Star Analysis Of Apple

1693 words - 7 pages

Apple Inc.Apple Inc. is an American multi-national corporation that designs and manufactures consumer electronics and softwares. It was founded by Steve Jobs, Steve Wozniak and Ronald Wayne in April, 1976 and is headquartered in Cupertino, CA, United States of America. Apple has grown intensively since its establishment as Apple Computers Inc. in 1976 when it focused on personal computers and its softwares. In 2007 it was renamed as Apple Inc. when the focus area diversified to consumer electronics. The company's product and services includes iphone, ipad, Mac, ipod, Apple Tv, a portfolio of consumer and software applications, the IOS and OS X operating systems, icloud and a variety of accessory, service and support offerings. With the effective implementation of Global competitive strategy it has gained competitive advantage and has managed to become the largest publicly traded and world's most innovative technology company (Fisher, 2008).As an American company, Apple was free to determine its corporate culture. The hierarchy at Apple is horizontally integrated. The nationality of Apple has also helped its sales as customers from all over the world favor American brands. The brand loyalty of Apple is considered unusual for any product. There is an argument raised for Apple to have emerged and flourished only from the US. It seems likely to be the case as other potential countries like Great Britain and Japan were still recovering from the chaos of the Second World War; the United States on the other hand was focusing on the creativity, innovation and economic supremacy. US market is of high importance to Apple as it accounts for almost 35% of its revenue. With US possessing relatively flexible and open economy, Apple has gained an additional advantage to compete internationally.Source: Apple's revenue by region (Robert Paul Leitao)Apple's headquarters for Europe, the Middle East and Africa (EMEA) are located in Cork in the south of Ireland. This was also Apple's first facility to be located outside the US and was opened in 1980. Apple Sales International, which deals with all of Apple's international sales outside of the USA, is located at Apple's campus in Cork along with Apple Distribution International, which similarly deals with Apple's international distribution network. As the tax rate of the United States is much higher than many countries, Apple enjoys the lower tax rate offered by the Ireland.Apple used to advertise its product as American up to the late 1990s. Now all of its manufacturing is done abroad as a result of outsourcing initiatives in 2000s. According to a report by the New York Times, Apple insiders "believe the vast scale of overseas factories as well as the flexibility, diligence and industrial skills of foreign workers have so outpaced their American counterparts that "Made in the U.S.A." is no longer a viable option for most Apple products".Apple has outsourced the manufacturing activity to China where the hardware...

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