...strategic investment in, for example, power train manufacture. The second option is illustrated by electronics assemblers like Foxconn International Holdings (FIH) which can derive little benefit from assembling premium products like smart phones for sale in Western export markets. The instrument of subordination here is the contract with the dominant Western partner which ensures the assembler makes little profit so that the Chinese Apple Business Model: Financialization across the Pacific 16 | subordinate again has no easy pathway to upward mobility because, just as in a failing Western firm, reinvestment finds are limited and defensive restructuring takes priority. The story of the development of Sino-foreign joint ventures in car assembly has been told in Eric Thun’s (2006) book, so we will concentrate on the case of Foxconn International Holdings (FIH) in electronics assembly which usefully provides a purer illustration of the logic of financialization. FIH is the assembler of choice for hand held smart devices; its customers include Apple Inc. and other Western companies including Amazon, Nokia and Motorola so that five large Western companies account for more than 90% of sales. As background, FIH is a subsidiary of Taiwan’s Hon Hai, which is the world’s largest contract assembler, employing over 1 million people in total. FIH is domiciled in the Cayman Islands and listed on the Hong Kong stock exchange. It is Hon Hai’s principal handset manufacturer......
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...Apple Business Model Mini Case Assignment QUESTIONS: 1. In your own words, explain why the author refers to Apple's business model as a roach motel. The author refers to Apple’s business model as a roach motel partly because of the old Raid commercial where the narrator says, “roaches check in, but they can’t check out.” When a customer begins using Apple products, they are set up in a web of content and applications. Every time they download an app, they are committing to the same type of system, or ecosystem, if you will. That makes it very difficult for a customer to switch to something different. When a customer gets used to a certain way of doing things, they are less likely to switch to another way. People generally don’t like change and once they get used to something, they like to stay with it. 2. In 25 words or less, and in your own words, summarize the author's prediction about Apple's future success. Apple’s margins may start to fall sharply but that doesn’t mean they won’t be successful. Bet on Microsoft to put their hat into the ring. 3. Based on the factors discussed in the article (e.g., the rise of HTML5), are future prospects brighter for Apple or Google? Defend your answer. Prospects are brighter for Google, simply because there is more areas in which to grow. The rise of HTML5 makes it less expensive for Google to operate the same principles and that is where they will take advantage. Consumers are looking for lower prices and better deals.......
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...portal are also strengths. Apple Strengths- Mobile devices, such as iPhones and iPads which combine and contribute 52% of apples business. They already have a head start on the mobile phone industry where they have over 250,000 applications. Apple controls 27% of the mobile market and is the highest grossing cellphone ever. Google Strengths- They have absolute advantage in advertising with their search engine. And their Android OS controls 41% of the mobile market share which is constantly growing 3 times faster than the iPhone market share. “They bought Android Inc. to enter the mobile market.” also bought out Motorola for 12.5 billion. 2. Why is mobile computing so important to these three firms? It has been projected that by 2015 the mobile market will be worth 400 billion. The main reason of this is because there is a 200% growth every 2.5 years. It is important for these firms because they want to maximize profit and market share by being aware of changing trends. 70% of the mobile market is dominated by Apple and Google while Microsoft failed to put its name in the mobile market with less than 3%. Evaluate the mobile platform offerings of each phone. Microsoft: Microsoft offers Xbox live service on your phone. With the Windows 7 phone, the 7.5 update and its voice command allows users to open apps, and much more just with voice command. However it’s not as efficient as the iPhone’s Siri Apple: Apple offers Siri for models iPhone 4s and higher. ......
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...A Comparison of Business Models and Financial Management of Google and Microsoft Anitra Williams-Bender Jackson State University Abstract Google and Microsoft are two of the world’s leading providers for technological services and products. Both companies offer superior services such as search engines, e-mail, and other services designed to connect users with the rest of the world. Although these organizations may have similar products and services, there are limitless factors that set them apart from one another. The business models and financial management strategies for Google and Microsoft differ, directly correlating with the success of the company. Financial ratios help to indicate the success or failure of a company’s attempt to gain profit by selling products and recruiting investors. Annual reports track the expenditures, assets, and net income for Microsoft and Google. Leadership styles, new products and services, and company goals are influenced by annual reports. The technological competition continues, as both of these companies attempt to increase and retain revenue, beat out their competitors, and attract more and more customers. The core business of an organization outlines the most important and essential activities to the company. This sector of business activity fulfills the purpose for the organization, and it is needed for the organization to function properly. The core business can be viewed as the foundation for the organization; aspects of......
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...BCIS 503 Ch 7 Case Study September 17, 2012 Google, Apple, and Microsoft Struggle for your Internet Experience 1. Compare the business models and areas of strength of Apple, Google, and Microsoft. Although they have different business models and strategies, Apple, Google and Microsoft are three major companies who seek to dominate the internet user’s experience. They come to the platform with their own proprietary strengths. In looking at business models, Apple’s business model focuses on the consumer and bringing them a personalized web experience through their hardware (iPads, iPhones, iPods and iMacs), their two major OS systems: Mac OS X and iOS, and through the internet. Although their model limits what type of software customers can access, they offer over 250,000 apps through their iOS app store. Next, with their browser and search engine, Google centers on advertising and democratizing information where they gain most of their profits. Through the companies Android platform they are increasing their market shares into the mobile market. Google seeks a market of open nonproprietary platforms where consumer can freely surf the web and openly enjoy the innovation of apps across devices. Finally, Microsoft business model concentrates on creating user-friendly operating systems, which 95% of all computers use. They have worked to make technology accessible to everyone. However, they are moving towards services and breaking into the search advertising......
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...Question 1 Compare the business models and areas of strength of Apple, Google, and Microsoft. Answer Apple: It has the basis of creating a very strong hardware base for the internet future and thus logically they play their role in this battle by laying emphasis on the hardware that facilitates mobile computing. Apple has gone into the stance that applications, one of the major earners for tablet and phone manufacturers, should be device restricted. For example, one application should be unique to the brand of the device and should be allowed to function in another device from another separate brand. They even stopped Google in its plans to allow Google applications to work on Apple products. Thus by doing this Apple is trying to capitalize on their loyal customer base and create a Apple weds Apple scenario. Google: Google is the believer in the concept that in the future the devices used to run the applications and other internet options should be a fraction of what they are being charged now and instead the revenues generated should be from the in-app advertisements. Google even bought AdMob, an application advertisements development company, to work on such a concept. This future, Google and Microsoft have tried their hand at going hardware friendly but they still do not put the same emphasis on the hardware as Apple. Microsoft: Microsoft has laid its bet on the operating system on which the mobile computing devices shall run. Microsoft also has announced plans...
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...Apple - 7-s Model Super ordinate goals(soft) "To make a contribution to the world by making tools for the mind that advance humankind." Strategy (hard) Apple’s fundamental business model has not changed since it first began business in the late 1980’s. The main focus of the Apple strategy is in constant innovation. Apple is engaged in horizontal integration, vertical integration, strategies outsourcing and diversification. Structure(hard) The company's management employs a functional structure as the company is organised along functional lines. This structure groups people on the basis of their common expertise-experience and resources. This structure gives managers greater control of organisational activities and enables the company to avoid becoming too tall by creating several different hierarchies. By decentralising authority and responsibility as well as through a relatively flat hierarchical structure, Apple encourages its lower-level managers and employees to take the initiative and foster the company's strengths such as Apple's innovation, engineering excellence and marketing skills. Systems(hard) In order to avoid coordination problems between people, functions and divisions Apple has to use integration mechanisms and control systems. Actually, integration mechanisms aim at increasing intra-functional coordination and communication. As Apple's culture can be described as relatively open and casual, direct contact constitutes and appropriate......
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...Apple’s Business Models Analysis and Suggestion with Web 2.0 Strategy Contents 1. Abstract 3 2. Apple’s Business Model 4 2.1. Elements of successful business model 4 2.2. Apple’s innovation on its business model 4 2.2.1. Customer Value Innovation 4 2.2.2. Profit Pattern Innovation 5 3. Challenges Analysis 6 3.1. Apple’s challenges 6 3.2. Porter’s Five Force Model analysis 6 3.2.1. Threat of new entrants 7 3.2.2. Threat of substitute products or services 7 3.2.3. Bargaining power of customers (buyers) 7 3.2.4. Bargaining power of suppliers 8 3.2.5. Intensity of competitive rivalry 8 3.3. Innovation Matrix 9 4. Suggestion and action plan 10 4.1. Apple’s Fishbone Diagram 10 4.2. Monetizing for Apple with Web 2.0 strategy 11 4.2.1. N-sided platform 11 4.2.2. Multiple revenue stream 11 4.3. Platform Innovation 11 4.3.1. Production 11 4.3.2. Creative and Media 11 4.3.3. Accessories 11 4.4. Online Promotion 12 4.4.1. Action Plan: 12 4.5. Sustainable Competitive Advantage 12 4.5.1. R&D input 12 4.5.2. Better customer value 12 4.5.3. Sustainable profit pattern 12 5. Business Model Canvas 13 Conclusion 14 Reference: 15 1. Abstract Apple’s huge success set off a global widely discussion on its secret. According to this essay, it is not difficult to find its success story was attributed to its unprecedentedly innovative business model, which was not rare in the typical case......
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...Analysis of Apple Inc. business Strategic Unit (iPad unit) Contents Introduction .................................................................................................................................................. 2 1. Strategic position of Apple Inc .................................................................................................................. 2 1.1 Competitive strategic position ............................................................................................................ 2 1.2 Strategic group mapping ......................................................................................................................... 4 2. External drivers of change affecting Apple’s Strategic Business Unit ....................................................... 5 2.1 PEST Analysis ....................................................................................................................................... 5 2.1.1 Political and legal drivers ............................................................................................................. 5 2.1.2 Economic factors .......................................................................................................................... 5 2.1.3 Socio-cultural factors ................................................................................................................... 6 2.1.4 Technology .............................................................................
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...International Business Strategy II 1. Liu Shu 6509037 Introduction Google and Apple are giants in technology industry. These two companies provide innovate products or service and have unique organizational structure and culture. Under the increasing pressure of cost reduction and local responsiveness caused by globalization development, both Google and Apple are transforming into transnational organizations. This report will critically evaluate the comparative transnational effectiveness of Google and Apple in terms of motivation means and mentalities, layers of competitiveness, across boundaries management and corporation social responsiveness (CSR). 2. Motivations Means and Mentalities Initial incentives of Apple and Google expansion were different because of their distinct business focuses. Apple generates its profits by selling cutting-edge electronic devices, whereas Google even though has its own products such as some newly invented wearable devices, its benefit basically comes from their advertising. Therefore, Google do not have to secure key supply, and access to low-cost market. Nevertheless, seeking boarder market seems to be very important for both of these to enterprises. Moreover, the emerging motivations for Google and Apple are quite similar. After they began to expand, the forces which triggered the expansion in the first place, may turn into secondary when they make emerging......
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...Apple V/S Google Apple and Google differ significantly in what they sell (Apple’s innovative products Vs. Google‟s Technological Services) and their revenue generation models (Price discrimination and skimming of Apple vs. Ad based revenue of Google). Hence we are not sure whether we are comparing Apple with apples here! Nevertheless one interesting and meaningful comparison is given by the Market cap of the two technology firms. In May 2010, Apple Inc. reached $222 billion in market cap surpassing Microsoft to become the most valuable technological company in the world. At present the market cap of Apple is even more astonishing at $290* billion in comparison with the $187* billion of Google Inc. and $217* billion of Microsoft Corporation. Yet Google cannot be underestimated with regard to the power it wields on the internet. It saves search queries associated with your Internet Protocol (IP) address for nine months. Thus most of the suggestions Google makes are the ones that you are actually searching for. Similar things could be said about most of the Google ser-vices. Needless to say Google‟s Search algorithm is still one of the best and widely used by all users across the world. But Google has a free to use image because of nature of the open source applications such as Android, Chrome OS, etc. Thus most of its revenues are Ad based and hence does not have the premium pricing ad-vantage of Apple. On the plus side, Google services are extensively used across the......
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...Carr APPLE vs GOOGLE The Business week article is about Google going into the mobile phone business by developing its own touch screen smart phone, such as Apple’s has done with its popular iPhone. At the same time, Apple was announcing their, what they called, a strategic acquisition, by purchasing the company “Quattro Wireless, for a mere $275 million. Quattro is known in Silicon Valley circles, as a company whose main focus of business is to target mobile phone users. Apple is now the proud owner of “Quattro”. Now when first reading the article I had to wonder is this “déjà vu” 21st century style; or did the two CEO’s that were once good friends and of course, assuming their business relationship has not changed their personal relationship and that Schmitt and Jobs have not been forced to take the adversarial position in the “smart phone/mobile apps” world. Remember the legendary rivalries: Microsoft vs. Netscape, what a mess that was and really, in the end Bill Gates lost, if you call the multi millionaire losing at anything. But seriously, who really paid all the costs to fight Netscape? We did of course, the consumer. Microsoft and Apple were always “in”, but Jobs seemed to or appeared to be satisfied appealing to a certain type of individual consumer. Whereas, Microsoft always attracted the masses and the Business minded. Today there is Google and Apple and a new generation of high tech on the horizon, Apple......
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...e-shock 2020 How the Digital Technology Revolution Is Changing Business and All Our Lives M. De Kare-Silver ISBN: 9780230343368 DOI: 10.1057/9780230343368 Palgrave Macmillan Please respect intellectual property rights This material is copyright and its use is restricted by our standard site license terms and conditions (see palgraveconnect.com/pc/info/terms_conditions.html). If you plan to copy, distribute or share in any format, including, for the avoidance of doubt, posting on websites, you need the express prior permission of Palgrave Macmillan. To request permission please contact rights@palgrave.com. Copyright material from www.palgraveconnect.com - licensed to University of Westminster - PalgraveConnect - 2012-05-09 e-shock 2020 10.1057/9780230343368 - e-shock 2020, Michael De Kare-Silver 10.1057/9780230343368 - e-shock 2020, Michael De Kare-Silver Copyright material from www.palgraveconnect.com - licensed to University of Westminster - PalgraveConnect - 2012-05-09 How the Digital Technology Revolution Is Changing Business and All Our Lives Michael de Kare-Silver Best-selling author, digital technology/e-commerce advisor and team-builder 10.1057/9780230343368 - e-shock 2020, Michael De Kare-Silver Copyright material from www.palgraveconnect.com - licensed to University of Westminster - PalgraveConnect - 2012-05-09 e-shock 2020 © Michael de Kare-Silver 2011 No portion of this publication may be reproduced,......
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...OUA Group Assignment Cover Sheet A Group Assignment Cover Sheet needs to be included at the front of each assignment submitted. Details of one group member is to be provided – this is where your group assignment will be returned once marked Address details Full name: Kirrily Alisia Loring Address: 516 Senate Road Port Pirie SA Postcode: 5540 Assignment details Unit code: ACG10 Unit name: Communication and Information Systems in Business Assignment no. 2 Due date: 28/04/2012 Assignment topic (as stated in the Unit Information Booklet): Case Study: Google, Apple and Microsoft Struggle for Your Internet Experience. Student names UniSA email ID 1. Kirrily Loring Lorky002@students.unisa.edu.au 2.Adrian Holmes Holai001@students.unisa.edu.au 3.Debra Evans Evady008@students.unisa.edu.au 4.Ana Irisari Iriap001@students.unisa.edu.au 5. Student Declaration We declare the work contained in this assignment is our own, except where acknowledgement of sources is made. We authorise the University to test any work submitted by us, using text comparison software, for instances of plagiarism. We understand that this will involve the University or its contractor copying our work and storing it on a database to be used in future to test work submitted by others. We understand that we can obtain further information on this matter at......
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...Situation: Apple Inc. & Google Inc. I choose to review Apple Inc’s marketing situation after recently becoming an Apple user. The entire company and cult like following fascinates me, and in my opinion, Apple has one of the most successful marketing strategies out there. Perhaps the most successful component of their marketing situation is their branding strategy. The Apple brand is not just about customer loyalty, there is a real sense of community among users of its main product lines. Apple’s branding strategy focuses on emotions. “The Apple brand personality is about lifestyle; imagination; liberty regained; innovation; passion; hopes, dreams and aspirations; and power-to-the-people through technology. The Apple brand personality is also about simplicity and the removal of complexity from people's lives; people-driven product design; and about being a really humanistic company with a heartfelt connection with its customers” (Marketing Minds). For several years Apple's product strategy involved creating innovative products and services aligned with a digital hub strategy, where Apple Macintosh computer products function as the digital hub for digital devices, including the Apple iPod, personal digital assistants, cellular phones, digital video and still cameras, and other electronic devices. More recently, the full impact of a very well throughout brand strategy has come into focus - and one in which customer experience is central. Apple has......
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