3/28/18 · Economics and Business Studies

The dark side of Apple

UOC professors analyse the strengths and weaknesses of one of the most lucrative brands in the world, valued by Forbes at 170 billion dollars
Photo: <a target="_blank" href="https://unsplash.com/photos/v0knvpfz25c">Glen Alejandro / Unsplash</a> (CC)

Apple turns 42 on 1 April. In that time it has become a universal brand thanks to its very loyal and adept consumers. However, not everything the technology multinational does is exemplary. It has made mistakes in the area of corporate social responsibility, explains Ferran Lalueza, professor at the UOC Faculty of Information and Communication Sciences. These include a highly evasive tax policy, serious cases of exploitation by some of the firm's suppliers (including child labour, as Amnesty International has denounced on occasion), a lack of cooperation with the US Justice Department in investigations into terrorist attacks, bad environmental practices and accusations of plagiarism.

A team from the BBC went with hidden cameras into a plant the company has in Shanghai. According to the report, they found precarious work conditions that did not respect minimum occupational standards.

To tackle this, Apple is working hard to be seen as a socially responsible organization. In this vein, it takes into account environmental protection, the dignity of its workers, accessibility for people with special needs, privacy guarantees and a commitment to education, the UOC expert points out.

The dark side of Apple, Lalueza adds, is not the Californian company's only contradiction. «Its products, created with a stamp of exclusivity and aspirational elitism, now have to reach increasingly broader markets to meet the company's growth expectations», he continues. Despite this, Lalueza recognizes that Apple has always been able to come out smelling of roses thanks to a very skilful communications strategy that has enabled it to continue to «arouse passions instead of creating rejection».

What, then, are the elements that have been able to turn the brand into one of the most desired by consumers the world over? According to Advertising Creativity professor at the UOC Sílvia Sivera, the key to its success lies in three essential ingredients: prioritizing the experience and emotion that its products create, beyond their features or functions; constructing a brand story based on the American dream and personified in the figure of the charismatic Steve Jobs; and basing its communications strategy on innovative design. In all, Apple has become one of the most lucrative brands in the world, valued at 170 billion dollars according to Forbes.


A lovemark

Apple is a «genuine lovemark», that is, a brand that is able to turn its users into international ambassadors because it has been able to create «strong emotional bonds with them», Sivera explains. «The thrill of having and using Apple products prevails over rational benefits», she adds. An example of this is the iPod, which became the most sought-after audio player despite not being the best one on the market, Sivera states.

Since the 1980s, the managers at the multinational know that value lies in the brand and in everything it makes the consumers feel, adds Ana Jiménez-Zarco, professor at the Faculty of Economics and Business. It is what is called external competitive advantage in business terms. This way, customers become loyal followers: «carrying around an iPhone, an iPad or an iBook has become a must-have accessory for a certain type of middle-class bohemian», says Jiménez. The devotion that consumers feel is so great that they have even created the popular website Cult of Mac.


Steve Jobs' American dream

The second key to the success of Apple, Sivera claims, is one of its most charismatic founders, Steve Jobs, linking the brand story to the American dream. «The public likes success stories; they hold up a mirror and are aspirational». Also, it's a story that «has been broadcast almost live, with its narrative highs and lows, its dramatic twists, its mysteries and all the ingredients needed to captivate a universal audience».

Thirdly, it has based its communications strategy on its design, associated with innovation and technology. «Design communicates – Apple has shown this like no other», Sivera states. And special emphasis needs to be paid to its logo: «There are some who say it's a tribute to Isaac Newton, others to Alan Turing – who committed suicide with an apple impregnated with cyanide and who was gay – others evoke biblical temptation...», explains Sivera. The first logo, known as «The Newton crest», was created in 1976 by Ronald Wayne and withdrawn the same year. The second, by Rob Janoff, included a rainbow at Jobs' request, who wanted to humanize it. The third is the result of a brand update, which adapts to new products and is easier to print.

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