Research Paper | Market conditions of Apple Inc

Running Head: MARKET CONDITIONS OF APPLE 0
Market Conditions of Apple
Student’s Details:
Image source: (Amazon, 2019).

MARKET CONDITIONS OF APPLE 1
Contents
Introduction.................................................................................................................................................2
Apple Inc......................................................................................................................................................2
Market conditions of Apple Inc...................................................................................................................3
Reduction in sales....................................................................................................................................3
Falling Cooperate Reputation..................................................................................................................3
Firing staff...............................................................................................................................................4
Drop a product line..................................................................................................................................4
New products...........................................................................................................................................4
New outlets..............................................................................................................................................4
Decisions and plans for revival of Apple......................................................................................................4
Information required for decision making...................................................................................................5
Models of decision making..........................................................................................................................6
Stages in the process of decision-making....................................................................................................7
Conclusion...................................................................................................................................................7
Bibliography................................................................................................................................................9

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Introduction
The following paper is an assessment conducted over Apple Inc. Herein, an assessment is
made after in-depth study of Apple Inc business conditions. It initially gives an introduction to
the organization and its products. The report gives detailed information about the continuously
declining sales of Apple products. The data related to drastic decline of sale O It notifies major
causes of degrading reputation of company in the market. There are various steps, which should
be taken in regards to reestablish old image in the market. The report highlights informatory
factors, which are required to take regulatory steps in the management and policies of the
organization. The paper is in regards to suggest reforms after performing business data analysis
on Apple Inc..
Apple Inc.
Apple is an American based multinational company founded on 1 April 1976, Cupertino
in California, united states. Steve Jobs, Steve Wozniak and Ronald Wayne are the founders of
Apple. The idea of formation of the company came when these college dropouts were looking
for a personal computer. They wanted a device, which can be easily used at homes as well as at
other places. Wozniak and Jobs wanted to create a computer, which is small and easy to access.
When Wozniak got success in making the computer, he introduced it to Jobs (Apple, 2019).
Later, Jobs suggested selling the computer in public. From the year 1976-1998 logo of apple was
a rainbow, Rob Jan off changed the color of apple’s logo to Monochrome. Apple offers various
devices like iPhone, iPod, iPad, Apple Watch, Apple TV, HomePod and earPods. These devices
are available over online shopping websites like Amazon, Flipkart, Jabong, Apple itself and
apple stores. Apple is one of the most popular brand for the electronic and communication
devices. There are around 1.4 billion apple users throughout the world. Apple uses the marketing
mix of 4P i.e. product, price, place and promotion. Company uses approach that focuses on
premium branding. (Apple, 2019)

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Image source: (BBC, 2019).
Market conditions of Apple Inc.
Reduction in sales
The aggregate sales of Apple devices have reduced within last few years. Most
purchased product of Apple is iPhone. Recently as per the records collected by Apple it came
into view that the sales of Apple’s iPhone fell drastically according to the records of the first
three months of 2019. According to Apple’s business decision analytics the revenue earned by
the sale of iPhone has reduced by 17% (matched with the same period of previous year) (Xing &
Detert, 2010).The Chief executive officer of Apple made a clarification on this, he stated that the
revenue will soon be increased as in china the price of iPhone will be dropped. The graphical
representation below demonstrates that the sales of iPhone from the year 2015 – 2019. It shows
how the sales rate have reduced from more than 60 billion to 50 billion in an year.

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Image Source: (Apple, 2019).
Falling Cooperate Reputation
Along with the reduction in sales of some of the products offered by Apple is also facing
fall in the cooperate reputation of the company. The cooperate reputation of the company is
falling behind from the companies like Microsoft and Google. In the year 2011, Apple was
behind Goggle in the list of Reputation institute’s Ranking. Whereas, In the year 2017 Apple
shifted to 20th position in the same list. The ranking list proposed by the Reputation institute
measures public opinion related to large and popular organizations. The survey is conducted over
the consumers as well as the stakeholders of the company. Thus, it can be stated that the survey
cannot be biased or unjust (Forbes, 2019). Business decision analytics propose that the reputation
of an organization should be well maintained in market.
Firing staff
Apple has recently fired about 200 employees from its own self-driven car project called
Titan. Apple fired about 200 of its employees from the car project including 38 managers, 33
hardware engineers, 31 product design engineers and 22 software-developing engineers. The
following change is observed because of Apple’s lacking interest in the car projects, the project
was time consuming as compared to the production of iPhones.

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Drop a product line
Apple has dropped its idea of making investment on the self-driven car projects. The
ambition of apple of producing driverless car has reduced. Moreover, it has also reduced the
production line of the old models of devices, as the new models will be launched in the market
(Mayer, Melitz, & Ottaviano, 2014).
New products
Apple is predictable to announce new products by the end of year. Apple is planning to
provide subscription services for its TV and NEWS apps. The organization is also expected to
launch new Air pods in the market. Last but not the least the company is about to introduce
people with all new Mac Pro.
New outlets
The company has recently planted its biggest cell in Mumbai, India. It is one of the
largest Apple flagship stores worldwide. Aptronix is already running more than 30 apple
franchisee outlets in different cities.
Decisions and plans for revival of Apple
Reduction in sales in order to improvise the sales condition of iPhone in market apple has
made a suitable decision of lowering the price of product in specific markets where the sales can
be higher. For instance, the prices of iPhone were reduced for the Chinese markets, which helped
in regaining profits. As per the oxford handbook of cooperate reputation order to maintain the
drastically falling cooperate reputation in market, Apple has to maintain the verbal and the non-
verbal methods of communication (Barnett & Pollock, 2012).
Reputation management relies on a company’s ability to deal with unforeseen negative
events like launch of new substitute goods with similar features in the market. The reputation of
a company is dependent over the employees, if the employees are not happy and satisfied they
are unable to deliver best to the company ( Barnett & Pollock, 2014). Therefore, in spite of firing
and removing the employees, company should manage to place the existing workers in other
process but it should not fire the employees.

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The business decisions analytics states that company should look forward in bringing
technological advancement in the devices. Apple should conduct surveys in order to understand
the needs of the customers. Most importantly, company should attract the consumers by
launching new applications in the devices. Apple should focus on bringing valid and needed
reforms, which help, in keeping the customers happy and brand loyal. While planning for a
planting a new outlet Apple should evaluate the market conditions before. The existence of
secondary firms in the market influences the sales of company. Apple Inc. for it revival in the
market place it should keep all these abovementioned factors in concern (Spieth, Schneckenberg,
& Ricart, 2014).
Information required for decision making
In order to make a decision it is necessary to gather relevant information about the old,
present and future plans made by Apple along with their consequences faced by the company. It
should be noted that all the information gathered to before making decisions are provided by
valid sources. There are certain categories of information like capturing the present position –
understanding and evaluating the present position of Apple in market will guide the decision
makers to take effective decisions. Success/ failure rates- the success and failure rates of Apple
and its competitors should be studied, this give the decisions makers a path to move on . If the
company is lagging because of competitors, it should work on developing strategic marketing
plans to eradicate the competitors. Alternatively, if the company is lagging behind because of its
own internal issues there is a need of bringing structural change in the company (Decker, et al.,
2012). Lastly, weighing pro and cons of company- the decision makers should take a round of
information related to the pro and cons of the products offered by Apple. Apple is a brand which
provides goods and services to the people in general. Therefore, it becomes essential to
understand the perspective of the customer and his/her choices (Rainer, Cegielski, Splettstoesser-
Hogeterp , & Sanchez-Rodriguez, 2013).
Models of decision making
The most effective and popular model of decision-making is Bounded rationality decision
model. It is also known as the Administrative man model. The following model states that the
process of making decisions is inclined towards achievement of goal. Proper data analytics is

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required to achieve company objectives. The word rationality states that it is essential for the
decision makers to understand the conditions or problems deeply. According to this model the
decision maker should have proper knowledge and ability to evaluate the situation from different
perspectives. In case of apple Inc. the model can be easily applied as Apple is a multinational
company and it goes through various recognizable and unrecognizable threats. These threats can
be evaluated by understanding the problems from roots. There are some concepts under this
model, which should be followed- Sequential attention to alternative solution, heuristic and
satisficing (Carley & Prietula, 2014).
Apart from this, another model of decision-making is classical model. The application of
classical model in a organization is very easy. The decision making body of Apple or business
decision analysts can use the following model in order to regain the initial status. As per the
model, the decision makers should be clear about the problem, the purposes of applying solution
in company’s functioning. The consequences of application these alternatives are usually
positive sometimes these solutions do not work. For instance, launching a new product with
slight different features at high cost with definitely get failed. The nature of consumer is rational
and he looks for good and long term of investments (Study, 2019).
Besides the application of different decision making models one more aspect is
technology which also plays efficient role in decision making. For instance, in Apple the
advancement of technology will help to make quick decisions for business.IT fastens
performance of various departments of Apple. A software system is developed which simplifies
decision-making, it is known as Group Decision Support System (GDSS) (Lolli, Ishizaka,
Gamberini, Rimini, & Messori, 2015).
Stages in the process of decision-making
An effective process and pattern of decision-making is required for achieving the set
business goals. Herein four major stages, which should be followed in decision-making, are
mentioned below.
Contribution stage- Contribution stage includes understanding the root cause of the
existing problem and the unambiguous circumstances around it. Apple Inc. should gather facts
regarding the prevailing problem. Company should understand that the problem is arising

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because something is insufficient in the marketing and developmental strategy of the company.
This is because the company is lacking in the market (Scullion, Vaiman, & Collings, 2012).
Procedural stage-Procedural stage includes proper evaluation of the problem and
developing an alternative or a solution to the problem. For instance, after analyzing and
understanding the root cause company’s deterioration conditions at marketplace. The team of
decision-makers should evaluate the situation under the light of specific criteria like benefits and
threats. In case of dealing with a simple problem, Apple can look for only one alternative but if
the situation is complex company should go for multiple alternatives or solutions.
Implementation stage-Implementation stage ensures that the policies developed to cure
the problems in should be equally formulated within Apple. The information regarding the
alternative or solution developed should be provided in detail. Hence, the application of policies
will become easier for Apple (Pettigrew, 2014).
Reflection stage- The reflection stage includes analyzing the effectiveness of the
implementation of the solution. The company should judge determining the completeness of
implementation over the people in concern. In case Apple Inc. is unable to reach the set
objectives it should make modifications in the solutions suggested and implemented earlier for
getting worthy outcomes.
Conclusion
As per the study made in report above, it can be concluded that Apple is recently facing
major loss in the sales of Apple’s iPhone. The company is facing numerous issues like reduction
in the sales, removing the employees, dropping eth production of products and staring up new
outlets. In order to revive the market position of Apple there are ways disclosed to regain its
value and power again. The implementation of solutions or alternative by Apple can be
beneficiary for company’s overall growth. The implementation of these decisions suggested
should be in accordance of the four stages mentioned. These stages are helpful in achieving the
set objectives and goals.

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Bibliography
Barnett , L. M., & Pollock, T. G. (2014). Building and Maintaining a Strong Corporate
Reputation: A Broad Look at a Core Issue. The European Financial Review.
Amazon. (2019, August 21). Amazon Electronics. Retrieved from Amazon:
https://www.amazon.co.uk/Wallner-Overlay-sticker-iPhone-Iphone8/dp/B073HXX1D9
Apple. (2019, August 21). Sales Record of iPhone. Retrieved from Apple:
https://www.apple.com/
Barnett, M. L., & Pollock, T. G. (2012). The Oxford handbook of corporate reputation. Oxford:
Oxford University Press.
BBC. (2019, August 21). Apple iPhone. Retrieved from BBC News:
https://www.bbc.com/news/business-48110709
Carley, K. M., & Prietula, M. J. (2014). ACTS theory: Extending the model of bounded
rationality. Oxfordshire: Psychology Press.
Decker, P., Durand, R., Mayfield, C. O., McCormack, C., Skinner, D., & Perdue, G. (2012).
Predicting implementation failure in organization change. Journal of Organizational
Culture, Communications and Conflict, 16(2), 29.
Forbes. (2019, August 21). The World's Most Reputable Companies 2019. Retrieved from
Reputation institute: https://www.reputationinstitute.com/about-ri/news/worlds-most-
reputable-companies-2019
Lolli, F., Ishizaka, A., Gamberini, R., Rimini, B., & Messori, M. (2015). FlowSort-GDSS–A
novel group multi-criteria decision support system for sorting problems with application
to FMEA. Expert Systems with Applications,, 47(17), 6342-6349.
Mayer, T., Melitz, M. J., & Ottaviano, G. I. (2014). Market size, competition, and the product
mix of exporters. American Economic Review, 495-536.
Pettigrew, A. M. (2014). The politics of organizational decision-making . London: Routledge.
Rainer, R. K., Cegielski, C. G., Splettstoesser-Hogeterp , I., & Sanchez-Rodriguez, C. (2013).
Introduction to information systems: Supporting and transforming business. New Jersey:
John Wiley & Sons.
Scullion, H., Vaiman, V., & Collings, D. (2012). Talent management decision making.
Management Decision, 50(5), 925-941.

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Spieth, P., Schneckenberg, D., & Ricart, J. E. (2014). Business model innovation–state of the art
and future challenges for the field. R&d Management, 44(3), 237-247.
Study. (2019, August 22). Classical Decision Making Model. Retrieved from Study :
https://study.com/academy/lesson/classical-decision-making-model.html
Xing, Y., & Detert, N. C. (2010). How the iPhone widens the United States trade deficit with the
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