The Macro-Environment of Apple - Assignment Example

Apple Table of Contents Question 3 Introduction 3 Discussion 3 Conclusion 4 References 6 Question 2 7 Introduction 7 Discussion 7 Conclusion 8 References 9 Question 3: 10 Introduction 10 Discussion 10 Conclusion 11 References 12 Question 1 Introduction Apple Inc is recognised as one of the most popular American public company, operating in the segment of electronics and software. It came into existence in the year 1976 and within a very small time frame it attained a significant position and brand image in the market of United Kingdom among many other rival players. As a result of which, the total sale and revenue of the organization of Apple inc enhanced to a considerable extent that amplified its competitive advantage and sustainability in the market among others. However, due to the introduction of I-pod, I-pad, I-phone, the brand value and portfolio of the organization of Apple Inc enhanced that amplified its reputation and dependency within the minds of the customers (Apple Inc, 2014). Discussion The macro-environment comprises of the uncontrollable factors of the external environment that offers significant influence over the productivity of the organization. These factors include political, economic, social, technological etc. The macro-environmental scenario of Apple Inc, after operating in technology and software segment is presented below: Political: for example: due to informational technology disaster, the manufacturing or logistics operations among its outsourcing partners might get disrupted (Kotler & Keller, 2012). As a result, the organization of Apple Inc may not attain the inventive materials or products at accurate time thereby declining its image and demand in the market among many other rival players. Other than this, due to information technology failure, the organization of Apple Inc may not distribute the products to its retailers or distributers that may hinder the reliability and dependency of the customers. Due to which, the reputation and brand value of the products of the organization Apple Inc declined that reduced its portfolio in the market of United Kingdom among many other rival contenders (Drummond & Ensor, 2010, pp. 223-234). Economic: recession created a significant impact over the performance of the organization of Apple Inc in the market of United Kingdom. This means; due to economic recession, the per capita income of the citizens reduced thereby increasing the rate of unemployment to a considerable extent. Due to which, the total sale and demand of the products of the organization of Apple Inc reduced that hindered its profit margin and revenues. Social: the change of taste and preference of the customers in this age is extremely high. This is mainly due to the presence of numerous substitute products of rival players that created a sense of threat for the organization of Apple Inc. Due to which, the organization of Apple Inc always tried to introduce highly inventive products such as I-phone, I-pod, I-pad etc so as to attract the customers of varying income groups and cultures (Forbes, 2011). Technological: Apple Inc always tries to implement highly inventive techniques within its products such as I-Phone, I-Pod, I-Pad so as to amplify its customer base and reliability in the market among other rival players. Apart from this, due to the presence of highly inventive techniques, the organization of Apple Inc became successful in amplifying its reputation and brand value within the customers thereby retaining them for longer period of time (Bradley, 2012, pp. 123-134). Conclusion Conclusively, it might be stated that in order to enhance its reputation, the organization always tried to offer more attention over innovative technologies in order to attract the customers towards its product lines. Due to which, the organization of Apple Inc became successful in amplifying its equity and market share in the market of United Kingdom. Other than this, the organization of Apple need to understand the taste and preferences of the customers prior developing the products so as to satisfy their requirements. Only then, the demand of those products such as I-pod, I-Pad mini etc among many other substitute products. References Apple Inc, 2014. About Apple. [Online] Available at: http://www.apple.com/ [Accessed on 12th May, 2014]. Bradley, N. 2012. Marketing Research: Tools & Techniques. New York: McGraw-Hill. Drummond, G. & Ensor, J. 2010. Introduction to Marketing Concepts. New York: Cengage Learning. Kotler, P., & Keller, K. 2012. Marketing management. Harlow, NJ: Pearson Education. Forbes, 2011. Chart showing the growth of Apple Inc, Iphone. [Online]Available at: http://www.forbes.com/sites/markrogowsky/2013/10/11/5-charts-that-show-apples-plateau-after-a-meteoric-rise/ [Accessed on 12th May, 2014]. Question 2 Introduction In this age, sustainability and competitiveness is the most desired requirement of any organization (Grant, 2010, pp.267-278). However, it might be possible only if the organization tries to penetrate numerous developed and developing markets thereby presenting varied types of inventive products and services at a competitive price. Keeping this fact in mind, the organization of Apple Inc tried to offer varied types of products with inventive technologies so as to amplify the brand image and distinctiveness in the market of United Kingdom among others (Beall, 2010, pp. 245-254). Discussion Ansoff matrix is used to analyse and evaluate the strategies used by the organization of Apple Inc in order to amplify its growth and market share. Ansoff matrix comprises of four different policies that takes place by combination of existing and new products through market penetration, market development, product development and diversification (Apple.com, n. d.). The organization of Apple Inc, introduced I-Phone 5C in the existing markets of America i.e. north and South America in order to amplify its profit margin and productivity. Along with this, the organization of Apple Inc also introduced these products, so as to amplify its customer bases and market value to a significant extent as compared to many other rival contenders. Other than this, for example: introduction of new iPad mini with Retina display proved effective for the organization of Apple Inc to penetrate new markets such as middle-east and Africa as compared to others (Kazmi, 2007, pp. 267-278). Due to which, the productivity and efficiency of the organization enhanced to a considerable extent thereby amplifying their number of stores and distinctiveness in the market (Apple.com, n.d.). Apart from this, the organization of Apple Inc, also implemented the strategy of diversification. It introduced Apple Television in order to amplify its reliability and identity in both existing and new markets among others. All the above mentioned strategies proved extremely effective for the organization to enhance its competitive advantage and sustainability among others (Guillén & García-Canal, 2012, pp. 156-178). Conclusion Conclusively, it might be depicted that the above mentioned strategies of Ansoff matrix proved effective for the organization of the Apple Inc thereby amplifying its portfolio and position in both existing and new markets among many other existing rival players such Google, Microsoft etc. Thus, introduction of new products with advanced technologies and techniques at a competitive price helped the organization of Apple Inc to amplify it’s enhance its reliability and brand value. Moreover, penetrating the segment of electronics such as television, might prove effective for the organization of Apple Inc that may amplify its portfolio and brand image (Apple.com, n. d.). Only then, the organization of Apple Inc might improve its dominance in both existing and new markets. References Beall, A, E. 2010. Strategic Market Research: A Guide to Conducting Research to solve problems. Boston: Harvard Business School Press. Guillén, M. F. & García-Canal, E. 2012. Execution as Strategy. Harvard Business Review Vol. 90(10). Grant, R, M. 2010. Contemporary Strategy Analysis. London: Sage. Apple.com, No. Date. Investor Relation. [Online] Available at: http://investor.apple.com/faq.cfm?FaqSetID=6 [Accessed on 12th May, 2014]. Kazmi, S, H, H. 2007. Marketing Management. Germany: Springer. Question 3: Introduction Value Chain is the most important process that helps to improve the reputation and brand value of the organization in the market by improving its primary and support activities. This might prove effective for the organization of Apple Inc thereby amplifying the portfolio and brand image of its product lines in the market among others. Due to which, value chain is offered high attention by the organization of Apple Inc (Christensen, 2010, pp. 562-572). Discussion Value chain includes both primary and support activities. Among the primary activities, materials handling delivery, manufacturing assembly, order processing shipping, product, pricing, promotion, place and customer service repair. Inbound Logistics: the products of Apple Inc are handled in an effective way so as to reduce all sorts of discrepancies and distress. So that the products are presented in front of the customers in an accurate way in order to amplify the brand image (Christensen, 2010, pp. 542-552). Operations: all the operations related to manufacturing are dealt in an accurate way thereby amplifying the defaults or defects (Porter, 2008, pp. 876-888). Outbound logistics: the orders presented by the customers are processed in such a way so that it reaches them in accurate time and day. Only then customer reliability and uniqueness might get enhanced (Porter, 2008, pp. 777-782). Marketing and Sales: the products are marketed and promoted in such a way that may amplify its total sale and demand in the market among other rival players (Porter, 2008, pp. 554-565). Services: the customer services systems of the organization of Apple Inc are also extremely effective and so its demand and reliability is enhancing at a rapid pace (Porter, 2008, pp. 223-234) Support Activities: this comprises of organization, human resources, technology and purchasing (Porter, 2008, pp. 443-452). Organization: the organization of Apple Inc includes varied types of effective HRM policies and strategies that help in improvement of the performance and dedication of the employees. Such dedication helps in amplification of the productivity and efficiency of the organization among others (Mathews, 2002, pp. 552-565). Human resources: human resources play a very vital role for the organization of Apple Inc. By active support and commitment of the human resources, the organization became successful in inventing varied types of products and services for its customers (Keegan, 2002, pp. 672-682). Technology: introduction of varied types of inventive technologies within the product lines of Apple Inc helped the organization to improve its demand and portfolio in the market among other rival players (Mathews, 2002, pp. 467-488). Purchasing: Apple Inc used to purchase the ingredients from the suppliers at a competitive cost so as to develop the products (Porter, 2008, pp. 342-354). Conclusion Conclusively, it might be stated that both the support and primary activities of value chain helped the organization of Apple Inc to amplify its portfolio and demand in the market among others. References Christensen, C. 2010. The Innovator’s Solutíon, Creating and Sustaining Successful Growth. Boston: Harvard Business School Press Keegan. 2002. Global Marketing Management. London: Pearson Education. Mathews, J. A. 2002. Competitive advantages of the latecomer firm: A resource-based account of industrial catch-up strategies. Asia Pacific Journal of Management. Vol.19 (4), pp. 467-488. Porter, M, E. 2008. Competitive Strategy: Techniques for Analyzing Industries and Competitors. London: Simon and Schuster. Read More