Any innovated or new product will end up affecting

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technologies and services to the market place (Lam, 2006). Any innovated or new product will end up affecting the company deeply thus making the company suffer by losing its market and financial shares that is if fail to attain or maintain its leading position in technological changes. In the meantime, its rivals like Microsoft and Samsung will thrive to lead or make changes for the advanced world in terms of technology (Lam, 2006). Therefore, risks as a result of rapid technological change based on the frequency and the probability. Fierce competition in the market; the competition in the global market is very tough. Competitors of Apple like Samsung and Microsoft are enjoying the ample experience and the resources so as to maintain high shares in the market. Each of the mentioned companies is able to steeply compete with Apple Company (Ablyzor, 2018). They are selling products which possess the same characteristics cheaply. This criterion, therefore, helps them to attract most of the customers who are sensitive to prices. Recently, Samsung is very competitive from marketing, sells and its diversity. Huawei also emerged in recent years and become one of the biggest IT
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IMPLEMENTATION OF ENTREPRISE RISK MANAFGEMENT 7 markets in China, this made apple to lose most of its shares (Segal, 2011). In case Apple company fail to produce innovative products which could attract most of the customers or in a case by chance fail to expand its shares and win the customers, it will definitely lose the competitive edge of the market and later affected by a very huge financial loss. Thus, the effect and livelihood of fierce competition in the market are quite higher Global and regional economic conditions; Risks and uncertainty based on the regional and the global economic conditions enhance risks to Apple Company. Both the business and the consumers may decide to postpone spending on its response as a way of lowering global speed of local economy, unemployment rate, and financial volatility of the market, government austerity of programs, tight credit and decline in terms of income (Arena, 2010). The global, as well as the regional economic conditions, could possess adverse impacts on the demands of both products and services of Apple Company. Substantial inventory risk; because Apple Company is the best in terms of products and services offered, it should forecast on the demand and the production rates of the products in advance. Since the markets are very volatile, very competitive and also subjected advanced technology and changes in the price of products, then certainly there will be a risk that Apple Company will predict wrongly or even more than need or an insufficient number of products as demanded in the market (Segal, 2011). The company may also fail to make use of firm purchase commitments. The wrongly predicted results will result in redundant inventories which continuously depreciate. Depreciation may end up affecting financials more so in cash flows.
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  • Fall '16
  • Apple Company, Enterprise risk management

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