Apple Company Business Environment Essay Example | Topics and Well Written Essays - 2750 words

Apple Company Business Environment - Essay Example It is expected that the continuance of this trend will encourage more consumer spending and pave the way for more investment by Apple in developing new products. However, weak economic conditions have continued to exist especially within the education sector in the United States. Many states are experiencing huge deficits in budget, which may hamper Apple’s sales initiatives within the educational sector. Most of Apple’s products and components are manufactured in factories across China through partnerships with suppliers and electronic parts manufacturers like Foxconn and Inventec (Housden, 2008). The fixed exchange rate regime adopted by the Chinese government is adversely affecting any effort by Apple to cut production costs, adding to the problems faced from tariffs and anti-dumping penalties (International trade regulations). Social The use of computers, laptops, Smartphones and music players is growing worldwide, especially in the emerging economies. This presents a good opportunity for Apple to widen its market reach especially within these new and relatively unexplored markets. Customers are more adept at using these electronic devices and the use of social networking sites like Facebook and Twitter has only enhanced the importance of computers and Smartphones for daily use (Aasend, 2001). Further, today’s generation places high value on education wherein strategies like offering discounts on products to students are helping Apple capture consumers from an early age and ensure their long-term commitment and preference for its products. Traditionally, Apple has always competed with Microsoft especially within the Operating Systems (OS) segment.... This paper approves that the preceding sections discuss the far, near and internal business environment of Apple Inc. Apple currently faces several issues that it must focus upon in order to ensure sustainable growth in the future. The firm must engage in its current strategy of licensing and strive to improve the economies of scope between personal computers and electronic media. Thus, the need for Apple over the coming years is to evolve into a learning organization. Besides licensing and partnerships, Apple can also consider the possibilities of joint ventures with other companies, which will allow it to develop various additional competencies. This report makes a conclusion that Apple’s primary strategy should be directed towards developing media-centric technologies and products. Nevertheless, the company should also work towards improving its computing products. In fact, Computer sales accounted for over 40% of Apple’s revenues in 2008. Apple continues to rely on the leadership and vision of its CEO, Steve Jobs. Mr. Jobs holds a considerable equity stake in the company and is one of the main reasons behind Apple’s resurgence from virtual oblivion. The reaction from the markets and consumers if he were to ever step down is rather uncertain. Therefore, the dependence on Mr. Jobs should not be a limiting factor for Apple and the firm must devise ways to operate as an organization. Such an initiative will allow Apple to strengthen its position and act through collective decision-making.