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Apple Company

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Apple Company
Apple incorporation is an American company established in 1971 by Steve jobs and Steve Wozniak. The company’s headquarters are located in Cupertino, California. Apple Incorporation specializes in designing and developing computer hardware and software but has recently diversified into other consumer electronic goods. Apple Incorporation is the second biggest information technology company by revenue with an estimated revenue of US $414 billion. Apples’ success in the technological sector, stems from it’s; commitment in providing best computer and other electronic experience to its clientele by providing quality products from extensive innovation and creativity. This paper will examine some key ideas, strategies and concepts that this company employs in its operation that makes it a success in the information and technology industry. It will also discuss some of the lessons and ideas businesses need to incorporate into their operations, in order for them to realize success like Apple Incorporation.
To begin with, Apple employs vertical integration and diversification strategy in its business operations. This strategy makes it hard for any other technological companies to compete with it. This is because this strategy makes apple to diverse its business operations but connect them into one big company (Adams, 2012). For instance, Apple has segmented its company into a software company, hardware company, retail company and services company. Most corporations in the world can handle one or two of these subdivisions or disciplines, but only Apple has incorporated four units and they are all working in harmony. Incorporating these segments into a company helps a business to diversify its operation and spread the risk of the investment to other subsections of the business (Adams, 2012). Diversification helps in minimizing the risk of investment.
Apple Company is vertically integrated. Apple manages all the key sections of the chain used to make and sell products. Apple designs its hardware and software features for its products, it then optimizes the software to be compatible with the hardware. Finally, the company handles the sales of it’s products to customers through it’s retail stores located in many countries. The aspect of vertical integration, as employed by Apple, is in sharp contrast with other information and technology companies. This is because these companies do not own some components of their components, for instance software. They always hire third party services to design the components for them then sell them to middle men.
Research has also shown that, firms which employ vertical integration in their business operations enjoy more market power. For instance, many competitors of Apple Company, lack control of their operating systems and as well as many components of their products, this implies that they have minimal control of their products and the market at large. Firm should emphasis on designing and developing unique products so that they can enjoy a wider market share and hence realize increased volume of sales and profits.
Incorporating art into technology
Apple has tradition which is completely inimitable, this offers it another reason for it’s success. One of it’s founders, Steve Job, has always hinted that apple’s approach to it’s products is that they appreciate the connection between liberal arts and technology. This explains why, no other company in the information and technology industry, has been able to rival their eye for design and uniqueness in their products. An extra view of design and technology as an art is what inspires the decision makers of the Apple’s design team. This team of skilled staff usually uses their passion for design to transform art into technology. Another reason for the success is simplicity. Apple Company encompasses simplicity in their technologies. Apple employees believe that simple solutions aid in developing sophisticated technologies. They also believe that developing easy to use products widens the market demand for their goods and services. This helps them to improve volume of sales and customers base. Sascha (2011) notes that emerging firms should take note of incorporating simplicity in their production activities so that they can increase market power and hence improve the growth of their businesses.
Listening to customer needs and requirements
Satisfying customer needs and requirements has been one of the key ingredients in the success of Apple’s company. Adams (2012) asserts that, with the emergence of social networking, customers have a platform to express their views about a particular product or company. Apple has used this tool to sample and analyze the opinions of their customers to develop products that suit their requirements. For instance, Apple recently used this technique in developing and launching of their iPhone 4s and iPod devices. The company made minor changes to the previous versions of their devices when producing the latest versions of the products. This strategy has helped apple incorporation to increase the demand for their products.
For instance, the latest iPad has minor differences compared to the iPad 2. The new version has a wider screen, 4G internet, a good camera among other features, but there has not been a total redesign of the previous version. Some of these features were highlighted by customers in the Apple’s website. It was from these recommendations that enabled the company to develop the iPhone 4s and iPod. Companies should adopt this technique of directing product creation to the specification of the consumers. Listening and addressing issues raised by a customer is method any firm can do to improve customer relation and help it in determining the type products to produce (Sascha, 2011).
Focus on creativity and future developments
The growth and expansion of any business entity elicits expectations to its stake holders. When Apples launches a new product into the market, it has a culture of leaving behind customers and other stakeholders with expectations of what will their next product be or have. To Apple’s credit, the company has never ceased to create unique products. For instance, when Apple launched iPad recently, the sales for the device grew by over 110%, and the firm still maintains a larger market share for its other products. The constant innovation of products, progressive focus on goods and services has aided Apple Incorporation to lead others in the technological sector. A lesson learned from this idea is that, firms should always think ahead of their competitors through incorporating innovations and keeping an eye on the future ( Adams,2012). Price your products to customer segments.
When apple launched its latest version of iPhone in 2012, it reduced the price of the previous version significantly. This implies that Apple realize an extra demand for its products by widening its customer base. Most companies do not have a product launch that enables them to adopt this strategy, but there exist opportunities to review the price of a successful product to consider new and different customer block.
Creating an enabling environment for employees to work
For a business entity to prosper and expand, it’s employees need to be treated well and remunerated well (Sascha, 2011). Employees are the major drivers and executers of a firm’s goals and objections. They act as a link between customers and the owners of a business. Research has shown that, a well remunerated workforce has a higher performance capacity than a poor paid workforce (Adams,2012). Apple company, appreciates its employees and makes them greatly valued by the management of the company. Apple Company, has structured a model of how employees are going to be paid, even if budgets are tight to allow for increments of salaries. There are vital practices business entities need to learn from looking at Apple retail segment. First, business entities need to inspire, and encourage employees from the time they are employed within the business. Secondly, employers need to; congratulate their new employees for being hired by the company, and create a conducive environment for them to execute their duties. Applauding from employers makes the new employees feel valued members of the company. Finally, businesses should learn to recognize the achievements of their employees whether privately or publicly. For instance, Apple Company has a policy of recognizing the achievements of its employees by rewarding them with job promotions, salary increments among other rewards. This practice boosts the morale of workers and motivates them to work harder for the better realization of the company goals and objectives (Sascha,2011).
Besides hiring junior employees, firms should also focus on hiring qualified and result oriented top managers. This will help in reducing over-reliance on few individuals to propel the interests of the company (Adam, 2012). For instance, Apple’s company employs top notch managers and junior employees in its company; this implies that there is no over-dependence on each other to run the affairs of the company.
Strive for excellence Another important principle Apple company has adopted in its operations, and that other business should adopt is commitment to excellence. This idea of excellence has propelled Apple to succeed in its investments. Since the company was formed in the mid 1970s, Apple Corporation has been driven by a desire to perform well in its business endeavors. The company specializes in producing quality products to it’s customers. This aspect of producing quality products, makes the firm be ahead of its competitors. Besides striving for excellence, Apple invests heavily in research and development of new products. For instance, Apple has funded research studies for information and technology sector in major leading universities across the world. The research findings from these institutions has helped Apple company to develop unique and good products for its customers (Adams, 2012). Firms should embrace the aspect of investing part of their investments for research. This is because, they will be able to generate and implement new ideas that will help in developing products that will boost their revenues and more important provide customers with a wide variety choices (Sascha, 2011).
Finally, it is vital for emerging and existing firms to adopt and implement some of the ideas, concepts and strategies discussed above. These concepts will aid in boosting their volume of sales, increase revenue and thus grow and expand their businesses.

References
Sascha, S. (2011). Apple's Secret of Success - Traditional Marketing vs. Cult Marketing .Berlin: Diplomica Verlag.
Adam, J. (2012). Inside Apple: How America's Most Admired--and Secretive--Company Really Works. New York: Grand Central Publishing.

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