Essays on Apple Business Model and Corporate Social Responsibility Assignment

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The paper 'Apple Business Model and Corporate Social Responsibility' is a great example of a Business Assignment. A business model is a description of business operation more, so it involves business components, functions, and revenue power (What is Business Model? definition and meaning, no date). Apple Inc is a technology company that is located in the USA. It deals with designing, development, and selling of consumer electronics, software, and computers among other accessories. It is considered the number one company in innovation worldwide. Apple Inc reached its bottom rock in the year 1997 when its revenue failed drastically by 36% within two years (Business Innovation Model, 2010).

Apple's business model affects direct shareholders as well as moving markets. Apple Inc.   is an entity to emulate on its accomplishment and organization. With its decision of letting Steve back to the company and removal of Mac OS, its future is now very bright unlike in the earlier revolution. With Stevie's departure the fall of the company was very rapid, despite some attempts during his absence to change Apple’ s business mode of operation. Apple uses ‘ Own the consumers’ business model.

This model is intended to drive consumers into their systems and then hold them and has enabled Apple Inc to be successful and make them have huge power in the supply chain. Apples Inc's model has enabled it to maintain the low-cost strategy while at the same time maintain the high price profit and its customers. This is achieved by introducing a high switch costs. Apple Inc ensures that their online contents are played only on their devices. This approach helps maintain apples' digital market share which in turn increases the volume of devices sold therefore increase in profit. To use Apple’ s or Mac operating systems, you need to host a Mac because it is the only device where this particular operating system can run.

This is referred to as "monopoly" A state in which a single person or a company owns whole or nearly all of the market to a given type of product/service (Investopedia. com, 2003). When such happens, the company operates without any competition whatsoever (that is for vast economies of scale, a hindrance to entry, and or governmental regulation among other challenges).

These types of institutions hence produce much less than the amount that would maximize “ social welfare” . Apple has always provided this type of experience. If you buy hardware from Apple Inc the operating system, basic applications that you use must be done by Apple. Apple Inc owns a music library where they sell audio and video content. iPod became very popular before the store had gotten off the ground. Apple Inc only allowed the iPod to use the Digital Rights Management for its music incorporation iPod.

Other users had no alternative in terms of where to buy their soft/audio/video online content. Apple does not own all digital music players available in the market. However, they may have the best, but as long as there are competitors in the market, there is no monopoly. In this case, Apple is not a monopoly; it just has gained market dominance through public choice. Apple Inc created and made a new working system and changed the world. Before the company, there was no legitimate market at all for online music; at least no one had done in a way that users needed it.

Reference

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Business innovation Model (2010) Available at: https://www.capgemini-consulting.com/resource-file-access/resource/pdf/Business_Model_Innovation.pdf (Accessed: 3 September 2015).

Heather, B. (2012) Brad Heather. Available at: http://stakeholdersofappleandasda.blogspot.co.ke (Accessed: 7 September 2015).

Investopedia.com (2003) ‘Monopoly Definition’, in Available at: http://www.investopedia.com/terms/m/monopoly.asp (Accessed: 6 September 2015).

Montgomerie, J. and Roscoe, S. (2013) ‘Owning the consumer—Getting to the core of the Apple business model’, Accounting Forum, 37(4), pp. 290–299. doi: 10.1016/j.accfor.2013.06.003.

What is Business Model? definition and meaning (no date) Available at: http://www.investorwords.com/629/business_model.html (Accessed: 6 September 2015).

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