Management of Information and Technology: Apple Inc - Assignment Example

 Management of Information and Technology: Apple Inc Answer (a): Brief overview of the selected company, Apple Inc Apple Inc is recognised as one of the reputed multinational organization, established in the year 1976 by three computer experts Steve Jobs, Ronald Wayne and Steve Wozniak. It mainly operates in the industry of computer hardware, software, digital distribution and consumer electronics. Thus, due to the presence of these products, the organization of Apple Inc increased its total revenue and total assets by US$ 170.91 billion and US$ 207.0 billion in the year 2013 (Apple, 2014). Answer (b): Products, services and business processes of Apple Inc The products and services of the organization of Apple Inc are presented below: iMac: in the year 1984, Macintosh was introduced by the organization of Apple Inc. Then in the year 1998, the organization of Apple Inc introduced iMac, which is an intact computer. With the help of iMac, an individual might perform all sorts of business operations and functions very easily and quickly. This is mainly due to its presence of 8 to 32 GB memory and 1TB/3 storage with Wi-Fi connectivity. Due to all these above mentioned features, it is highly preferred by the individual, so as to complete their operations effectively. Mac-book air: it is a slim and trendy notebook, introduced in the year 2008, by Apple Inc. It is available in two sizes such as 13.3-inch and 11.6-inch that may be carried very easily from one destination to another to complete professional deals. Apart from this, it comprises of an OSX operating system that makes the operations faster and quicker as compared to others. Mac Book Pro: It is a professional notebook, introduced in the year 2006. It comprises of core 2 duo processor with high retina display and OSX operating system. Along with this, Mac Book Pro also comprises of BIOS and extensible firmware interface that makes it more effective and appropriate in all aspects. Due to which, it is highly preferred by the customers, desiring for a trendy and advanced machinery (Apple, 2014). iPad: iPad is the most trendy and modern tablet comprising of a modified version of iOS. It also presents multi-touch screen with multimedia designs. Apart from this, a mobile edition of safari is also present to access the web so as to download any sort of music, tunes, movies, ibooks etc. Along with this, Wi-Fi and 3 G versions are also present within the tablet and its demand is extremely high in the market among others, As a result of which, its popularity and uniqueness is increasing at a rapid pace among others. iPod: In order to improve the profitability and demand in the market, the organization of Apple Inc decided to introduce another inventive product, named iPod. It is a sort of digital music system that runs on iOS with varied types of attractive sizes such as 16 GB, 32 GB, 64 GB etc. The technology of iPod came in the year 2005 and so the demand and position of Apple Inc enhanced in the market to a significant extent among others (Apple, 2014). iPhone: It is also another extremely important introduction of the organization of Apple Inc in this competitive age among others. It is highly favoured by trendy individual of this age due to its 4 inch retina display, 4 G LTE connectivity, Apple A6 chips, Apple A5 processor etc. Due to the presence of all these above mentioned facilities and features, its demand is extremely high as compared to other phones in this age of aggressiveness and dependency. As a result of which, the profitability and market value of the products of the organization of Apple Inc increased to a significant extent that amplified its prosperity and reliability among others. AppleTV: It is also another distinctive invention of the organization of Apple Inc that reduced the competitiveness of the competitors. Along with this, introduction of Apple Inc amplified demand and total sale due to the presence of 8 GB flash memory, 40 GB hard disk, HDMI and component video along with a resolution of 720 p. Due to which, its level of preference is extremely high among the individual of generation X and Y. Apart from these products, the organization of Apple Inc also presents numerous software packages such as OSX. Along with this, it also presents, varied types of online services to its customers with the icloud that enhances the reliability and dependency of the customers over the brand as compared to many others. This acted as a boon for the organization of Apple Inc that amplified its dominance and reputation among others (Hasan, 2013, 442-456). Other than the products and services, the organization of Apple Inc also performs varied types of business processes such as sales orders, shipping and delivery of the material or product with the help of ERP services etc. Business process is a set of activities that helps in development of a new product that offers high value to the customers. Along with this, business processes also helps to improve the competitive position and reliability of the brand and its product lines in the market among many other rival players. for example: if a customer places a order for a product, then the sales executive transfer the order to the manufacturing department so as to check its availability. If the stock is not available, then the supplier is instantly informed or the product is confirmed through the sales executive. Then the order is to be shipped to the place of the customer as soon as possible so as to retain its reputation and uniqueness in the market. Hence, due to these above mentioned services and processes, its brand image is extremely high among its competitors (Apple, 2014). Answer (c): Analysis of Porter’s Five Forces model and justification of whether Apple Inc can be the leader in providing its services and products? The Porter’s five forces of Apple Inc are presented below: Threat of new entrants: The threat of new entrants is extremely low as a huge amount of initial capita is required to enter the segment of computer hardware, software and consumer electronics. Apart from this, due to the presence of numerous highly dominating players such as Apple Inc, Samsung, Sony, IBM etc, entrance of a new player is extremely difficult. Moreover, as the taste and preference of the customers is changing with a significant extent so, the new entrant need to offer high attention over research and development in order to present advanced technological products. Only then, it might retain its portfolio and position in this competitive market. But as it may not be possible for a new entrant, so, it’s extremely advantageous for the organization of Apple Inc to enhance its dominance and leadership within the minds of the customers among others. Due to which, the brand image and market position of the organization increased thereby amplifying its sustainability and profitability. In addition to this, a new entrant may not cope-up with the competitive priced products of Apple Inc as it includes a wide range of production units. So, it is advantageous for Apple Inc to increase its demand and reputation in the market among others. Competitive rivalry: The level of competitive rivalry is extremely high in the segment of computer hardware and software as well as consumer electronics. Due to which, all the existing players try to offer high attention over research and development in order to offer highly advanced products. Keeping this fact in mind, the organization of Apple Inc developed numerous innovative product lines such as iPod, iPad, iPad mini, iPhone etc that fascinated a huge range of customers of varied income groups towards the brand that amplified its profitability and portfolio to a considerable extent among others. Apart from this, in order to create a distinctive image, the organization of Apple Inc tried to implement varied types of inventive features within its product lines such as 40 GB hard disk, wide retina display, OSX operating systems etc. This helped the products of Apple Inc to create a unique image and trust within the minds of the customers that amplified its demand and total sale to a considerable extent among others. As a result of which, the level of switchover costs of the customers reduced that proved extremely effective for the organization of Apple Inc. However, due to which, the organization of Apple Inc became successful in creating a niche market for its products that amplified its competitiveness and sustainability (Hasan, 2013, 334-356). Threat of substitute products and services: The threat of substitute products or services is extremely low for the organization of Apple Inc. This is because; the organization of Apple Inc became successful in developing varied types of inventive products such as iPod, iPad, iPhone in order to increase its position as compared to Samsung, Sony and Sony Eriction. Apart from this, the organization of Apple Inc attains economies of scale in presenting a huge range of products at a quite lowest cost among others. This is considered as one of the most important factors that increase the buying behaviour of the customers that amplified the market demand of Apple Inc. Due to which, the competitive position and popularity of the organization of Apple Inc increased that enhanced its opportunities in coming age. Bargaining power of the suppliers: The power of the suppliers is quite high as they always try to offer unique products and services. Due to which, in-spite numerous rules and regulations, the organization of Apple Inc had to increase the agreements with the suppliers. Moreover, as the organization of Apple Inc always offered a huge number of orders to the suppliers so the suppliers always try to offer them the best products in order to retain their demand. Bargaining power of the buyers: The bargaining power of the buyers is extremely high in this age such to their different preferences and tastes. However, it is not a threat for the organization of Apple Inc. The prime reason behind it is that, it comprises of a wide range of customers of varying income profile and age profile. Along with this, the organization of Apple Inc always tries to offer products at a quite competitive cost among others and so its demand is extremely high in the market. Moreover, if the organization of Apple Inc desires to increase its price range of the products, then it may easily do so, due to its differentiated and unique features and software’s. But as its brand identity is extremely high within the minds of the customers due to its high product quality, the rate of switchover costs of the customers is quite low. This is extremely beneficial for the organization of Apple Inc as compared to many other rival players. Thus, from the above mentioned points and information, it might be clearly depicted that the organization of Apple Inc might surely become the leader in the segment of computer hardware, software and consumer electronics. This is mainly due to its differentiated features and quality as well as competitive prices. Thus, due to these underlining features, the organization of Apple Inc is recognised as one of the most reputed organization in this competitive age among others. Moreover, as the organization of Apple Inc presents a wide range of products such as iPod, ipad, ipad mini etc, its customer range is also extremely high in this segment among others. So, it might prove extremely beneficial for the organization of Apple Inc that may amplify its portfolio and brand image (Hasan, 2013, 332-345). Answer (d): Evaluation of the ways Apple Inc can achieve competitive forces through application of Value Chain model The business value chain of Apple Inc is presented below: Inbound logistics: In order to enhance its competitiveness and sustainability in the market, the organization of Apple Inc try to obtain the components of its products lines from various sources. Apart from this, in order to create a distinctive image and position, the organization of Apple Inc tries to produce the products of hardware from its outsourcing partner, Foxconn. By doing so, it might improve its position and reliability within the minds of the customers to a significant extent among others. Other than this, it delegates the activity of raw material acquisition to its OEM partner so as to attain the best products. But in order to attain the best quality of products, the supervision is entirely maintained by the officials of the organization of Apple Inc. Moreover, the organization implemented automated receiving system so as to improve the receiving process thereby reducing the storage of the store. Thus, due to these processes, the organization of Apple Inc created a unique position for itself and its products that amplified its profitability and total sale. Operations: In order to improve its competitiveness and demand in the market, the organization of Apple Inc offered high attention over its operations. The products are designed with recyclable aluminium attachments that offer a unique finishing. Moreover, the organization of Apple Inc prepares the products in such a way that all of them are entirely free from BFR’s as well as any other toxic materials and so its level of preference is high. Other than this, it outsources the activities of production to original equipment manufacturer (OEM) in order to enhance its economies of scale. Thus, due to this activity, the organization of Apple Inc is highly successful in presenting the product lines at a quite lowest cost as compared to others. So, a wide range of customers get attracted towards the brand and its product lines among other existing players such as Sony, Samsung etc. Outbound logistics: In order to improve the availability of the product lines, the organization of Apple Inc uses both direct as well as indirect distribution channel like retail stores, whole sellers, 3rd party, online sites etc. Due to which, the customers might very easily attain all the product lines at a quite competitive cost. This acts a boon for the organization of Apple Inc that enhances its buying experience. Other than this, in order to make its packaging extremely attractive and fascinating, it used to employ expert team of individual. As a result of which, the rate of wastage of product lines is quite less for Apple Inc as compared to others. Due to which, the profit margin of the organization is quite high as compared to wastages, which is extremely worthy for it (George, 2014, 223-234). Sales and Marketing: The sales team of the organization of Apple In always tries to promote its products at a quite reasonable price. Due to which, the demand and preference of the product lines of Apple Inc is extremely high in the market among many other rival players. This is extremely beneficial for the organization that amplifies its profitability and brand image. Other than this, as the distribution system is extremely good for the organization of Apple Inc so the rate of availability of the products is also quite high. Due to which, the level of loyalty and identity of the brand is quite high in the market. So, it is extremely advantages for the brand of Apple Inc in this age of high bargaining power of the customers and switchover costs as well (Assael, 1993, 123-134). Servicing: The organization of Apple Inc always try to offer effective customer service facilities with the help of its online sites, in order to improve the trust of the customers. Due to which, its reliability and dependency is extremely high in the market among others. Moreover, it also tries to offer support services, 24*7 so as to retain its loyal customers for long run. These above mentioned services improve the profitability and demand of the products of Apple Inc among others (Kuglin & Hood, 2012, 112-124). Technology and product design: The organization of Apple Inc utilises varied types of modern technologies such as OSX software, 40 GB hard disk etc in order to attract the customers towards itself. By doing so, the portfolio and demand of the products f Apple Inc increased to a significant extent among others. Along with this, the organization also offered high attention over research and development in order to offer high advanced products with differentiated features. By doing so, the organization became able to increase its demand and loyalty in the market among many other existing contenders (George, 2014, 223-234). Hence, due to these above mentioned services, the organization of Apple Inc became successful in amplifying its customer base and productivity in this age of aggressiveness among many other existing rivals. Thus, in-spite of extreme competition, the organization of Apple Inc became successful in amplifying its brand image and reliability in the market among customers of all income group and demographic profiles. Answer (e): Analysis of suitability of “Cloud Computing” to provide Information services by Apple Inc iCloud computing services of Apple Inc is launched in the year 2011 in order to allow its users to store varied types of data and information such as music, tunes, videos, facts or figures etc on the remote computer servers. It is stored in order to use it in future purposes but entirely protected with the help of secret passwords. It is protected through passwords in order to safeguard it from other viewers. The cloud product of Apple Inc, iCloud is designed in such an effective way that it might be used effectively with all other devices of Apple Inc. For example: the photos taken from iPhone might be easily accessed through Macbook air with the help of iCloud. Other than this, as Apple Inc uses Mobileme which is the most efficient processor offering long lasting services, so it is highly preferred. Moreover, as Mobileme is a tailored device, so it allows synchronisation of emails, photos, Apple iWeb, information etc. Apart from this, as it offers 5GB space for storing varied facts, so its demand is high in the market among other players. Other than this, iCloud allows users to log in to any remote computer comprising of similar Apple Id so as to access various information and facts. Due to which, it demand and preference is extremely high in the market that amplified the profitability and reliability of the brand to a considerable extent. In addition, another important advantage of iCloud of Apple Inc is that, it is entirely integrated with various software of Apple such as apps of Mac OSX and Apple iOS may be accessed with it. This is extremely advantages for Apple Inc that amplified the demand and reliability of its iCloud among the teen agers. However, due to which, the information and facts accessed with any product line or software of Apple might be accessed with iCloud. This acted as a considerable factor for the iCloud services of Apple Inc that increased its demand (Pogue, 2012, 765-787). References Apple, 2014. Products of Apple Inc. [Online]. Available at: www.appleproducts.com/in. [Accessed on 28th June, 2014]. Assael, H. 1993. Marketing principles and strategy. New York: The Dryden Press. George, B. 2014. Apple value chain analysis. London: Sage. Hasan, R, Md. 2013. Apple Inc. - An Analysis: PESTEL Analysis, Porter's 5 Forces, SWOT Analysis, Comprehensive Analysis of Financial Ratios, and Comprehensive Analysis of Share Performance of Apple Inc. GRIN: Verlag. Kuglin, F. & Hood, R. 2012. Using Technology to Transform the Value Chain. New York: Cengage Learning. Pogue, D. 2012. OS X Mountain Lion: The Missing Manual. London: Sage. Read More