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Running head: APPLE INC CASE STUDY 1Apple Inc Case StudyNameInstitution
APPLE INC CASE STUDY 2IntroductionApple Inc is a leading American company that deals with the manufacture of computer software and a range of consumer electronics. Products such as the iPhone, iPad, iPod, and Macintosh are designed and produced by this company. Software products that are made by the company include iTunes, iOS, and the Safari web browser among others. Currently, the companyhas more than 350 stores spread out in different countries around the world. These physical stores are complemented by online stores that offer services in both hardware and software. Apple Inc is not only the largest company in the world for market capitalization, but also the company with the largest market with regard to profit generation and revenue. This company wasformed in 1976 as Apple Computer Inc but later changed its name to the current identity to reflect a diversification in the range of products and markets (Andersen & Mayes, 2014).Risks and uncertainties are common in the information sector industry. As a leading electronics and computer software manufacturer, Apple Inc faces many of these risks and uncertainties on a regular basis. For example, the availability of alternative products in the market leads to price completion where the demand for Apple Inc products is affected. This, in turn, leads to uncertainties in market projections as well as a reduction in profits. Some competitors adopt features that are similar to those found in Apple Inc’s products and reduce the price of these products in attempts to attract more customers. Furthermore, the market life cycle of most products produced by Apple Inc is extremely short owing to the need to keep ahead of the competition by creating a new product very often. The relevance of mobile phones, for example, only lasts for about 6 months after which the company is forced to introduce another new product into the market. To deal with these risks and uncertainties, Apple Inc has had to invest heavily in research and development to create unique products that eclipse the products
APPLE INC CASE STUDY 3made by competing firms. These investments translate to the production of innovative items that appeal to their customers around the world. In addition to that, Apple Inc covers itself against financial risks by implementing a premium pricing strategy that keeps the prices of its products consistent around the world (Chapman & Ward, 2002).To improve risk management, Apple Inc needs to adopt several changes within its structure and marketing strategy. For example, identifying risks that can potentially affect variability in performance would be important in making some crucial marketing decisions.