David answered on Dec 20 2021
The paper would research and analyze two companies in the same industry. The
companies chosen for analysis are Apple and ASUSTEK Computer. In 1980 Apple went public
and by 1983 Apple had become the fastest growing company in history. Among Apple’s long list
of products include the iPad, iPhone, iPod, iTunes, Mac, PowerBook, and Power Mac. As of
May 2010 Apple had a gain of 1.8% at $222.12 billion (Apple Annual Report 2010). With the
power of innovation, advanced technology, and high investment in Research and Development,
the company has outpaced competition thereby creating an edge of its competitors. ASUSTEK
Computer Inc is a company operating in Computer and Peripheral Equipment industry. The
company was incorporated in 1990 in Taipei and is cu
ently headquartered in Taiwan (ASUS
Profile, 2011). It is engaged in providing computing, communications and well as 3C solutions
for its customers. The products of ASUS include “Laptops, Mothe
oards, and Personal
oadband products, graphics cards, 3D cards, LCD monitors, telephones, pocket
PCs, server systems, computer accessories and peripherals” (ASUSTeK Annual Report, 2010).
The company with its range of products exhibits significant presence on the computing industry.
With revenues of over NTD248.2 billion in 2009, ASUS received more than 3000 awards from
different rating institutes and agencies. It is the world’s number one
and in countries Asia, US
and Europe working with over 300 agents and 20,000 distributors globally. The company aspires
to become the most admired
and globally (ASUSTeK Annual Report, 2010).
Apple being a US company faces ba
iers related to rules and regulations imposed by the
DOJ, EPA and the SEC. The governmental agency like SEC inspects the fair practice and
compliance and the governmental agencies like DOJ and EPA inspects the antitrust laws and
environmental compliance. Political risks are high in Technology Company like Apple. In
addition, the laws in communication industry are subject to change that affects the compliance of
Apple. The required the company to invest heavily in compliance of laws and regulations and
even pay fines as a result of investigations.
Apple is technology company build on a global platform where factors like inflation
ates, interest rate and cu
ent exchange rates in bear some impact, but such impact can’t be
considered influential (US Technolgy Sector Analysis, 2010). As the interest rates are slashed as
a result of recession in the economy, the company could bo
ow money at a cheaper interest rate.
Same is the case with changes in cu
ent exchange rates. Change in...