Apple Inc., arguably, the leading producer of personal computers, computer software, consumer electronics, commercial servers and distributor of media content is a multinational corporation that was founded in 1976 by Steve Jobs and Steve Wozniak.

Apple Inc.
Apple Inc., arguably, the leading producer of personal computers, computer software, consumer electronics, commercial servers and distributor of media content is a multinational corporation that was founded in 1976 by Steve Jobs and Steve Wozniak. It was incorporated as Apple Computer Inc. in 1977 and was renamed Apple Inc. in 2007 to reflect its shift to focus on consumer electronics. The company is produces products such as Macintosh line of computers, Power Book, Mac book, the iPhone, the iPod and all software application iTunes. These products are made available in364 stores worldwide and many online stores. Since it 1976, apple done extremely well at being the first company to introduce a new product or concept but has struggled to maintain its market share in that product line. The purpose of this paper is to evaluate Apple’s Inc. performance to determine their outlook for success by ensuring their capabilities to match the industry’s conditions and develop competencies that can be converted into a competitive advantage
Seven years ago, Apple underwent a transformation from an innovative computer manufacturer to a state of-the-art consumer electronics company. In 2005, the company made sales of $13.9 . For the same year, they only controlled 4.2% of the U.S. market share in the PC industry. However, Apple’s iPod models accounted for approximately 70% of the hard-drive MP3 player market and more than 40% of the flash based. The question is: why is Apple not able to enjoying a monopoly market? And what reduces Apple’s profit?
New entrants into the market have been a major challenge. In the resent years, the field of technology has grown and attracted many invested especially from Asia. For example: Bing, Dous and Itel. This has led to more substitute products that tend to be cheaper as compared to Apple products. For instance, on 27th April 2012, Techno launched their first Android Smartphone that gained popularity in Asia and Africa that posing a challenge to Apple than never before.
In addition, the buyers seem to gain a bargaining power due to increased number of competitor. Competitors are supplying substitute products at relatively cheaper prices than Apple. This is luring customers away from ‘expensive quality’ Apple products. Worth mentioning, Apple ‘expensive quality’ products face other unforeseen challenges sometimes, for example a customer reported an iPhone that caught fire unexpectedly in the house. Additionally, customers have reported iPhones that had a problem with the antenna. However, to counter react to bargaining power of customers, the company has implemented secret loyalty called Apple Retail. This gives an opportunity to a customer to get training on how to use different applications and devices of Apple Inc. Steve Jobs points that this program focuses on building the life of customers rather than selling products. The customer can, therefore, purchase apple devices in order to get this service which is essentially educative.
Further, Political and legal regulation requires that Apple to pay tax, participate in corporate social responsibility and abide by the environmental laws. The company complies with this polies, thus it pays 12% corporate tax and in addition undertakes Corporate Social responsibility. Also Apple treats its employees fairly by providing safe working conditions and offering them satisfactory payments. The company is subject to environmental law which asserts that corporate must use environmentally conscious manufacturing processes however Greenpeace has criticized apple for using non-recyclable and toxic hardware components in iPhones.
Considering the fact that Apple is multinational company, it sources its market both locally and internationally. To ensure its sustainability, Apple has employed a number of strategies to ensure that it stays a head of its competitors and maximizes its profits. Just to mention a few of these strategies: Research and development, financial and marketing strategies.
Marketing strategies
Apple inc. has been in alert in ensuring expansion of its market both locally and international through the media. For example it runs technological expos through BBC, CNN among others. This has resulted in popularity of its products in the market. In addition, Apple Inc. uses social media as a platform for advertisement. Principally, it has created pages on Twitter and Facebook where it is commercializing its products; this method has proofed to be cheap and efficient.
Notably, Apple has not ventured too much into the market of the developing countries. This market has been dominated mostly by Nokia and Samsung which are selling their products at pocket friendly prices. For instance, a report on phones’ market situation in 2013 indicates 50% of the phones purchased in Kenya were smartphones. This report further indicates that, Samsung dominated the market by49 % followed by Nokia at 23%, the remaining percentage was shared by, apple, techno, LG, among others. In this light, recently apple introduced cheap products such as iPods and iPhones to enjoy this comparative advantage. For instance apple launched of iPhone 6 retailing at about $2000 worldwide. Unfortunately, iPhone 6 operating system has been copied by Xiaomi. And now iPhone 6 counterfeit are being distributed in China and retailing for $200 in the black market in Hongkong and other parts of the world. Unless Apple responds strategically its expansion in the developing countries is at jeopardy.
Financial strategy
This company pays its dividends quarterly to the shareholders. This is strategic because, one it spreads the risks throughout the year considering the future returns are uncertain. Secondly, it maintains the loyalty between the company and its shareholder because they more dividends to collect from the company. In addition the company’s decision is to pay these dividends for a period of ten years, a decision that has raised the confidence of the shareholders and created a good image to the customers. Also apple is buying its shares from the shareholders so as to reduce its debts and in the long run accrue the profits.
Research and development strategy
From report, it is estimated that about 38% of apple’s expenditure go to research and development. This is geared towards making the company technologically alert of what their competitors are up to and ensuring the needs of the customers are catered for. Principally, this was a reiteration of Apple after noticing that a lot of companies were venturing a good deal into manufacturing of Smartphones that posed a threat.
Recommendations
The company should consider expanding its contracting program into the developing countries since the people in respective countries have adopted technology. Recently, competitors, such as Nokia and Samsung, have established in developing countries. Apple should, therefore, act quickly to ensure that its competitors do not dominate these markets completely. In fact, it should establish braches in all countries where the main competitors have established.
The company should set up a crisis management team to deal with issues like one stated above. This team will be intervening in case of any critical crisis that emerges unexpectedly. This team will respond to crisis before they spread to the general public through media as well as competitors. It will, also, be evaluating possible crisis that could emerge from identifiable risk factors in order to take proactive measures.
Although the company has a secret loyalty program, the management should implement conspicuous loyalty programs. In these programs, customers should enjoy membership discounts and offers. The offers should be determined by the level of the customer in the loyalty program. For example, the program can have four levels which include bronze, silver and gold. These levels should be determined by the amount of purchases and the period of loyalty. This strategy will attract more customers than the secret loyalty program which is known to few people.
It is evident that Apple has been criticized by other organizations concerning environment and human health. In this light, it should use materials that are recyclable in order to avoid building up waste material. Additionally, this will stop further criticism which might impact on the corporate image of the company
Lastly, the company should maintain its level of research and development. The management should realize that the company’s prosperity relies on research. They should, therefore, avoid relaxing or reducing the level of research. In fact, they should increase the funds invested in research and development. Further, the Apple should concentrate on comparative research rather than plain research. They should evaluate the quality and prices offered by other companies in order to determine what they should develop.

for example, you mentioned about nokia and samsung presence in developing country thus you can relate it to
if there arent any further actions taken by apple, im afraid it will give another cell phone manufacturer opportunities to increase their sales.
another big competitors for apple in China is Xiaomi
they completely copied Apple operating system and sold in the market for $200