APPLE INC CASE STUDY 6
AppleInc Case Study
Oneof the sustainability and ethical challenges for Apple Inc isenvironmental responsibility to reduce the effect of pollution of itsproducts when they become obsolete. The company faces an ethical andsustainability challenge of reducing the damage of the electronicwaste that emanates from its older products existing with consumersworldwide (Morrison,2015). Another challenge is management test of maintaining theleadership standards set by the former CEO and Founder Steve Jobs.According to Morrison(2015), the gap left by Steve Jobs at Apple Inc presented a challengefor the new CEO to sustain the company’s innovation agenda to Job’sstandards. However, the company has succeeded in producinghigh-quality products and services and demonstrating integrity inbusiness interactions.
Atthe same time, Apple Inc faces ethical issues regarding its products’quality and brand hitches. These are anchored on the firm’schallenge to sustain the quality of the products to sustain itscompetitive edge in the market. This is in the wake of the recentSmartphone competition, especially with the rise of cheaper androidrun tablets and Smartphones. However, the company has faced thechallenge successfully through regular product reviews and upgrades.For the past years, the company has been producing new versions ofits products, especially the iPad and the iPhone, on a regular basis(Apple Inc, 2015). This strategy gives the company a way ofmaintaining sustainability by correcting the mistakes of the previousversion and introducing new and exciting product features.
Anothermajor ethical concern for Apple Inc is the privacy of their tabletsand phones. This challenge arises from the features of the cellphones to collect data about their location, which is the location ofthe consumers. On the issue of sustainability the company faces thechallenge of environmental pollution from its products throughelectronic waste. Additionally, customers have criticized Appleplanning obsolesce hence affects the sustainability of theirproducts.
Customersegmentation is applied by Apple through the separation of customerswith the ability to afford products. This criterion gives Apple thehigh-end customer market segment. The company targets this highincome consumer segment by producing high end technology gadgets. Thecompany also markets its products in different segments, such as thelocal market, the European market, the Asian market and the Africanmarket. This segmentation helps the firm to customize its message toappeal to these markets.
Anothercriterion of segmentation is done by considering the geography andpsychographic and more so the features of the product, such as thespeed, performance, roominess and safety of iPods is high and up tothe modern customers’ expectations (Apple Inc, 2015). Additionally,the company considers all the ethical issue such as privacy,intellectual property, accessibility, and quality while producing theproducts.
AppleCompany has historically embraced corporate social responsibility inthe quest to promote its image and impact positively on the society.One of the main areas of social responsibility is educating workersin order to empower them to increase their performance (Apple Inc,2015). This is part of Apple’s strategy to increase productivityand capacity of the workers. Another social corporate responsibilityof the company is actively against environmental issues and climatechange (Apple Inc, 2015). According to the firm’s environmentalresponsibility report, the company seeks to reduce the impact iftheir products on the environment (Apple Inc, 2015).
Thecompany has also embraced environmental responsibility through theuse of renewable energy. In 2014, the company started using 100%renewable energy as a step towards reducing the strain on theenvironment through conventional energy (Apple Inc, 2015). The firmalso seeks to maintain recycling of products through by allowingconsumers to exchange the old products for new ones. Moreover, AppleInc supports reputable non-governmental organizations that work toreduce environmental problems and improve general public life.
Toachieve the corporate social responsibility, Apple has over timechanged the products and product categories to align to its CSRcommitment. For instance, the company started producing productsthat do not have Beryllium, as a way of ensuring that the iPhone 6,the iPad Air 2 and the iPhone 6 Plus are free from harmful elements,known to harm the environment after their obsolesce (Apple Inc,2015).
Inaddition, the products are distributed in corporate and logisticalstores that use renewable energy. According to the 2014 directivefrom the company, 100% of the Apple offices were run through the useof renewable sources of energy (Apple Inc, 2015). This is in additionto the increase in the quality of the products and gadgets meant toimprove the competitive edge of the company. Apple achieves thisbecause the renewable energy reduces operational costs and thequality of products is increased by the use of harmless technologies.Moreover, Apple updates its product with the release of new versionsthat respond to the changing customer needs. Hence, it createstrustworthy, efficient, profit and keeps shareholders` interest inthe minds.
Dueto the changing needs of the technology environment, the customerexpects that company to maintain its sustainability and ethicalpractice. One of the expectations is that the company will notproduce harmful product that do not adhere to the safety standards.For instance, customers expect the company to produce cell phones andtablets that do not pose radiation threats to the users. At the sametime, consumers expect Apple to regularly report on their status ofthe products and social responsibility trough sustainability andperformance reports of the company.
Atthe same time, customers expect the company to continually producenew products that meet the changing demands in the technologicalworld. While new products are desired, consumers also expect thecompany to adopt a sustainable innovation, which leads to theimprovement of the current products. According to Morrison (2015),the globalization of markets presents a challenge for the firms torespond to the different needs of consumers that are diversified bytheir social and economic disparities around the world. Moreimportantly, consumers expect the company to have a fair pricingpolicy, and effectively sustain it for the benefit of the buyers.
AppleInc, 2015. Apple.com, Retrieved From, <http://www.apple.com> 21October, 2015
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