Apple Inc.

Apple Inc.


Apple Inc. is one of the biggest technology companies in the world as well as one of the best with regards to revenue and sales over the years. The American based firm was established in 1976 by Steve Job and other two members. The firm’s main force was to develop personal computers at first which has changed over the years with the introduction of other technological gadgets such as iPhone, iPod, and services such as iTunes, as a way to increase its relevance in the industry and also customer satisfaction.

Impact of Apple’s vision, stakeholders, and mission statement

Based on the success that Apple Inc. has developed over the years it is contributed more by the company’s mission and vision statements. Also, the mission statement has been changing over the years based on the companies shift in their perspective and priorities in the technology industry. For example, the company’s mission statement states that “Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings.” The mission statement philosophy of the company has been achieved through the constant and improved technological gadgets that the company produces. Additionally, the company has proved to be the biggest innovation center in the technology industry. As a result of the innovation and product quality, the company has been able to breach the gap between what the customers want and prefer and what they provide in the market. According to Blenko, Waldron, Cornelius, Nespoli, and Lee, D. (2016), Apple Inc. is one of the leading companies with regards to customer satisfaction which is as a result of the mission statement.

Additionally, Apple’s vision statement is “We are constantly focusing on innovating.” The company has over the years invested a lot regarding innovation and creativity, which as a result the firm can produce quality technological products. Moreover, the vision statement also focuses on simplicity and collaboration which is achieved through collaborations in the development of gadgets such as the smartwatch, as well as applications such as iTunes which are user-friendly and simple yet provide quality service to its users.

On the other hand, Apple values it, stockholders, a lot which is one of the major factors of its success. The firm’s stockholders include investors, customers, suppliers, and distributors as well as its employees. This is portrayed through the salaries and allowances paid to the workers, where the company was voted as one of the best employees because on how they treat their employees, as explained by Kramer, (2017). According to Asquith, and Weiss, (2016), Apple is one of the most profitable firms in the world; this is because of the inverters relationship with the company. For example, over the years the investors have prioritized their interests based on the profit maximisation factor of Apple Inc., as a result of the strive towards attaining the responsibility the company, on the other hand, improves regarding success. The suppliers and distributors of the company are as well considered by the company, for example, the frequent contract reviews and the strictness on the company. For example, the company monitors a lot with regards to its supplier’s remuneration and job security for the employees. As a result, the suppliers tend to comply with the high expectations of Apple which in turn develop into effective and efficient performance towards success.

The Five Forces of Competition

According to Rothaermel, (2015), the five forces of competition consist of, industrial competition, the bargaining power of suppliers, threat developed by substitute products, and customers bargaining power and also the threat of new companies in the market. The five forces impact Apple Inc. as follows:

Customers bargaining power

At this point, organizations focus on collective customer bargaining power and the single bargaining power. However, as for Apple, the single customer bargaining power has no impact towards the company’s revenue. But the collective customer bargaining power based on the market forces could Couse the company significant effects. To effectively control the competition force, Apple continues to develop new and innovative products to its customers, meaning that the customers have a variety to choose from as well as the increased features that keep that eliminate the threat caused by customer barging power.

 New Entrants to the Marketplace

The threat that new companies in the technology industry is relatively law based on Apple Inc. this is because the competition in the tech industry is very stiff as well as the capital to invest for a new company to compete with Apple is too high to manage. On the other hand, the new companies would take a lot of time, energy and financial support to develop a bigger brand name such as Apple, to develop competition. However, the company keeps on developing new and high-quality products for its customers in a move to establish customer loyalty to avoid competition.

Bargaining Power of Suppliers

The competition impact with the suppliers bargaining power at Apple is significantly low. This is because Apple has an extensive variety of suppliers to choose from as well as the suppliers in the industries as most of them are willing to work with Apple. On the other hand, Apple controls the supplier’s bargaining power through subdividing their responsibilities meaning that one supplier is responsible for on product or service, for example, one supplier only develops computer processors. Additionally, the company is strict on its requirements and responsibility of the supplier’s which helps the company to counter check the suppliers.

Threat 0f Substitute Products

Substitute products are the biggest threat among the five competitive forces for Apple. This is because the technology industry keeps on changing based on the fact that innovation and creativity are high in the sector. As a result, Apple challenges the substitute products by providing increased capabilities of its products and services the company offers. As a result, the firm can remain relevant in the industry as well as maintain its customers.

SWOT analysis for Apple Inc.


The company has shaped a strong brand name in the market for all its products due to the quality and the constant upgrades of its products depending on the needs of the customers. The company has a robust and developed center for its research and development compared to its competitors. The Apple company has the resources, based on the financial gains and revenue collected from the wide variety of products, which all post success regarding profits from the market. This is because the company has been able to fight the current market pressure to reduce the cost of its products. Based on the quality of products the company has produced, it has got a larger number of loyal customers for its products and services. The other strength is that the firm is a pioneering company in the world, giving it lead into the un-ventured markets (Khan, Alam, & Alam, 2015).


The charges of the Apple products are high, and it poses a threat and gives an advantage to the competitors, who price their products cheaper yet with the same aspects and quality. Decreases in the market share also bring the problem of less revenue and relevance in the market. It is mostly caused by the closed encryption of the Apple system, like the iOS.

Other businesses in the industry blame the Apple Company for not following the patents, which damages its reputation. The death of Steve Jobs and later exit of Scott Forstall and John Browett impact the company negatively.  The company expects fall due to the competition and the pricing aspect of the Apple product. This is because the company only sticks to the same products, like the iPhone, yet the tech industry is experiencing changes.


The technology industry provides a lot of opportunities on a daily basis based on the changes and the evolvement of the sector. As a result, Apple is one of the notable companies, opportunities such as the firm can improve or upgrade the ITV features could easily eliminate competition and increase sales based on the company’s brand name. Investing more in online stores, compared to the current situation in the market. For example, iTunes could also provide movies instead of just music. The other price is the reconsideration of its product by providing cheaper gadgets in the market yet with high quality. And lastly, Apple Inc. can increase the mobile phone adverts features, having allowed the company advertisements to run on their product


Intense competition is one of the threats affecting Apple Inc. The major competitor of iOS is the Android OS in the mobile market. Financial emergencies hurt Apple deals since shoppers do not spend excessively in basic circumstances. iTunes is also recognized as a threat as it is a free platform for downloading music and it may affect the benefit and successes of Apple online store. The escalation of tax renews in the USA also affects the Apple’s growth. For example, Samsung is a particular case which provides application processors to the firm, and it has grown the pay and advanced the purchasing costs. Apple pays more because there are no possible substitutes who could provide it with the application processors.

Strategies for the company to capitalize on its strengths and opportunities

One of the strategies to implement is using the company’s brand name to market its products. For example, the company does not need a lot of marketing for its new products compared to new entry companies. Also, the company should take advantage of its innovation and creativity center since it is one of the best in the industry. As a result, the company should innovate new features continuously to eliminate competition and increase its revenue.

Increasing its target market into new markets is another strategy to implement. The company should not only be comfortable with the high sale of its product but focus on dominating the market. For example, the company should forces on Africa as a target market. Moreover, the company should consider reducing its selling price since most of the products are too costly for most people to purchase. As a result, the firm would increase sales as well as profits.

The Types of Strategies Apple Inc Can Implement For Increased Competitiveness and Profitability

One of the major strategies to implement is the innovation aspect of the company; Apple Inc. should be the pacesetter for creativity and innovation of new features and products in the technology sector. As a result, the company would remain relevant and on the other hand eliminate competition (Khan, Alam, & Alam, 2015).

Additionally, Apple Inc. should adopt the Wallmart strategy so selling more products at a lesser price. This is because the company will make a profit as well as dominate the market based on the quality of its products.

The communications plan to implement the recommended strategies

Since Apple is an international company with branches all over the world, the communication strategy to implement would be newsletters as well as meetings. This is to be achieved through sending a newsletter based on the recommended strategies that the firm wants to implement, in all its branches departments as well as the suppliers (Khan, Alam, & Alam, 2015). After the news later is received the heads of the companies or departments are to hold a briefing meeting to its employees about the recommendation. Additionally, each employee should have a copy of the strategies to effectively perform their duties towards the set objectives and also the copy should act as a referencing point for all the stakeholders involved.

The adopted corporate governance mechanisms at the firm

One of the adopted cooperate governance in the company is that the  Apple board members oversee the CEO of the company as well as other senior management posts, in a move to instill competency and ethical practices in the firm. Also, the board is responsible for auditing as well as making sure that the interests of its stockholders are achieved efficiently, and also the practice is maintained for continuity

On the other hand, the major strategies of the Board are formulated and implemented by the company’s Corporate Governance Guideline additionally; the firm’s executives are trusted upon to take into account proactive measures, as a centered approach to deal with their responsibilities. Also developing measures that assure the Company is focused based on its obligation and attainment of the firm’s objectives.

The effectiveness of leadership within Apple Inc

Apple Inc. CEO the board has solid control, of the company based on the authoritative structure that the company adopts. This means that the company practices the autocratic type of leadership. This is evident based on the fact that pioneers such as Tim cook have control over every activity happening in the organization, to the point that they have the mandate to stop or kick-start a project without having consultations with other managers, and employees. The leadership structure also practices the top-down approach to communication.

However, Apple as a company has developed the rigidity between the employees and the management team. As a result of this, the employees, as well as other stockholders at Apple, do not have a chance to contribute to their ideas and opinion. If the company were to transform the authoritative aspect of leadership and accommodate everyone’s opinion the company would increase and succeed at all platforms such as brand name, revenue, customer satisfaction as well as eliminating competition (Heracleous, & Klaering, 2014).

Apples ethical responsibilities

Apple has over time majored in decreasing energy or power consumption of its products as a move to protect the environment. As a result, the firm has established 100% renewable energy branched in over 23 countries. According to Clarke, and Boersma, (2017), Apple is the only company to win the clean energy index award towards the environment.


Asquith, P., & Weiss, L. A. (2016). Dividend Policy (Apple Inc.). Lessons in Corporate Finance: A Case Studies Approach to Financial Tools, Financial Policies, and Valuation, 239-259.

Blenko, D., Waldron, K., Cornelius, J., Nespoli, G., & Lee, D. (2016). ORGANIZATIONAL ANALYSIS: APPLE RETAIL STORES.

Clarke, T., & Boersma, M. (2017). The governance of global value chains: Unresolved human rights, environmental and ethical dilemmas in the Apple supply chain. Journal of Business Ethics, 143(1), 111-131.

Heracleous, L., & Klaering, L. A. (2014). Charismatic leadership and rhetorical competence: An analysis of Steve Jobs’s rhetoric. Group & Organization Management, 39(2), 131-161.

Khan, U. A., Alam, M. N., & Alam, S. (2015). A Critical Analysis of Internal and External Environment of Apple Inc. International Journal of Economics, Commerce, and Management, 3(6), 955-961.

Kramer, M. (2017). Brand purpose: The navigational code for growth. Journal of Brand Strategy, 6(1), 46-54.

Rothaermel, F. T. (2015). Strategic management. McGraw-Hill Education.

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