Question

Please draft an analysis on the company

In your analysis, please include all the elements laid out:

Company: APPLE

•Company profile (overview of the company)

•Relevant industry characteristics

•Demand for the company’s products and services

•Supply of products and services, includes analysis of costs

•Company’s pricing environment: degree of price competition

•Financial ratio analysis: over time and compared with competitors

Answer 1

Apple is the American company and it is also the world largest market capitalisatised company which is known for making various technology oriented products and it is having any uniqueness in its product and it is able to price it's products higher due to the uniqueness of its products.

The industry it operates in is highly competitive and there is always lesser barrier for new entrants so there are a lot of new entrants in this market and the company is still able to retain a large amount of market share.

The company has been able to maintain its demand for product and it has been able to attract customers during various economic cycles and it has also been able to maintain the profit margin to a large extent.

the cost related to production has came down due to shifting of its manufacturing from United States to China and now China to India so there has been a reduction in the overall manufacturing cost unit is leading to increased profitability of the company.

the company have pricing power in its hands and it is able to maintain a high degree of prices for its products because of uniqueness and its target customers and goods also have an Elite consumption.

Financial ratios of the company has been best in the industry because liquidity ratio has been best because of lower debt of the company and lower repayment of the company in the short run and there has been no solvency risk due to higher cash on its books and there has been a better profitability ratios and it is almost returning 20% of capital appreciation every year for invested casual so when we are looking at various ratios we are able to find that the company has a a competitive edge against the competitors as it is able to have a lower rate and higher flexibility in its hands.