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Anastaziya [24]
3 years ago
11

Why is Apple’s industry so competitive and how could this affect the ethical risks in Apple’s operations?

Business
1 answer:
maw [93]3 years ago
6 0

Answer:

Apple industry is the consumer goods technological sector.

Explanation:

This sector is very competitive because it tends to be very profitable, which means that it attracts a large number of skilled entrepreneurs and wokers who create high quality products that customers demand. This is specially true of the mobile phone sub-sector, with industry giants like Samsung and Huawei being in stiff competition with Apple.

Because of this, Apple faces several ethical risks: for one, it faces the risk of not practicing predatory pricing techniques like dumping in order to drive out competition, because this would be unfair not only to the other firms, but also to the other companies.

Another ethical risks would be more relevant for managers, and that is that managers should avoid to overestimate their ability to increase profits, because this may create false expectations on the board, on stockholders, and on the customers, leading to malinvestment, and other negative eocnomic consequences.

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