Leslie Rene Hawkins, Mary Taylor, Jennifer Valdez
November 18, 2014
Competitive Strategies and Government Polices
Today, technology is one of the greatest power our society can have. The innovation of cell phones is one of the historic technological advancement in modern times. Over the past 40 years we have seen many changes in the cell phone industry. Today cell phones are the easiest way to communicate not only verbally but electronically. There was a time that cell phones were only for the rich and famous. Now different cell phone companies are competing with each other to try to put a cell phone in everyone’s hands. Everywhere you go you will see someone, talking, texting, or checking social media, no matter what the age or gender. Cell phones have impacted the lives of many people with the use of social media. Apple is one of the leading companies with its iPhone’s making it top seller in the industry. The cell phone industry has become more globalized more than ever with since the launch of the Apple’s iPhone. Other cell phone manufactures are racing to jump into the smartphone arena. With price and quality being an important factor to consumers, the iPhone has offered its customers that and much more. For new companies to enter this arena the have to be driven by their ability to develop new and updated smartphones while providing better coverage and service, and at the same time making it affordable to everyone. With new and upcoming technological phones and reasonable prices new companies are succeeding in different markets. When two or more companies merge not only do they become one they also can offer shareholders the ability to earn more money. According to the New York Times, as recent as the summer of 2014 T-Mobile and Sprint were talking about merging the two cell phone companies, (New York Times, 2014). As of now they have not joined forces. Merging T-Mobile and Sprint would be a horizontal merge since they are both in the same market or in competition with each other, but by merging would become one larger company. By merging together it would have allowed their customers to get updated technology without leaving the company. This merger would have benefited both companies offering different products to the original customers and hopes of gaining new customers to generate more revenue. Mergers not only create opportunities for new customers they also help create new opportunities for the economy. Mergers can also be vertical, for example if Sprint, the cell phone provider, and Samsung, the manufacture joined forces. Merging into a conglomerate T-Mobile and Sprint would have quickly moved from fourth and fifth place to second behind the Apple iPhone. Conglomerate mergers help increase revenue and bring new customer to any cell phone company even if it’s between a manufacture and service provider or two service providers as in this example with Sprint and T-Mobile.
Like any other business, Apple must maintain compliance with policies and regulations. In seeking to expand our business to other countries, we will need to ensure that we comply with the other countries regulations regarding any import and export taxes. This will eliminate violations that could lead to penalties and fines that would cause damage to the organization on a financial level as well as its reputation.
Current policies and regulations requirements are well-known and adhered to, but Apple’s legal department is continually working to stay abreast of expected changes that may affect the organization. Such changes will be more defined as we expand the company in China or other places outside of the United States. The management at Apple will ensure that everyone within the organization is aware of all regulations through training, but will also post the guidelines on the intranet for future reference and easy accessibility.