Internet and Global Finance Strategies
Within the present competitive business environment, firms are continuously looking for various strategies to be ahead of their competitors and achieve competitive market advantages. Many firms have identified that internet technology is a powerful tool to enhance competitive market advantages. The traditional organizations have identified that internet is a powerful tool to deliver value to customer and presently, the internet technology has enabled firms to coordinate and interact their value chain activities to customer with the objective of improving financial performances. These changes generally refer to as NBT (Net-based business transformation). The net-based business transformation is the substitution of traditional business operations from paper, fax and telephone-based communication into electronic business transactions with the objective to enhance tighter coordination with customer and suppliers, increase inventory turnover, enhance customer satisfaction, and improve time-to-market. Despite the potential benefits of internet to the improvement of firms' financial performances, there is still lack of systematic evidence regarding the process through which the internet contributes to the financial performances of Apple Inc.
Objective of this study is to investigate the impact of internet on the revenue and profitability of Apple Inc. within 5-year span between 2008 and 2012.
Theoretical Framework
The model of financial performance and digitalization argues that the major goal that makes firms to engage in net-based business is to improve their financial performances. Typically, firms' objective to engage in the internet based investment is to improve firms business value, which include profitability, market share, ROA (return on assets), ROE (return on equity), and gross margin. According to the model, the driving force that makes firms to engage in the net-based business is to enhance financial performances. The model further reveals that the strategy to evaluate a company financial performances is to use financial ratio tools which include ROA, ROE, gross profit margin, price-earning ratio, current ratio, quick ratio, gearing ratio, and evaluation of firm's balance sheet and comprehensive income statements. (The Irish Times). The study uses the model of financial performances and digitalization to investigate the impact of internet on the revenue and profitability of Apple Inc.
Company Overview
Apple Inc., formerly known as Apple Computer Inc., is a multinational Hi- tech company that designs, develops and sells computer software, personal computer and computer electronics. The company is the second largest IT (information technology) company by revenue. In 2012, Fortune listed Apple as the most admired company in the United States. The best-known company products are iPhone, iPad, and iPod music player. The company software includes iTunes media browser, iOS operating systems, and the Safari web browser. Apple Inc. has been the major Hi-Tech company that takes advantage of internet to boost its profitability within the last 5 years. Apple sells its product globally through online stores, third part cellular carriers, retail stores and direct sale forces. (Apple 2012 Annual Report).
The paper provides the comprehensive impact of internet on Apple Inc. financial performance between 2008 and 2012. The paper uses the 5-year financial records of Apple Inc. To evaluate the impact of internet on the company financial performances.
Impact of Internet on the Apple Inc. Financial Performances
Bughin, et al. argue that internet has changed the way million of organizations transact businesses globally. Essentially, internet has become an essential component for billion of people and businesses around the world.
"The adoption and use of ICTs such as the Internet makes it cheaper and easier for firms to extend their markets, manage their operations, and coordinate value chains across borders. By lowering the costs of transactions and information, technology has reduced market frictions and provided signi-can't impetus to the process of broadening world markets. ICT fosters globalization by declining coordination and transaction costs and creating new and expanded markets with economies of scale." (Kraemer, Gibbs, and Dedrick, 323-324)
Apple Inc. has used the internet to revolutionize the method the company offers its product and services to customer. Typically, iTune is one of the unique Apple's products. iTunes is a free application that allows Apple consumer to download different applications into their smart phone, personal computer, iPod, iPhone, and Apple TV. With internet technologies, it is possible for consumer globally to download the applications, organize music, and browse movies and TV shows. Moreover, Apple Inc. also introduces iCloud, which assists consumer to instantly access the iTune library on their iPhones or personal computers. With the power of internet technologies, Apple has tremendously increased its profitability in the last 10 years. For example, the iTune contents have reached one billion people in February 2013. Apart from individual consumers who download iTune contents for personal enjoyment through the internet, educators in 30 countries create iTune U. courses to deliver educational materials to their students. More than 155 countries could access these education courses via iTune.
Moreover, Apple has used network of internet-online store to reach its customer worldwide. Since Apple operates in multiple countries, the company creates different online stores in all the countries that the company operates. Using internet technology, Apple...
Exporting apparel to France would reveal a slightly similar difference. As integrant part of the European Union, France has removed numerous financial barriers in relationship to other EU member states. It has however intensified its barriers relative to product quality and sanitary standards. In terms of the direct relationship between France and the United States, this is generally a positive one, revealing mutual gains and lack of controversy. Efforts are
It is also interesting to comment on the article's evaluation of the potential future trends for the companies in developing countries. The article evaluates a closer integration of these companies in the global market. This is something that is potentially bound to happen. Indeed, these companies are already playing a more important role on a regional level by investing in neighbor economies. Recently, a Kazakh corporation purchased a Romanian fuel
Global financial Crisis (GFC) The present Global Financial Crisis (GFC) has been considered by the financial experts and economists as the worst financial crisis apart from 1930s Great Depression. The GFC led to the collapse of large financial institutions and downturns of the major stock markets globally. The crisis led to the failure of several key businesses and s significant decline in the economic activities. The GFC started on the U.S.
Global Fighter Jets Marketing Plan Marketing Vision Global Fighter Jets is poised to provide customers with high-edge military aircraft specifically to combat fighter jet. Our marketing efforts will be geared towards customer's reassurance that we are the first when searching for military fighter jet such as F-35 fighter in Israel. Our key to success will center on the marketing strategy that we will implement, and our marketing strategy is the marketing mix
Internet Technology, Marketing, And Security Reasons why social media marketing has become exceedingly popular among businesses of all sizes Business marketing is one of the most lucrative activities that enable a business to reach out to its consumers in the market. The inherent values within business marketing are creation of awareness and traction of customer preferences and tastes towards the qualities therein in the product. Social media marketing is a recent activity
Job availability also increased in finance and insurance, professional and technical, real estate and retail trade industries. Monster's new index fills a gap that has existed in tracking online help-wanted ads, said Monster.com founder Jeff Taylor. The online index "really becomes more relevant as we begin to move into recovery" of the economy, he said (Medill 2004)." The article goes on to contend that the other internet-recruiting firms such as
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now