Apple IPhone: Brand Forecast Homework Essay Sample

Current Business Situation and Sales Projections

Apple’s iPhone is arguably the most popular and recognizable smartphone on the planet. Since its launch in 2007, the corporation has sold over 1.3 billion iPhones. Between the years 2001 and 2018, the stock price of Apple had increased by an impressive 15,000%, which makes the company’s current worth at $1 trillion. Apple has a strong global presence: 18% of all smartphones bought worldwide are iPhones, and the corporation earns 87% of all smartphone profits (“12 Apple statistics marketers should know in 2018,” 2018).

Haselton (2019) reports that for the fiscal third quarter of 2019, the company reported a revenue of $25.99 billion. Other sources such as Wall Street are estimating iPhone revenue to be at $26.31 billion.

While the metrics themselves are impressive at first glance, in actuality, they show a 12% decrease from the reported $29.47 billion when comparing year-over-year. Apple’s CEO Tim Cook, however, expressed his optimism about the future of the company. He said he was encouraged by the popularity of in-store trade-in and finance programs with customers. According to Tim Cook, the active install base of the iPhone had reached an all-time high in 2019 (Haselton, 2019).

Apparently, Apple is trying to offset the concerning trend by focusing on providing more services to customers such as Apple TV Channels and Apple News + and upcoming products, Apple Card and Apple TV +. Besides, the company is offering better deals to those customers who trade their old iPhone for a new one.

As seen from these findings, the current situation is quite ambiguous, and it might be not exactly easy to make precise predictions. One great problem with forecasting iPhone sales is the quality of data available. Neil Cybart, the leading analyst at the Above Avalon, claims that the figures published by Apple itself do not add up. In particular, the analyst criticized Apple for withholding unit sales data, which must have been done for a reason. According to Cybart, iPhone sales are going worse than Apple lets the world know. Namely, iPhone shipments are crashing by one quarter, and Apple has lost as much as $1.5 billion in iPhone sales. Looking at these independent estimates, it is safe to assume that there is an observable downward trend that is likely to continue.

The Impact of Trends

IPhone sales numbers are impacted by a variety of political, economic, and social factors. One social trend that might be responsible for the decrease is the decline of consumerism. Canavan (2019) explains that the new generation is no longer attracted to passive consumption; instead, it is looking for enriching experiences. Besides, young people are concerned about the future of the planet and do not see it as ethically permissible to waste resources.

IPhone’s strategy to launch new models every year and encourage customers to trade their old phones for newer ones is not aligned with the environmentally aware, anti-consumerist public sentiment. Apart from broad tendencies, there are current events that hurt iPhone sales such as the outbreak of the new coronavirus in China. Feiner (2020) reports that Apple has lost about 5% from its all-time high Wednesday of $324.34 per share following the news about the epidemic. In summation, iPhone sales are likely to continue to be affected by overarching social tendencies as well as unpredicted events.

References

12 Apple statistics marketers should know in 2018. (2018). Web.

Canavan, B. (2019). Consumerism in terminal decline as millennials stay away from shops. Web.

Feiner, L. (2020). Apple is down more than 5% from all-time high on fears coronavirus could hurt iPhone sales.

Haselton, T. (2019). Apple’s iPhone sales miss estimates, down 12% versus last year

Axon Enterprise, Inc.: SWOT Analysis

Axon Enterprise, Inc. specializes in technology and weapon items for law enforcement and is one of the leading companies in its industry. A necessary activity of such a corporation is performing a SWOT analysis in order to be aware of the company’s situation. SWOT analysis is a general tool examining an organization’s internal strengths (S) and weaknesses (W), and external opportunities (O) and threats (T). The current paper provides a SWOT analysis of Axon Enterprise, Inc. and discusses the implication it provides for the firm’s management.

One can observe numerous strengths of the Axon Enterprise, Inc. First, marketing is highly active and productive, which is proven by many followers on social media like Facebook and Instagram. Second, the corporation has been staying in the market for a considerable length of time, thereby provoking a higher trust of customers, employees, and partners. Third, while almost every state possesses Axon’s outlets, the company also has an interactive and informative website with considerable web-traffic and e-commerce, which maximizes the availability of products. Thus, several strong points of the business maintain an effective organizational process.

On the contrary, the corporation has some weaknesses to consider. One can notice a high employee turnover rate and a lack of work morale in the company. There are also liquidity issues in operations because higher liabilities contrast current assets. Another weakness is the low research activity with the last investigation published in 2017 (Ariel et al. 293) and the only product as a research topic. Therefore, Axon Enterprise, Inc. has to face some gaps in its management.

As to opportunities, they are the growing social media activity and the overall increase in the time which people spend on the internet. It is also worth mentioning that consumer behavior and the current economics keep gathering pace providing a growing number of customers. Furthermore, transportation expenses diminishing, which allows lowering products price and attracting more purchases. In short, several opportunities are presenting significant possibilities for the development of the company.

However, there are also some threats to consider for Axon Enterprise, Inc. In the first place, technological development is swift, and the business has to keep an eye on it regularly, not to mention the emerging of new companies that increase competition in the industry. Moreover, weapon and policeman software are controversial topics for public opinion, which is likely to cause prejudice in potential customers. Finally, changing legal policies and diversity in the law systems of different states make the industry unstable and unpredictable. Thus, the threats present several notable challenges for the firm.

Axon Enterprise, Inc. has chosen a beneficial strategy of consumption involvement because a meaningful part of the PR strategy is devoted to the prospering and vivid social network life. The company pays attention to the creation of a favorable image of their activity by the production of justifying emotional media content. Nevertheless, the firm should address employees’ motivation to stay in the company. Otherwise, the corporation is likely to lose much of potential productivity and needlessly spend resources on training new workers. Finally, research engagement is needed to be aware of the latest technological advancement and to maintain being a sound player in the market.

To sum up, the SWOT analysis provided an extensive inspection of the current situation of Axon Enterprise, Inc. Although the company has developed online activities, along with a beneficial network of offline stores, it faces high employees’ turnover, low asset, and a shortage of research. The opportunities, therefore, include increasing social media life, high purchasing power in the current society, and beneficial transportation conditions.

At the same time, such threads as the adverse public opinion, the more profitable rivals, and the lagging behind the fast technological developments have to be taken into account. The current paper suggested some strategies to consider the four points and to use them for the companies’ strengthening in the industry.

Work Cited

Ariel, Barak, et al. “‘Contagious Accountability’: A Global Multisite Randomized Controlled Trial on the Effect of Police Body-Worn Cameras on Citizens’ Complaints Against the Police.” Criminal Justice and Behavior, vol. 44, no. 2. 2017, pp. 293–316.

Nike Inc. And Adidas Group: Business Direction And HR Planning

Industry Background

The sporting gear industry occupies a significant place in the business environment in Canada. The industry’s code, according to the North American Industry Classification System (NAICS), is 339920, which refers to sporting and athletic goods manufacturing (“NAICS Code Description”). The reason for choosing this business field is because it embraces a wide range of products and business entities that attracts more and more people each year.

The perspective growth of the business amplifies its importance and defines the relevance of some entities of the field to human resource (HR) planning analysis. In Canada, sporting manufacturing is an important constituent of economic and business processes which has its associations. Indeed, the Canadian Sporting Goods Association is a non-profit association that provides an opportunity to sport businesses to introduce their goods and information to the public of trends and the best gear in that specific field (Canadian Sporting Goods Association).

The industry includes the entities engaged in manufacturing different types of athletic and manufacturing goods, excluding footwear and clothes (Government of Canada). Thus, the breadth of the entities related to sports manufacturing provides multiple economic and labor market opportunities.

The scope of the chosen industry’s importance in Canada includes its contribution to different realms of business. More specifically, the sports gear sphere rapidly grows and increases the rates of shipments and exporting. According to the data presented on the official website of Government of Canada, the “total exports and apparent domestic market increased at average annual rates of 5.8% and 8.3% respectively” (para. 5). The rise in shipment is caused by the high demand both in domestic and export markets.

Overall, the trends in the industry are marked by the preferences of the customers, which vary from exercise, fitness, and hockey equipment to fishing, camping, shooting, pools, and other types of gear (Government of Canada). Such an array of products manufactured by a single industry contributes to its prospective development and the increase in diverse employment positions. The two companies that occupy a predominantly leading place in the sphere are Nike and Adidas.

Competitive Environment Scan

In order to analyze the issues related to human resource planning within the industry, it is necessary to review the business environment in which the entities operate. More specifically, one should define some crucial factors that contribute to the trends in the sphere. As for the sporting goods manufacturing industry, the most influential factors that define the direction of the businesses within it include cultural, socio-economic, and labor market. The analysis of the articles covering the issues related to the business environment in the designated sphere demonstrates that this industry is highly competitive and is continuously growing depending on the trends in society.

The first crucial factor is social trends, which emerge based on people’s preferences in leisure time spending. Indeed, since sporting activities become more relevant in a health-oriented society, sporting equipment is more likely to have higher demand (Heroux 320). Although the overall trend of popularized sports activities improves the economic scope of the industry, the mere reliance on the “changing tastes” of the consumers imposes some difficulties to the industry’s growth (Heroux 320).

Also, the particularities affecting local cultural factors might define the direction of the industry, For example, in Canada, hockey is one of the most popular kinds of sports, as well as other winter activities, such as snowboarding and skiing alongside with other informal leisure types (Heroux 320-321). Culturally, people in this country are more likely to purchase gear for hockey; thus, more businesses target this kind of product as the most profitable ones. Thus, the implications of the cultural factor on human resource planning might mean that a higher employment rate is expected in the industry. It is explained by the annually growing interest of the public in a more diverse array of sports activities.

Another important determinant of Canadian sporting manufacturing is socio-economic. It is apparent that the revenues of an entity that produces goods depend on the economic situation in the country. The level of income of the target population defines the scope of operation and the human resources requirements (Mahdi et al. 168). Also, such socio-economic determinant as the competition with other industries that occupy the leisure goods sphere, including books, films, video games, and others, influence the growth of sporting gear production industry (Government of Canada). Therefore, the trends in human resource planning align with the economic stability, income rates of the population, and the ability to succeed in the competition with other leisure industries.

Finally, the labor market that is changing toward the creativeness and soft skills prioritization define the direction of the industry’s development of human resources-wise. With the growing demand for creative approach, problem-solving, personal growth, and technological advancement in various fields, sports gear manufacturing industry might meet the requirements by following the tendencies of creative solutions, customer orientation, and innovation.

This factor relies on some pedagogical implications retrieved from the article by Sokolowski (166). The research found that the majority of university students do not receive necessary practical skills in sporting goods design, thus limiting such individuals to the choice of employment positions that do not require particular technical qualifications (Canadian Sporting Goods Association). Thus, human resource planning is designed around the idea of inclusion of the individuals who have creative thinking and are willing to adopt specific skills via training and development programs.

All the above-mentioned factors constitute the competitive environment of the sports gear sphere in Canada. The scan shows that there are both opportunities for growth of the businesses engaged in the manufacturing of sporting equipment and the issues that might impede rapid development. Thus, the external environment that defines the development of sporting gear manufacturing in Canada affects specific entities and should be used when choosing their business strategies.

Business Strategies of 2 Companies Within the Industry

Nike Inc.

Nike Inc. is one of the leading companies that work internationally and produces high-quality products for an array of sports activities. The company’s global revenue from the operations on a global scale reaches the point of $6/3 billion (Heroux 320). According to the company’s website, its mission is to “bring inspiration and innovation to every athlete in the world” (“About Nike” par. 1).

The company is following a growth strategy by pursuing such strategic priorities as innovation, building a diverse and inclusive team of employees, making social and community impact, and provide business sustainability (“About Nike”). All the designated strategic issues are anticipated to contribute to the ability of the company to win the competition and obtain a leading position in the market.

Adidas Group

Adidas group is a corporation that occupies the leading position in the global market of sporting goods manufacturing. The company’s strategic plan under the title “Creating the New” prioritizes the achievement of the best result in goods production, customer and stakeholders’ feedback, and leading in the competition. The strategy is designed such strategic choices as Speed, Cities, and Open Source (“Strategy”). The global revenue of the company is $8.2 billion, which saves Adidas the leading position in the global sport manufacturing market (Heroux 320). The entity prioritizes commitment as a stepping stone of successful teamwork.

The two companies are similar in the choice of their strategies for growth. They also share the same patterns of prioritization of the quality of their products, as well as their applicability to a variety of customers. Also, both companies emphasize the importance of innovation as a driving force of their operations. However, Adidas is more transparent about the strategic goals and the plan of actions that designate the corporate mission. Nike, on the other hand, is more dependent on the commitment to communities, diversification, and inclusiveness as a way to reach the widest range of athletes.

Overall, both companies align with the factors that define the environment of the sports gear industry. Nike and Adidas prioritize the safety of their employees, their professional growth, and potential development. The training programs provide an opportunity for obtaining the necessary skills to contribute to the company in the future. The wide range of facilities that spread across the country and beyond provides more opportunities for promotion and open more space for personal development.

S.W.O.T. Analysis

Nike

The S.W.O.T. analysis of the company’s human resources is carried out on the basis of the data retrieved from the company’s official website and the scholarly article by Mahdi et al..

Strengths Weaknesses

  • the employees are experienced due to the long and successful history of the company;
  • the workforce is inclusive and diverse;
  • all employees adhere to the corporate culture requirements and exchange experience for better business outcomes;
  • professional designers use innovation to meet the customers’ requirements.

  • limited opportunities for promotion without specific qualifications;
  • non-sufficient working conditions in facilities outside Canada;

Opportunities Threats

  • the improvement of customer needs’ analysis might facilitate the scope of employment opportunities;
  • technological advancement could attract more specialists.

  • overall trends of workforce aging might endanger the company;
  • the lack of potential employees with specific technical skills for working in manufacturing;
  • the growing industry implies the emergence of new competing entities that might impose the strategic growth of the company.

Adidas

The S.W.O.T. analysis of the company’s human resources is carried out on the basis of the data retrieved from the company’s official website and the scholarly article by Mahdi et al..

Strengths Weaknesses

  • the leading position on the global sports gear market provides an array of promotional opportunities;
  • the staff is highly competent;
  • the innovative and strategy-driven development process is based on the commitment of all employees;
  • teamwork is prioritized both within the company and in its joint performance with other entities.

  • the lack of staff that has specific technical skills obtained in educational facilities;
  • outsourcing is one of the main employment ways.

Opportunities Threats

  • global demand for sporting goods might provide more opportunities for the company’s growth and higher employment rates;
  • the high level of brand recognition contributes to the continuous growth of the company’s operations.

  • the growing sector of sports gear industry presents more competition and staff flow;
  • economic instability in the developing countries where the company has its facilities might impede the performance.

Works Cited

“About Nike.” Nike, 2020. Web.

Canadian Sporting Goods Association. “Canada’s Sport Industry Hub.” 2018. Web.

Government of Canada. “Sporting and Athletic Goods Industry Profile.” 2017.

Herouz, L. “Sports Outfitters’ Marketing Strategies: A Comparative Exploratory Study in the U.S. and Canada.” Advances in Economics and Business, vol. 5, no. 6, 2017, pp. 320-327.

Mahdi, H. A. A., et al. “A Comparative Analysis of Strategies and Business Models of Nike, Inc. and Adidas Group with Special Reference to competitive advantage in the Context of a Dynamic and Competitive Environment.” International Journal of Business Management and Economic Research, vol 6, no. 3, 2015, pp. 167-177.

NAICS Code Description.NAICS Association, 2018.

Sokolowski, S. L. “Sports Industry Meets Academia: The Pedagogical Development of an MS Degree Program in Sports Product Design.” Technology and Innovation, vol. 20, 2019, pp. 165-177.

“Strategy.” Adidas Group, n. d. Web.

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