1. Identify the Fortune 500 Company your team has chosen to research for your "Team Research Proposal." Include the website link below.
Apple website
2. Provide the company history (3 paragraph minimum / 6-8 sentences per paragraph). Use proper APA formatting (double space your paragraphs and use in-text citations to cite where you obtained the information from).
Apple established in 1976 through a partnership of three individuals, including Steve Jobs, Steve Wozniak, and Ronald Wayne. However, Jobs was the leader and mastermind of the company whose initial business objective was to produce computers. Its first computer product, Apple I, hit the market in 1976. Wayne sold his company shares to the other two partners within the same year. The firm incorporated in 1977.
It also obtained additional funding from external investors. Apple experienced exponential annual revenue growth of about 533 percent during the first five years of operation (Weinberger, 2015).
Apple went public in 1980 through its initial public offering that generated capital for its operations. Apple launched the popular Macintosh (Mac) computer in 1984.
However, the product's sales were not reliable because of some functional limitations and high price. Apple's board removed Jobs from his managerial duties in 1985 due to power struggles with the CEO at the time. Consequently, Jobs and Wozniak resigned from the company to pursue other interests. Apple launched a few products, such as low-cost Mac models, TV appliances, and video cameras.
However, the products did not perform well and experienced a period of decline and restructuring between 1991 and 1997 (Weinberger, 2015).
The company brought back Jobs in 1997 as the CEO on an interim basis. It also secured a $150 million investment from Microsoft as it was on the verge of Bankruptcy.
Accompanied by the launch of innovative products, such as Apple Online Store, iPod, and iTunes. The company released its first iPhone in 2007, a revolutionary product in the mobile industry. Consequently, Apple shifted its focus from computers to consumer electronics.
Accompanied by the release of the iPad in 2010, Apple Watch in 2014, and many other mobile devices. Steve Jobs resigned from the company in 2011, and his position occupied by the current CEO Tim Cook (Weinberger, 2015).
3. Identify the business problem in one full paragraph (4-6 sentences). Use proper APA formatting (double space your paragraphs and use in-text citations to cite where you obtained the information from). Completed by: Ayeisha & Antonio
The current business problem facing Apple is the decline of the iPhone sales in the Chinese market. China is the company's second-largest market and generates about 25 percent of its total profits.
The reduction attributed to the aggressive strategies of Chinese competitors who have launched cheaper, but comparable products. Apple's high price tag is also a significant challenge in the Chinese market as consumers are seeking similar, more economical alternatives (Wang, 2017). The firm has to determine ways to address the declining sales and loss of market share.
4. Identify 2 of the alternatives (cannot include ‘do nothing') that you believe could correct the problem. Go into detail about each of the alternatives in 2 paragraphs (6-8 sentences each). Why is the alternative a viable option for your company problem?
The first alternative solution is to lower the price of the iPhone. A viable option because Chinese customers are looking for cheaper alternatives that are similar to the iPhone.
Competitors in the market have maximized on the high price of the iPhone. Apple should find ways to reduce the cost to attract a more extensive clientele.
This solution is likely to succeed because of the iPhone's superior quality. Lowering the price can be a viable option as long as Apple continues to make a considerable profit.
The second alternative is to produce cheaper options for the iPhone. The new version will have to balance between quality and price to attract Chinese Customers.
It means that the firm should conduct research and development on the new product. This is a viable alternative because the business has the financial power to produce new products.
Also, low-cost product versions can enable the firm to counter price competition from its rival Chinese companies (Goworek & McGoldrick, 2015). However, the development and marketing should be done carefully to avoid diluting the value of the iPhone.
5. List below a minimum of 3 of the References that you used to support your responses to questions 2, 3, and 4 above. Each team member must ensure that he/she is using proper APA formatting (your references MUST be in proper APA format, double spaced, and properly indented).
References
Goworek, H., & McGoldrick, P. (2015). Retail marketing management. Harlow: Pearson.
Wang, Y. (2017). Why iPhone X isn't the answer to Apple's China problem. Forbes.
Weinberger, M. (2015). 32 photos of Apple's early days before it ruled the world. Business Insider.