Apple: A Leader in Technology and Innovation - Essay Sample

Introduction

Apple Inc. is one of the most successful companies in America. The company operates in multinational technology, whose headquarter in Cupertino, California. The company designs and creates electronic products, software, and other online operations. Currently, it is considered as one of the most growing technology company. The iPhone, the iPad, and the Mac computer are some of the most common products the company is producing. The company produces some precious products such as Apple Watch and Television.

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Historically, Apple Inc. was established in 1976 by three entrepreneurs, Steve Jobs, Steve Wozniak, and Ronald Wayne (Heracleous, 2013). During the period of establishment, the company was producing Apple computers. Since then, the management has highly relied on innovation, and this has triggered to its success. According to Chen and Ann (2016), the company has about 123,000 full-time workers but has severally received criticism regarding the labor practices between the management and contractors (Heracleous, 2013). The unique logo has been a crucial aspect that most customers look after, and this has highly boosted the performance rate. Additionally, the company has a unique advertising strategy, which has highly attracted a large number of customers across the world.

The annual sales of Apple Inc. has simultaneously increased since 2004 (Chen & Ann, 2016). In 2019, Apple Inc. reported that it earned 260.17 billion U.S. dollars, which was 0.02 percent decrease as compared to 2018 (Heracleous, 2013). About 82 percent of the total earning was generated through the sales of iPhones (Heracleous, 2013). In 2018, the company had sold more than 218 million units of iPhones, which was a rise from 150 million, which was reported in 2013 (Chen & Ann, 2016). Additionally, the company has sold about 9.7 million units in iPhones outside the United States, earning the country 4.1 billion dollars (Heracleous, 2013). Other products, such as the iPad, contributed to 6.5 percent of the company's global earning in 2018 (Chen & Ann, 2016).

Due to high competition in the global, the sales of products have reduced. Despite high competition from companies such as Samsung and Lenovo, Apple Inc. is still a dominant figure in smartphones and computer sales. Therefore, the company enjoys a large number of market share as compared to other firms. According to Chen and Ann, (2016), Apple's market share is about 47 percent of the world's sales. This makes it be one of the most performing companies in the world.

According to Chen and Ann (2016), Apple Inc. operates in an oligopoly and monopolistic market structure. Usually, there is a large number of companies that produce smartphones, which makes the company operate in an oligopoly market structure. Unlike other market structures, oligopoly has high competition, and this forces companies to deploy other means such as advertisements and discounts to ensure they maintain their position (Chen & Ann, 2016). However, Apple Inc. and other large companies have dominated the market, making it hard for other firms to effectively enter the market. However, on branded computing, Apple Inc. operates in a monopolistic market structure (Heracleous, 2013). This occurs due to a large number of producers and sellers that produce computers across the world.

Currently, Apple. Inc. operates worldwide. It has more than 500 retail stores across the world, which are located in 24 countries (Heracleous, 2013). Among all those retail stores, 272 are based on the United States (Heracleous, 2013). The company is expecting to have more than 1000 retail stores by 2030, which are based on more than 50 countries (Chen, & Ann, 2016). High market demand across the world has been a crucial aspect that attracts the company to operate in different locations. As such, the company is striving to ensure it has many retail stores, which will assist in reaching many customers as possible. Good product performance has been another crucial aspect that has boosted the company to move across the world.

Despite being one of the most successful companies that produce smartphones and computers, Apple Inc. is facing heavy competition, especially from a Samsung, which produces both smartphones and computers. The introduction of the Samsung Galaxy and Note series has highly reduced the sale of iPhone across the world. Other smartphone companies, such as Nokia, Motorola, and BlackBerry, have increased the competition rate (Chen & Ann, 2016). Additionally, Dell Technology has become one of the major competitors in computer production. The ability to produce different natures of computers has given Dell Technology a chance to become major competitors.

Furthermore, more Chinese companies such as Lenovo has become another major computer manufacturer competitor of Apple. Inc. Most of these companies produce high-quality technology at a low price (Chen & Ann, 2016). The low price has become a critical competitive advantage that companies are using to compete with Apple Inc. However, good marketing strategies have highly assisted the company to effectively penetrate and dominate different regions across the world (Heracleous, 2013). Additionally, connectivity between different branches has enhanced the movement of products from one area to another.

The success of Apple Inc. revolves around several economic concepts. First, brand strength is an essential concept that the company uses. According to Heracleous (2013), brand strength has assisted the company in building consumer loyalty, which has boosted market performance. All products the company produces has a long life span due to the strong brand, which has assisted in forming a powerful interrelationship with customers across the world. Innovation is another critical economic concept that the company uses. Apple Inc. relies on an innovative strategy to produce unique products that effectively serve customer needs (Chen, & Ann, 2016). The company is producing high-quality software and application, which has become a primary advantage when operating in a competitive environment.

Apple Inc. is using innovation strategy as a competition barrier, and this has boosted its recent performance (Heracleous, 2013). Additionally, the company has a premium pricing strategy, which assists in maintaining the loyalty of the customers. Usually, the company offers discounts and promotions, which helps to keep pricing and market performance consistency across the world. High-quality products at a low price have attracted a large number of customers to buy Apple Inc. products (Chen, & Ann, 2016). Furthermore, the company highly relies on an advertisement, and this has increased the awareness rate. Most customers are attracted to purchase the company products after viewing the image from the newspaper or television.

In the past three decades, technology has grown at a high rate, and this has highly affected how companies are engaging in their production (Chen & Ann, 2016). Apple Inc. is one of the companies that has highly been affected by technology growth rate. The company has introduced more new version of products, which has assisted in market domination. In the organization, management believes that innovation is the base of the current success (Heracleous, 2013). Therefore, more resources are set to assist the company in ensuring experts keep introducing new versions of products every day.

Additionally, introducing more advance products has given the company an advantage over other competitors. Currently, the demand for technology devices such as smartphones and computers has highly increased. The Internet has become a crucial aspect that has influenced the demand for these products. Therefore, Apple Inc. is trying to produce more products to enjoy the large market (Chen & Ann, 2016). High-quality products have attracted customers to use the company's products, and this has given the company the confidence to continue producing more products. Additionally, the company has several other firms such as Shazam and Siri, which operates under the same management (Chen & Ann, 2016). The aspect has given Apple Inc. a chance to explore more areas, thus increasing the market performance.

Despite the success of Apple Inc., the company is facing numerous problems, which has hindered its market performance. At first, the high technology growth rate, which has forced the company to invest more in projects to ensure new products regularly (Heracleous, 2013). For instance, currently, most countries have moved to 5G. The technique has created heavy competition in the field of electronics. As a way of overcoming the challenge, the company is introducing new products that match the current market demand. For example, this year, the company is expecting to produce 5G phones, which will assist its customers to suit the current technology growth rate (Chen & Ann, 2016).

In comparison with other brands of smartphones, Apple Inc. sells its products at a high cost. The concept has influenced consumers to shift to other companies such as Samsung, who are offering the same products at a low cost. However, the management is trying to introduce more cheap iPhones to ensure they maintain their customers throughout the world (Heracleous, 2013). Additionally, the company keeps on introducing discounts to attract customers to buy the products.

Furthermore, the company is facing economic challenges, which has highly affected customer power to purchase new brands. Most countries are facing an economic crisis, and this has increased made it hard for customers to purchase expensive products that the company is producing (Chen & Ann, 2016). As an approach to overcome the challenge, the company is introducing cheap products, which gives all customers the ability to purchase based on their ability.

Conclusion

In conclusion, Apple Inc. is one of the best-performing companies in America. The company has a good market and product strategy, which has influenced its chance to dominate the market. The nature of its products has given customers the certainty of quality. Despite being one of the most successful companies that produce smartphones and computers, Apple Inc. is facing heavy competition, especially from a Samsung, which produces both smartphones and computers. Through a proper marketing strategy, the company has managed to continue dominating the market. Brand strength, technology development, and much more have become a crucial economic concept that the company uses to influence its market performance. Despite various challenges such as the technology growth rate and economic crisis the company is facing, the management is striving to ensure it continues to maintain its customers. The company has introduced more new version of products, which has assisted in market domination. In the organization, management believes that innovation is the base of the current success.

References

Chen, C. M., & Ann, B. Y. (2016). Efficiencies vs. importance-performance analysis for the leading smartphone brands of Apple, Samsung and HTC. Total Quality Management & Business Excellence, 27(3-4), 227-249. Retrieved from 192.192.83.167/ir/bitstream/987654321/1323/2/Efficiency_vs._IPA(Total_Quality_Management).pdf.

Heracleous, L. (2013). Quantum strategy at apple Inc. Organizational Dynamics, 42(2), 92-99. Retrieved from citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.720.3278&rep=rep1&type=pdf.