Business Analysis Part lll Emily Smith MGTB/521 October 15, 2012 Business Analysis Part lll Apple Inc. is a multi-billion dollar company that designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players and sells a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications (Apple Inc, 2011 Annual Report, 2011).
Apple is a company that is committed to bringing the best user experience to its customers through its innovative hardware, software, peripherals, and services (Apple Inc, 2011 Annual Report, 2011). Apple Inc. has flourished because of the many strategic initiatives that they have taken in past years. Apple is one of the few companies that has seen a consistent increase their yearly profits despite the current economic recession. One way Apple did this was by recognizing the trend of digital consumerism and that the PC industry was becoming highly commoditized.
Apple was able to visualize and produce a line of innovative products and services that met consumer needs. The innovative products and services include the iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS, and Mac OS X operating systems, iCloud, and a variety of accessory, service, and support offerings (Apple Inc, 2011 Annual Report, 2011). Apple’s product line enabled the company to develop a strong customer base that is devoted to the Apple brand. Many people after buying one Apple product go on to buy many more in the future.
Apple has retained its customer base by constantly creating new, innovative products that are unique and user friendly. Apple adopted a strategy that focused on a limited number of product lines and limited offerings within each line. By simplifying the product line, Apple was forced to focus on doing a few things extremely well. Apple understands that consumer choice is great, but too much choice can easily lead to customer confusion and frustration (Moorman, 2012). The limited product line also allows Apple to provide quality technical support because there are ewer products that technicians need to be familiar with (Moorman, 2012). Apple found a way to extend the life of their products by creating complementary offerings for their different product lines. This was done by creating the App Store for the iPhone and iTunes for the iPod. By creating these complementary offerings Apple was able to find another to enhance consumer satisfaction and increase profits for the company. In 2001, Apple opened the first of many Apple Stores to optimize the distribution of the products and services that they offer.
The company opened these stores to provide their customers with a unique, high-quality, buying experience with knowledgeable salespersons that would convey the value of Apple’s products and services (Apple’s 2011 Annual Report, 2011). Apple’s retail stores enabled the company to attract and retain customers and to more effectively provide the whole consumer experience. The Apple stores are located in high-traffic locations in quality shopping malls and urban shopping districts (Apple’s 2011 Annual Report, 2011).
According to Apple’s 2011 Annual Report (2011), “The stores are designed to simplify and enhance the presentation and marketing of the company’s products and related solutions. To that end, retail store configurations have evolved into various sizes to accommodate market-specific demands. The Company believes providing direct contact with its customers is an effective way to demonstrate the advantages of its products over those of its competitors. ” Apple’s stores are a convenient way for customers to get professional product advice, service, and training.
Apple’s retail stores were another way for Apple to stand out from their competitors. Apple is an innovative company that always seems to be ahead of their competitors by introducing new products and services and by constantly improving existing products that are unlike any of their competitors. Apple has aligned their organizational goals with their human resources management by encouraging their employees to be creative, engaged, inspired, and proud to be an employee of the company (“Apple: Jobs at Apple”, 2012). Apple wants all employees to be as unique and innovative as the products and services that they produce.
Apple spends a vast amount of time developing and managing their employees’ knowledge, skills, creativity, aptitude, and talent to make each individual great. This is one of the ways that Apple’s human resources management has attributed to the success of the company because without great employees they would not be able to create and produce the great line of products and provide consumers with the great brand experience that they are known for. Apple has proven to be an all-around solid company. After researching Apple’s business strategies and financial statements I have decided that this is a company that I definitely would invest in.
Apple has created a line of innovative products that consumers want around the world and has mastered the art of keeping the relationship of consumers with technology easy and exciting. Apple has shown stability in times of economic hardship that has been proven by their yearly revenue that has steadily climbed every year (Apple’s 2011 Annual Report, 2011). Apple’s stock has remained relatively low and their profit margins have remained higher than most of their competitors (Apple’s 2011 Annual Report, 2011).
Apple is financially sound company that has been able to reexamine and make changes to their business plan that has enabled the company to adapt to the current economic market and to the intense demands of the constantly changing consumer electronics market. References Apple INC 2011 Annual Report. (2011). Retrieved from http://investor. apple. com/secfiling. cfm? filingID=1193125-11-282113;amp;CIK=320193 Moorman, C. (2012). Forbes: Why Apple Is A Great Marketer. Retrieved from http://www. forbes. com/sites/christinemoorman/2012/07/10/why-apple-is-a-great- marketer/2/
Apple: Jobs at Apple. (2012). Retrieved from http://www. apple. com/jobs/us/ Hartung, A. (2012). Forbes: The Good, The Bad, and The Ugly-Apple, Google, and Dell. Retrieved from http://www. forbes. com/sites/adamhartung/2012/03/20/the-good-bad-and- ugly-apple-google-dell/2/ Science and Tech: Apple becomes biggest company in US History. (2012). Retrieved from http://www. dailymail. co. uk/sciencetech/article-2191088/Apple-biggest-company-U-S- history-stock-reaches-623-BILLION. html Forbes. com Apple Inc (NASDAQ:AAPL) /Income Statement. (2012). Retrieved from