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Apple Customer Service Value, Research Paper Example

Pages: 5

Words: 1257

Research Paper

Apple is arguably one of the most successful companies of the 21st century. Apple recently made history, posting the highest profit of any company in history, at $18 billion. While this record is a historical fete by any company in corporate history, there is question as to whether Apple will be able to maintain the results it recorded in the final quarter of 2014. How will apple stay in the market? How will it remain competitive (in both existing and emerging products)?

Prior to the first quarter of 2014, Apple was involved in an equal’s battle with the major android maker and distributor, Samsung. However, during that quarter, Apple managed to form a production and logistics cooperation with the biggest mobile provider in China, China Mobile. This opened up the Chinese market to apples products and resulted in a 70% increase in Apples’ sales within China (Goldman, 2015; Market Watch, 2015). Making this into consideration, Apple is poised to stay on top of the competition in the near future.

Business Environment

Apple operates within a highly competitive business environment that requires a self-evaluating business unit to remain relevant. An in-depth analysis of the company’s business environment can be provided via a PESTLE analysis.

Political Factors

There are a number of operational aspects that are directly influenced by the state of the political environment within which the company operates. Two political factors affect the company’s operations, distribution and sales; stable political environments and improving free trade policies. Free trade policies offer opportunities for the company to extend its distribution while a stable political environment is crucial to continued success.

Economic Factors

Certain aspects of the economy affect the operations, distribution and sales of Apple’s product. These macro-environmental factors include the rapid improvement and growth of developing economies and the stability of the developed economies. The growth of developing economies provides new markets for the distribution of the company’s products while the stability of developed ones guarantee profitability in the long-run.

Sociocultural

Society also affects the manner in which the company operates. Owing to the fact that the company is a tech company, considerable aspects of its performance and environment are influenced of sociocultural factors. Two sociocultural factors are relevant to the company; use of social media and the shift to mobility. The use of mobile devices has grown rapidly in the past 5 years. This has also allowed increased use and access to social media. The increase in mobile device use provides opportunities for the company to expand its product selection. Social media also offers marketing opportunities for expansion of market share.

Technological Factors

Certain aspects of technological innovation and development affect Apple. The company is currently enjoying the success of a growing application market. The company has taken advantage of this through its “App Store”, which provides its clients to a database of numerous apps. The company also develops its own computer and mobile applications (George, 2012). Cloud computing is also a growing trend that the company can take advantage of. Apple could develop and enhance the use of cloud-friendly applications. Technological integration has developed the internet of things. Apple can potentially exploit this avenue to develop new products and expand its market share.

Environmental Factors

The company is considerably affected the issue of ecological awareness. The company has been developing energy efficient products in a bid to contribute to the conservation of energy to enhance environmental awareness. The company has also adopted a policy that ensures it uses recycled materials to enhance corporate and social sensitivity to the environment.

Legal

There are potential threats to the company when it comes to legal issues. The increasing privacy regulations may offer a threat to the company as governments look to preserve the rights to privacy for its citizens. Further increasing telecommunications regulations may affect the manner in which the company develops and designs its products.

Customer Valuation Assessment Tool

Value delivery to customers is an integral aspect of the 21st century business environment. The customer valuation assessment tool is critical in providing an analysis of the business’ ability to deliver value.

The company has good service delivery when it comes to perceived value-based price

Conclusions and Recommendations

Apple generally depicts aspects of high quality, value addition. This is largely related to the company’s philosophies and strategies. Apple designs, develops, manufacture and sells high-end mobile devices and computers. These fetch a considerably higher price when compared to its competitors such as Samsung, Microsoft. As a result, the company has carved its own niche within the market, identifying their products with high quality and value. Apple can realize market expansion in a number of ways. One of Apple’s key asset and strength is its brand. The CVAT results depict a strong brand that is associated with value addition in all aspects of its operations. The company can expand its brand through collaboration with existing players within emerging markets, as depicted in the case of China. Bringing in other companies in collaboration with or under the Apple brand would considerably expand the brand.

References

George, B. (2012). Strategic management : text and cases. New York: McGraw-Hill/Irwin.

Goldman, D. (2015, January 27). Apple just posted the best quarter in corporate history. Retrieved June 1, 2015, from CNN Money: http://money.cnn.com/2015/01/27/technology/apple-iphone-earnings/

Market Watch. (2015, May 5). Apple Inc. Retrieved June 1, 2015, from Market Watch: http://www.marketwatch.com/investing/stock/aapl/financials

Weinstein, A. (2012). Superior Customer Value – Strategies for Winning and Keeping Customers. Boca Raton: CRC Press.

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