General Environment, Forces of Competition, Future Improvement, Opportunities, Strength and Weaknesses of Apple Inc. Introduction Apple Inc. is a multinational company that was found by Steve Jobs and Steve Wozniak in the year 1976. Since then, the company has able to produce mobile phones, iPads, personal computers and operating systems (Finkle, & Mallin, 2010). The company is successful under the current leadership of Timothy Donald. This paper will discuss the general environment, opportunities, threat, strength and capabilities of the company. General Environment The main segments of the general environment that affect Apple is the technology and social-cultural aspects. Technology has enabled the company to produce innovative and attractive products which attract customers. The socio-cultural segment of general environment involves values and attitude of people about products of the organization. Technological Segment of the Environment The technological segment of the environment influences how business operations are conducted—the segment use of advanced techs to design new and innovative products. Apple is ever-growing due to adoption of new and advanced technology. Advancement in technology has stiffened competition in the market. Apple uses better technologies such as wireless technology, cloud services and software to stay ahead in the competition. Socio-Cultural Segment of the Environment Social-Cultural segment refers to values and beliefs of people towards products and services of the organization. The positive interest and beliefs of people towards communication and entertainment results in the development of industries that deal with ICT. As a result, Apple incorporation continues to grow due to the interest of society towards its products and services. Similarly, the popularity of internet ad mobile phones leads to the success of the company. The company has prioritized to meet the demands of its customers by producing goods that are innovative and attractive. Forces of Competition The forces of competition are five. They include rivalry among competitors, threats of new entrants, threats of substitute commodities, bargaining power of suppliers and bargaining power of customers. In this assignment, rivalry among competitors and the bargaining power of suppliers is discussed. Rivalry Among Competitors Apple uses advanced technology and innovation to produce goods that are uniquely designed. The company make use of brand management to ensure its products are unique and innovative. The company has introduced produced products with a new feature, designs and performance to maintain market distinctness. All these changes have enabled Apple to stay ahead of the competition. Apple should launch more products with unique design and features to stand out in the market. The company should also products other products and software to maintain market distinctness. The products should have new and updated features, version and ...

1. General Environment, Forces of Competition, Future
Improvement, Opportunities, Strength and Weaknesses of Apple
Inc.
Introduction
Apple Inc. is a multinational company that was found by Steve
Jobs and Steve Wozniak in the year 1976. Since then, the
company has able to produce mobile phones, iPads, personal
computers and operating systems (Finkle, & Mallin, 2010). The
company is successful under the current leadership of Timothy
Donald. This paper will discuss the general environment,
opportunities, threat, strength and capabilities of the company.
General Environment
The main segments of the general environment that affect
Apple is the technology and social-cultural aspects. Technology
has enabled the company to produce innovative and attractive
products which attract customers. The socio-cultural segment of
general environment involves values and attitude of people
about products of the organization.
Technological Segment of the Environment
The technological segment of the environment influences how
business operations are conducted—the segment use of
advanced techs to design new and innovative products. Apple is
ever-growing due to adoption of new and advanced technology.
Advancement in technology has stiffened competition in the
market. Apple uses better technologies such as wireless
technology, cloud services and software to stay ahead in the
competition.
Socio-Cultural Segment of the Environment
Social-Cultural segment refers to values and beliefs of people
towards products and services of the organization. The positive
interest and beliefs of people towards communication and
entertainment results in the development of industries that deal

2. with ICT. As a result, Apple incorporation continues to grow
due to the interest of society towards its products and services.
Similarly, the popularity of internet ad mobile phones leads to
the success of the company. The company has prioritized to
meet the demands of its customers by producing goods that are
innovative and attractive.
Forces of Competition
The forces of competition are five. They include rivalry among
competitors, threats of new entrants, threats of substitute
commodities, bargaining power of suppliers and bargaining
power of customers. In this assignment, rivalry among
competitors and the bargaining power of suppliers is discussed.
Rivalry Among Competitors
Apple uses advanced technology and innovation to produce
goods that are uniquely designed. The company make use of
brand management to ensure its products are unique and
innovative. The company has introduced produced products with
a new feature, designs and performance to maintain market
distinctness. All these changes have enabled Apple to stay
ahead of the competition.
Apple should launch more products with unique design and
features to stand out in the market. The company should also
products other products and software to maintain market
distinctness. The products should have new and updated
features, version and high performance to maintain leadership in
the market segment.
Bargaining Power of suppliers
The company has less bargaining power to its suppliers. For
instance, the company cannot fully influence Samsung, which is
the main supplier of the company. Samsung is not only the main
supplier of Apple but also the main competitor of the company.
Samsung supplies quality screens and other fundamental
components to Apple. Apple depends on the supplier for its
components.
Apple should negotiate with other suppliers, such as LG to
minimize overdependence on Samsung. Similarly, the company

3. should reduce the supplies of essential components such as
micro-processors and screens from Samsung to reduce its
influence and control. Apple should establish a production site
of its own to manufacture quality and fundamental components.
This will reduce the powers of suppliers and ensure the
production of quality components.
Future Improvements
Apple Inc. should adopt advanced technology to stay ahead in
the competition. This will ensure that the company will produce
better goods and services that will attract more customers. The
company should introduce new features, design and high-
performance devices to stand out in the market. The company
need to invest in diverse products and software to increase its
market. Apple should not switch its suppliers to different
competitors; rather, it should set up its production site to reduce
the powers of its suppliers.
Threats to Apple Inc.
Rapid advancement in technology favor competitors of Apple.
As a result, it is a major threat facing the company. Secondly,
the increase in taxation reduces the profits of the company.
Additionally, the rise in the cost of labor in different countries
reduces the profits of the company.
Opportunities of Apple Inc.
Customer loyalty to the products of the company is one of the
opportunities that Apple can use to expand its market and sales.
The company also has a good reputation for producing quality
and attractive goods which are embraced by the market
positively. The company should take advantages of this
opportunities to stay ahead in the competition (TAN, 2013).
Strengths and Weaknesses of the Company
Apple has various strengths which enable it to enjoy a
competitive edge. It has successful brand management and
strong customer loyalty who remain the ecosystem for a very
long time. The company also have an effective marketing
technique which enables it to penetrate deeply into the market

4. and strengthen its brand. Apple is creative and innovative;
hence many people wait for the launch of its products and
services.
Even though Apple has various strength, the company also have
weaknesses. Firstly, they produce software and hardware that
are incompatible with devices of their competitors. Therefore,
some people may not prefer to buy products from Apple.
Secondly, the products and services of Apple are exorbitantly
high and are not affordable. Moreover, stiff competition has led
to a reduction in shares of the company. Finally, the company is
overdependent of its competitors for most of its components.
Capabilities and Core Competencies of Apple Inc.
The company is well known for its quality and unique products
and services. They products come with new features and version
which is attractive to customers. Apple is a leading brand in the
market and has effective marketing strategies and successful
brand management which strengthen their brand (Montgomerie,
& Roscoe, 2013). The company is popular for prioritizing the
concerns of its customers. The competencies of the company
include research and development that is useful in producing
quality and unique products and software that attract customers.
Apple adopts advanced and innovative technology, as well as
effective strategies in marketing its products (Smith, 2008).
Sources
TAN, J. (2013). A strategic analysis of Apple computer Inc. &

5. Recommendations for the Future direction. Management Science
and Engineering, 7(2), 94-103.
Finkle, T. A., & Mallin, M. L. (2010). Steve Jobs and Apple,
Inc. Journal of the International Academy for Case Studies,
16(7), 31.
Smith, R. (2008). Harnessing competencies, capabilities and
resources. Research-Technology Management, 51(5), 47-53.
Montgomerie, J., & Roscoe, S. (2013, December). Owning the
consumer—Getting to the core of the Apple business model. In
Accounting Forum (Vol. 37, No. 4, pp. 290-299). Taylor &
Francis.
Introduction
Apple Inc. is based in USA Multinational Corporation, which
manufactures and electronic market merchandises like tablets,
smartphones, mobile phones, laptops, music players, etc. The
corporation besides constructs its software which offers users
with an exclusive and user-friendly interface, for instance, Face
time, iTunes, Mac OS, etc. Apple, in expressions of revenue, is
the other major information technology business after Samsung.
The corporation functions in about 14 nations at present. Apple
Inc. was after one of the major popular manufactured
microcomputers commercially. (Apple, 2020) The introduction
of the desktop computer Apple II in 1977 essentially marked the
beginning of personal computing for mass consumption, as well
as the foray of the company into consumer electronics.
Business strategy
Crucial to the Apple business strategy is a specific product and
innovation strategy focused on reactive and practical innovation
constructed on the necessity to endorse easiness. The business
does this using signals from at present prevailing products and
refining them additionally by eliminating unwanted qualities

6. and assimilating distinguishing features, mainly by familiarising
new functionalities and reinventing the whole user experience.
The proactive and reactive method to product growth and
advancement has allowed Apple to leave long-lasting influence
above diverse sectors and industries. For instance, the
institution of the iPod and iTunes transformed the music
business over the advancement of digital music. Moreover, the
company was likewise influential in escorting in the age of
smartphones and tablet computers with the introduction in 2007
of iPhone and 2010 of iPad.
It is likewise worth stating that the general product and
innovation viewpoint of Apple are conveyed crosswise the
complete product and service outlines over complementation.
Fundamentally, the widespread nonetheless controlled portfolio
of the product of the company generates and preserves a
consistent user experience. For instance, the user interfaces of
the iPad, Mac computers, and the iPhone have alike useful and
design principles. As a result, generating a sense of
acquaintance. Additionally, a specific user of various Apple
devices can take benefit of complementation over the Apple ID.
This all-access version lets users accomplish their files, digital
identity, and preferences crosswise several devices, as a result
allowing a continuous transition. (Lynch, 2011)
One more extraordinary Apple business strategy is outsourcing.
The business does not possess and function production or
manufacturing facilities. As an alternative, hardware parts for
instance display panels are either fetched from manufacturers of
third-party and propriety hardware, for instance, the processor's
institute in the iPads and the iPhones are mass-produced by
outsourced businesses. Even the iPhones and MacBook are
assembled in diverse outsourced accommodations.
The point that manufacturing abilities are outsourced must not
be taken in contradiction to Apple. Outsourcing lets the
business to be both operative and well-organized. It can save
cost owing to decreased operating expenditures that would
originate from running and sustaining production amenities

7. despite the fact also letting it focus more on product design
research and growth, and marketing. (Lynch, 2011)
Apple similarly substitutes among a lean and agile supply chain
strategy and supply chain strategy dependent on existing market
necessities and industry courses. Over the lean strategy, the
business efforts on the addition of value for customers and
removing recognised wastes or everything that does not add
worth. Conversely, through an agile strategy, it trails a wait-
and-see method by waiting for market trends and consumer
demand before requiring to and introduction of a final product.
(Lynch, 2011)
Corporate strategies
Generic strategy and intensive growth strategies of
Apple Inc.'s relate directly to the company's strategies in
marketing, pricing, and additional parts of the business. generic
strategies of Michael E. Porter's model describes strategic
options that the business can use to grow its competitive
benefits in the information technology and consumer electronics
and services industries. (Hill, & Jones, 2013) As one of the
utmost valued companies in the world, Apple displays that its
generic strategy is the main factor of competitive benefit
against additional firms like Microsoft, Samsung, Amazon,
Google, HP, Dell, Sony, Lenovo, BlackBerry, IBM, LG,
Huawei, and also Walmart with Vudu its content distribution
service, In contrast, Igor Ansoff's Matrix of growth strategies
boons ways for the technology trade to grow intensively in
existing or novel industries and markets. Apple's intensive
growth strategies, in this case, back the capacity to preserve a
robust place in the worldwide market. With a higher rate of
innovation and stress on fineness in product design, the
innovativeness succeeds despite its comparatively high selling
prices. This effective positioning specifies Apple's efficiency in
using its generic strategy for the competitive benefit and
intensive strategies for corporate development. (Lynch, 2011)
Generic strategy of Apple's aligns with the intensive growth
strategies of companies, particularly in exploiting the usage of

8. the competitive advantages of organizations. The intensive
growth plan of product growth in specific is vital to
accomplishing this generic strategy and associating the long-
standing growth and achievement of the company's high-tech
goods and services. This arrangement between the intensive
growth strategies and generic competitive strategy deliver
sustenance for pleasing Apple Inc.'s corporate vision and
mission statements
I feel Apple Inc.'s generic strategy is more effective as it based
on broad differentiation. This generic strategy emphasis on key
structures that distinguish the business and its information
technology goods from competitors. Over the wide-ranging
differentiation generic strategy, Apple stands out in the
marketplace. For instance, stylish design and user-friendliness
of merchandises, combined with high-tech branding, efficiently
distinguish the technology industry. This generic strategy
denotes that always Apple purposes to apart set itself from
rivals not by price on the other hand by competitive benefits
founded on product design that appeals to customers. Such
design consists of seamless connectivity amongst devices and
leading-edge aesthetics. (Lynch, 2011)
Competition
Though Apple and Samsung specialize in diverse aspects of
software and hardware manufacturing, there has been a robust
competition among the two technological corporations. Both
corporations have understood higher success levels in diverse
product portfolios; on the other hand, no company has
implemented a limit on manufacturing products that infringe on
the additional core product of companies. Apple and Samsung
share a shared business strategy, which is founded on
manufacturing innovative products.
The competition among Samsung and Apple has exceeded the
functionality and design features of their products; it has
likewise as well arrived the advertising filed. Samsung and
Apple have turn out to be additional aggressive in following
diverse tactics to advance an upper hand in the Smartphone and

9. tablet markets. A fresh observation on one of Samsung's ads
displays that the South Korean corporation used a similar
advertising trick to marketplace the Samsung galaxy tablet
The pricing strategy of Samsung company's and its enormous
worldwide incidence is likewise supposed by certain observers
as the foremost competencies that the corporation expects to
take benefit of, as it fights for the Apple top spot (Jason, 2011).
Nevertheless, it is well-known that Samsung and Apple
command an enormous market in the Smartphone and tablet
markets.
Collectively, the two companies are supposed to stake claim to
around 95% of the profits in the Smartphone marketplace.
Apple's and Samsung business strategies have been capable of
bearing diverse ideas we hold of particular technological
devices in the present day. For example, it is perceived that
despite the fact many people (and small companies) do not
comprehend the particular mechanisms of the Smartphone,
Apple has been competent to market the Smartphone (in the
course of the iPhone) as a significant constituent of
contemporary lifestyle.
Selected of the most noticeable changes on Apple's business
strategy has been the emphasis on new and developing markets,
the growth of novel products (for instance Apple televisions),
development of Apple's cash and increasing the business's
operations to meet the improved worldwide demand for Apple's
products. (Hill, & Jones, 2013)
On the other hand, Samsung has an advantage above Apple in
this market segment as it supplies some of these accessories to
its rivals, thereby having the upper hand beyond them. Also
Samsung's prosperous pricing strategy is mostly accredited to
its expertise and supremacy in the display and chip market. It is
projected that the price of chips and displays accounts for
around 90% of the price of manufacturing novel technological
gadgets.
To Samsung, volunteering into the high-tech market advances
the product quality and profit margins of companies. A

10. constructive brand image (categorized by better-quality and
better pricing) works for the business and customers alike since
the company enjoys better profitability while the consumers like
better-quality product. (Wingfield, and Chen, 2012)
Technology business relies additional on the fast-cycle
marketplace. On the other hand, certain merchandises have
stirred to slow-cycle market (for instance the Personal
computers) despite the fact others endure in the fast-cycle
marketplace. tablets and Smartphones have perceived the fastest
advancement ever witnessed beforehand with new gadgets
striking the marketplace and being substituted almost directly
even before customers have been completely leaning to them.
(Hill, & Jones, 2013)
Samsung and Apple, the two foremost competitors, appear to be
very hard pushing to exceed one other in the smartphone
marketplace. For instance, Samsung hosted the Galaxy S4
smartphone, directly which smash the market with composure,
on the other hand even beforehand it had dashed to the
consumers' minds, Apple smash back with additional refined
iPhone, the 5S. (Wingfield, and Chen, 2012)
With this tendency, in the future, there will be a giant fight for
both corporations, and neither can be assured of being the
leading firm in the marketplace and yet continue cost-effective.
Apple In the slow-cycle market, appears to have an upbeat
future in comparison to Samsung.
Conclusion
It can be concluded that being a merchandise differentiator and
exclusive has assisted Apple to develop its business in the
American and European nations. Generic strategy of Apple's
broad differentiation enhances competitive benefit by
constructing the business stand out. In product Differentiation
function and design supports the firm's objective of leading the
marketplace through technological advancement. Innovation is
at the core of the business of Apple Inc.'s. On the other hand, to
advance its application of this business and corporate strategy
for competitive advantage, the corporation must belligerently

11. infiltrate markets.
References
Apple (2020). Apple and the Environment Retrieved from
apple.com
Hill, C. W., & Jones, G. R. (2013). Strategic Management: An
integrated approach (10th ed.). Mason, OH: South-Western,
Cengage.
Kahney, L. (2002). Apple: It's All About the Brand. Wired.com.
Lynch, R. L. (2011). Apple's Profitable but Risky Strategy,
Global Strategy. Middlesex University, London, England.
Wingfield, N. and Chen, B. (June 10, 2012). Apple keeps the
loyalty of mobile app developers. New York Times.
Amazon Company is an organization that was started by Jeff
Bezos in 1994 and operated in many industries. Some of the
industries served by the organization include e-commerce, cloud
computing, digital distribution, and many others. The
organization started as an American company but has increased
its operations to serve customers all over the world because of
online shopping. Globalization and technology have played a
great role in ensuring that the products and the services of the
company reach all customers in the world regardless of their
physical locations. Industrial organization, resource-based
models and the stakeholders have shaped up the service delivery
to the customers globally.
Globalization
Amazon has increased from strength to strength by increasing
the number of services and products it offers to an increased
number of customers in the world today. The effect of
globalization on the organization has come courtesy of a large
number of employees who ensure that the customers get their
products within the stipulated period. The number of employees

12. of the organization currently stands at 750,000, which show that
the company is one of the largest single employers in the world.
Through globalization, the international revenue of the company
has increased from $15 billion in 2010 to $35 billion in 2014 an
indication of the positive influence of globalization on the
company.
The expansion of the organization has stiffened competition in
various industries to the favor of the customers. Companies in
various industries are forced to offer products at lower prices to
compete for the giant firm which enjoys a competitive
advantage in many sectors across the globe. Amazon Company
has opened up many sectors in the world that has helped in
boosting the growth of the world economy (DePillis & Sarlin,
2). The company has also offered employment opportunities to
many people that have contributed to the reduction of
unemployment rates and increasing the revenue of various
nations where the organization is based.
Technology
Technology is the second factor that has revolutionized the
operations of Amazon Company and the quality of services and
products it offers to the customers. One of the greatest
technologies that have been introduced in the organization is the
use of robots. The robots were introduced in 2016, supported by
over 50 IT professionals and engineers to make work easier and
increase the movement of goods from one place to another
within the stores (Curtis, 1). Robots reduce the movement of the
employees from one shelf to another by moving the shelves to
the employees. The second technology that has boosted the
operations of Amazon is 1-Click. 1-Click is a technology that
was developed to speed up the ordering process by the
customers in a bid to serve time and data for the customers.
Cloud computing is the third technological idea that has been
used by the organization to meet the needs of the customers and
the organization. The company developed Amazon Cloud drive
that helps customers to store their digital documents and access
them through a web browser from any location around the

13. globe. The Amazon Cloud drive is secure for all the clients and
has a large capacity to store larger documents (Curtis, 1). The
last technology that has helped in the growth of the company is
e-commerce. Ecommerce has enabled customers to get goods
from the company from all over the world without delays
because of the digital link.
Industrial Organization Model
The industrial organization model constitutes factors that affect
the operations of the organization in the market. Several
external factors affect the operations of the organization. The
external factors can be used by the organization to favor its
operations. The factor global factor is product differentiation.
The company operates in a competitive industry that requires
clear product differentiation to help the customers recognize the
products from the company. Easy identification of the Amazon
product will increase the revenue generated by the company.
The second factor that could be used to boost the revenue of the
company is price discrimination. The company can research to
establish the economic power of the customers. The economic
power of the customers will help the company to charge higher
prices to higher-income earners and lower prices to lower-
income earners to increase the revenue generated by the
company (Hitt, Ireland & Hoskisson, 3).
Resource-Based Model
Resource-Based Model is an analysis that examines the internal
strength of a firm that can be used to increase the revenue and
meet the needs of the customers. The resource may be physical
or non-physical depending on the nature of the organizational
operations. Amazon has an extensive delivery network that
includes, an international, local and regional partnership that
ensures that the products reach the customers within the
stipulated time. The company partners with several service
delivery such as DHL Express and TNT Express to deliver its
products to the customers. The company has warehouses and
distribution hubs which are strategically located globally to
speed up the delivery of goods to customers. The company has a

14. large number of experts that have helped in developing highly
rated products to beat the stiff competition in the market
(White, 4). The two factors, coupled with high market
capitalization, can be used to attract more customers and
increase the revenue of the organization.
Vision and mission
The vision of the organization is "to be Earth's most customer-
centric company, where customers can find and discover
anything they might want to buy online." The vision of the
organization has shape up the operations of the organization by
ensuring that it a stock variety of products used by customers
all over the world. The company has over 160 million products
which ensure that the customers can get goods and services they
need from the same company. The mission of the organization is
"to strive to offer the customers the lowest possible prices, best
available selection, and the utmost convenience." The mission
of the organization has pushed the company to buy products
from companies and individuals who offer lower prices to sell
the products to customers at relatively lower prices. The
organization stock a variety of products closer to the customers
to meet the need of the customers under short notices.
Stakeholders
The stakeholders of the organization include customers,
employees, the board of directors, investors and suppliers. The
board of directors ensures that the organization complies with
the rules of trade in various countries. Employees of the
organization are responsible for the implementation of the ideas
and execution of the daily duties in the company. Investors play
a major role in funding the company as well as making
leadership and management decisions in the organization.
Customers are the most important stakeholders in the
organization as far as the revenue of the organization is
concerned. The customers buy the products from the firm, thus
offering financial support to the company. The suppliers play
the role of sustaining the operations of the firm through regular

15. and timely supplies ((Hitt, Ireland & Hoskisson, 3). All the
stakeholders contribute to the success of the firm by actively
playing their distinguished roles in the company.
References
Curtis, S. (2013, October 15). Amazon at 15: the technology
behind Amazon UK's success. Retrieved from
https://www.telegraph.co.uk/technology/amazon/10377834/Ama
zon-at-15-the-technology-behind-Amazon-UKs-success.html
DePillis, L., & Sarlin, J. (2018, October 4). It's Amazon's
world. We just live in it. Retrieved from
https://edition.cnn.com/2018/10/03/tech/amazon-effect-us-
economy/index.html
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2013). Strategic
management: Concepts and Cases: Competitiveness and
globalization (10th ed.). Mason, OH: South-Western Cengage
Learning.
White, L. (2019, November 24). Amazon VRIO Analysis -
Competitive Advantages, Core Competencies. Retrieved from
https://www.rancord.org/amazon-vrio-analysis-competitive-
advantages-core-competencies