
Running head: APPLE AND METAIO
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APPLE AND METAIO
APPLE AND METAIO
Table of Contents Part 2- Business type of two enterprises 3 Part 3-Controlled transaction 4 Part 4- Arms length principle 6 Part 5 8 Part 6-Conclusion 10 Reference List 11
Part 2- Business type of two enterprises
1. Business type
Apple is working to develop the software and hardware’s services that are able to give a seamless experience to its users. Apple mainly designs, sells, and develops consumer’s electronics, online services, and computer software. Apple is the most recognizable company in world, with a large number of stores. Apple is a sole proprietorship; the business type of apple is sole proprietorship as this operates only by itself. It suggests that Apple cannot be affected by any other company; the decisions are only taken by Apple itself. The business market of Apple is also quite high as it gives good product differentiation to its consumer.
Meatier mainly gives consumers software technologies, which provide the most augmented reality solution to the consumers (Challoumis, 2018). It is a subsidiary of Apple, which is situated in Germany. The business type of this company is a subsidiary; a huge market is captured by the company. The target customers are helped to expand the market in an extensive manner. All the decisions are made by Apple and it has freedom to choose actions on its own.
Decision making process is quite complex due to its business type permission from Apple. The business structure of applies built in a way that enhances the organisation to for a rapid upheaval which adds to the success of any company. The company’s is designed with attributes including certain key elements conceived from other company’s structural forms, which help in creating strategies for a technological development. Where Apple holds a business that is hierarchically moulded, the organisation faces its drawbacks as well. The major drawback of the business structure in Apple is serviceable matrix, which collaborates with different inter-divisional operations.
Both the company belongs to the telecommunication industry, as both have good market share and target costumes. The product differentiation is the main factor which leads the both the company to more renown positions (Bebenroth & Froese, 2020). Apple works in the telecommunication industry in this industry and many other companies already exist in the market. Telecommunication industry is a highly competitive market but Apple has some product differentiation, which helps it get monopoly power. In the monopoly market, the product has huge differentiation and no company exists to complete that company. This gets the existing company huge monopoly powers it means that the company is price giver not taker. The same situation is also noticed for Apple to apple products are vastly differentiated with other telecommunication products. It can be suggested that Apple is only targeted at the high-income people. The price strategy of a product is never for middle class people. Its products are expensive and for its targeted customers. The products, which are produced by Apple, only work to reach its target costumes and never compromise with its quality. Therefore, it can be concluded from the above discussion that Apple has a monopoly power that can affect the market price consumers have to take the price. Consumers have no power to influence the market price.
Metaio is operated in an oligopoly market, in this market few firms exist in the market. The competition of this market is imperfect in nature, as not many firms exist in the market. No one has influential power to affect the price level the producers sell almost the same product. I9n these way consumers get few options to buy from the other buyers. The demand curve of metaio is kinked, it suggested, due to few firms the consumers cannot affect the price level in an extensive manner (Singh, et al. 2019). The competition between all the firms is limited in nature; it reveals that the companies can operate in a significant manner. Metaio business is also going smoothly as it has a limited number of rivals in the market. This affects the market to make the position of demand high. Operating in an oligopoly market helped the company to grow and increased the number of targeted audiences. From the entire discussion it can be argues that as a subsidiary Metaio has a low profit share that Apple, due to its monopoly power the company’s profit share is quite huge in number(Castaldi et al. 2019). It can also be observed that the market of Apple has captured the limited targeted people due to its huge piercing but Metaio keeps its price compared to lower level which help the company to capture a large amount of targeted people.
The matrix structure which involves of two or more companies in order to solve the problems aroused in the hierarchy brings the drawbacks in the company Metaio as well. Owing to the matrix structural business type of Metaio, involvement of more managers create a haphazard in the decision making of the company, thereby slowing down the growth. The pricing structure makes the products of Apple differentiated in quality. The business strategy of both companies is different as the company type is different. The share of the market for Metaio is large that Apple as Apple operates single-handed in the market. Three are similar companies, which produce it or homogeneous products, but due to its product quality, it has monopoly power in the market.
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Our essay writers are graduates with diplomas, bachelor’s, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college diploma. When assigning your order, we match the paper subject with the area of specialization of the writer.
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Any deadline
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You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.
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You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.
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The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.
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