Apple leads the world in innovation with their technology products that are distributed all around the world. Apple was founded by Steven Paul Jobs, Steve Wozniak and Ronald Gerald Wayne on April 1, 1976 and is headquartered in Cupertino, California. Apple’s various products such as the Mac, iPod, iPhone, IOS software, and more help reach sales of $199.38 billion. Apple is #1 on Forbes’ World’s Most Valuable Brands list and twelfth on Forbes’ Global 2000 list.
The firms strengths include its capabilities and resources which it can use to obtain a competitive advantage (Bohm, 15). Apple Inc. is one of the oldest manufacturers of hardware and it has control over the product since it manufactures both the operating system and the
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While this is done to keep design control inside as well as to keep them up to standards, wide adaptation of its hardware to other computers has been badly hurt and this has made to have a relatively small market share (McDaniel et.al, 46). The company has recorded weak returns on investment and asset in the past years. For example, it recorded a return on assets of 4.7% which was lower the industry average of 5.8% during 2001-2005. It also recorded an average return on investment of 6.7% which was lower than the industry average of 13.8%. This highly can erode investors confidence as well as the company’s growth plans (Bohm, 15). The company has a high dependency on key components which are supplied by IBM. In case IBM experiences manufacturing problems or a delay in shipment, then Apple Inc would be at a risk of loosing its customers. Over dependency on key components may lead to competitive disadvantage
Innovation can arise from many different sources. It can originate with individuals or users who design solutions for their own needs. Innovation requires creativity. The most important intellectual abilities for creative thinking include the ability to look at problems in alternative ways, the ability to figure out which ideas are worth pursuing and which are not, and the ability to express those ideas to others and convince others that the ideas are as awesome as they believe it is. Apple strives and succeeds at