Nov 15, 2018 in Coursework

Abstract

The paper gives a comparison between Amazon.com Inc. and Apple Inc. These two corporations are majorly known for their dealings in electronic equipment. The paper begins with background information on the two companies starting with Amazon.com and then Apple Inc. where it provides a summary of their various products. The paper then shed light into the differences that majorly exist between the two corporations. The differences revolve around the sizes of the two corporations, the amount of revenue they generate from their sales and the strategy they employ in their efforts to realize the selling of the products within the various markets that they operate. Moreover, there is a difference in the criteria they use to keep their customers loyal to them and the labor relations the two organizations use. Additionally, the paper will demonstrate the similarities between the two corporations. The study reveals that they are similar in terms of their systems of creating value and the compelling purpose that makes them realize their mission and vision.

From the History Amazon.com Inc. and Apple Inc.

Amazon.com Inc. is an electronic multinational company with its headquarters in the United States. Currently, it is regarded as the world’s largest online retailer of electronic components that started its operations as a book store online (Lusted, 2012). It has diversified its products and currently deals in jewelry, food, toys, apparel, furniture, software, electronics and video games. It also manufactures consumer's electronics such as the Amazon kindle reader e-books and the kindle computers for fire tablets. Either, it provides computer’s cloud computing services. The company operates various websites in countries like the United States, France, the United Kingdom, Canada, Germany, Spain, Japan, Brazil, China and Italy. It was founded in 1994 and incorporated in the same year in the Washington State where it began its operations.

Apple Inc., on the other hand, is also an American Multinational Company that undertakes to developing, designing and selling computers, computer software and other electronics. The company is best known for producing products such as the iPod music players, Mac computers, iPhone smart phones, and iPad tablet computer. Moreover, it develops softwares such as iOS operating systems, OS X, iTunes, iWork and iLife product creativity suites, and Safari web browser. The company started as an exclusive computer producing company in the year 1976. However, by the year 2007, it shifted focus to the production of other consumer electronics when it ventured in the production of the iPhone smart phones. Statistics shows that, in terms of revenue, it is the world’s second largest company that deals with information technology with Samsung being on the lead. In terms of the mobile phone production and manufacturing, it comes third after the world leading companies Nokia and Samsung.

The Fortune magazine indicates that currently, it is the company that is most admired within the United States. However, critics believe that it has performed poorly in terms of labor practices with contractors and the general environmental policies it embraces. Its business policies have also not been spared of criticisms.

Differences Between Apple Inc. and Amazon.com Inc.

There are a number of differences between the Amazon.com Inc. and the Apple Inc. in terms of their operations and other aspects that have either led to their successes or failures over the years they have been in operation. The most notable difference between these two corporations is their short term profit maximization which varies significantly according to their latest released financial results. On a short term basis, Apple appears to be performing better than its competitor that is Amazon.com. Within the short term period that the financial statements were released, Apple has so far realized an approximated $73 billion in terms of profits. Amazon.com, on the other hand, has so far realized an accumulated $2 billion in terms of profits. This shows that Apple has scored highly in terms of profits as compared to the Amazon.com. Corporation that has realized meager profits as compared to Apple Corporation’s profits.

The other difference between the Apple Inc. and Amazon.com is the sales strategy. In terms of company size, Amazon is bigger than Apple, but in terms of sales, Apple realizes bigger sales than Amazon Corporation. The sales approach that Apple Corporation has adopted is far much profitable as compared to that which Amazon.com has adopted. The strategy by Apple aims at making its products become outstanding within the market that will enable it charge relatively profitable prices that give them a superior profit margin. Amazon.com on the other hand, sets its goals towards making products cheaper within various markets of operations and tries to make money out of the content it develops. Apple's products are relatively twice the price of Amazon.com corporation’s products. This ensures that Apple realizes higher profit margins when it does sales. Either, the two corporations differ significantly in terms of their customer bases. The lower prices of Amazon Corporation’s products ensure that it avails its technologies to a wider range of customers with the potential and capability to acquire them. Apple, on the other hand, has priced its products at prices that are higher as compared to those charged on the prices of Amazon Corporation’s products. This makes its products be availed to a smaller population of customers who have the capacity to acquire them.

Either, there is a difference in the manner in which the two companies ensure that their customers become loyal to their products. Apple has over the years ensured that there is an unusual level of product loyalty among customers. It has achieved this through the use of a group called Apple evangelists who are engaged actively with the company. The company has also ensured that there is continuity of the networks it created especially the Mac User Groups. It has also organized trade fares and expos that give its customers an opportunity to see the new products it is about to unveil in the market. This level of customer loyalty has been unusual as some wait for longer hours just to have a look at the new products that are put on display during the Apple exhibitions and expos. This has ensured that Apple maintains the level of sales that it has experienced over the years so far.

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Amazon has not been successful in putting up channels that can ensure it experiences unrivalled customer loyalty like opponent corporation. It has majorly relied on the customer base it has developed to win their loyalty, which has not been as formidable as Apple's. Either, it relies on the online networks it uses to retain its customers and win new ones though they have not been as active as those of Apple. To attract or retain more customers, Amazon has come up with certain measures, which critics argue do not champion their course towards ensuring they retain their large customer base nor get a new one. Amazon has created local deal systems that offer business deals on a daily basis to various customers. Either, it has created channels upon which its customers could donate funds to finance the campaigns of various precedential hopefuls during elections. Critics argue that these actions have not added any value to its course.

The other difference in the two corporations is their labor relations that they have used so far. Apple has been linked with proper working labor relations that it has used in various stations, in countries that deal with products. A clear example is where by factory workers in China were required to work to close to 60 hours in a week. They were also required to live substantial amount of their earnings with the company’s management as part of their charge on food and rent offered by the company. Apple launched an immediate investigation that reversed such policies. Either, the company has also launched periodic audits on suppliers in the working conditions their employees operate. This has ensured the company has proper labor relations.

Amazon, on the other hand, has been accused of having the worst labor relations. The company has received criticism from all quarters for the manner in which it treats its workers. The most notable poor practice in labor relations is the refusal to allow its workers to form unions that could allow them to negotiate for better pays and working conditions. This has made the company suppress workers without much resistance that could have been caused by these worker's unions. Either, it has poor warehouse working conditions under which workers operate. At some point, the company’s employees were forced to work under the condition that is characterized by higher temperature that reached a maximum of 100 degrees Celsius. This condition of excessive heat that workers worked under was criticized by many.

Similarities Between Apple Inc. and Amazon.com Inc.

Even though there are a number of differences between two corporations, there are certain aspects in which they are similar. The most notable is their drive to sell as many products as possible. Both Apple and Amazon.com have an internal drive that enables them to sell as many products as they can. Amazon endeavors to sell most of kindle fires products as much as it can. The product is aimed at making the user do better things that they are used to doing. Apple, on the other hand, aims at selling most of its iPads as much as it can sell to its customers.

Additionally, they have both created a system that is meant to create value in their products that are aimed at reinforcing and coordinating their production processes. The two corporations also have a compelling purpose that enables them to know the roles they have to play within each and every organization and the larger market. They must know the manner in which they will play the roles that they must undertake and be aware of the results they should achieve by carrying out these roles

Conclusion

In conclusion, the two corporations may differ in the manner in which they employ their strategies in achieving an edge against each other, but they have certain aspects that make them similar through the common strategies that the use in achieving their set goals and objectives. They are, therefore, found to compete actively within the market towards outdoing each other though, at a point, they have to follow the same strategies. The difference lies in the manner in which they implement the strategies.

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