Apple's Five Forces

If a person really wants to buy an Apple phone product but the price is very expensive, this will become one of the needs that turns a on a motivation which influence the person to purchase the Apple brand hand phone. Below is the Maslow’s hierarchy of

SWOT Strengths Opportunities • Apple has a highly reputable company that is known for creating simplistic yet technologically advanced products that usually go on to generate a large amount of sales. • The apple watch runs on the latest iOS software and is able to wirelessly connect with other apple products. • Apples announcement of the release of the apple watch had popularised the market of smartwatches and also taken it to another level with the many features of the watch that can be done with an iPhone. • Apple has a massive loyal consumer population that has formed into a community, strengthening the relation between apple and its consumers. • • The apple watch has popularised the market of smartwatches which is something companies like Samsung could not do.

Apple products so popular, it makes a lot of money. The economic environment of apple that affect consumer buying and spending and affect the wealth of an area include income distribution inflation, recession and spending patterns. A business cycle is the pattern of the level of business activity. Business activity can move from prosperity to recession to recovery. Apple marketers must always be aware of the present and future economic developments.

Moreover, stringing dollars had also source of problem for Apple product prices, transportation cost and profit margins (Apple INC, 2012). 4.0 Recommendation to Improve Management of the Macro Environment of Apple Dominating the various manufacturers that Apple serves in while at the same time getting a respectable profit for the shareholders and contributing to the improvement of the guild at large is Apple’s main aim. Referable to the nature of the industry, Apple thus needs to adopt effective recommendations that will insure long term sustainability and improve the macro environment of the organisation.

Higher Price than its competitor – Smart phone competitor like Samsung and Xiaomi are stealing the market share via the lower level price smartphone, however, Apple don’t have the lower price smartphone. 5. Narrow product range – Apple has only 7-8 products in its portfolio compared to the various products that its competitor Microsoft and Google have. So if one of the products failed, it will have a big effect on company’s

2.0 Situation Analysis 2.1 PEST Political Factors (CONS) Potential Impact of Legal Factors on Apple The recent entry of Apple in the highly regulated financial services sector and by offering financial services , could increase the level of regulation, government oversight and litigation . Reports of Apple planning to enter another highly regulated sector of automobile manufacturing could also increase regulatory, insurance and the cost of litigation. Apple is highly vulnerable to piracy and litigation due to their dependence on products such as software and music for its income. Economic Factors (PROS) Apple Drives Economic Growth Apple posted growth and record-setting revenue numbers during the most recent recession, being one of the few bright spots, it provides hope for many. During the past recession Apple has launched the iPod and iPad.

It´s important to remember that disruption is positive for the mass-market and are innovations that make products and services more accessible and affordable, thereby making them available to a much larger population. When we look at the full extent of Xiaomi´s business model, we can clearly see how different and how disruptive it is. How does Xiaomi keep their prices at least 60% lower than their competitors? While Apple need to come up with a new model to maintain their high profits, Xiaomi have found a clever way to reach these profits without overserve the market with smartphones. For Xiaomi to sell high-end smartphones at such cost, Xiaomi keeps their models

The reason why I choose this organization is because it 's very successful and famous device everywhere in world. most of the people are satisfied with apple device because of the improvement and feature in this mobile phone, it always provide new feature and software 's and there 's unique feature

Opportunities: Sirius XM is having billions in tax loss carry-forwards to offset future liabilities. This is advantageous now that Sirius XM is profitable. It now gives the company unusual leverage if it should seek acquisitions of profitable companies, since pre-tax earnings are that much more valuable when they can largely trickle to the bottom line. Sirius XM has embraced all of the leading smartphone platforms, since it has rolled out its streaming app through Apple 's (Nasdaq: AAPL) App Store. Digital delivery is now truly competitive, particularly for a premium service going up against freebies, but it provides an incremental platform and may one day open the door for international offerings given its established brand.

As a result of high competition, monopolies, interdependence among firms there are just a few big players having the market power and making it very difficult for new firms to penetrate the market with their products. For Instance, Apple and Samsung are the dominant companies manufacturing smart phones alongside other players like