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STO7003: Apple Company Business Report

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Table of Contents

Executive Summary............................................................................................................................4

Company Overview........................................................................................................................5

Apple Strategic Goals.........................................................................................................................7

Enhance Customer Experience....................................................................................................7

Strengthening of the Apple Ecosystem........................................................................................7

Sustainability and Environmental Responsibility........................................................................8

Innovation and Differentiation.......................................................................................................8

Design and Functionality of the Apple Inc Products...................................................................8

International Expansion of the Apple Inc.........................................................................................9

Market Penetration.........................................................................................................................9

Retail Expansion.............................................................................................................................9

Localized Marketing and Product Adaptation.............................................................................9

Partnerships and Alliances..........................................................................................................10

Localization of Services...............................................................................................................10

Government and Compliance.....................................................................................................10

Emerging Market Focus...............................................................................................................10

Localization of Manufacturing and Supply Chain.....................................................................11

Motivations of Apple Inc...................................................................................................................11

Innovation......................................................................................................................................11

User-Friendly Experience and Design Experience...................................................................11

Ecosystem Integration..................................................................................................................11
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Marketing and Branding...............................................................................................................12

Vertical Integration........................................................................................................................12

Retail Presence.............................................................................................................................12

Services and Subscriptions.........................................................................................................13

Privacy and Security.....................................................................................................................13

Environmental Responsibility......................................................................................................13

Strengths and Weaknesses of Apple Inc.......................................................................................13

Strengths........................................................................................................................................13

Value Brand and Global Iconic.......................................................................................................13

Expansion in Services..............................................................................................................14

Embracing Sustainability..........................................................................................................14

Research and Development Utilization of the Apple Inc.....................................................14

Strong Brand Recognition and Loyal Customers.................................................................14

Development of Innovative Products and Services..............................................................15

Financial Strength and Profitability.........................................................................................15

Weaknesses......................................................................................................................................15

Expensive Products and Services..............................................................................................15

Lack of New Innovative Products...............................................................................................16

High Degree of Competition and Legal Issues.........................................................................16

Complacency in the Face of Growing Competition..................................................................16

Limited Customization Options...................................................................................................17

Dependence on the iPhone.........................................................................................................17

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Closed Ecosystem........................................................................................................................17

Recommendations............................................................................................................................18

Enhancement of Ecosystem Integrations..................................................................................18

Development of Low-end Smart Phones...................................................................................18

Introduction of Innovative Products............................................................................................18

Development of New Processors For iPhone Smartphone Gaming......................................18

Diversification and Acquisitions..................................................................................................19

Utilization of Artificial Intelligence...............................................................................................19

Development of Technologies and Products that will Aid the Company in Stay Ahead of Its

Competitors...................................................................................................................................19

Embracing of 5G Technology......................................................................................................20

Development of Sustainable Eco- friendly Products................................................................20

Fostering Developer Relationships.............................................................................................20

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Apple Company Business Report

Executive Summary

Apple Inc is a global technology company that changed the global perception

of technology by innovating technological equipment and services that pulls its

clients to its close ecosystem (Podolny et al., 2020). Apple`s main founder is Steve

Job, who worked in partnership with other two members. Apple Inc, head quarter is

located in California. Apple company aims at development of complex technological

equipment and services that can easily integrate with its products thus enhancing

their user`s experience (Podolny et al., 2020). Apple has made various strides in the

technological world. For instance, it created the first computer that embraced

technical prowess, had a more complex interface, and was user-friendly (Podolny et

al., 2020). The technological advancements entail the development of the iPod, a

portable music player, unlike the Sony Walkman, which was quite heavy to carry and

required Compact Disk.

Apple also developed iconic products such as iPhone and iPad that used an

IOS operating system, the most secure system globally. Also, regarding the MAC,

Os provides users with a user-friendly experience (Podolny et al., 2020). However,

apart from the development of technological equipment, Apple transformed digital

content by transforming how people listen to music (Podolny et al., 2020). It entailed

Apple Music's development, allowing its users to purchase, download and discover

music.

Apple is also known for innovating sleek design models of hardware sans

user interface. For instance, Apple products usually have a more sleek design and

attract its users to the Apple ecosystem, thus creating a fan base for its users. It
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makes them eager and anticipates new technological releases (Chen et al., 2021).

Apple's unwavering commitment to inventing new products and improving user

experience and design puts the company above its competitors (Chen et al., 2021).

The Apple devices also offer breakthrough performance products that are fast, have

exceptional battery life, and are integrated with privacy and security patches which

are safe and allow the users to interconnect the devices at once. Thus it is efficient

for business use.

Company Overview

Apple Inc's mission is to develop products that can easily blend with

technological designs, thus making the client's lives easier (Chen et al., 2021). Apple

Inc is committed to reflecting on its products by innovating smartphones, watches,

tablets, and other digital equipment. The products are equipped with integrated

software that delivers a more holistic ecosystem to its clients, thus allowing them to

interact with Apple devices.

The core of Apple Inc products is the iPhone smartphone, which was first

launched in 2007. The phone changed the perceptions of the mobile industry since it

introduced a touch-based interface, an app ecosystem, and more advanced

multimedia capabilities (Chen et al., 2021). However, the new era in technology

pushed the company to push its boundaries regarding innovation by improving the

products and enhancing its operating system, camera, face ID recognition, and other

capabilities.

Apple also provides its users with a wide range of complementary devices.

For instance, in the year, 2010 Apple introduced the iPad that flooded the table

market by equipping its users with a more portable and vast computing experience
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(Chen et al., 2021). It entailed the iMax, MacBook Pro, and iMac. All these products

were developed to cater to the needs of professionals since they are equipped with

powerful hardware systems and software.

Over the past decades, Apple Inc extended its portfolio by introducing

wearables and accessories. The technological advancement of the Apple Inc, for

example the Apple smartwatch provides its consumers with additional features such

as Fitness tracking which will aid in keeping the client`s health in check. The Apple

smartwatch is also durable since it is water resistant, has a more advanced Apple

smartwatch processor and uses more advanced connectivity for example, it has a

Bluetooth 5.0, Wi-fi enabled and embraces the uses of LTE technology. Also, the

invention of Apple`s earbuds provides its clients with more enhanced hearing

experience , since they are equipped with noise cancellation.

Apple developed a vast ecosystem of both products and services. For

instance, the iOS operating system is used on Apple phone devices, and Mac Os is

integrated into Mac Computers, laptops, and other computing devices (Chen et al.,

2023). Also, when it comes to Apple's Appstore and iTunes allow its users to access

the latest music, Tv Shows and Movies.

Apple also prioritizes its client's data by developing encryption firewalls to

safeguard their personal information. It has made Apple Inc to be positioned at a

higher ground and trusted by organizations (Chen et al., 2023). The cutting-edge

technological innovations enabled the organization to embrace the global presence

by opening retail stores in various countries, thus allowing its hands-on client

experience (Chen et al., 2023). The retail stores also have innovative designs and an

outstanding customer experience.

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Apple Strategic Goals

Enhance Customer Experience

One of the pillars that Apple Inc focuses on is enhancing customer

experience. Thus, it makes the company succeed in creating a customer experience

that goes far beyond purchasing the product (Chen et al., 2023). It is evidenced

when the clients post videos on social sites to unwrap their new products. Also,

Apple has made it easier for its clients to use their products. For instance, when they

buy a product, they unwrap, charge, and use it (Chen et al., 2023). Also, with more

than 400 Apple stores globally, it has enabled Apple to reach its consumers. Apple

also aims to deliver user-friendly products, evidenced by the excellent design of

apple's software interface, designs, and hardware aesthetics.

Strengthening of the Apple Ecosystem

Apple Inc embraces a vertical integration strategy that aims to advance its

expertise in creating software, devices, and hardware simultaneously (Chen et al.,

2023). The vertical integration of Apple Inc makes it withstand competition; thus, it

has benefited the company immensely from this strategy. Another competitive

advantage is Apple's ecosystem which is entirely enabled but this ecosystem.

Apple devices and their operating systems blend and sync easily with each

other. Thus, this enables the applications to work on multiple devices simultaneously

with minimum interfaces (Chen et al., 2023). The same items, even though they

blend easily with Apple products, do not pair easily with the other company's

products; thus, this closes its ecosystem. Apple Inc also switches costs for its

consumers by creating products that suit all social classes.

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Sustainability and Environmental Responsibility

Apple Inc is committed to ensuring sustainability and, at the same time

minimizing environmental impact (Gao, 2021). The company ensures an easy

transition to renewable energy resources, reduction of the carbon print, and recycling

of its products. Apple Inc's goal is to be the global environmental sustainability

leader.

Innovation and Differentiation

The company strives to maintain the organization's reputation by constantly

pushing to initiate technological advancements (Gao, 2021). Thus, the company

aims to introduce new products and features that enable it to withstand competition

and offer a unique value to its clients.

Design and Functionality of the Apple Inc Products

The company has adapted to the initiation of advanced products and features.

For instance, Apple first innovated iPad, which allows its users to store and shuffle

songs. It also introduced the graphical user interface on the iMac, which was more

advanced than the other older generation computers (Gao, 2021). Apple also

embraces the first-mover advantage perspective, which ensures its competitive

advantage by developing new products and updating its operating systems. Thus

this compromises other companies' competitive advantages.

International Expansion of the Apple Inc

Market Penetration

Apple Inc has successfully penetrated the global technological market in

various countries (Gao, 2021). Apple Inc conducts research and strategically

identifies the markets with growth potential; after identifying them, they can establish
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a strong company presence (Gao, 2021). It is done through establishing retail stores,

partnerships with local carriers and online sales channels, and other retailers.

Retail Expansion

Over the past years, Apple Inc has successfully expanded its retail footprint

globally (Li, 2021). Apple Inc operates various stores globally, providing its

consumers with a unique shopping experience and a direct point of sales rather than

using middlemen (Li, 2021). Apple also showcases the company's products at its

stores. Through this, it offers a direct engagement ground for its consumers.

Localized Marketing and Product Adaptation

Apple understands the importance of marketing and embraces this by

establishing local marketing retail centres to meet the needs of the consumers (Li,

2021). The company invests in various domains, such as language support and

marketing campaigns, and ensures its products adapt to the local region's

regulations and standards (Li, 2021). It helps the company resonate with its local

consumers and ensure a seamless user experience.

Partnerships and Alliances

Apple Inc works by forming partnerships and alliances with their local

companies, which will enhance the organization's presence and expand its

distribution channels (Naik G & Pai T, 2018). The partnerships will also entail

collaboration with regional retailers, carriers, and other providers to ensure improved

accessibility to Apple's products.

Localization of Services

Apple Inc aims to localize its services to ensure that it provides users with

more personalized experiences globally. For instance, it offers its consumers

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restricted content, language support, and other features. For example, Siri, Apple's

voice assistant, has been integrated and improved to respond to various languages

and dialects.

Government and Compliance

Apple Inc directly engages with governments to establish positive

relationships and regulations that comply with local regulations (Naik G & Pai T,

2018). However, building a strong relationship with the local governments helps the

company navigate directly through the market challenges and simultaneously ensure

a favorable business environment to conduct its operations.

Emerging Market Focus

Apple conducts market research, and it can recognize the potential growth in

m emerging markets (Naik G & Pai T, 2018). For example, Brazil, India, China, and

Asia have become strategic markets for the organization to expand its plans (Naik G

& Pai T, 2018). Also, the large population density of these regions validates the

possibility of increasing disposable incomes.

Localization of Manufacturing and Supply Chain

For Apple Inc to streamline its operations to cater to the market demands of

its consumers. Apple has established manufacturing and assembly facilities globally

in various countries (Naik G & Pai T, 2018). Localization of the productions facilitates

in reduction of costs and ensuring of ongoing supply chain management. It also aims

at ensuring the organization complies with the local regulations regarding product

manufacturing and importation.

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Motivations of Apple Inc

Innovation

Apple Inc is deeply rooted and passionate when it comes to the innovation of

new technological equipment. Thus, the company strives to initiate ground-breaking

products that will differentiate it from competitors (Naik G & Pai T, 2018). Apple also

ensures that it develops a unique design and embraces user-friendly interfaces

between its software, hardware, and other services, which also helps it gain positive

market value.

User-Friendly Experience and Design Experience

The company places a strong emphasis on the provision of exceptional user

experiences. Apple Inc's motivation is to develop products that are attractive,

pleasing, and intuitive (Naik G & Pai T, 2018). Also, the company's commitment is to

design good and easy-to-use products. The company also focuses on the

maintenance of its product excellence.

Ecosystem Integration

The company evolves around ecosystem-based product and service

development (Naik G & Pai T, 2018). The company integrates the hardware,

operating systems, and software's to create a seamless experience for its users,

thus allowing them to interconnect with multiple devices (Naik G & Pai T, 2018). This

approach encourages the consumers to remain loyal and ensures cross-selling and

upselling of its products.

Marketing and Branding

Apple also embraces strategic marketing and branding skills to develop the

organization's strong brand image that aligns with the current target market (Naik G
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& Pai T, 2018). Apple also develops marketing campaigns that focus mainly on

emotional connection, highlighting to its consumers the benefits and experiences

they will get acquitted to once they purchase Apple products (Naik G & Pai T, 2018).

Also, when it comes to Apple's branding, it focuses mainly on innovation, user-

friendly preferences, design, and quality.

Vertical Integration

Apple Inc embraces vertical integration, which allows the company to have full

control of its supply chain (Naik G & Pai T, 2018). For instance, Apple can design its

operating system, hardware, and app store. However, having full control of its

distribution process and product development allows Apple company to maintain the

development of quality products.

Retail Presence

Regarding the company's retail strategy, Apple aims to develop a unique

shopping experience (Naik G & Pai T, 2018). In the Apple stores, the company

showcases its products by offering the clients the hands-on technique where the

client can visualize, touch the product and receive good customer care services.

Services and Subscriptions

Over the past decades, Apple has focused on expanding its services and

subscriptions. It entails providing services, for instance, Apple TV, Apple Music, and

iCloud (Omer, 2019). Through this, it enables the company to deepen customer

engagement and, at the same time, generate revenue. These services can improve

customer loyalty by receiving more integrated technical support.

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Privacy and Security

Apple Inc places a strong emphasis when it comes to ensuring the client's

privacy and security (Omer, 2019). This particular strategy is directly driven by

protecting the client's information. Apple provides its clients with access and control

to their own information.

Environmental Responsibility

The company aims at reduction of environmental pollution. It is achieved

through the reduction of carbon footprint, addressing and mitigating environmental

changes, and at the same time, conserving resources (Omer, 2019). Apple's

motivation is also embraced by creating products and implementing various

initiatives to reduce environmental organization.

Strengths and Weaknesses of Apple Inc

Strengths

Value Brand and Global Iconic

According to the Interbrand analysis, Apple is ranked in the 1st position m,

with a brand value of over 408n billion (Qiu, 2023). Being a global icon makes Apple

one of the most reliable companies offering its consumers advanced technological

types of equipment and services. Thus, it makes clients remain loyal to them.

Expansion in Services

Over the past decades, Apple has been expanding its service portfolio. For

instance, 20% of Apple's annual revenue is mostly retrieved from its services (Qiu,

2023). It makes Apple become one of the biggest contributors to revenue. Apple also

offers its consumers vast services such as streaming devices, iCloud, payment

services, and other subscriptions.

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Embracing Sustainability

Apple company ensures that it sticks to the depreciation of the carbon print.

Apple has developed a recycling robot known as Liam, which breaks down and

destroys some iPhone parts (Zhang, 2023). However, even though some of the

iPhone parts can be reduced, the recycling robot is designed to collect most of the

reusable parts, which are further stored and used to manufacture other products.

Research and Development Utilization of the Apple Inc

Apple Inc places its focus mainly on product design. The company conducts

extensive research to determine customer needs and market trends (Zhang, 2023).

It is achieved and made possible since Apple strives to invest some money in the

conduction of research and determine the competitive edge. The research will also

aid in ensuring the company's future growth.

Strong Brand Recognition and Loyal Customers

Apple's brand is recognized globally, and it has a loyal customer base that

grows rapidly due to the constant invention of technological products, its design

quality, and its experience (Zhang, 2023). The company's brand recognition is also

directed to its App Stores, allowing users to quickly download and use the apps they

need (Zhang, 2023). Analysis proves that there is an increase in app purchases

among Apple users compared to other technological companies like Samsung.

Development of Innovative Products and Services

Apple is well known for pushing boundaries and developing innovative

products and services that change technological perceptions. For instance, iPod led

to the era of digital music players, unlike the Sony Walkman, which was quite baggy

and needed a diskette to listen to music (Zhang, 2023). Apple was the first phone to
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embrace the use of live streaming devices that allowed its users to live stream

music through the digital platform.

Financial Strength and Profitability

Apple has unwavering financial strength, and it has maintained it for decades.

The market capitalization of the Apple company is worth more than 1 Trillion USD,

making it the first technological company to attain such heights. Also, research

proves that since 2018, the Apple Inc has surpassed the 50 Billion margin profit

(Zhang, 2023). This profit margin can be attributed to its products and mostly to its

crafted business plans built by the company's networking with its suppliers,

consumers, and business partners.

Weaknesses

Expensive Products and Services

Apple Inc. produces high end products which are quite expensive as

compared to other competitors for example, Samsung, Xiaomi and others. (Zhang,

2023). Apple produces products which have the same specifications and slight

design changes. They also tend to increase the products prices as they advance

(Zhang, 2023). The financial commitment needed to purchase Apple products keeps

them out of reach from other clients.

Lack of New Innovative Products

Over the years, Apple has not been introducing new technological products

into the market, unlike its past. However, it has aimed at improving and enhancing

some of its products and it has not innovated any other new products (Zhang, 2023).

Apple just advances some features, but it does not create any new products thus

making it hard to maintain its customer base.

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High Degree of Competition and Legal Issues

The highly competitive environment in which Apple Inc operates leads them to

legal battles with other giant technological companies or patent holders over property

rights or trademark issues (Zhang, 2023). It is evidenced in their battle with the

QUALCOMM Company, where each company got sued for patents. It resulted in

delays and other costs while trying to agree (Zhang, 2023). Saulo Paulo Court fined

Apple Inc 19 million after it decided to remove chargers from its packages.

Complacency in the Face of Growing Competition

Over the years, Apple has experienced its market share reduction as other

competitors emerge (Zhou, 2022). Apple faces competition from Android-based

products such as Samsung, Xiaomi, and Google, and these companies directly

compete with Apple. As the competition continues to grow, Apple has considered

relying on its brand contributions rather than investing in innovation of new products

and conducting research which will aid them in staying ahead of the curve (Zhou,

2022). While this strategy seems to serve them well in the past, it is clear that brand

recognition will not be enough to keep up with the competitors, who develop cutting-

edge technological products (Zhou, 2022). For example, the Samsung company,

which produced the s23 ultra, has the fastest mobile processor chip and an

advanced camera with a 200 Megapixels zoom in, unlike the new iPhone models,

whose camera is 48 Megapixels (Zhou, 2022). For Apple to dominate the

technological industry, it has to invest in research and develop new products.

Limited Customization Options

Apart from the company striving to improve its client experience and avoid

technical support issues. Apple implemented a strict policy that limited the

customization of its products and software (Zhou, 2022). The software simplifies the
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usage for novice users, but more experienced individuals face difficulties when it

comes to the customization of the products.

Dependence on the iPhone

Apple places its main focus on development and enhancing iPhone products

(Chen et al., 2021). The company also makes major sales by generating its

revenue by mainly selling iPhone products. (Chen et al., 2021). Also, competition

from other companies is intensifying, and consumers will be forced to seek other

phones from competitors with more advanced features.

Closed Ecosystem

The company's reliance on a closed ecosystem and operating system can be

signified as the company's strengths and weaknesses (Chen et al., 2021). The

strategy has enabled Apple Inc to maintain its market value, but its limitation is that it

restricts its compatibility with other devices (Chen et al., 2021). Thus, consumers

must purchase other Apple products, leading to additional charges and software

purchases. Since Apple's software and hardware are intertwined, repairs tend to be

overly expensive due to limited spare parts and tool availability.

Recommendations

Enhancement of Ecosystem Integrations

Apple Inc should embrace the development of an adaptable ecosystem. The

ecosystem should seamlessly allow users to use and integrate its products and

services across all devices (Podolny et al., 2020). It will enhance the customer's

loyalty and add sales to the company.

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Development of Low-end Smart Phones

Apple has to integrate and develop low-end smartphones; this will attract

clients from all social grounds. High-end smartphones are equipped for longer

development, leading to a decline in the company's sales (Podolny et al., 2020).

Thus, Apple must embrace the development approach of cheaper smartphones.

Introduction of Innovative Products

The smartphone and technological sector is highly dynamic, and competitors

strive to develop the latest trends (Podolny et al., 2020). Apple has to embrace the

development of new trends and products, such as foldable phones. It will attract new

clients and help it grow.

Development of New Processors For iPhone Smartphone Gaming

However, Apple should launch a cutting-edge processor that integrates AMD

and GPU by the designation of a phone processor with multiple CPU cores (Podolny

et al., 2020). It will enhance the phone's functionality, graphics, and performance.

Other additional features will make the phone stand out and defeat its competitors.

Diversification and Acquisitions

Apple should also embrace diversification by having more than one

marketplace. It is because one marketplace is prone to various risks, negative media

publicity, and other unwanted political polarization (Podolny et al., 2020). Apple

should aim at expanding its customer base, this will aid in attracting more clients and

at the same time generate more income.

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Utilization of Artificial Intelligence

Artificial Intelligence (AI) is revolutionizing the universe's technological

operations and improving how consumers interact with technology (Podolny et al.,

2020). Even though it has its assistant, Siri, Apple can enhance its AI algorithm and

create a more intelligent personal assistant that will serve its users needs and

understand them emotionally (Podolny et al., 2020). It could improve the customer

experience by providing consumers with more personalized services and enhanced

individual preferences. Apple should also embrace the development of proprietary

products based on the user's data, and thus it will aid in creating revenue and

optimizing the pre-existing ones (Podolny et al., 2020). AI can also be integrated into

some of the Apple products and other home appliances, and this will aid in improving

the efficiency of the product and drive the company into better innovations.

Development of Technologies and Products that will Aid the Company in Stay

Ahead of Its Competitors

Apple over the past decades has embraced the innovation of new products

over the past years, the innovations don’t seem enough to compete with the other

competitors. This the company should embrace designing new technological

equipment’s and follow the footsteps of both Apple and Samsung (Podolny et al.,

2020). Apple should also invest heavily in the conduction of research and

development of new technologies which can be incorporated directly into its

hardware devices (Podolny et al., 2020). The new products must be enhanced and

user-friendly for its consumers to gain so much from them.

Embracing of 5G Technology

Apple should focus on providing enhanced technological devices that use the

5G network infrastructure (Podolny et al., 2020). Since it is a major smartphone

 Apple Inc 21

industry, it should capitalize on all its services to create 5 g-enabled devices. Most of

its products are outdated and use the 4G network interfaces.

Development of Sustainable Eco- friendly Products

Environmental changes have been a major issue over the past years. Thus

Apple should embrace eco-friendly products (Podolny et al., 2020). Also, by focusing

on sustainability, the Apple company will be able to enhance its product and brand

image, capture environmentally conscious consumers, and by embracing the

required regulatory requirements, the organization will make massive profits without

undergoing any form of a legal suit.

Fostering Developer Relationships

Apple Inc should focus on enhancing its relationship with developers. It will

aid in expanding Apple's ecosystem by developing high-end services, applications,

and services (Chen et al., 2023). To ensure this is a success, the company should

create friendly policies for its developers and provide them with greater innovations

that will improve the organization's value.

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