Impact of Covid-19 on Apple: Coping, Management, and Survival

This study discusses the impact of Covid-19 on Apple's overall performance and functions, how Apple coped and managed during the pandemic, and recommendations for post-Covid sustainability and competitive advantage.

ESSAY ABOUT APPLE

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
ELEMENT 1....................................................................................................................................3
Impact of Covid-19 on adoption and utilization of digital technology........................................3
ELEMENT 2....................................................................................................................................6
How Apple cope, managed and survived during pandemic........................................................6
ELEMENT 3....................................................................................................................................8
Recommendation.........................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
E-business refers to business in which information is shared across internet (Kollmann,
2019). These services can be exchanged between businesses, groups and individuals directly.
This present study is based on Apple that is an American multinational technology company. It
designs, develops as well as sell consumer electronics and famous for attractive designs. Apple is
both B2B and B2C brand. This study is going to discuss impacts of Covid-19 on overall
performance and functions of Apple company. Porters' five forces and PESTLE analysis discuss
macro environmental factors and help company in knowing the intensity of competition. It helps
company in improving strategies for reducing all negative impacts that macro environmental
factors have on it. Further, it will discuss effectiveness of its value chain theory and ability of
R&D that makes Apple able in managing or surviving during pandemic. Lastly, it will
recommend some theories and strategies that can make organisation more sustainable in post
Covid situation and to gain competitive advantages.
MAIN BODY
ELEMENT 1
Impact of Covid-19 on adoption and utilization of digital technology
Online service trends became very popular when Covid-19 was creating a negative
atmosphere in market. Hygiene and safety were first priority of customers which became
necessary for the company to deliver sustainable services. Customers were not being able to shop
due to lock down and so was the company not being able to reach out but when the market
started reopening the company started online services and promoted it further. There is direct and
indirect communication which Apple is having with its customers and this factor must be
maintained. It ensures that good quality services can be delivered and development can take
place. Customers of the organization adapted to online platforms during the lock down and found
it safer even which is a great factor for the company to have for a long run (Forster and et.al.,
2020). Apple is promoting themselves in the market on a large scale so that operational
efficiency and sales growth can make company to achieve stable economic factor and higher
reputation. Apple is having a loyal and trustworthy reputation in the market which must be
maintained. Thus organisation came up with different models and innovations so that the
satisfaction level of workforce and employees can be improved upon.

PEST
It is important for company to understand the external factor and make decisions
accordingly so that there are going to be higher performance. External factors are not in control
of the company but strategies and planning of Apple is done on this bases so that there are going
to be minimum risks and errors which are going to take place impacting the standards and value
of the brand.
 Political factors
The government wanted to keep the people safe therefore there were a lot of measures
which were taken so that there is going to be higher performance. Apple was not being able to
make sure that the products are reaching globally to the customers which made the company go
in lose which is not a good factor for such a reputed company in the market (Shalini Shah and
et.al., 2020).
 Economic factors
There was stability in the economic factor of business which has to be well maintained
and managed in the market which was good for the brand value. A good proportion of population
lost their jobs and income level reduced because of the pandemic situation which needs to be
considered by Apple. The pricing of the products did not fall for the new products which were
being launched because the premium customers are being targeted by Apple from a long run.
 Social factors
Employees of Apple lost their jobs because of the economic stability which was required
in the company which is going to be invested in research and development department. Trends of
customers is being worked upon and confidence of new products is present in Apple Inc. which
is a great factor and needs to be well maintained for higher competitive advantage in market.
 Technological factors
Apple puts a lot of investment in the technological aspect so that it can bring more
innovation and inventions. Technological improvement is also key factor to increase
productivity. There are many copyrights as well which the company is having for the process,
design, etc. which are present in Apple so that there is going to be higher competitive advantage
making the brand image increase (Urrestarazu and et.al., 2017).
Porters 5 Forces

To gain a competitive advantage in market it is important for the company to make sure
that they have selected right measures (Norouzi and et.al., 2020). The five forces which are
going to be discussed in the further report have to be analysed and planning needs to be done
around it so that business will be able to gain the right standards and brand value for them.
 Bargaining power of suppliers (Weak)
Apple depends on suppliers to manufacture its products and services so that Apple will be
able to match the demands of customers on time. Apple and Samsung are in contract with the
large suppliers which is why business is not going to have a lot of improvement impacting the
standards of the firm. There must be a lot of innovations and inventions which are going to be
higher and for that Apple will have to gain control on this factor (Le Quéré and et.al., 2020).
 Bargaining power of buyers (Strong)
Customers can shift from one product to another therefore Apple has to be very certain
with the measures which they are taking. Customers satisfaction in the organization is worked
upon by Apple by getting in new products and services so that there is going to be stable working
which is good for a long run.
 Threat of new entrants (Moderate)
There is a requirement of a lot of investment for any organization to come in this field
and the market base which Apple Inc. is having for themselves in the market is difficult for a
new company to be able to compete with a well-established firm. Nexus and Samsung were new
entrants sometime back. Apple still maintained their position in the market by making the
customers loyal and provide them with security and safety with the products and services.
 Threat of substitute (Weak)
Apple have a moderate industrial environment which is going to make the performance
of the company be affected on a large scale. The decisions of Apple Inc. are taken by the
management which is well-trained and experienced making the company be able to operate
effectively and efficiently. Substitute products are many for smartphones in the market but there
is a good functioning and working. In present there is effective processing and operations of the
company be well maintained (Guinchard, 2020).
 Industry rivalry (Strong)
The competitors for Apple are Samsung and LG which is making the company have
aggressive competition. There are a lot of changes which Apple is working upon. The company

does not use Android which is giving Apple a unique identity for themselves in the market. This
helps the company be able to have stability in the economic aspect. There is innovation and
advertisement which Apple is working upon so that there is going to be stable working.
ELEMENT 2
How Apple cope, managed and survived during pandemic
In regard to pandemic it can be said that this climate change situation affected all
companies of different sectors in negative manner at least to some extent. Apple played a vital
role in helping out people in this situation by providing qualitative services. It donated amounts
to those who were sick and to help lessen the economic and community impacts. One of the main
key of its success that it made during pandemic was its skilled and talented operation team that
put efforts to restore supply chain.
It allowed flexible working for its staff of worldwide outside of greater China and as per
this arrangement all of its staff were allowed to work remotely by remaining or staying at home
safely (Apple's Covid-19 Response, 2020.). But due to impacts of Covid-19, people are less
likely to spend money on its products and services.
Supply chain: In this context it is found that some parts of its smartphones like Cameras,
subsystems are being developed in China. Due to increasing rate of corona virus and anger on
China, Apple got affected in developing and supplying its products. It was one of the main area
that got affected the most during pandemic (Covid-19 Impacts on Apple's Supply Chain, 2020).
Reintermediation or disintermediation: In this context it is found that Apple has
reintermediation strategy and type of services that is performs is a form of reintermediation. It
believes that having intermediaries can allow it in bettr selling and iproving relation with
customers. But now it has announced that it will sell its smartphones directly to customers
without having intermediaries. The reason behind it is it found that carrier could lower their
customer service cost so, it took a big step towards reintermediating the mobile carrier process
(Apple's Re intermediation of Smartphones, 2015).
Porter's value chain: It includes all activities from begining to the end such as:
1. Primary
Inbound logistic: Apple has a large supply chain and has around 200 suppliers so, it has
wide variety of options of getting raw materails and affordable prices. Due to this wide variety it

enjoys bargaining power and most of the suppliers of this company are in China, Japan and Asia.
But due to Covid-19 it has faced some problems in getting raw materials.
Operations: Manufacturing of this company take place in many nations and majority of
parts are being produced in China. Labour cost in Asian nation are quite low that is beneficial for
it as it can reduce overall cost of manufacturing.
Outbound logistics: It has both direct and indirect channels of distribution. It added
more stores for imroving overall distribution and making customers beneficial.
Marketing and sales: Whenever Apple launch something new and designs of phones
then it is highlighed by the media. It investes in advertising strategy. Along with online and
telivision commercials it makes use of print ads for promoting its brand (Eling and Lehmann,
2018).
Products and services: Most of its products come with 90 days complementary support
alng with 1 year of warranty. It also has customers service prviders and customers can solve tehir
query by asking wuestions from customer service providers. They can also get their phone
repaired at local Apple authorized service provider. It increases customers' loyalty.
2. Support activities
Research and development: Apple is mainly known for its attractive design and
technological innovation and it is a result of its efforts made in R&D. Growing products range
and increasing competition motivate it to focus on this. It is the main key of its success and this
ability helped it out in being in the competition during pandemic.
HR management: Its main focus on hiring the best and talent workforce. It promotes
diversity and employs peple with difefrent background, cultures and gender. Some changes have
been made since the time o CEO, Tim Cook and its improved its reputation.
Procurement: It focuses on managing relation with all of its suppliers for getting
qualitatiev raw materials at affordable prices and providing them value. For this, it provides safe
working environment and follows all legislatiosn and laws (Jones, Demirkaya and Bethmann,
2019).
Infratructure: It has an effective culture and strcuture that also makes it able and
successful. It believes that beter management can lead to higher productivity and profit.
So, on the basis of above discussed all activities it can be said that ability of R&D,
improved reputation, improved relation with suppliers made it able in performing fucntions

during pandemic. Withouit getting affected the most in negative manner it attarcted customers.
But some of its activities got affected such as buying raw materials from China, developing
products and others.
Ansoff matrix: As per this straregy it can take advantages of competition and expand its
business.
Market penetration: In this strategy company tries to sell its existing products in exiting
market. For making this strategy successful, Apple focuses on providing post sale, software
updtes and other accessories. It also made alliances with other telecom companies such as
AT&T.
Market development: In this strategy the main focus is on market as company sells its
existing products in new market. Apple made use of this stategy and with its existing products it
expanded its busines in around 23-24 nations. Main key that made it successful is new
distrbution strategy for each market (Thompson, 2019).
Product development: It is all about developing new products but selling them in
existing markets. Apple is known as the king of product development and new designs as well as
features. The main example of product development of Apple is Iphone that is being develped
with the time and launched with the latest being iPhone 11.
Diversification: It is quite risky strategy because in this, company launches or devlops
new product in new market. But Apple made this stratergy successful by launching Apple pay,
Apple watch and others in new market.
On the basis of above discussed strategies, it can be said that product development is the
main key and at this current situation this strategy can help in being in the competition.
ELEMENT 3
Recommendation
Apple will have to work on a lot of factors in order to be able to assure that they are
having premium and right customers, increasing loyalty and trust of them in the company,
making the sales and profitability of the company to be stable. Apple were not focused on the
promotions, advertisements or any other factor since the base of the organization was strong. But
to make a strong impact on the customers it is important for the company to make sure that they
are taking the right actions. The management is making the right decisions after Covid-19 since

the economic factor of the company has been disturbed and there are a lot of trends and other
social influences which are being practices by Apple currently. In the beginning, Covid-19
outbreak globally the company had an influence on the sales and distribution of the products and
services which had to be worked upon so that there are going to be better opportunities and
growth of company which can be maintained (Al-Shawwa and Abu-Naser, 2019). Apple will
have to use re intermediation strategy so that they would be able to serve more customers. This is
also going to help in reaching out to the customers faster since there are not too many stores of
Apple which are present globally. Behaviour of the customers has not changes much, but they
prefer online services. Dealing of products is also online so that they do not have to travel to
stores to get the product. Apple company is dealing directly with the customers which is going to
be a great factor for the company to have for a long run. This is a great method to be adapted as
well so that the satisfaction level and safety of the customers is going to be well maintained.
Customer life cycle
Steve jobs makes sure that Apple is providing best of products and understand
expectations of the customers effectively so that there is going to be higher development and
improvement which is going to take place. Customer needs and demands are changing with time
which has to be well evaluated and worked upon so that there would be better operations and
productivity which can be decided for higher performance level. Technology is changing with
time, and they have to be implemented in Apple Inc. as well so that there is going to be higher
satisfaction of the customers which is going to be present. Designs and innovation in the existing
product is important for Apple to have so that they would be able to make sure that there is
effective working and that is going to be good for the overall performance of the company. Due
to lock down there is a lot of changes which have come in the demands of the customers. This
includes the reduction of income level which has been accepted by Apple Inc. to come extend
which is impacting the pricing of the products in the company (Dwivedi and et.al., 2020). Apple
wants to have retention level of the customers higher which is going to be of great influence of
the company and that is also going to make the performance level of the workforce be present. It
is evident that 87% of Apple buyers repeat buying this company itself because of the safety and
security measures which the company is providing the customers with which is a great factor for
the company to have for a long run and this is also going to make the company have a great
competitive advantage in the market.

Race marketing value framework
This is a very important framework which needs to be worked upon by the company so
that there is going to be higher operations and functioning which is going to be present. RACE
model is reach, act, convert and engage which is being implemented by Apple so that they can
have one direction of working which is going to be very helpful. Apple is a well planned and
operating company in the market which has to be maintained by the company so that there is
going to be higher performance which is going to be present. It is important for the company to
be able to reach out to the customers on time and then act according to their expectations and
lifestyle which Apple is maintaining in their products and service (Gvili, 2020). Convert the
products and services customized according to the customers which is going to make the pricing
of the products also vary from one another which is going to be good for the company for a long
run.
CONCLUSION
From the above essay it can be concluded that businesses in market will have to change
their way of working so that there is going to be higher functioning and productivity which is
going to impact the profitability of the organization. Due to the pandemic situation there is a lot
of impact which are present in bazaar which needs to be controlled and monitored so that there is
going to be positive impact on work which is going to be present. Social commerce can be used
by company in order to make sure that there is effective working and gain competitive advantage
in the market as well which is going to make the standards of the company be higher. Right
understanding and use of right strategies and frameworks is going to help the company be able to
operate effectively in the market which is also going to make the performance and brand value in
the market increase. It is essential for the company to make sure that there are right measures and
actions which are being taken so that there is going to be better competitive advantage which is
going to be good for a long run in the market and also make sure that the profitability of the
company is present.

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