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Apple Corporation: Risk Management Essay

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Updated: Jul 21st, 2021

Apple can be termed as one of the most beneficial corporations in the world by analyzing its financial records for the last 3 years. Corporations like Apple are driven towards the success ladder by a combination of strategic policies and business models, organized management teams, and the ability to obtain various competitive advantages’ variables over their rivals. It is not a surprise to find out that Apple Inc. once had more money in its bank reserves than the US government in the year 2009 (Kerzner, 10).

Inspite of the previous successes that have been steered by several variables amongst the ones mentioned above, Apple Inc. has had its fair deal of issues originating from its business models and inspirations to other organizations. However, some of the operational challenges or rather risks facing Apple include the death of its former CEO, Steve Jobs; equity of technological abilities by corporations like Samsung, and availability of alternative devices like its ID products like the iPhone, the iPad, and the MacBook.

Death of Steve Jobs

The late former CEO and founder of Apple Inc. was one of the people who created the initial Apple Computers Inc. back in 1974. Apple was not one the most promising corporations even in later dates like 1997. However, the fact that bigger names like IBM and Microsoft were leading in the computer business, Apple was steered towards success through the implementation of strategic approaches to the market.

The market Apple had survived on from 1974 to 2004 was computer and software based (Hoerl and Snee, 72). However, Steve Jobs rebranded the corporation to Apple Inc. and invested in business ideas that diversified the company’s business approach (Black, Wright, & Davies, 201). With mobile phone and handheld computer tablets introduced in the Apple’s range of products, Apple Inc. was able to compete effectively with organizations like Nokia and Samsung who seemed to dominate the mobile phone arena.

With Steve Jobs being the man behind Apple’s success for the last six to seven years, it is evident that most of what is traded by the organization right now, iPad HD and iPhone 4S, were the former CEO’s ideas and projects. Inspite of how much sales these ID products are selling right now, the market share held by Apple Inc. would probably demand for newer technologies in time. The current CEO may be qualified enough but towards the end of the first year after taking office, no major products have sprung from Apple. The Absence of Steve Jobs in the Apple executive officials may not be a real threat to Apple Inc. However, Apple Inc. is now a large corporation trading shares at the price range of above $ 590. This means that Apple, if it were and animal, it would be at the top of the food chain.

The risk of having Steve Jobs permanently out of Apple’s strategic team is the possibility of decline in the corporation’s value. Mediocre products that Steve avoided bringing to the market, may start surfacing if the current executive branch does not reach out to the standards Steve set for the organization. Young enthusiasts, like Facebook’s Zuckerberg, personal bank reserves may end up becoming bigger than Apple’s if corporal standards are not maintained to keep up (McClenahen, 104).

Equity in Technological Power

Apple Inc. was the first corporation to release a pilot mobile phone brand in capacitive touch sensor. Six years ago, this was a big deal to rivals and Apple had a competitive advantage over similar organizations. Despite the fact that organizations are now able to produce products that match or are nearly as good as Apple’s, it is a threat to Apple and technological power is likely to take Apple’s prowess out of the picture.

Consider Apple’s iPhone vs. Nokia 5800 XpressMusic and Nokia N97, iPhone 3G vs. Google’s Nexus One, iPhone 3GS vs. Samsung Galaxy, iPhone 4 vs. Samsung Galaxy S II, and iPhone 4S vs. Samsung Galaxy S III; it is very clear that Apple was winning at the start of the touchscreen war but the power is in other organizations’ hands. However, Apple Inc. is trading on its brand names and not the technology in its products (Antony & Coronado, 21). With products using the same technology as Apple’s and trading on fairly cheaper prices and selling without contracts, it is obvious that Apple products will lose their value, as the brand names have nothing more to offer.

Competition on ID products

It is a risk for Apple Inc. to have equally or better placed products as alternatives or substitutes to its products. From a customer’s point of view, iPhone 4 and 4S can be defined with good design, lightweight, nice camera, and extremely satisfying user experience. From a user’s point of view, Samsung Galaxy S II and Samsung Galaxy S III can be defined as excellent design, slim chassis, interactive camera, wide range of capabilities, and fast processors.

By make and form, Apple’s ID products sale at a very high prices and are limited in usage; however, substitute products are cheaper and packed with a wider range of capabilities. In the long run, Apple’s value as a corporation will sink behind the big name and fabulous brand names.

Works Cited

Antony, Jijy, and Ricardo Banuelas Coronado. “A strategy for survival.” Manufacturing Engineer 80.3 (2001): 119–121. Print.

Black, Andrew P., Wright, Philip D. and John E. Davies. In Search of Shareholder Value: Managing the Drivers of Performance. Glasgow: Prentice Hall, 2011. Print.

Hoerl, Roger and Ron Snee. Statistical Thinking: Improving Business Performance. Pacific Grove, CA: Duxbury Press, 2002. Print.

Kerzner, Harold. Project Management: A systems approach to Planning, Scheduling, and Controlling – Sixth edition. New Jersey (NJ): Willey & Sons Publishing, 2010. Print.

McClenahen, John S. “New world leader.” Industry Week 23.1 (2004): 36–39. Print.

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