PEST Analysis: The Pest Analysis Of Apple Inc

The use of PEST analysis can be seen effective for business such as their strategic planning, marketing, and product development. Furthermore, PEST ensures that company`s performance is aligned positively with the powerful forces of change that are affecting business environment (Porter, 1985). PEST have four factors which are Political, Economic, Social, and Technological. However, we use these factors to check how they interplay to the business or the activity of an organization.Using PEST analysis is important when a company decided to enter its business operation into new markets and new countries. In this case, using PEST will help to adapt effectively to the realities of the new environment and to make contingency plans for threats by preparing business and strategic plans (Byars, 1991; Cooper, 2000).

It is quite obvious from the case that Apple is facing many obstacles. It has way more competitors today than it had two or three decades back. Part of it has to with the highly globalized environment that companies are operating in these days. Another major obstacle is the technological environment which is rapidly changing compared to the one that Apple experienced when it first emerged on the global scene. But the most important of it all seems to be a mental thing. It appears that Apple, over a period of time, developed a rigid mental model that related success of Apple with sheer innovation. This same mental model has lead to demise of many companies in the past, Xerox Corporation being the prime example of that.

New top-end mobile phones such as the Apple Iphone are allowing a new class of mobile to emerge in the world today. Combined with its ease of use, rich design, and well-organized application system through Apple App Store makes the Iphone an appealing platform for development of other smartphones. The Apple IPhone was released on June 29, 2007 by CEO of Apple Steve Jobs (Honan). The IPhone offers many of the innovative features found on competing devices, but it also differs from other smartphones on the market.

Apple is one of the technology companies in America that have accumulated a large amount of cash reserves, having a $34.7 billion in the bank on June, 2015. This could generate calls for higher corporate tax in the United States, where income inequality has become a major political issue. Apple is heavily dependent on lower cost manufacturing in China. Social and political

Edwards, J. (2015). The iPhone 6 Had Better Be Amazing And Cheap, Because Apple Is Losing The War To Android Read more: http://www.businessinsider.com/iphone-v-android-market-share-2014-5#ixzz3YoonFpp6. Retrieved from http://www.businessinsider.com/iphone-v-android-market-share-2014-5

As the company continues to evolve, it still stays true to its attractive qualities that have earned millions of loyal customers around the world. They have a commitment to quality. By only carrying 4000 stocked units in the warehouse, compared to 30,000 at your local super market, it can carefully choose its products. This insightful selection is based on quality, price, brand and features. Therefore, having the ability to offer the ultimate best value to its members.

There are various threats in the external environment that influences Apple. Rapid technological development and change is a problem, the company might be set aside by a competitor who invents a newer technology. Tax increases have also influenced Apple. Apple’s profits went down due to new taxes. Patent breaches pose a huge threat, competitors might imitate their technology and make profit on these features. Appreciation of the dollar, Apple’s profits in foreign countries are reduced due to strengthening the dollar. The growing popularity of Android, widespread use of this operating system makes Apple’s infrastructure less attractive for customers. Increasing labor costs in Asia, the protests of workers in Asia, especially Foxconn

Over the last decade, electronic-based companies such as Samsung and Apple have collaborated with cellular-phone carriers, and have studied the average consumer to find endless ways to improve the cellular phone. As a result, the smart phone was born. With their ability to provide users with instant access to communication, entertainment, Internet access, calendar, news, social media, and much more, the smart phone revolutionized and shifted the path of modern technology. In 2006, Apple began this revolution with their release of the iPhone. Being the first proper smart phone, many other companies attempted to mimic the unbeatable features and technology that Apple had included with the iPhone.

products, have attracted a lot of customers throughout the world. The company has a huge

Since the demand for the brand has traditionally outstripped supply, the company can easily and without loss charge a premium from its customers. As mentioned the company sells its products at a 100% markup and which in turn translate into increased revenues.

It is also important to consider the relations of the company with the government, that can make easier or more difficult the

Once the consumers like the product and realizes it is good quality, then they accept the product and the low pricing help the product create some buzz in the market and have some good techniques.

Although customer will conduct more research, seek more opinions, and deliberate longer when they want to purchase new r expensive products, word-of-mouth

Apple Inc. is the most revered corporation of the USA, both in terms of brand equity and market capitalization. The company’s international competitive strategy is focused on the innovative product development, which Apple controls through its eight business segments: Portables, Desktops, iPads, iPhones, Music related products and services, peripherals and hardware (Lam et al. 2005).

- Premium price --- to reflect the exclusiveness, limited and high quality of the product;