We’ve all heard 9 in 10 new businesses fail in the first year. Even the ones that do succeed don’t make any money for the first few years. This can make starting a new business seem pretty bleak. Why then do people take such risk? I think we have to consider where we would be today if these innovative people didn’t. What would we do with do with our evenings if it weren’t for Mark Zuckerberg? Thank goodness for Tim Berners-Lee. Without him, we would have no internet. Finally, we owe a big thank you to Steve Jobs. His brilliant, creative mind brought us the Mac computer, which led to the IPhone and ITunes. Starting a new company is a challenge, but it can be so rewarding. Creating a successful company takes more than just a good idea. It takes innovation, ethics, globalization, information systems, and e-commerce. In this paper, we wanted to discuss what an ingenious company and describe the tools they used to make them such a remarkable success.
How Apple used E-Commerce to Change the World
Apple came from humble beginnings. What began with two brilliant guys in a garage has transformed to one of the most successful brands in history. As of 2010, Apple had 301 retail stores in 10 countries, employed almost 50,000 full-time employees, and conducted 65.23 billion dollars in worldwide annual sales. Apple, of course, has innovative products that have changed the way we do day to day business. To get this product from vision to reality, however, took cunning and smart business decisions. One method that Apple has used very successfully is e-commerce. Apple would not be what it is today without it.
One way that Apple used e-commerce to further their business is with the use of stock. On December 12th, 1980, they sold their first stock to the public for $2.75. Today one share ranges between $250 and $300! Selling their stocks publicly has benefited the company for several reasons. One example is that they were able to make cash. The research and development of technology can be quite costly. It takes highly knowledgeable and skilled workers and it takes time. Without the money earned by selling stocks, developing the high tech products that encompass Apple today may have not been possible. The high stock prices we see today also project a high level of success. Many of us look at price as a level of prestige. If a company is able to charge a hefty price and are successful, that is an indicator that they are worth investing in. When the stock price drops for a particular company, people lose confidence in that company. By Apple maintaining their high stock price, they have boosted their image and maintained trust with their stakeholders, customers, and business associates.
Another way that Apple has used e-commerce to further their business is through online sales. Apple started in the United States, but its trademark apple icon can be potentially recognized anywhere in the world today. They have built a very successful website. It has been successfully designed to accommodate 107 different countries. When viewing the different websites, you can note differences and language and subtle changes in design to represent differences in cultures. One thing that remains the same, however, is that Apple maintains a very simplistic, elegance. When visiting their site, their products will be showcased on a plain white background. The website runs very efficiently and is not cluttered with unnecessary tabs and ads. I believe that this is a big part of their international success. This international success is crucial for them as their income statement for 2010 shows that international sales accounted for 44% of quarter revenues.
Finally, Apple has changed the way many of us buy music. iTunes has taken the world by storm! This means that people won’t have to buy an entire CD because we really like one song. Now we can log onto iTunes and buy that song for only $.99. Then we can transfer that device from our...
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