External Environment Apple Inc.’s high performance can be linked to its effective understanding and addressing of the external factors in it’s macro environment. These include strategies that are used to exploit any arising opportunities and to protect against potential threats. In order to identify these factors, we can use the PESTEL analysis. While the company may be a leader in the industry, the PESTEL analysis goes to show that Apple must continue to evolve as per the leading external factors. Political Factors Political factors such as geopolitical uncertainties, wars, legislations, authority to work and health laws can potentially impact Apple’s production. Apple has outsourced the production of its components to different countries …show more content…
Purchases of luxury products has gone up as purchasing power of consumers continues to increase in different markets. Music industry growth has witnessed soaring heights which is a big social influence on Apple and its products. One of Apple’s main offerings is the music store iTunes and Apple has gained a lot from this social development and change in modern lifestyles. However, the young consumers in these markets might lack a strong emotional attachment with the products. Also, increasing ethical concerns regarding low cost manufacturing in China could limit Apple’s products appeal among the socially-conscious consumers. Technological Factors IT is one of the highest earning industry and companies who have evolved and innovated have been able to maintain their position. Apple has always been a trend setter in the consumer electronics business and has a very aggressive innovation philosophy. Apple’s investments in unique and advanced technology has always helped it stay ahead of its competition and maintain its position. Apple can exploit the trends in cloud computing by continuing to invest in technology and devices that can be connected seamlessly. Additionally, the apps markets continue to grow and Apple can continue to benefit from
One key element of Apple’s strategy in computers, personal media players, tablet computers, and smart phones is product innovation, diversification and development. Over the years Apple has been very successful in integrating software and hardware in new developing products. Despite the struggling economy in recent years, Apple has been able to grow their market share and stay ahead of the game.
Apple business environment is competitive and fast-paced. Apple suppliers must understand this dynamic and be agile and flexible in responding to changing business conditions. All over the world, people are building Apple products and Apple has a responsibility to make sure that each person is treated with dignity and respect. It’s a massive challenge where Apple work is never done, but each year they implement meaningful, lasting changes across their supply chain. Because of this around the globe, Apple employees are united in bringing equality, human rights, and respect for the environment to the deepest layers of their supply chain. Apple goes deep into their supply chain to enforce their social and environmental standards by empowering workers through education, demanding that suppliers treat workers fairly and ethically at all times, having safe and healthy facilities, and hold their products and processes to the highest
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
Apple was established as an IT company dealing in exclusively in computers. However, competition in the technology sector forced the firm to focus on other consumer products. The diversification strategy has seen Apple’s sales grow tremendously in the last decade, earning the firm the No. 1 brand position at Forbes. The Apple brand is recognized on an international scale and enjoys a strong recognition thanks to its aggressiveness when it comes to creativity and innovation (Tar, 2013). It has a large number of loyal customers who would purchase the new products regardless of the market price, which guarantees profits from the new division.
Apple is an American multinational technology company that designs, develops, and sells consumer electronics, computer software, and online services. Their best-known hardware products are the Mac computers, the iPod, the iPhone smartphone, and the iPad tablet computers. They represent a form of change in this time period, not only because they look good but also because they represent a symbol of social status. Although, they are other products out there, consumers would choose Apple products because they seem more valuable and also due to the fact that they have much more to offer. In our era, Appearances could also play a huge role in choosing the products people buy referring to technology. For example, Apple uses sleek, slim and edgy designs to attract their buyers. Even though some people uses other products, Apple gadgets stand out the
Technology change has naturally been a major factor in Apple's success. The company played a major role in the shift to a mobile computing society, by developing the personal technology devices that would
Apple has prospered internally and it is necessary to consider both strengths and weaknesses. Apple has lots of strengths, the major of them being it’s impressive brand reputation, Apple managed to position the brand as “premium products” for “elite” people. Customers are loyal and tend to stay in Apple’s ecosystem. Apple’s self-reinforcing ecosystem, it has a diverse ecosystem which integrates various hardware and software products into one large interactive space. Status of top innovator, Apple is perceived as the leading innovator and its products are highly anticipated. Apple’s very strong financial performance, high profit margins and very high liquidity. It’s network of retail stores, high-quality customer service helps to create advanced user experience. A powerful marketing strategy, Apple’s team masterly uses various marketing techniques to create a hype for their products and to strengthen the brand.
I learned that Apple is a juggernaut when it comes to their technological products and marketing goals. Apple focuses on the needs of customer’s light years ahead of their competition and even before most consumers have realized they want Apple’s products. Through their innovative marketing involving social media, word of mouth, Apple Stores they have convinced consumers about the high value of their product even lending to the formation of a “Mac cult” for its diehard fans. The way ahead for Apple is not to lose sight of its brand loyalty and continue to service the customers and entice them with the brand’s prestige. Even with the death of Steve Jobs, I believe Apple forge ahead to differentiate itself from the markets they are in.
Due to a variety of uncertainties ranging from the instability of Mexico’s economy, to a limited knowledge of the possible company to do business with, Charles River Laboratories have to assure to their stakeholders that a joint venture with ALPES is beneficial to the growth of the company.
Apple (NASDAQ:AAPL) is one of the world leaders in the research, development, marketing, sales and service of personal digital music & video devices, in addition to personal computers globally. Its' innovative music and digital content delivery service, iTunes, has sold over 1 billion songs to date. As of the close of their latest fiscal year the company generated $156B in Sales and generated a Gross Profit of $68B earning a Net Income of $41B (Apple Investor Relations, 2013). The intent of this analysis is to evaluate Apple's strengths, weaknesses, opportunities and threats (SWOT) and provide an analysis of each. The cause, impact and recommendations for each specific strength, weakness, opportunity and threat are provided along with an action plan of how to maximize strengths and opportunities and mitigate the effects of weaknesses and threats. The Apple brand is among the most valuable in the world and its ability to innovate with successive product generations unmatched, yet this has led to a high dependence on its iPhone and iPad platforms, to the exclusion of entirely new businesses. The Apple iTunes platform and ecosystem delivers 30% of all profits and a significant portion of overall revenue, making this single business a stabilizing force in their strategic product and services roadmap (Apple Investor Relations, 2013). Despite these challenges however Apple continues to attain
Even though Apple has encountered many setbacks, it continues to bring new and improve products to the market. Apple’s competitive strategy has been innovation. They have made an extraordinary effort developing, implementing, and executing its very unique strategy through innovation which has resulted in new product, and the enrichment of the existing ones. More specifically, Apple attempts to meet and supply the needs of a global market, by offering eager and enthusiastic consumers with innovated and high-quality products and services. Apple has employed a differentiation strategy linked to innovation with its three core products (computers, personal media player, mobile phones, tablets and other accessories). A key piece of their strategy involves meeting the needs of the converging digital electronics and computer markets. Apple has elected to implement its strategy by designing and developing proprietary operating systems and software technologies, thus allowing for strict protection of its intellectual rights.
Also, as the purchasing power of the common has risen in various markets across the global, the purchasing of luxury products have gone up. For examples, the iPhone, iPod, iPad and the most latest technology, iWatch. Having these products are considered as statues symbols in many societies which have also increased the sales of Apple Inc. products. Another big social influence to the Apple Inc products is the rapid growth of the music industry, which have improved markets over the cyber space as well. The main exclusive music store is the iTunes and it is ahead of any of their competitors. Thus, in all Apple products benefitted from the social aspects as it has started defining a modern individual lifestyle.
Apple Inc. is known for their innovative products, combining user-friendly technology and elegant design, Apple’s bite of the consumer electronics market has been getting a little larger year by year. The Apple brand is fun, unique, and memorable because it is such a departure from brands that sound serious and corporate. Apple’s Macintosh computers has always stood out because it looks different from other personal computers and relies on software that even novices can learn. IPod backed by music-driven advertising, the player with the white ear buds immediately became the product of choice for many consumers. Newer models such as the iPod Nano and the iPod Touch have continued the
Apple is being criticized in China for three main issues, including slave labor, guarantee scandal and underdeveloped infrastructure. However, China is a significant market for Apple. Apple’s market share in China is continuously growing while decreasing in mature countries. Issues related to human rights and labor protection in China are sensitive and of globally mutual concern. If we do not address these issues properly, we will lose Chinese customers as well as suppliers and sub-contractors. This may also seriously impact the reputation and sales of Apple products worldwide.
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).