Market capitalization is a popular metric for assessing the size of a company as a representation of the investing public's notion of the company's worth. The figure is derived by simply multiplying the number of outstanding shares of the company's stock by the share price. (Slivka, 2010)
3.3 The learning Curve
Access to distribution channels complements Apple’s strategy. Unlike most competitors, Apple appears just now to be seeking a strong presence abroad. The U. S. A. accounts for 48% of its revenue while Europe contributes only 21% and Asia less than 10%. While a mass marketer, Apple keeps the appeal of a luxury good. Innovation in marketing and the produces differentiation of Apple from its competitors has kept Apple at
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Sales of music was declining and Apple’s strategy of reselling music rather that licensing content allows the record companies to gain revenue and Apple has a source for the music necessary to make its iPod sales flourish. Also negations with the major television studios for supplier agreements between Apple and the studios allows Apple to let customers rent movies after 30 days after the DVD has been released. These agreements allow Apple to have the same complement as iTunes with Apple TV.
3.4.3 Threat of substitute products
Microsoft’s Windows operating system had been flawed since its inception. Touted to be a universal operating system that would work on all computers, it was supposed to allow computer purchasers to use the same software on various brands of computers. It has worked that way but is subject to crashing at any given time for no apparent reason. Apple’s operating system has none of those flaws and users taunt PC users regularly. Apple has even used these taunts in advertising with its “I am a Mac” and “I am a PC” series of ads. Product differentiation is the purpose but loyal Mac users would not substitute a PC for a Mac, believing the Mac to be unique.
3.4.4 Rivalry among competing firms
Due to Apple’s wide platform of products there is a threat of substitute products from an assortment of firms. In the product line of iPods, Apple makes a variety of units. The market share for this portable personal music player was greatly
Overall in the past few years Apple has become more and more successful through preparing for the growth of E-Business for today’s society. The company has taken in and analysed competitors behaviour in order to remain market leaders and stay at the forefront of high end products such as IPhone and there IMacs range. Apple have tried to create a unique feel for their products when compared with Microsoft they have been trying to play catch up with Apple in all the same categories they both operate in. Apple use very different marketing techniques compared to Microsoft which has made Apple the number one brand in the world.
Apple Inc manufactures both hardware and software uniquely with methods of their own. Apple’s computer operating system is highly secured and is not subject to viruses and hackers and the products are designed to be concerned about the consumers’ style life. Apple is successful with their marketing is this is because of Apple build strong name and image in the market. Apple’s products are different as mentioned and it has a lot of unique features. This is another method of Apple doing marketing.
Apple was established as an IT company dealing in exclusively in computers. However, competition in the technology sector forced the firm to focus on other consumer products. The diversification strategy has seen Apple’s sales grow tremendously in the last decade, earning the firm the No. 1 brand position at Forbes. The Apple brand is recognized on an international scale and enjoys a strong recognition thanks to its aggressiveness when it comes to creativity and innovation (Tar, 2013). It has a large number of loyal customers who would purchase the new products regardless of the market price, which guarantees profits from the new division.
Apple is company that enjoys one of the highest stock prices of any publicly traded company in today’s market. In the past year Apple stock prices have ranged from $103.13 to $161.6 in the past year alone (Yahoo Finance 2017). With Apple stock, there are trends during each calendar year that can cause the price to fluctuate. During the months of July and August we can see that the price of stock starts to rise. This could be attributed to time where school is beginning to start up again for that year. During this time, we see massive spending on supplies and equipment that students need to be successful in the classroom. One of these items that we see becoming an increasingly important part of education is a computer. Because of this, we see an increase in the sale of MacBook’s as students head back to school. Another trend that we see during the summer is the apple keynote convention. During this convention, Apple reveals new products to be released later that year. The iPhone 7 debut was envisioned as an industry changing configuration with only one
Apple has benefitted significantly from globalization and from technology change. For example, the company started primarily as an American company, but globalization has allowed Apple to become a multinational operation. The company only derives around one-third of sales form the Americas according to the annual report, a figure that includes Canada and all of Latin America in addition to the United States. The company therefore can be said to sell globally. Sales in Asia-Pacific were growing especially fast, and the company has numerous flagship stores in the region.
Apple has prospered internally and it is necessary to consider both strengths and weaknesses. Apple has lots of strengths, the major of them being it’s impressive brand reputation, Apple managed to position the brand as “premium products” for “elite” people. Customers are loyal and tend to stay in Apple’s ecosystem. Apple’s self-reinforcing ecosystem, it has a diverse ecosystem which integrates various hardware and software products into one large interactive space. Status of top innovator, Apple is perceived as the leading innovator and its products are highly anticipated. Apple’s very strong financial performance, high profit margins and very high liquidity. It’s network of retail stores, high-quality customer service helps to create advanced user experience. A powerful marketing strategy, Apple’s team masterly uses various marketing techniques to create a hype for their products and to strengthen the brand.
Apple came back from near extinction to become one of the most revered technology companies in recent memory. They achieved this status by developing innovative design products and pushing the limits of their marketing prowess. Apple is known for their ability to listen to consumers and revolutionize market segments by providing modern design laden and feature rich alternatives to the target markets. They employ strategies that might contradict normal convention by keeping their prices high to build a brand image of prestige and promote their products through word of mouth. The impact on marketing is hugely noticeable by other companies following suit with store models
Our group decided to analyse the company Apple Inc., listed on Nasdaq Market as AAPL. The analysis was mainly based on the annual financial report of the company for the fiscal year ended on September 29th 2007. Apple Inc. is today one of the most
Apple, Inc. (formerly known as Apple Computer, Inc.) was incorporated in the State of California in 1977. Apple currently designs, manufactures, and markets a variety of computer and personal electronic products, including Macintosh computers, and the iPod digital music player. AppleÕs key markets are consumers, creative professionals, educational institutions, and business users.
First, Apple introduced a new OS in 2001. Second, Apple shifted to Intel chips and by the following year all Macintosh line ran on Intel making laptops run faster for less power. The third strategy was the development of proprietary set of applications. The fourth strategy in becoming the “digital hub” was to come up with a new distribution strategy: the Apple retail store, where customers can have a direct use and experience of Apple’s product and software.
The financial analysis expressed in this paper shows a comparison of two large firms in the communication and technology industry. Microsoft and Apple Inc. both deal in telecommunication gadgets and accessories within the United States and around the world. The paper focuses on the financial comparison of the two companies for two fiscal years of the year 2014 and 2015. A close analysis of the financial ratios is employed in bringing up the comparison. These rates are derived from the balance sheet and statement of income of both firms.
Even though Apple has encountered many setbacks, it continues to bring new and improve products to the market. Apple’s competitive strategy has been innovation. They have made an extraordinary effort developing, implementing, and executing its very unique strategy through innovation which has resulted in new product, and the enrichment of the existing ones. More specifically, Apple attempts to meet and supply the needs of a global market, by offering eager and enthusiastic consumers with innovated and high-quality products and services. Apple has employed a differentiation strategy linked to innovation with its three core products (computers, personal media player, mobile phones, tablets and other accessories). A key piece of their strategy involves meeting the needs of the converging digital electronics and computer markets. Apple has elected to implement its strategy by designing and developing proprietary operating systems and software technologies, thus allowing for strict protection of its intellectual rights.
In return, they have a strong financial backing, brand reputation, strong marketing and advertising teams. Apple plans to take these strengths and prosper off of them. Taking the amount of brand awareness they have built along with their benefit of retail stores the company can plan to use their strong marketing and advertising teams to launch a new product.
Also, as the purchasing power of the common has risen in various markets across the global, the purchasing of luxury products have gone up. For examples, the iPhone, iPod, iPad and the most latest technology, iWatch. Having these products are considered as statues symbols in many societies which have also increased the sales of Apple Inc. products. Another big social influence to the Apple Inc products is the rapid growth of the music industry, which have improved markets over the cyber space as well. The main exclusive music store is the iTunes and it is ahead of any of their competitors. Thus, in all Apple products benefitted from the social aspects as it has started defining a modern individual lifestyle.
Apple Inc. is known for their innovative products, combining user-friendly technology and elegant design, Apple’s bite of the consumer electronics market has been getting a little larger year by year. The Apple brand is fun, unique, and memorable because it is such a departure from brands that sound serious and corporate. Apple’s Macintosh computers has always stood out because it looks different from other personal computers and relies on software that even novices can learn. IPod backed by music-driven advertising, the player with the white ear buds immediately became the product of choice for many consumers. Newer models such as the iPod Nano and the iPod Touch have continued the