Apple Inc Was Established Commerce Essay


Apple Inc. was established in Cupertino, California in 1 April 1976 and is an American multinational corporation that manufactures electronic and computer devices and software product. The company had designed hardware like Macintosh computers, mp3 player iPod and iPhone. In addition, Apple also creates software like Mac OS X operating system, iTunes media browser and other multimedia software. Apple has around 35000 workers worldwide and has more than 250 retail stores worldwide. Apple Inc. was found by Steve Jobs and Steve Wozniak. (Santiago A Mirabal, 2009)

Task Environment

"The task environment includes sectors with which the organization interacts directly and that have a direct impact on the organizations ability to achieve its goals" (Richard L Daft, 2010). There are several elements that can effect an organization. The two factors focused on this assignment will be competitors and customers and clients.


"Competitors refer to those organizations that either offer or have a potential to offer rival products or services."(mbalectures, 2010). Just like any other organization apple also have competitors. When focused on the apple mobile phone products, the main competitor of apple is Samsung.

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Competitors of apple Inc. provide users with cheaper products. Nowadays every customer looks for a phone that can satisfy the needs and which has the latest technologies at the same time it must be cheap. For example the latest product by Apple Inc., this is the iPhone 5. With the release of iPhone 5 the competitors were also taken notice of. The most highly competed is the new Samsung galaxy s iii by Samsung. These two phones provide almost the same functions but Samsung has an advantage over apple when it comes to the price.

Another loss for the apple is due to functional difference. Which means the functions (things that can be done using the phone) competitors provided are better when compared. For example when iPhone 4s and Samsung s ii is compared. Samsung s ii offers the customers a wider screen than iPhone 4s, and also have a better processor as well as give the user the opportunity to expand the storage where apple have a fixed storage option. Hence results customers to buy galaxy s ii instead of iPhone 4s since everyone wants a phone that can do more.

Customers and Clients

Customer & Clients is one of the major factors in task environment. Customers are the recipient who purchases the company product and they are the ones who will affect the company's market. That is no exception to Apple. Apple trading is under B2C business where the company sells their product to the customers. At the beginning, Apple target customer is mainly for creative professionals because apple products were designed for graphical performance but it soon changes to individual customer when Apple started to release mp3 player like iPod and the most successful device iPhone. It is important for an organization to build customer relationship by fulfilling the customer satisfaction so that the company will be able to receive continuously support from the customer. To achieve that, Apple has provided their service through phone, internet and franchise worldwide and due to that, customer can actually purchase Apple product in home by either clicking on the web or calling their company with free delivery fees which is very convenient to the customer. Moreover, Apple also provides warranty and latest update to their entire product. For these past few years, Apple has been providing as much service as they could through all kinds of methods. Customers of Apple iPhone actually thinks that apple is placing customers as their best friends because if customer step out of the home, there will be Apple store in most of the shopping mall. (Arvidson, E, 2011) and (Huzefa, Et al, 2009)

Mega Environment

"Mega environment is also known as external environment. The external environments of an organisation are those factors outside the company that affect the company's ability to function" (Anderson A, 2012). The mega environment creates both risks and opportunities for a company.

Economic Element

Economic is the study of how wealth is created and distributed. (William M., Robert J., Jack R., 1988) Wealth means anything of value, including the products produced and sold by business. Those Economic factors which have influence the buying behaviour of consumers and institutions.

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The economics of business is broadly categories into two parts which is capitalism and socialism. Capitalism is an economic system characterized by private ownership of property, free entry into markets, and the absence of government intervention. However socialism refers to a wide range of thinking and political trends with the goal of a socio-economic element in which asset and the circulation of wealth are issue to control by the community for the aim of raising social and economic freedom, equality and cooperation.

Apple Inc. which is operates in capitalism. What the tactics used by apple to minimize corporate tax burden. Low-tax locations setting up in subsidiaries such as Nevada, Ireland, Netherlands, Luxembourg, and the British Virgin Islands, through these locations as much revenue as possible route.

Apple was paid $3.3 billion in corporate taxes in 2011 and earned of $34.2 billion in profits, an effective tax rate of 9.8%, which is considered low by corporate standards. (MacRumors, Sunday April 29, 2012 by Eric Slivka) The company's tactics depend on a difficult and disjointed system of tax laws over the world; it is complex for the United States to single-handedly command Apple to book more of its revenue in its home country, which currently has the highest corporate tax rates in the world when federal and average state rates are included. Apple has provided an official reaction to The New York Times, emphasizing its role in job creation in the United States, the tax payments it does make, and its generous giving.

Technological Element

Technological element is the technology that is used within an organization which it can effect in how a company will do its business.

Change in the technological environment has dramatic effect on the business. A company can put a lot of its resources in a particular type of technology, and may have made its business and training to see a new, more innovative and cost-effective technology to emerge. (Business dictionary)

Apple has created a factory built around innovation, and creating new technology that is easy for everyone to understand, use and interact with. The technology that got Apple known and successful is the technology that is used in producing PCs, laptops, iPods, and iPhones. It has more than one function; these products have creativity, new ideas, and are comfortable to use. As a result, Apple's biggest success is its ability to leverage its innovation processes to seize new opportunities in the marketplace and grow its business at an incredible pace. In addition, Apple produces two kinds of technology that are Software and hardware.

First, the software, which this company creates and develops, is a so ultimate and used only for the Apple's devices. iOS is an operating system that is created and developed by Apple. This software was released in 2007 for the iPhone and iPod touch. The interface of this program uses multi-touch gestures which make it very easy to use, Since Apple was the first company to come up with this technology it helped apple to be the top in the market. The original iOS was updated every time to include more functions and more services this helped to bring a new portion to the market.

Recently, Apple released the new version of iOS that is iOS 6 this operating system has many features that can help users to do what they need in a more fun and easy way. For example, it has Siri service which provides user the ability to ask and get answers about anything user would like to do in most of countries around the world.

Second, with the new operating system Apple also released the iPhone 5 on 21st of September 2012. IPhone 5 is thinner taller and has wider screen, this stylish smartphone has many different properties that customers used to find in iPhone 4s. Because of this, the new hardware released by apple can also be used in iPhone 4s, giving apple a huge advantages to be number one in the market. (Apple Inc, 2012)

In my point of view, Apple is a company that is known for its creativity and high quality product; this has helped Apple to remain number one in the competitive market.


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In conclusion, mega environment and task environment has major influences in an organization and its business. According to Apple Company competitors, customers and clients have obvious effects as a task environment. For example, the chances of being the leader company on the market become less every time as Samsung Company provides similar products as the iPhone devices that Apple produces. This high competition can't be ignored since this can highly affect Apple's business. Moreover, customers are very important for each and every organization, the entire business in any company depends on the customer satisfaction. Therefore Apple provides many different and easy ways to keep in touch with the customers and to satisfy them. On the other hand, the economic and technology element play a big role in Apple Company which are concepts of mega environment. Because Apple has been produced in capitalism economy, it allows Apple to make profit in the competitive market. In addition, Apple's technological strategy that uses to produces its products also, brings a huge profit. All these four elements have been a big influence to this great company's business.