Apple Inc Systems

Introduction
Company Background
Apple, Inc., formerly known as Apple Computer, Inc., is a multinational corporation that designs, develops, and ultimately sells computer software, computers, and consumer electronics. It was founded by three men of an exceptional intellect; these three men being Steve Jobs, Steve Wozniak, and Ronald Wayne. Its headquarters is located in Cupertino, CA. This illustrious company came into play on April 1, 1976, and it was known as Apple Computer, Inc. on January 3, 1977. The same day that founder Steve Jobs introduced the iPhone is the day that the company decided to drop the “Computer” in the name. From that point forward, the name of the company was Apple, Inc. The company has done nothing but excel and now, it’s known as the world’s second largest information technology company.
Aim, Objectives, and Scope
The aim of this paper is to look at Apple, Inc. from 4 aspects known as theories. These theories include Competitive Strategy (Porter), Customer Focus Theory, Social Network theory, and Technology Dominance. The Competitive Strategy (Porter) refers to how a company performs in a particular market. This means how a company performs amongst companies in a field that is the same or very similar. The ultimate goal of this theory is to devise a plan to compete against these similar companies. The Social Network Theory is basically the power that the company possesses when reaching out to their potential consumers or target market through social network. This is huge especially in the modern day business world due to the amount of social networking going on. Social Networking is huge when it comes to companies reaching out to a younger audience, depending on the product or service they are offering.
The Customer Focus Theory is being used when a company or business is focusing on a specific consumer. They have a certain type of market that is the most interested and intrigued by their products or services; therefore forcing them to try their best to produce for a specific type of people. Technology Dominance is a theory that is now more than ever a huge factor within companies. It’s one thing to be able to market a product and make claims about the product’s ability, but when the consumer can be shown through technology that what the company is saying is true, then the business will most likely be successful. False hopes aren’t being given to make profits.
The Objectives of this report is to find out information about the company as it relates to the theories. The theories given are theories that are very relevant in not only Apple, Inc. but any company that plans to be efficient in this modern day era. So overall, what is being researched is Apple, Inc. and how these four theories play a huge role in the overall success of this billion- dollar and multinational company.
Overall through this research I plan to learn new facets of this company that we all known as Apple. This company is one that has become very successful as of late and has clearly surpassed its competitors in multiple areas. Through these theories information will arise about how this company is able to perform better than its competitors, focus on a certain consumer/customer and keep them loyal to the company, reach out to its target market via social network, and dominate the technology aspect of their business.
What Are Information Systems (IS)?
An information system is the study of complementary networks of hardware and software. People and organizations use information systems to collect, analyze, and distribute data. Information systems companies have multiple examples of information systems within their company. Apple has several IS with the company, they include but are not limited to iTunes, App Store, and iCloud. iTunes is something that Apple has created. It’s a software media player and media library application used to download, organize, and play video and audio on someone’s personal computer depending on the operating systems. This software has made it easy to manage not only your music on the computer, but it was made compatible with all Apple products so that it could be used it music purposes and backup information that’s on the Apple device. In the case one drops their Apple device and cracks the screen, they can back up their personal information saved on the device and access it through iTunes in the event something happens with their device.
The App Store is software created by Apple, Inc. as a type of digital distribution platform for the purpose of application software. It is usually provided as a module of an operating system on a Macbook, iPhone, and/or iPad. In this case, the App Store is a marketplace for applications that can be or are useful to the consumers of these apple products. The apps consist of games, finance, business, education, health and fitness, navigation, news, travel, and social networking. It’s safe to say that the Apple app store is software that offers apps that can be used in everyday life. People have the luxury of having a device that offers everything you need at your fingertips for free or a reasonable price. How can you beat that? You can’t. That’s another reason why Apple is as successful as it is.
Another information system that Apple offers is iCloud. It was put out there for the Apple family on October 12, 2011 and now has an estimate of 320 million users. This is fairly new software that allows one to sync their Apple device to a network that isn’t on the computer. It is referred to as a cloud storage or cloud computing service. This cloud storage is something that one would use if they didn’t have access to a computer that had iTunes. They could store their data to the iCloud and it would be saved in the Apple iCloud storage system. The iCloud software that Apple offers sets them apart from other IS companies that offer similar products.

Theory #1: Competitive Strategy (Porter)
It’s mindboggling that at one point in time Apple computers were accused of being a last generation sensation. This is because a decade ago there were very few people that had enough faith that one day Apple would be one of the world’s largest information technology companies. One of those few people happened to be founder Steve Jobs. Steve Jobs spent the last decade assembling an information technology powerhouse. This IT company contains the secret to the competitive strategy in this particular market. Apple, Inc. creates products such as the iPhone, iPad, and Mac Book that other IT companies, for the most part, can’t compete with. “Apple is pulling away in the smart phone market with roughly 120 million units sold since the iPhone first went on sale in 2007” (Magee David, 2011). That is just one aspect of how Apple has pulled away in this area. They are an IT company, but they don’t only produce computers; which was unheard of before they started diversifying the IT world. “The reason for Apple's compounding, growing success is a simple multiplier factor involving customers. Once they buy one product, like an iPad, Apple's other products like the iPhone or a laptop computer become a natural” (Magee David, 2011). Basically Apple products are considered almost addictive. This belief is due to the fact that once a consumer gets hold of one Apple product, they usually purchase other products that Apple offers because that way they are using different products but they all operate in a similar way. “Look at the iPad. It has no competition, 2½ years in. Last quarter, Apple sold almost 12 million iPads. Comparatively, Apple's biggest competitor -- Samsung -- sold 1.1 million tablets. Why? Companies simply can't build products as good, or Apple's stranglehold on the manufacturing supply chain prevents them from doing so” (Brownlee John, 2012). As far as the Mac Book goes, Apple has completely shut the computer world down. They have provided a machine that is able to do the same things as PC’s, but a lot faster and at a more efficient rate. These computers have driven other IT companies that produce computers crazy because they have no idea how they can compete with such a product. “Apple is in control of most of the world's supply of the panels necessary to make a machine that even comes close to competing” (Brownlee John, 2012). They have made it virtually impossible for any company in the same market to compete with them, so that in itself would be its competitive strategy in a nutshell.

Theory #2: Customer Focus Theory
Every company or business has a certain kind of consumer that they pride themselves on attracting. “Apple doesn’t target markets, it targets people” (Assay Matt, 2010). Apple, Inc. customer focus consists of teenagers, college and university students, young children, and just adults in general. What separates Apple from other similar companies and any company in general is the fact that “it targets people. It focuses on users. And Apple lets them decide how and where they’ll use its products” (Assay Matt, 2010). This is a huge factor in their overall success because they have the ability to attract a certain type of people and they can use the products how they want to. Exceptional companies focus on certain type of people and make products that they can use in multiple ways if they wish. Teenagers are one of the types of people that Apple targets. They use Apple products for social networking, socializing with friends, listening to music, and there are many games and other apps that they use on a regular basis. College and university students use iPads and Mac Books because they are very easy to take notes on and they organize the notes for the students. Not to mention all apple products are light and very compact so they aren’t a burden carrying around. People in the business world also see it as a huge asset to have an Apple product when handling business. These products allow them to get work done efficiently and communicate with clients easily. One of the best aspects of Apple products is that they are simple enough for a child to use as well as a non-tech savvy elder. This allows Apple to sell products to people no matter their age which is a huge advantage.

Theory #3: Social Network Theory
This generation has been one that has thrived on the ability to socially network. Not only because people want to socialize in their spare time, but because that is a huge outlet for companies to reach out to their consumers. However, Apple, Inc. has decided over time that they will not participate in the social media hype. Most big companies might be puzzled as to why Apple is this successful without reaching out to customers via social media especially when social media a huge way to communicate with their consumers. If one knows anything about Apple they know that Apple doesn’t feed into what everybody else is doing because they know that they are superior. “Apple doesn’t need to do social media itself – not when you’ve got millions of consumers more than happy to blog, tweet, video and podcast about their love for Apple and Steve Jobs”(Evans Mark, 2009). Basically Apple is such a big powerhouse that they feel it’s not necessary for them to promote for themselves through social media because they feel that their millions of customers would love to tweet about their products and how pleased they are with their Apple products. Which is more useful? How great their products are, or the customers who are actually buying and using the products saying how wonderful the products are? Apple feels that it’s more important for the customers to say it than the actual company saying it. “Another reason may be that Apple’s marketing campaigns are so good that social media is unnecessary” (Evans, Mark 2009). They have mastered what they do to the point that social media wouldn’t hurt them but it wouldn’t make them anymore successful than they already are. So why do it?

Theory #4: Technology Dominance
Apple, Inc. is probably the most well known company when it comes to the making of technology that everyone wants at all times for everyday use. “Apple's designs are, well, elegant. There is no better word for it” (Enderle Rob, 2004). Overall Apple is looked at on another level because not only the way their products actually function and the efficient operating systems, but the way they look and how appealing they are to the eye. Apple products are always looked at as attractive because they have great designs that aren’t comparable to its so called competitors. This company is one that offers hardware and software designs. It has huge technology features such as the iTunes, iCloud, and just apps in general. These are some of the features that have dominated their competitors because they might have similar technologies but they are for the most part not as efficient and as easy to use as those created by Apple. “Apple takes a vertically integrated approach to its products, from the operating system to the user interface, to the hardware design, down to the selection of individual parts used in the device” (Lam Wayne, 2011). Basically they are dominating in every aspect of technology possible when it comes to IS companies. "For example, Apple even uses its own applications processor design in both the iPad and iPad 2. This gives Apple greater control in multiple areas of product development." (Lam Wayne, 2011) As time continues to move Apple is making changes to the small deficiencies that it did have. An example of that would be some people were complaining about how the iPad was somewhat too bulky to be considered something similar and as compact as a tablet, but now the iPad Mini has come into the picture so that cancelled out any problems with the size of the iPad. Overall this company that was once known as Apple Computer Inc. is has become the technology powerhouse in its particular market and they have made it almost impossible for any other company to compete due to their technology versatility and competitive strategies.

Conclusion
Overall Apple, Inc. is an outstanding company all across the board. They have become a legitimate powerhouse as far information systems companies are concerned. They have developed strategies that other companies are now realizing that they can’t compete with. They have dominated in areas that were discussed previously that include but are not limited to the ability to maintain a competitive strategy, a consistent customer focus, the ability to have an impact through social network without actually engaging in it, and just overall the dominating the market technology. Apple has transformed the idea competitive strategy in the information systems world. They have made it almost impossible any similar company to compete with what they have to offer their consumers. Their customer focus is like no other. It’s safe to say that their products appeal to any and everybody. They pride themselves in making their products in such a way that’s appealing to all kinds of people. That’s why they have such a large amount of customers. Apple doesn’t necessarily believe in participating in social networking. The consumers of their products do enough of that for them. Also they look at their company as such a prestige business that they don’t need to do that because they already are the second largest information system in the world. Technology dominance is another aspect where Apple has taken over. Their products are known for looking the best as far as the design and the way the products run. These theories are just some of the ways that describe why Apple, Inc. is as successful as it is. As far as recommendations go there isn’t much one could recommend a company that’s as prestigious as Apple except to continue to dominate its field. There is always room from new ideas especially now when this generation is always focused on the newest form of technology. So Apple should continue to brainstorm with new ideas about products. They shouldn’t get comfortable just because they are at the top now, they need to stay focused and continue to work on what has gotten them to this point that they are currently at.