Report On Apple

825 words - 4 pages

Apple (AAPL) founded in 1976 is a leading software and hardware company with over 170 retail stores around the world. It designs, manufactures and markets a wide range of products from personal computers, operating systems, network solutions, and the I-pod digital music player as well as distributing third party digital entertainment products through their I-tunes store. The company sells its products to a wide customer base, from individuals, educational institutions, and creative professionals, to small and mid level business. In addition Apple Incs various products are sold through their online store as well as third party vendors worldwide.
Apple, Inc. stands for innovation in personal ...view middle of the document...

Apple also designs, develops, and markets to Mac and Windows users its family of iPod digital music players and its iPhone mobile communication devices, along with related accessories and services, including the online distribution of content through the Apple iTunes Store.

For firms like Apple with multiple brands or product lines, a product portfolio analysis is necessary to determine where resources should be applied or reallocated to ensure the maximum profitability of the corporation. Maintaining product lines that commanded a substantial share of a competitive and growing market is the ultimate goal while deciding to divest or sell off products lines that lag in growth and competitive market share. However, such decisions are not easy or apparent for firms. This is because forecasts for product demand are not always accurate (take for example the quick obsolescence of Apple's iPod shuffle--or in earlier years entertainment technologies like the laser disc, mini CD, and VHS Camcorders). These examples suggest that even the best business and marketing plans may not account for rapidly easing of demand for such products. In addition, many competitors marketed the same or similar products, which impact a product line's successful contribution to profit margin. To account for both the market growth rate (demand) of a product line and its market share strength (share compared to its largest competitor), the Boston Consulting Group (BCG) developed a product portfolio analysis tool.

In 2001 they began selling their line of iPods (versions included a full size, mini, nano, and shuffle)....

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