Apple Inc. is a multinational technological company familiar to most people in producing iPhones, computer softwares, and other consumer electronics. The company has been greatly affected by globalization and changes in technology since its establishment. This work assesses the impact of globalization and technological changes on Apple Company. The industrial organization model and the resource-based model are applied to show how Apple Inc. can earn above-average returns. The company’s vision and mission are stated and analyzed how they have influenced the overall success of the Apple Company. Finally, the paper discusses how different Apple Company stakeholders have influenced the company’s overall success.
Globalization
The ever-growing interdependence of the world’s population and economy has had an impact on Apple Company. The company trades its goods, services, information, and technology across borders to many countries. Products of the company, such as the iPhone and its software are sold worldwide in different countries. The internet has also made it possible for the company’s services to be sold online to anyone in need of the software and other services. By being a multinational company, Apple has contributed to globalization primarily through its technology. Apple Company has also greatly benefited from globalization.
Globalization increased Apple’s company revenues and profits. By the year 2013, Apple had over 417 retail stores in more than 12 countries, which increased its sales to $ 16 billion. Within the first two quarters of 2013, it was estimated that Apple had a 14.73% revenue growth rate. Globalization also resulted in the collaboration of Apple Company with other huge technology companies such as China mobiles, which further increased the company’s profits and revenues. High competition in the global market has made the company to be more innovative in terms of technology making the company to grow further. Although globalization has made Apple Company to employ many workers in countries such as china, many people in the USA have complained that the company employs more people outside USA. Globalization makes the company go for highly trained workers leaving out the low and average trained people without employment.
Technology
Advancement in technology has greatly contributed to the development of Apple Company. The company has also contributed to the growth of technology through its innovations in computing and mobile phones. Advancement in communication has enabled the company to reach its customers and respond to then within a short period of time. Social media such as Facebook and twitter has expanded the market for the company and increased customer satisfaction. Cloud services such as cloud storage have created the need for increased security of customer’s data which the company has worked towards ensuring data on cloud storage for their customers is safe. Cloud computing has also enabled the company to store, asses and analyses huge amounts of data efficiently and accurately within a short period of time. Use of the internet resulted to creation of the company’s website where all information related to the company can be accessed by the users and customers. Apple is able to sell its software’s and applications through the internet.
Most business transaction of Apple Company are done online. People are able to pay for software’s and applications online before downloading and using the services. Products such as iPhone are sold worldwide due to use of online shopping such as amazon and modern means of transport that make the products of the company reach the consumers. The smartphone technology is an area that has encountered diffusion and disruptive technology. Innovation in phones has resulted to a high rate of mobile phones being developed. Nokia Company was the major competitor of Apple Company which came up with nokia phones which resulted to disruptive technology to Apple. However, apple responded with another disruptive technology through its innovation of the iPhone. Technology has helped Apple company in communication, doing business and expanding worldwide. Concisely, apple technology has contributed to growth of technology through its innovations especially in computer and smart phone technology.
Industrial Organization Model
The industrial organization model can be applied to determine how Apple Company can earn above average returns. Apple Company should focus on external factors to increase its revenue. By being in a technologically competitive industry of producing electronics, applications and software, the industry influences the performance of Apple Company more than the choices made by the managers. There is pressure on Apple Company coming externally such as competition from similar companies such as Samsung Company. Innovation and launching of new products, services and applications from international competitors puts more pressure on Apple Company which makes it modify and invent more which in turn increases its revenue. Being updated with the current technology ensures the company does not lose customers due to new technology.
Firms in the same industry with Apple probably may have same resources under their control. Therefore, Apple Company has to come up with a better strategy of producing high quality products and services and attract more customers. This pressure to be better than other companies in the same industry ensures the company remains in market and get more than average revenue returns. The resources are usually highly mobile and therefore Apple Company can access and buy the resources. The company therefore has to more creative while using the resources to be above other competitors in the market. Companies in competition employ people with certain skills related to the industry. Employees are usually outsourced from the general population. Apple company should consider choosing the best workers who are innovative and with high skills in the industry. Since employees with similar skills and knowledge are found in other technological companies, apple should come up with a strategy increasing productivity and innovation. Apple Company can reward employees who invent new ideas to encourage innovation. Motivation of employees through rewards and recognition increases performance which in turn increase revenue returns. Coming up with extra services such as creating training schools and sponsoring innovations in college’s increases customers’ perception of Apple Company. Considering many industries are in the same industry with Apple, the company should focus on external factors and come up with better strategies to deal with competition and increase revenue returns.
Resource-Based Model
Resource-based model focuses on company’s internal perspective to show how uniqueness of the company’s internal resources and competencies leads to more revenue. Apple company should focus on its culture e.g. have an innovative business culture, resources such as equipment and capabilities such as skills, knowledge and experience. Apple Company should identify internal resources and asses the strengths and weaknesses of the resources relative to competitors. Resources identified should lead to unique company capabilities which make the company perform tasks in a better way than other competitors. To get an above-average returns, Apple Company should come up with strategies that makes the company exploit capabilities and resources in a better way than its competitors.
The resources and capabilities should be valuable which will enable apple company neutralize threats from competitors and exploit available opportunities. Apple Company should have rare resources or capabilities which are possessed only by few firms or none. The unique capabilities and resources should be hard or very costly to be imitated by other companies. Other companies may undergo losses when they try to imitate the capabilities. Apple Company can also come up with capabilities and resources that cannot be substituted. With such features in its internal resources and capabilities, Apple Company will be able to defeat its competitors which will increase income and lead to above average returns.
Vision
The vision of Apple Company is “We believe that we are on the face of the earth to make great products and that’s not changing”. A vision should focus on current and future goals of a company. The vision should also be stated clearly, inspiring and aligned with the company’s values. From the vision statement of Apple Company, the company is determined to produce high quality products to customers not only currently but also for some time. The vision also shows the intend of the company to achieve global presence as one of its goals. Innovation, market specialization, excellence and integration of partners are some of key elements of a vision demonstrated in Apple’s vision. Based on the vision statement, the company is about technological innovations with the intent of making great products for some time. Apple has innovated many products such as iPhone to achieve its vision. The company innovates technological solutions by having best employees who invent and focus on customers. The company also collaborates with other companies to stay ahead in competition.
Mission
Apple mission is “to bringing the best user experience to its customers through its innovative hardware, software, and services”. A mission should be a short statement stating the reason why the company exists, the overall goal of the company and identifying the aims of its operations. The kind or type of product and service provided by the company and the target market or customers should be known in the stated mission. In its mission, Apple states it exists in order to provide best products and services to customers and how it will achieve through innovative hardware, software, and services. The main goal of the company is to bring a positive change in the technology industry through innovation which change over time. Apple offers best user experience through its user friendly products which are well designed with security features. User friendly technology in Apples products and services improve lives and empowers the public. Apple has kept on inventing hardware’s, software and services that have resulted to top quality products and services from the company.
Stakeholders
Stakeholders are parties that are interested with the company and can either be affected or affect the company. Stakeholders in Apple Inc. include customers, employees and investors. Suppliers and distributers together with their employees are also stakeholders. The stakeholders have a great impact on the success of the Apple Company. Customers are the buyers of apples products and main stakeholders. Customers are usually interested in efficient, effective and high quality products at a reasonable price. More customer’s means success of the company and therefore the company focus on their customers by ensuring their products are of high quality and the prices of the products matching the quality. Employees are the second major stakeholders that determine the success of the company. Employees directly determine human resource capabilities to invent and make products that are profitable. Apple Company should address the interest of employees such as career development and proper compensation to increase innovations and profits. Investors as stakeholders are usually interested in maximizing returns on their investments. The company should therefore increase its financial performance for investors to invest more in the company.