Apple Inc, an American technology company was founded by Ronald Wayne, Steve Wozniak and Steve Jobs in 1976. Apple Inc headquartered is in Cupertino, California which is designing, developing and selling electronics, computer software and online services. Apple Inc has about 115,000 employees and 478 retail stores in 17 countries. Their software includes the macOS and iOS operating systems, the iTunes media player, the Safari web browser. Its online services include the iTunes Store, the iOS App Store and Mac App Store, Apple Music, and iCloud. And, their hardware include the iPad tablet computer, the iPhone smartphone, the Mac notebook computer, the Apple Watch smartwatch, the iPod portable media player and the Apple TV. Despite its current …show more content…
dollar will increase exchange rates. It may make it more expensive for Apple in some key markets like China. Apple can increase the price to earn more. Some developed countries are stagnating, like U.S, and people will lose interest to buy higher-end consumer products in this kind of countries. So that, there is some decrease of the hidden market for higher-end consumer products such as those marketed by Apple. If the labor costs are increasing in China, it takes away the cost benefit of Apple products. It has been noted that labor cost has been increased more than quadrupled in China during the last ten years.4
Social/Sociocultural Factors influencing Apple's Business
This component of the PESTEL analysis model is that social influences on consumer behaviors and expectations. The following social or sociocultural factors are the most important in the Apple remote/macro-environment.
1. Increasing use of mobile access(opportunity)
2. Increasing use of social media(opportunity)
In this part, the major social/sociocultural factors determined to present opportunities for Apple. The tendency of the increasing universality of mobile access is an opportunity for Apple to continue providing easy-to-use and fashionable mobile devices. The company has already taken steps to develop this opportunity, such as create the iPhone, iPad and Apple Watch. The increasing use of social media is also an opportunity because it increases needed digital devices like Apple products.
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The following ecological/environmental factors are the most important in Apple’s case.
1. Business sustainability tendency (opportunity)
2. Product energy efficiency tendency (opportunity)
3. Global warming effect(threat)
4. Cut greenhouse gases and limit fossil fuel use could tendency (threat)
Apple has a chance to maintain business sustainability through recycling programs. For improving the energy efficiency of Apple products, the company continually looks for the new technological, like improved batteries, CPU, RAM/ROM and elements that give off less heat. On the other hand, because of the global warming, the Climate change happen, it affects some place having heavily rain, bad weather. It will disrupt transoceanic shipping and Apple’s supply chain. Nowadays, China’s work on decrease greenhouse gases and limit using fossil fuels. It increases electricity rates and manufacturing costs for Apple.
4
Legal Factors that Limit Apple
This part of the PESTEL analysis model mention the impact of laws or regulations on business. The following legal factors are the most important in the Apple
PESTLE analysis : Is a shortcut of six words which is political , Economic , Social , Technological , Legal and Environmental .Usually this concept used in marketing .Also it used as a tool by organization to track the environment they are operating in or are planning to new project or service .Moreover it used to assess the four external factors with regard to the situation of the organization's business ,and how it will effect in the business over long term. Political factors: This factor looks at how government regulations and legal issues affect a business's chance to be profitable and successful.
In this segment we will discuss about the external forces of the company that are not controllable (Keegan and Keegan, 1989). PESTLE analysis will be an effective tool here to analyze the factors. 2.1.1 PESTLE Analysis PESTLE is a very effective macro environmental tool containing six important factor. Political Factors In India political factor is very vulnerable.
We will now be doing a more detailed analysis on these six PESTEL factors. PESTEL refers to the Political, Economic, Social, Technological, Environmental and Legal forces,
External Environmental Analysis PESTEL: Apple has a significant presence in the Asian markets in terms of contracted suppliers and through high magnitude of sales. This leaves Apple susceptible to significant political and economic risk both internationally and within the United States. As global economies adjust to political influence, threats of civil unrest and natural global disasters Apple will be affected by exchange rates, unemployment, supply shortages which impact on production costs, and ultimately a downturn in sales (Khan et al. 2015).
Huawei, being a multinational company is affected by the external business environment. As such the impact of the external business environment factors on Huawei’s marketing strategy are explained by the PESTEL Model as follows: 1. Political Factors Political factors include laws and legislations which are of great importance due to the fact that they enclose many aspects of a company policy. Through regulatory bodies, the government implements policies that affect businesses in various ways (Vrontis and Pavlou, 2008).
The detailed analysis aims to find out the external factors that affect Apple, identify external factors that are subjected to change in the future and exploits the opportunities and defend against threats better than its competitors would. The P in PESTLE stands for the political factors, the E for the economic factors, the S for the social factors, the T for the technological factors, the E for the environmental factors, and lastly, the L for the legal factors. These are the six external factors that affect the Apple company. Looking at these six factors thoroughly and respectively, firstly, the political factors that affect Apple include the fact that more than half of the sales from their products originate from countries other than America and how Apple manufactures its products and various product parts from countries outside of America, for example, China, Korea, Ireland and the Czech Republic. Furthermore, the bad political relationship between America and other countries predict the bad outcome for the company.
Apple Company Apple Inc. is a private company, and it is one of the world 's most famous technology and computer companies, located in the United States of America. It is a multi-national company. Its main business depends on specialization in manufacturing, producing, developing, improving and selling software, smartphones, computers; It has a series of electronic devices, such as iPad, iPhone and Mac. The origin of Apple Company Founded by Steve Jobs and his co-pilot Steve Wozniak, Apple Computer was able to design a computer in the form of the beginning of Apple computers in the time period Between the years 1981 to 1985; since 2005 until now, Apple has seen many developments; successive successes.
The company 's main growth driver engine is Smartphone business and Tablets. Apple Company (officially Apple Inc.) is one of the most famous companies in the world, they are the producers of iPods, Mac computers and the iPhone. The California based organization designs, develops and sells consumer electronics, computer software, and personal computers. It was founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne, since then Apple has risen to become one of the largest companies in the world.
In this way, the sale of products in world-wide market will increase. • Increased labor costs in China could take away the cost advantage of some Apple products. • Decaying middle-class incomes in some developed countries, including the United States, could shrink the potential market for higher-end consumer goods such as those marketed by Apple. • A strong U.S. dollar could increase exchange rates, making it more expensive for Apple to do business in key markets like Europe and
However, the PESTLE factors entails political, economic, social, technological, legal and environmental that are elaborated below: Political Political factor is an imperative factor that organisation considered at the time of expanding their business operations by assessing the political environment of the target market (Li, et al., 2014). Moreover, it is found that there is a strong competition among the sports retailers in all over the world that is why the margin of error is very low for the firms. It is imperative from the prospect of an organisation to evaluate
Most of them in the UK and the US are using apple Co. products from iPod to the iPhone. 3. Factor Influence Apple’s Consumer Buying Behaviour 3.1 PSYCHOLOGICAL FACTORS 3.1.1 One of the major factors that influence consumer buyer behaviour is psychological factors. Psychological factors can be distribute into five categories, that is motivation, perception, learning ,beliefs and attitudes and this all can influence a person’s buying choices.
Technological factors pertain to invention and innovation of new ways of performing activities. Technology changes very fast and it affects how the organization produces, transports and markets its product and services. In the advertising industry, technology affects the way of communicating to the target market. Technology presents many methods that the advertising industry can communicate to the consumers such as TV, phone, tablets, and digital billboards. The use of social networks such as Facebook, twitter, Instagram among others enables the advertising industry to customize adverts according to the user interest that prompts the consumer to view the adverts.
Developing different devices like the iPhone, iPod, and iPad makes Apple Inc. the famous company it is and has always been. Their advanced
Apple, Inc., an American multinational technology company, which founded on April 1, 1976 in California, United States. The company has earned $53 million of income in 2015, which increase $14 million of income compared with 2014 (Apple Inc., 2015). The co-founder, chairman, and chief executive officer (CEO) of the company, Steve Jobs is passed away for the pancreatic cancer (Park, 2011). His leadership and entrepreneurship have successfully developed the company from a small personal computer company to a multinational corporation that selling various types of electronic products and software such as, iPad, iPhone, iOS, and others (Apple Inc., 2016). 1.0 Critical Success Factor
2.0 PESTEL ANALYSIS A PESTEL Analysis is a marketing framework to analyse how an organisation is being impacted by a wide range of external imperatives. 2.1 Political Local political factor has a less significant impact on Starbucks Singapore due to strong political stability in Singapore. Singapore is consistently ranked as the lowest political risk country in Asia since 2002 (Corrupt Practices Investigation Bureau, 2015). However, the political stability in the global market is highly important as Starbucks coffee is certified as an ethically traded coffee.