Paper Sample on Decoding Apple's Business Model: Innovation, Products, and Challenges

Activity 1: Business Model

The company I chose is Apple company which is among the leaders, especially in the electronics industry. It offers products such as iPad, iPod, Airpod, and iPhone that have seen a significant market transformation (Apple Inc). The company has a business model based on consumer-centric devices and innovation. They are in a position to maintain their customer base since they embrace easy designs as well as data migration to include new product lines. The business model of Apple is broken down between services and products. The company leads in hardware sales and its high-end devices and ensures it integrates its products to make it easier to use the company’s new products.

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A business model is described as a conceptual framework that explains how a business creates, delivers, and extracts value. In contrast, a business plan is a formal document that offers background and financial data concerning the business. A business plan usually outlines the goals of a business and sets the steps required to achieve the goals. It primarily focuses on the needs of customers.

Activity 2: The Four Parts of a Business Model

Apple usually designs, creates, and sells computer software, consumer electronics, and online services. Apple's hardware products include the iPad, iPhone, iPod, Mac personal computer, Apple Watch, AirPods, Apple TV, and HomePod smart speaker (Apple Inc). The software products are such as ios, macOS, WatchOS, iPad, and tvOS. It also offers a Safari web browser, iTunes, the Shazam music identifier, work, and life. The company has several online store services such as the iOS App Store, iTunes Store, Apple Music, Mac App Store, iMessage, Apple TV+, and iCloud (Apple Inc).

Apple company usually organizes sales and marketing practices by customers. It targets four primary B2B customers, including government, education, enterprise, and SME. The firm organizes its sales teams in terms of the industry served, for the diverse enterprise and SME segments.

Apple has a high-speed network that allows delivery of services, including iCloud, and iTunes, alongside other services to their consumers. The infrastructure allows it to compete with other industry firms, including Google, Microsoft, and Amazon. The company also partners with other service providers to facilitate the delivery of the services. The financial statements of Apple show a healthy and viable business. The gross profit is relatively higher, which allows the business to stay afloat, especially in the personal computer market. The company reports positive cash flow over the past three years, adding to its financial viability.

Activity 3: What job is the customer trying to get done?

The most significant stakeholders in Apple company include consumers or customers, employees of the company, investors, distributors, and suppliers.

Apple is entirely dedicated to meeting the highest social responsibility principles throughout the business’ global supply chain. The company emphasizes that all suppliers of the company offer safe working conditions, utilize environmentally responsible processes of manufacturing, and treat employees with respect and dignity. Customers of Apple expect the company to provide the right information concerning the products they offer. The company is expected to offer quality products that meet the needs of its customers. Besides, customers want products they can afford and of excellent quality.

Investors in Apple company want the business to record excellent performances to attain maximum value for the investment. The business should remain dedicated to ensuring all investors and shareholders receive maximum value for their money.

Barriers: The provision of the above-identified demands from employees, customers, and investors is likely to face a barrier to getting them done. The provision of required products and customer demands for Apple products may be impacted by a lack of key resources such as access and financial challenges. The company may face the challenge of access to where the customers are located. However, Apple has tried to ensure that its products can be found in most parts of the world. Financial challenges are also common in every business, and Apple is not an exception. The development of new products requires huge amounts of capital and investment, which becomes a barrier.

Opportunities: Apple company has numerous opportunities that it can tap to enhance its sales and profitability levels. There is consistent growth in the customer base, qualified professionals, a lack of green technology, and an expansive network of distribution. The company can also utilize artificial intelligence in its technology.

Works Cited

Apple Inc. Annual reports. 2018. https://www.sec.gov/Archives/edgar/data/320193/000032019318000145/a10-k20189292018.htm