PESTEL ANALYSIS Political Factors These factor heavily influences the company’s decision making process. From 2007 to 2009 it is reported that more than a half of sales of their products comes from countries other than America. To reduce their operating cost Apple also spread their product manufacturing to different companies outside America. Cork, Ireland, Korea, China and Czech Republic are some of the other states where Apple placed their company. Bad international relations, wars, terrorism, and public health issues between U.S. and these states might give a negative impact that may damage the Apple Inc. reputation as well as their business process.
3.0 Macro Environment that Effects Apple Social-cultural, technology, economic, political and legislation is the elements of macro environment that effects Apple which are described as below: 3.1 Social-cultural ITunes is Apple’s biggest virtual media store. In general, the image of the Apple also depicts the modern individual lifestyle, combining function and conception, resulting in brand recognition and commitment. In conditions of the demographic features, Apple is targeting the two major generations. One generation is mainly consists of working adults, where they might sustain a higher and stable income to purchase Apple’s expensive and complex equipment. Thusly, the sophisticated and high-tech Apple products would definitely
• The political relations between the countries may influence the sales and marketing of the IPhone in the market and it also affects the production and assembling process. • War, terrorism and other similar political factors can be a serious threat to the apple IPhone market. Economical factors: • One of the major influences for the IPhone products is recession. There is a serious condition of recession going on in the market. As apple is placed as a luxury product, people are giving it a second thought.
2.2 Market Segments The lingerie market is expected to exceed $70 billion by 2015, reports Global Industry Analysts. Factors helping the market include increasing levels of disposable income, fabric innovation and new, more variable styles. Nightwear and innerwear fared the economic recession better than other market segments as they are more necessary than other segments. 2.3 Industry Leaders Key players in the global underwear industry include: Calvin klein
A scandal will be in the news and the stocks will fall for that specific company. However, judging by the nature of these corporations: oligopoly in an industry that has a very high cost of entry and high rate of bankruptcy, Apple and other tech giants are here to stay and they cannot fail. Because in which case, where will the people get their source of high end tech products that are well-designed and functional by a team of highly trained professionals. There is a reason why Apple and Google survives the scandals. First, technically they have ties that can clean up or just pay settlements for lawsuits from their huge assets.
Developing this sector can help is complete change in the economy , though the support is now on science and technology in the country .This will have a high impact . The employment rates are also very positive in Monaco .According to one of the recent studies and census, Monaco has a literacy rate of about 100% . Though they had to face the Euro crisis ,they tried the best and brought in modest recovery in the economy by 2010 . By this they focused more for their economic growth after a downfall and they were officially removed from the “grey list” of OECD’s list . Another major international pressure they faced was regarding their tax policies and bank secrecy .
Tax Holidays – Special Economic Zones In Kenya companies operating in EPZs enjoy a 10-year tax holiday and a reduced corporate tax rate of 20% for the next 10 years (ITA, 2010). This is a measure to attract Foreign Direct Investment and also encourage local investors. While tax holidays are known to have attracted increased foreign direct investment (FDI) to Kenya and hence promoting growth and employment, they have many disadvantages due to lack of proper design and control. First, it attracts short term projects because once the period for the tax holiday is over, businesses soon wind up and move out to invest elsewhere (Blackwell, 2009). It also encourages tax avoidance by allowing businesses to move from high tax regions to low tax jurisdictions such as Kenya.
Overdependence on iPhone sales – in 2015, iPhone sales generate US$155.041 billion in revenue, which account for 66% of the company’s total sales, which makes Apple vulnerable to the changes in the smartphone market. 2. Incompatibility of Apple’s IOS – Apple’s IOS is not compatible with other OS like Android and Microsoft OS. So if an App is only available from Google play, then the iPhone users may not able to use it. 3.
The main reason for the development of this industry is the de-licensing of this sector in 1991 and allowing the FDI limit up to 100% in this sector. This helps the global manufacturers to invest in India and set up their businesses to increase the production level of this sector from 2 million in 1991 to 9.7 million in 2006. When government take initiative in 1991 to remove the licensing, less restrictions on import and decrease tariff rates the Indian automobile industry was grown and flourished at a high rate that was very favourable for the balance of payment of the
Furthermore, Apple also faces the threat of imitation of its products. This threat is significant because there is large number of firms from local and regional that might easily imitate Apple’s products and design. Other than that, the rising labour costs in Apple plants such as in China can reduce profit margins or push selling prices even higher. Based on this analysis, Apple’s performance could suffer because of aggressive competition and imitation of product and design. Hence, Apple must take appropriate action in order to overcome these threats in the