The iTrainer Fitness App: A Marketing Proposal and Analysis
Terence Bonner
Lasell College
Apple Incorporated, formerly known as Apple Computer, Inc., is a multinational
corporation that was founded by Steven Jobs and Steven Wozniak on April 1, 1976 with
the introduction of the Apple I. The company was incorporated on January 3, 1977 in
Cupertino, California. A major turning point for the corporation came with the release of
the Macintosh computer in 1984 with the Washington Post stating that it was “the most
important new product in Apple’s history and the foundation for its future as a force in the
computer industry” (Santa Clara Valley Historical Association, 2008). In 1991 the
company continued its policy of innovation by introducing a portable Mac computer, the
Powerbook, setting the standard for the modern laptop (Santa Clara Valley Historical
Association, 2008). However, the company faced low sales and market shares during the
decade. Founder Steve Jobs, who was ousted from the company in 1985, returned in 1996
and was named CEO in 1997 (Stone, 20011). Job’s return was perhaps the most important
moment in the corporation’s history, as he was able to instill a new organizational
philosophy and culture of creating recognizable products with user friendly, simple
designs.
Currently Apple’s core products include the iPhone, iPad tablet, iPod portable media
players, and the Macintosh computer line (Stone, 2011). Apple is the largest publicly
traded corporation in the world by market capitalization, with the company’s estimated
value at US$626 billion (Stone, 2011). Apple posted quarterly revenue of US$43.6 billion,
and a quarterly net profit of US$9.5 billion as of April 2013 (Stone, 2011). Further, the
corporation is “the world’s second-largest information technology company” with US$156
billion of revenue in 2012 (Stone, 2011).
In addition, “Apple is the leading innovator in mobile device technology” and is rated the
“most innovative business in the world” (Ovidijus, 2013, para. 4). Apple’s strong financial
performance and standing, with over US$10 billion in liquidity and zero debt, allows the
corporation to reduce financial risks. The strengths of Apple’s supply chain and its
management allow the corporation to operate efficiently on a global scale. The
corporation’s ability to perfectly control ordering by thoroughly estimating demand further
allows Apple to minimize waste and maintain efficiency (Malcolm, 2012, para.11).
Despite the corporation’s countless strengths, Apple has encountered weaknesses in parts
of its business and marketing strategies. First, even though Apple maintains high profits
and revenues, its gross margin has continually decreased. This may be a result of the
