Apple Inc-Challenges, Competition, and Strategies for Success

Apple Inc-Challenges, Competition, and Strategies for Success

Internal and external issues

One of the internal issues in Apple Inc. is the lack of a proper quality assurance program. Various lawsuits have been filed against the company due to poor product quality. For instance, in 2020, the company was accused of producing phones with low battery life. Another major internal issue is the lack of transparency. The company has been accused of not being transparent about the defects in its products to avoid product recalls. For example, the company did not disclose the intentional slowing down of the battery performance of older phones to encourage customers to buy new batteries and newer iPhone models. The main external issue is the rise of counterfeit products, especially in developing markets. The company has been experiencing a major challenge in controlling the sale of counterfeit products because most of them are sold in black markets in countries that do not have proper regulations prohibiting the sale of counterfeit products.

Global and national competition

Apple Inc. faces stiff competition from computer and smartphone manufacturers. The main national competitor in this segment is Lenovo, which produces mobile phones, personal computers, and electronics. The second competitor within this segment is HP, which focuses on manufacturing and selling consumer computing products. The company also has a large global presence, making it hard for Apple Inc. to secure a large market share in the global computer market. The third competitor is Dell Technologies, which manufactures mobile computing devices and desktops (Catalano & Schmitt, 2014). The company only competes with Apple Inc. in the computing segment because it does not produce phones. Samsung Company is the main smartphone manufacturer that poses stiff competition to Apple Inc. Samsung is the largest smartphone manufacturer in South Korea and has significantly reduced the demand for iPhones over the past decade (Catalano & Schmitt, 2014). For example, the Samsung Galaxy series has been a serious threat to the sale of iPhones because it includes improved iPhone features.

 Analysis of key financial statements and how items such as corporate tax rates can affect Apple Inc.’s ability to compete on a global scale

Apple Inc. has increased its income over the years due to expansion into new markets. The net income in 2020 increased to $220.747 regardless of the interruptions caused by the Covid-19 pandemic. Apple Inc.’s stock prices have also increased significantly over the years due to the increase in the company’s revenue. The company’s liabilities increased in 2020 after the Covid-19 pandemic due to disruptions in supply chains and reduced demands. The company’s operating costs continue increasing due to tariffs imposed by the United States on all products shipped from China to the United States and high corporate rates in different countries worldwide. Apple Inc. (2017) states that Apple is the largest taxpayer worldwide because it pays more than $35 billion in corporate income taxes within three years. The rates of corporate tax Apple Inc. is expected to pay can impact Apple Inc.’s ability to compete globally by limiting its expansion into new markets based on the corporate taxes in the countries where the new markets are located. Corporate taxes also reduce the company’s revenues, thus limiting the financial resources available for research, development, and innovation.

The future outlook for the industry and Apple Inc.

The information technology industry is rapidly developing due to the rise of the 5G internet and artificial intelligence. Therefore, Apple Inc. has to constantly update its products to adapt to customer needs and preferences changes. The COVID-19 pandemic also significantly impacted people’s social lives, creating a preference for online virtual games, which accelerated the growth of the gaming segment in information technology. Therefore, smartphone and computer manufacturers should focus on features such as space and internet speed to accommodate the needs of customers who use the products for gaming. In the future, Apple Inc. is likely to lose its competitive advantage over Samsung due to Samsung’s innovation and the complaints against Apple Inc. due to product issues. Therefore, Apple Inc. should focus on creating interesting virtual games and ensuring they are compatible with other phone brands to diversify income sources.

Business performance

Apple Inc.’s performance is relatively good. The company has been improving customer satisfaction by issuing surveys and questionnaires to customers to understand their contentment and complaints. The company has also been recognizing the value of its workforce by rewarding employees who perform well, creating flexible work schedules, and training employees to equip them with new knowledge and capabilities that can be applied for innovation. The company’s market share in the computing sector is small, but the market share in the smartphone industry is large. Apple also maintains high shareholder value by ensuring that the needs of all shareholders are met. Based on these factors, it is evident that Apple Inc.’s business performance can be improved by increasing the market share in the computing industry by manufacturing computers with unique features to increase competitive advantage against the competitors in the computing industry.

How training programs, job enrichment, and motivation techniques can improve employee satisfaction and performance evaluation

Apple Inc. should improve employee satisfaction and performance through job enrichment, motivation techniques, and training programs. The training programs can equip employees with the knowledge, skills, and capabilities to complete assigned tasks effectively. Motivation techniques should be aligned with performance appraisal. According to DeNisi (2013), a performance appraisal framework includes evaluation to determine whether an employee’s performance is satisfactory. Apple Inc. should set key performance indicators to evaluate employee performance and reward employees who meet performance expectations. The company can also increase employee satisfaction through job enrichment, including creating opportunities for employees to develop their careers.

References

Apple Inc. (2017, November 6). The facts about Apple’s tax payments. Apple Newsroom (United Kingdom). https://www.apple.com/uk/newsroom/2017/11/the-facts-about-apple-tax-payments/

Catalano, T., & Schmitt, K. R. (2014, December 3). Who are Apple’s main competitors in tech? Investopedia. https://www.investopedia.com/ask/answers/120314/who-are-apples-aapl-main-competitors.asp

DeNisi, A. S. (2013). Performance appraisal. Management. https://doi.org/10.1093/obo/9780199846740-0002

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Apple Inc-Challenges, Competition, and Strategies for Success

For the final assignment of this course, you will continue your work with the company you used in previous units. The Unit VIII Project will now combine what you previously developed into a final strategic plan for the company.
When creating your strategic plan, focus on the following points:
Analyze internal and external issues.
Assess the global and national competition. Analyze key financial statements and explain how items such as corporate tax rates can affect your company’s ability to compete on a global scale.
Examine the future outlook for the industry and your selected organization;
Implement performance tools used for measuring business performance.
Integrate corrective actions to take if the business is not performing successfully. Explain how training programs, job enrichment, and motivation techniques can improve employee satisfaction and performance evaluation.
Regarding the organization’s future, you may be creative and add your own insight on where you see the company going. This can include information about how the new product or service line you introduced in Unit IV will impact the company.