the ever changing technological market.

Apple Inc. provides unique sales experiences to customers and small businesses through its retail and online stores. The company continues to expand its outreach by increasing the number of retail stores around the world. For example, in 2014, the company opened 33 new outlets (Apple Info 23). It is noted that 28 of these stores were located outside the USA. In 2015, the company plans to open between 50 and 65 new retail stores, 75 percent of which will be situated outside the United States (Apple Info 2). The firm’s outlets are strategically positioned in busy locations. The strategic placement helps the company to attract more consumers by improving their shopping experiences.

The firm targets education as a potential area for growth. The management believes that technologically integrated classrooms create a functional teaching and learning environment. ITunes brand supports mobile learning by distributing downloadable educational materials. In 2013, Apple recorded increased growth as more schools started to buy the iPads. The company takes advantage of the fact that most students and teachers are becoming more technologically savvy. As such, the educational sector will become increasingly lucrative for Apple (Apple Info 2).

The organization focuses on organic growth by coming up with innovations that improve ‘user quality’ through exceptional experiences. In the future, the company plans to launch a new Apple TV, which will be a fully integrated networking device (Rubenstein and Murray 42). The current application enables users to access high definition content. In addition, it streams content from iTunes, Netflix, YouTube, and Flicker. Users can also wirelessly connect their computers to a television. The planned launch of the improved TV program will present additional growth possibilities for the company in coming years. The rapid and elaborate development strategies and plans show why Apple is good company to invest in.

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Apple’s Market Share

The company has a fairly large market share. To this end, it leads the pack in the electronics development sector. For instance, it is approximated that 69.9% of mobile phone consumers use smartphone devices (Apple Info 10). Apple controls about 41.4% of this market (Lashinsky 34). Its share in the market has witnessed an upward growth in the recent past. The company has constantly retained its leadership position in the smartphone sector.

Apple Inc.’s Market Presence

America forms Apple’s largest geographical market segment. It accounts for 36.75 percent of the total revenue collected by the company (Mallin and Finkle 65). Traditionally, Europe is also a large consumer of Apple’s products. However, with the recent economic crisis in the region, the growth of this company in this market has gone down from 48.61% in 2011 to 30.76% in 2012 (Apple Info 2). In spite of this, the continent remains the second largest geographical segment for Apple. It accounts for 23.1% of the total revenue (Apple Info 9).

The company is seeking to increase its market presence in the Asia Pacific region. With regards to smartphone, Asia forms the largest market in the world. To this end, 26.5% of these gadgets are sold in the region (Apple Info 8). In China, Apple’s tablets controls 79% of the market share (Apple Info 7). The fact is reassuring to potential investors given that the tablet market in China is expected to expand in the coming years. The company has contracts with the second and third largest mobile couriers in China. It is also believed that Apple is trying to reach out to China Mobile, the largest telecommunications company in the country (Apple Info 7).

Currently, Apple has eight business segments. They include desktops, portables, iPods, and iPhones. Others are iPads, peripherals, and other hardware and software services. In addition, the company deals with a range of music related products and services (Mallin and Finkle 70). The company dominates the mp3 player market, where it has a market share of more than 85% (Mallin and Finkle 65). Actually, Apple is one of the few companies generating money from the music download industry. For example, the iTune music store sold more than 3billion songs in 2013 (Apple Info 4). The existence of a wide range of products increases Apple’s market presence. As such, it is a potential company to invest in.

Quality Concerns Associated with Apple’s Products

Generally, the products distributed by this company are of high quality. The organization believes that quality is better than quantity. A lot of resources are spent on recruiting the right persons for the company. Most of the employees are young and creative. Engineers who work on the organization’s designs are recruited from the best learning institutions in the world (Rentz 245). Apple’s approach to production is not guided by capital gains. On the contrary, the process is informed by the need to come up with quality products.

The company ensures that quality concerns are addressed by putting in place strict rules that are to be followed by manufacturers during the production phase. If a given stakeholder fails to adhere to any of the principles, the company may decide to terminate its engagement with the producer. Most customers are loyal to the company’s products. As such, they buy them even at high prices (Lashinsky 12).

Apple Inc.’s Marketing Strategy

Every ambitious business owner hopes to succeed and become a leader in their niche market. However, the truth is that the number one position has room for one brand only. The incumbent has to fight to maintain this status (Rentz 245). Most businesses recognize the value of advertising on such platforms as social media and billboards. The aim is to expand the company’s customer base.

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It is erroneous to assume that Apple has adopted the conventional marketing strategies to emerge the leader in the industry. The fact is that the company pays almost nothing to advertize its products. The observation is ironical given the high quality of advertisements seen on television (Rubenstein and Murray 41). Apple has managed to get other companies, mainly mobile phone operators, to pay for its advertising.

The company formulates strict branding restrictions for these stakeholders. The regulations dictate how the advertisements will look like and the information passed across to the consumers. In return, the mobile operators are allowed to inform their customers that they have an Apple product. When the product is sold, the consumer gets to decide whether to use the services of the mobile operator who sold the phone or to move to another network provider. The decision is based on how convincing the seller is when engaging the client. Apple uses this simple marketing strategy to remain ahead of competition.

Conclusion

Apple is the most strategic company to invest in. All its strategies are formulated to ensure long term success. The organization shuns policies aimed at generating short term profits. Apple has been in existence for many years. It has experienced a positive growth. Currently, it is ranked as the third most popular PC maker in the world. An analysis of this firm reveals that it has an added advantage over other companies in the industry. First, it has a loyal customer base that regards its products highly. Secondly, the products are popular with the new generation of youthful consumers. Furthermore, the company emphasizes on ethical business conducts.

Works Cited

Apple Info 2008. Web.

Flynn, Brian, and Christopher Flynn. Apple II Applications: 40 Programs for Your Apple, London: Compute Publications International, Limited, 1985. Print.

Lashinsky, Adam. Inside Apple: How America’s Most Admired-and Most Secretive- Company Really Works, New York: Business Plus, 2012. Print.

Mallin, Michael, and Todd Finkle. “Product Portfolio Analysis: The Case of Apple, Inc.” Journal of International Academy for Case Studies 17.7 (2011): 63-74. Print.

Rentz, Kathryn. “Outstanding Article in Business Communication Quarterly.” Business Communication Quarterly 70.2 (2007): 243-246. Print.

Rubenstein, David, and Murray Douglas, Board Self-Evaluations: Striking the Right Balance. 2010. Web.

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