Business Analysis Part 1: Apple, Inc.
Apple is a highly innovated business that entered the business world making computers back in the 1980s. They ventured out in the 2000s making non-PC devices and by the spring of 2010 had a market capitalization of $220 billion dollars. As a mutual fund manager, I have performed a SWOT analysis to determine whether or not to invest in this company. I will identify internal and external stakeholders, evaluate their needs and see how the organization measures up when it comes to satisfying those needs.
Apple Inc. has been ranked number one on Fortune Magazine’s Most Admired list for the fourth year in a row according to CNNMoney ...view middle of the document...
Now Apple is offering airplay, which is streaming of music to any speaker in your house, again no wires to attach.
Apple reported their first quarter revenue at $46.33 billion with quarterly net profit at $13.06 billion ("Apple Reports First Quarter Results", January 24, 2012). Apple’s online music store, iTunes is the largest music retailer and charges just .99 cents per song and can be downloaded on all of their products.
Because of Apple’s success in the marketplace, their competitors are hard at work to produce a product that is comparable and will appeal to consumers. Currently Apple is in litigation with Samsung about their Galaxy phone and tablet citing that Samsung stole their design. Apple is trying to prevent Samsung from selling them in the U.S. (Levine, December 2, 2011).
Up until the release of the IPhone 4, Apple’s only authorized retailer was AT&T and it was difficult for customers who wanted an iPhone but had another carrier. Apple is currently involved in the “Apple iTunes Antitrust Litigation” which states that they have a monopoly on iTunes and music from other sources will not work on the iPod (MacLean, March 22, 2011). With Apple’s brilliant design and leading in innovations they have failed to make syncing the iPad and iPhone either Wi-Fi or 3G capable, for now the use of a USB cord is still required. Apple TV was not successful and has very limited viewing opportunities, it seems as though they just threw it out there and neglected it.
Apple Inc. outsources labor to build its products to other countries and has recently been in the news after an explosion in a Chinese factory operated by one of its suppliers, Foxconn which killed three people and injured sixteen other. Prior to the explosion on May 20, 2011, at least ten workers committed suicide in 2010 which caused labor groups to give some insight into the situation by complaining about employees being forced to work long hours with minimal compensation (Samuelson, February 19, 2012). In 2005 Apple enacted the suppliers Code of Conduct which was their commitment to make sure that employees would have safe working conditions and would be treated fair. According to "Apple Supplier Code Of Conduct" (2012), “The Apple Supplier Code of Conduct requires suppliers to provide safe and healthy working conditions, to use fair hiring practices, to treat their workers with dignity and respect, and to adhere to environmentally responsible practices in manufacturing.” Apple sends their employees to do an annual audit of their suppliers to make sure that they were abiding by the “Code of Conduct”. When issues were found problems that were in violation, Apple worked with the supplier to make sure that the problems were corrected. But with the explosion on May 20, 2011 and after receiving a petition with 250,000 signatures on it demanding an audit of labor practices, Apple has asked the Fair Labor Association to go in and audit both of...