Question Description
discuss the 4G Model and the purpose firms must have beyond the products they sale or the service they provide. Pretend you are the executive officer at Samsung responsible for not releasing the Galaxy Fold, what would be your response to shareholders and customers regarding the failed product. Use the economic theory and concepts in chapter one to support your response. Remember the idea is to maximize the wealth of shareholders but also be socially responsible to the community that must sustain your product.
How Apple's Store Strategy Beat the Odds Wingfield, Nick . Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]17 May 2006: B.1. ProQuest document link ABSTRACT (ABSTRACT) Revenue from the Apple stores was $2.35 billion in fiscal 2005, ended Sept. 24, or 17% of Apple's total sales, up from $621 million in fiscal 2003. Apple says the stores have been profitable for several years, providing $151 million in operating income in fiscal 2005. The Fifth Avenue store will be the company's 147th, with others scattered throughout the U.S., Canada, Japan and the U.K. "The numbers have been just astonishing in terms of the traditional retail numbers we look at," Mr. [Charlie Wolf] says. Recently, Apple's stores hit a bump when sales fell in the company's fiscal second quarter, ended April 1, to $636 million from $1.07 billion in the holiday quarter. Mr. Wolf attributes the decline to Apple's shift to Macs based on microprocessors from Intel Corp., which has led some customers to postpone computer purchases until Apple completes the transition of its entire product line. Mr. Jobs's retail expansion has upset Apple partners along the way. Some of them have accused Apple of favoring its own stores when deciding how to dole out inventory, including new iPods models that were scarce in other retail channels when they first came on the market but were readily available in Apple's own stores. More than a half-dozen resellers of Apple products have filed lawsuits against the company between 2002 and 2006 in Santa Clara County Superior Court in California, alleging that Apple's stores competed unfairly with them. FULL TEXT WHEN APPLE COMPUTER Inc. opened its first Apple retail store in 2001 in a shopping mall in McLean, Va., critics saw the initiative as an expensive, dubious gamble. But as Apple prepares to take the wraps off its latest, most ambitious store yet -- on New York's Fifth Avenue, opposite the Plaza Hotel and Bergdorf Goodman -- there are few doubters left about Chief Executive Steve Jobs's retail strategy. On Friday evening, five years after opening its first store, Apple will unlock the doors to a subterranean store that sprawls beneath the plaza in front of the General Motors Building, just across from Central Park. In keeping with Mr. Jobs's penchant for eye-catching designs, all that will be visible from the street is the entrance, surrounded by a roughly three-story-high glass cube jutting from the ground, reminiscent of I.M. Pei's glass pyramid at the entrance to the Louvre museum in Paris. The store is located in one of the most highly trafficked tourist and retail corridors in the world. If it is successful, it will enhance Apple's visibility as the company attempts to grab a bigger slice of the computer and electronics industries. Charlie Wolf, an analyst at Needham &Co., says an Apple executive told him the store will be open for business 24 hours a day, a first for the company. "It really is the center of gravity of Fifth Avenue," says Robert Futterman, Apple's real estate broker, of the new store location. Apple declined to discuss details of the new store ahead of its official unveiling later this week. PDF GENERATED BY SEARCH.PROQUEST.COM Page 1 of 4 Apple's stores are an unlikely success story in an area littered with failures -- and another vindication of Mr. Jobs's marketing savvy. In April 2004, computer maker Gateway Inc. shuttered a chain of 188 company-run retail stores after an aggressive expansion, eliminating 2,500 retail jobs. More recently, hand-held device maker Palm Inc. has attempted to mimic Apple's success, opening its own gadget shops in airports and shopping malls. Revenue from the Apple stores was $2.35 billion in fiscal 2005, ended Sept. 24, or 17% of Apple's total sales, up from $621 million in fiscal 2003. Apple says the stores have been profitable for several years, providing $151 million in operating income in fiscal 2005. The Fifth Avenue store will be the company's 147th, with others scattered throughout the U.S., Canada, Japan and the U.K. "The numbers have been just astonishing in terms of the traditional retail numbers we look at," Mr. Wolf says. Recently, Apple's stores hit a bump when sales fell in the company's fiscal second quarter, ended April 1, to $636 million from $1.07 billion in the holiday quarter. Mr. Wolf attributes the decline to Apple's shift to Macs based on microprocessors from Intel Corp., which has led some customers to postpone computer purchases until Apple completes the transition of its entire product line. Mr. Jobs's retail expansion has upset Apple partners along the way. Some of them have accused Apple of favoring its own stores when deciding how to dole out inventory, including new iPods models that were scarce in other retail channels when they first came on the market but were readily available in Apple's own stores. More than a half-dozen resellers of Apple products have filed lawsuits against the company between 2002 and 2006 in Santa Clara County Superior Court in California, alleging that Apple's stores competed unfairly with them.