RMGT1213-01-2307-UNIRAZAK- INTRODUCTION TO E-COMMERCE
Group Assignment: E-Commerce platform (Apple)
Provided For: Madam Zuria Suzieana
Submission: 5/10/2023
Provided By:
No Name Matric Number
1. Dhiya Dhaifina L21701025
2. Fatin Liyana L211101014
3. Uchira Nambiar L211121054
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TABLE OF CONTENT
No Content Page
1. Introduction 3
2. Company Background 4
3. Products and Services 5
4. Stakeholders 6-7
5. Target Market 7
6. Competitors 8
7. Marketing and Promotion 9
8. Business Model 9 – 10
9. Advantages and Disadvantages 10 - 11
10. Conclusion 11
11. Reference 12
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INTRODUCTION
Apple Inc started its trending in between 2007-2011 especially among teenagers. This is
mostly due to the unique design, market approach and technology that was made. In short,
Apple has its own identity that others don’t in term of design wise, operating system and its
own product collection. Apple is known for B2C company type that stand for those who
operate on internet and sell products indirectly or online. For instance Apple have their own
official website such as Machine and Switch which is a part of recognize Malaysia Apple
Reseller. The E- commerce has been widely used nowadays, Apple not only resell in its own
official platform but also participate in other E-Commerce platform such as Lazada, Shopee,
Amazon etc as a part of certified sellers. There is difference between using the official
reseller website and other E-Commerce platform from the perspective of buyers option.
Majority of the Tech Companies offers their business to do student discounts in order to make
more profit as many students may not willing or able to pay for a full price yet willing to
purchase at a discounted price. By offering discount for the student will decrease the profit
per unit, however it will increase the gross profit by selling more units. Furthermore, the
student discount might be tempting yet the offers is mostly limited to online purchases.
Secondly, Apple B2B company focus on business to Business strategy where they does not
only sell products to customers, Apple also offers to schools, organization, government office
and other businesses. For instance, Apple collaborate with MAXIS, Celcom, DIGI etc to
exchange services, products, information, and sales.
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COMPANY BACKGROUND
Apple Inc is considered as one of the biggest companies globally with US$394.3 billion
revenue in 2022 alone. The reason behind its name is due the company had shifted computers
to consumer electronics in 2007 after official success of Mobile Device since 2007 – 2011.
Apple Computer, Inc. was founded on April 1, 1976, by Standford college dropouts Steve
Jobs and Steve Wozniak, who brought new vision to the company to changed how people
viewed computers. The original idea was, Steve Job and Wozniak wanted to make computer
small enough for people to have them in their home or office that is user-friendly.
Steve Job and Wozniak started to build Apple I in the home garage without a monitor,
keyboard, or casing which they add on later in 1977. In 1980, Apple begin its revolutionized
the computer industry with the introduction of first colour graphics with the sales of $7.8
million in 1978 to $117 million in1980 the year of Apple going public. Wozniak then decided
to left the company and handed over Scully as the president and in 1983, Jobs left Apple Inc
to found his own company called NEXT Software and purchase Pixar from George Lucas
which later become a success in computer animation industry of movies Toy Story, A Bug
Life, Monster, Inc and Finding Nemo etc. through 1980 until 1990, Apple is still doing well
until Steve Jobs still has plan that he wanted to pursue. Jobs started to deal with Adobe,
Creator of Adobe Portable Document Format (PDF). Together the two company make a
known publishing of desktop. Apple president had face difficulty later as in 1990, they turned
down Microsoft licences offer from Bill Gates to its software that made the decision to
backfired as Microsoft, Windows operating system a similarity featured graphics to Apple
that became one of toughest competition.
Apple market share has dropped due to the incident of lacking operating system in their
products in 1990 to 1996 and it was dictated to be doomed. Until 1997, Scully decided to call
Steve Job that found the NEXT software and was asked to save the company future. He was
then appointed as CEO and was officially appointed in year 2000. Jobs decided to make some
changes and forged alliance with Microsoft to create MAC version of office software. Not
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long after, Job revamps the computers and introduce iBook followed by iPod an mp3 player
which became market leader.
The iPhone touch screen later was introduced in 2007 as one of the world most successful
products and the company has released several other types of versions since. Not long after
the success release, Apple decided to drop the “Company” behind its name and changed to
Apple Inc instead.
PRODUCTS AND SERVICES
Apple focus on consumer electronic products such as Mobile Devices, Computers,
Accessories and Digital watch. What make Apple stand out the most, they have their own
identity brand that attract it’s Fan base. What makes their product standing out is the software
system that is conducted by ios that only applicable for Apple. Apple is also known for the
fancy cost that start the lowest RM2,000 as a starting price and at least RM6,000 for latest
version. Despite the product is quite pricy, this does not stop the consumer to continuously
supporting Apple due to the convenience and simplicity technology that came along. For
instance, Apple is known for its software durability as a single devices could lasted more than
5 years an some 10 years for the computers despite the software is no longer supported.
Secondly, Apple also has its own side charges and subscription when purchasing their
products and services such as Apple Music and iCloud, Apple entertainment Movies, Tv
shows books and other app purchase. Apple also focus on deliver data, files, photos etc
through a finger tips that is called Airdrop. iCloud subscription is a monthly subscription that
could be cancel anytime. Majority of devices nowadays don’t use SD card holder. As Apple
invented iCloud, many tend to see this feature as convenient. The services that provided is
one of the excellent services as every customer is counted. Apple also known for the Apple
ID feature where data could be kept, transferred in within the log in button. Many I concerned
of the matter of forgotten their ID. However, Apple do kept record on registered Apple Id
users and could be retrieved from their customer service centre. Their phone call service is
not charged in the billing, and the customer will assist if there is a technical errors remotely
from a central point in order to reboot, reprogram the system from home. Aside from that,
other company such as MAXIS, Celcom offers technical services if the purchases were made
from them, free of charge as long as within the warranty period. All of Apples product come
with an issued warranty on a certain period to secure its product in case of unfortunate event
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such as phone loss, theft and having an internal issues . Further more, if the warranty has
ended, customer can renew any time and cancel any time that is suit.
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STAKEHOLDERS OF APPLE
As one of the big companies all over the globe, Apple has adapted both internal and external
stakeholders into the organization. By doing this, the company could ensure a bright future in
the organization by engaging and understanding the desires of the stakeholders.
In terms of the internal stakeholders, according to the article by M Rahman, he stated that
“The main internal stakeholders of Apple are the leadership team, employees, and
shareholders.” The leadership team in Apple Inc has divided into few top managements
which are the CEO, Senior Vice President, Vice President, and Chief Operating Officer
(Apple, 2023). This led towards effective leadership. Hence, has developed Apple into a
better shape. Other than that, Apple’s employees are one of the reasons why Apple has been
developing successfully in this era of time. Apple’s employees are the secret behind the sleek
and premium looking devices. As well as the high quality of services that they have provided
since operating the business. The article by M Rahman continues to mention “Apple’s
employees play a big role in its growing success. However, according to several sources,
many employees are very unhappy with its plan to show more ads to iPhone users.” Apart
from that, he also mentions “Apple has both individual and institutional shareholders. Some
of its executives have shares worth of millions of dollars” Which explains how successful
Apple is around this period.
Further, Apple also implemented the external stakeholders that hold Apple’s success such as
their customers, suppliers, competitors, pressure groups, local communities, and the
government. According to the same article by M Rahman, he stated that “The number of
active Apple devices is around 1.8 billion. This figure is mind blowing and provides a clear
indication of the number of customers Apple has globally. Generally, most users are loyal and
do not switch to competing brands.” Nonetheless, with all the loyalty, few users would still
feel unhappy or unsatisfied with the products. Like any other company brands, there must be
competitors to compete against each other to step ahead from any of them to become more
successful. According to M Rahman he mentions “Apple has a number of big competitors in
the smart phone market e.g. Samsung, Huawei, Xiaomi, and Oppo. Likewise, its main
competitors in the personal computer market are Lenovo, HP Inc, Dell, Acer, and Asus” More
about this to be discussed later. Other than that, the suppliers of Apple has helped Apple to
develop even more. M Rahman stated that “Apple works with hundreds of suppliers in many
countries, notably in the USA, China, Japan, South Korea, and Taiwan. These suppliers play a
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vital role in the production and the distribution of its devices. Apple has made some good
progress over the years to protect the people in its supply chain; however, many of its
suppliers have been found violating its labor and environmental policies. Major issues such as
labor violations, harassment, and underage staff have been found in many Apple’s factories.”
TARGET MARKETS OF APPLE
In order to maintain the success in the organization, Apple has their target markets of certain
audiences that they could ensure be loyal to their products and services. After years of
producing diversify products and services, Apple has developed more female users than male
users.
According to the article that has published by Start.io, they mentioned “The Apple target
market includes mainly younger to middle aged consumers, and the brand is more popular
among females than males. Although the Apple customer base is stronger in North America,
Apple is popular throughout the world.The typical Apple customer profile is of middle to
high economic status, enjoys the small luxuries in life, and appreciates technology and
design.” As the brand expanded, the products and services also expanded to maintain their
profitability. Not to mention that each of their products has specific target audiences to ensure
more diversification happens. For instance, iPhone target markets are different than MacBook
or Apple Watch. This is because Apple’s market segmentation focuses on 4 perspectives
which are demographic, geographic, behavioral, and psychographic.
Based on the same article, they stated that “Apple customer demographics include people
aged 18 to 45. They are either single, married with no kids, or married with young children or
teens. The Apple target audience skews strongly female, with around 66% female to 34%
male customers. Among Apple primary customers, you’ll find less older or retired
individuals. The brand is most popular among millennials, followed by Gen X.” Other than
that, they also stated that “Apple market share is largest in the Americas, bringing in just over
$37 billion in net sales in Q3 2022. In the US, Apple is by far the strongest player in market
share among smartphone brands. Among MacBook users in the US, over half are from rural
regions and towns” In terms of the behavioral however, the article mentions that “The Apple
customer base has a strong preference for the iPhone, and are loyal users. This has led to
consistent growth of iPhone sales. In Q1 2022, 44.6 million iPhones were shipped worldwide.
An Apple customer analysis also shows strong loyalty to the brand’s App Store. In 2021,
consumers spent around $85 billion on app subscriptions and in-app purchases. Even so, most
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of the apps downloaded by the Apple target audience are free apps” Lastly, their
psychological segmentation however on the other hand stated in the article that “Apple
customers are generally financially stable and are not high risk takers. They enjoy the comfort
of the Apple brand and the quality and security it represents. 20% of owners of both an
iPhone and iPad say that “switching ecosystems would be harder than switching banks”.
They are also loyal: nearly 85% of iPhone owners plan to buy another one.”
COMPETITORS OF APPLE
As mentioned before, Apple has quite a large number of competitors all around the world.
Thus, that does not stop Apple from developing their business even more and becoming
recognizable in each country.
As stated in the previous article, they mention that “Apple offers a wide range of consumer
tech products and services, so Apple competitors differ somewhat depending on the category.
In the smartphone category, the main competition is Apple vs Samsung. In Q2 of 2022,
Samsung had the highest market share of 21.8% compared to iPhone market share of 15.6%.
Other iPhone competitors include Xiaomi and OPPO.” They go on to mention that “In recent
years, Apple has entered the global content streaming market with Apple TV+. In March
2022, the number of paid subscribers to Apple TV+ was estimated at 25 million. There are an
estimated 50 million more users who have access to the service for free, as a free subscription
is provided for one year with purchases of new Apple devices. Although Apple competes for
the Netflix target market, it does not yet come close in terms of market share. Netflix has over
27% share of the TV streaming market, despite losing a record number of subscribers in the
past year. Apple TV+ market share reached over 6% for the first time in September 2022,
picking up subscribers as other competitors lost ground.”
Therefore, it shows how Apple was hungry to achieve more than the other competitors. They
have planned their strategies and products for years to perfect everything before and after the
launch of any products and services. Hence, they will do anything to maintain their brand
name in the business industry.
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AppleInc. is a transnational technology company known for its tackle, software, and services.
While Apple primarily operates through its retail stores, it does have an online presence
through its sanctioned website. Let's explore Apple's website marketing and elevations,
business models, as well as its advantages and disadvantages
MARKETING AND PROMOTIONS
Product Showcases Apple's website serves as a central mecca for showcasing its rearmost
products, including iPhones, Mackintoshes, iPads, and more. It uses high-quality illustrations
and videos to engage callers.
Online Store The website hosts the Apple Online Store, where guests can buy Apple products,
accessories, and services like AppleCare and Apple Music.
Elevations and Abatements Apple sometimes offers elevations and abatements on its website,
especially during special events like back-to-academy deals and Black Friday.
Apple Services The website promotes Apple's services, similar to iCloud, Apple Music,
Apple TV, and the App Store. druggies can learn about these services and subscribe through
the point.
Educational coffers Apple provides educational coffers, tutorials, and product attendants on
its website to help guests make the utmost of their Apple bias. Student discount price Yearly
promotion buy 1 get free airpod etc
BUSINESS MODELS
Tackle Deals Apple's primary business model revolves around dealing with decoration tackle
products like iPhones, Mackintoshes, iPads, and wearables. The company designs,
manufactures, and requests these biases.
Software and Services Apple offers a wide range of software and services, including the iOS
and macOS operating systems, the App Store, iTunes, Apple Music, iCloud, Apple Pay, and
more. These induce recreating profit through montly subscriptions, app deals, brand
collaboration and digital content.
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Retail and Online Deals Apple sells its products through both physical retail stores and its
online store. The website plays a pivotal part in online deals, allowing guests to browse,
configure, and purchase products.
Ecosystem Cinch- Apple's business model also relies on ecosystem cinch-heft, where guests
who enjoy Apple bias are more likely to continue using other Apple products and services
due to the flawless integration and comity within the Apple ecosystem.
Apple does not normally break out its income explicitly on its website, as of my most recent
knowledge update in September 2021. Apple's website primarily functions as an e-commerce
platform for selling its products and services, as well as a customer support and information
distribution hub. In Apple's financial reports, revenue made through the company's website is
often classified as "Online Sales."
To acquire the most up-to-date and thorough information on Apple's income breakdown,
including any particular statistics connected to online sales through its website, consult
Apple's most recent financial reports or statements. These reports are normally produced
quarterly and yearly and may be viewed on Apple's official investor relations website or
through financial news outlets. Apple's financial reports include a detailed breakdown of
income by product category, geographical location, and other factors.
ADVANTAGES
Brand fidelity Apple enjoys a strong and pious client base due to its character for quality,
design, and invention.
Ecosystem Integration Apple's ecosystem of tackle, software, and services offers a flawless
and intertwined stoner experience, which can enhance client fidelity.
Global Reach The Apple website extends the company's reach to guests worldwide, allowing
them to pierce and buy products and services from nearly anywhere.
Security and sequestration Apple's strong emphasis on stoner sequestration and security is
appealing to guests concerned about data protection.
Client Support The website offers expansive support coffers, including stoner primers,
troubleshooting attendants, and access to the Apple Support Community.
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In term of software system, you can say it lasts longer than other brands. Like iPhone can last
few years without updating etc.
DISADVANTAGES
Price Apple products are frequently priced at a decoration compared to challengers, which
can be a hedge for cost-conscious consumers.
Closed Ecosystem While ecosystem integration is an advantage, it can also be a disadvantage
for guests who prefer further inflexibility and open ecosystems.
Limited Customization Apple's products, particularly Mackintoshes, offer limited
customization options compared to some PC challengers.
Dependence on iPhone Apple's heavy reliance on iPhone deals means that the company's
fiscal performance is nearly tied to the success of this product line.
Competitive request The technology request is largely competitive, and Apple faces constant
competition from companies like Samsung and other device brand.
In conclusion, Apple's website plays a pivotal part in its marketing, deals, and client
engagement sweats. The company's business model, with a focus on tackle, software, and
services, has both advantages like brand fidelity and disadvantages similar to price
perceptivity and competition in a fleetly evolving request.
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REFERENCE
1. The SMB Guide. (January 11th,2022). What is Business to Business (B2B)?.
https://www.thesmbguide.com/business-to-business#:~:text=Apple%20is%20both
%20a%20B2B,businesses%2C%20government%20offices%2C%20etc.
2. Richardson. A. (April, 2023). The Founding of Apple computer, Inc.
https://guides.loc.gov/this-month-in-business-history/april/apple-computer-
founded#:~:text=Apple%20Computer%2C%20Inc.%20was%20founded,in%20their
%20homes%20or%20offices.
3. M Rahman. (2023, January 12).
www.howandwhat.net. https://www.howandwhat.net/stakeholders-apple-analysis-
apples-stakeholders/
4.
5. Apple Target Market Segmentation & Audience Analysis. Start.io - A Mobile
Marketing and Audience Platform. (2023, June 5). https://www.start.io/blog/apple-
target-market-analysis-apple-demographics-marketing-strategy-competitors/
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