Response to an RFP on Customer Service Specialist
Response to an RFP on Customer Service Specialist
This paper seeks to provide both strategic and financial that makes a company have strong competitive power using Apple Inc. as an example. Any company in any industry stands a greater chance of competing in its respective industry no matter how large or small it is. The power of competitiveness of any firm in any industry depends on financial state and strategic plans set to facilitate the progressive operation of the firm within the industry. A best example of a firm existing in its industry and being at the top of the industry due to its strong power of competition in Apple Inc. which was previously called Apple Computer, Inc because it dealt with computer manufacturing and supply worldwide (Elmers, 2011). This paper would discuss the financial state and strategies of Apple Inc. that makes it the leading manufacturer of computers and mobile phones worldwide.
Apple Inc. undertakes the manufacturing and selling of computers that are personal, digital players of music that are portable, and mobile communications as well as devices used by media personnel. The company as well produces computer software such as Mac OS X, server software, operating system that is proprietary for the Mac and solutions that are related to this software. The Apple Inc. has been a powerful competitor in the computer and mobile phone manufacturing industry worldwide based on its financial and strategic stand.
The financial statements of Apple Inc indicated that the revenue gained by the company during the fiscal year that ended in September 2011 was USD 108,249.00 million. This revenue compared to the previous fiscal year, the company had undergone a 65.96% increase over the year 2010. On the other hand, the company’s operating profit for the same fiscal year was USD 33,790.00 million. This operating profit compared to the year 2010 had increased by 83.79%. A quick glance at the financial progress of the company for the past four years indicate a similar drastic increase in all financial aspects starting with revenue, net income, operating profit, and net profit.
The revenues for the years 2007, 2008, 2009, 2010 and 2011 are 24,578.0, 37,491.0, 42,905.0, 65,225.0 and 108,249.0 million US Dollars respectively. This clearly indicates that the company has undergoing continuous increase in revenue for the past year with over 30% increase from one year to another. This is indeed a good financial performance for any year. During the year 2007 and 2008, the world economy was hit by recession but as seen in the above revenue increase, this did not intensively affect Apple Inc.’s financial state. Therefore, this is a clear indication that the company stands a chance to remain the leading computer and mobile manufacturer for quite some time. Based on this, it can be depicted that in order for a company in any industry to be competitively stable, it should be financially productive and sensitive.
The SWOT Analysis of Apple Incorporation:
The strategic plans of Apple Inc have been very productive and influential towards its competitiveness in the computer and mobile manufacturing industry. The strategic plans of Apple Inc. have made the company a worldwide leading manufacturer and seller of personal computers and market of the electronic consumers (Stickney, & Brown, 2010). The diversification of electronic production of Apple Incorporation and the efficiency in its operations has helped the company in strengthening its competitive power in the computer industry. The products of Apple are innovated and at the same time, the company undergoes a drastic growth in its retail segment thus all these gives the company the opportunities to grow fast and stay at the top of the industry.
The strengths of the company:
The strengths of this company lies within a number of operational aspects which are; the capabilities of the company’s robust research and development (R&D). The Apple Inc. operations focus mainly on improving their product performance and development of technologies that are new. This company performs intensive conduct R&D activities in order to develop computer peripherals that are new in nature and appearance and for the devices of mobile communication. This as such helps in maintaining the company’s technological advantages. The capabilities of R&D of the company enable it to surpass the technical barriers that the company encounters in marketing of mobile communications that are sophisticated as well as devices used by media personnel. To facilitate effective capabilities of R&D, the company invested over $5,544 million in this sector in the past three years. Second, the company is operationally efficient.
The company has tried its best in the past years in reducing the input cost to the lowest possible level and increases its margins as much as possible. This can clearly be seen in the financial analysis section in the introductory part of the paper. Thirdly, the company has been producing strong brand images that make their products that make them attract customers all over and be sold at higher prices possible. Fourthly, the company has effectively diversified its production mix from just computer manufacturing further to mobile and software thus giving it a greater chance of earning cash from different products.
The Weaknesses of the company:
Despite the fact that the company is leading in computer and mobile manufacturing does not mean its operations are perfect no. The company too has some weaknesses which include; dependence on the providers of the network (Dais & Davis, 2010). The operations of the Apple Inc. are dependent on the providers of the cellular network for its products such as iPhone. The company too relies of limited network in US, Germany, the UK, and the France carriers. Secondly; the company is limited to producing iPhone in the mobile section. This means no matter how much it anticipates producing more designs; they should be confined to iPhone and the two models of iPhone.
The Opportunities of the Company:
The company has quite a number of strategic opportunities in its production. These opportunities include; the products and designs of innovation; the company releases its products that are highly innovated timely and therefore, it stands a greater chance of gaining from this aspect. A best example of its timely release of innovative products is in the year 2012 when it released iPhone 5 which was structurally thinner and lightest in weight. Secondly, the company relies in a potential retail segment which enables it increase its sales. Retail sellers are the most influential and highly selling dealers worldwide, and Apple Inc, has had a better side of the retail segment in its supply and distribution sectors. Based on the financial advances and growth of Apple Inc. the company has greater opportunities in the industry due to its first growth opportunities (Judith, 2013).
The threats of the company:
The company as well suffers from some threats in the industry it serves. These threats include; high level of competition that is intense. Secondly; the stealing of the contents of the digital systems by other competing companies. This might weaken the market of Apple since they might end up producing devices of similar content and selling the cheaply thus diverting customers to their side. Thirdly; the economic scenario of the globe has been a little threatening since the world market is undergoing drastic changes and require a lot of capital to adjust to the changes.
Despite all the weaknesses and threats, Apple still stands a greater chance of leading the global manufacturing and selling of personal computers and mobile communication system. This is mainly because of its strengths and opportunities that have discussed above. All these strengths and opportunities of Apple Inc are built on its financial state and strategic plans. Therefore, other companies should adopt this example as well to strengthen their competitive powers.
References:
Judith, Z, W (2013). Business Analysis of Apple Inc, New York, GRIN Verlag
Dais, E, C & Davis, B, E (2010) Managerial Accounting for Strategic Decision Making, Preliminary Edition, New York, John Wiley & Sons
Stickney, P, C & Brown, R, P (2010) Financial Reporting, Financial Statement Analysis, and Valuation: A Strategic Perspective, Edition 7, New York, Cengage Learning.
Elmers, S (2011) Assignment in Business Deconstructed - Financial analysis and proposing strategy: EasyJet plc, New York, GRIN Verlag.
Robinson, R, T, Henry, E, Pirie, L, W & Broihahm, A, M, (2012) International Financial Statement Analysis (CFA Institute Investment Series), Volume 39 of CFA Institute Investment Series, Edition 2, New York, John Wiley & Sons
