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.
It allows to cover the integration with its distributors, suppliers and competitors. Apple Inc. 's main business is very powerful that it can bring huge profits. Although the recession has negatively affected many companies in the past few years, Apple Inc. was one of the few brands to show significant profits during this period. Apple Inc. 's compensation for Windows on Mac systems has also attracted many Window users and expected to increase OSX 's user base. Besides, Apple Inc. should not depend on iPhones to make the profit.
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). At the same time Apple
APPLE manufacture their some part out of US if their political relation are not good then company cannot grow. Bad political relation effect apple very badly because apple get profit because their products are purchase not only in US but in others country as well infect more than the US. ECONOMIC It includes growth rates, interest rate, inflation rates, exchange rate, labor cost and stock market. This all influence your businesses that how will you manage now and in future. Apple products are expensive product so people start pay less on them.
Since Apple is a premium computer firm, they are less competitive with prices. They will only commence to decrease the prices after it launches a future generation product. They utilise skimming and premium pricing strategy. Apple utilised price skimming as it was initially sold at a high price when released at which the customer’s had to pay. The price was then lowered when the next generation IPhone was released (IPhone 6s/6s plus).
Apple is known for its unique marketing strategy which was a brilliant idea by Steve Jobs, CEO of Apple. Apple took aggressive approach in marketing to turn itself into a profitable business organization and dominate the market all around the world. The major reason for the success of Apple is its continuous innovation and catching up to the trend in design, production and marketing. Apple has always focused on delivering the best which was received well by the customers. Even though Apple’s marketing strategy did not consider online digital marketing seriously, off late the company has started to focus on online marketing.
However, some concerns may arise between the United States and those countries, such as bad international relation, public issues, and others. Thus, some concerns between these parties may give a bad impact for Apple Inc. It turns out that Apple Inc. has moved their major production to China. The reason behind
How Sustainable is Apple’s Competitive position Introduction Apple started out simply as a computer company producing Macintosh computers and software, but has since evolved over the years to manufacture other products. It introduced iPods in 2001 for music players, in 2007, it started producing iPhones. Its products are consumer oriented and this has contributed to the success of the company. Apple also views innovation as basis of survival and business development (Yoffie, 2012). What historically have been Apple’s competitive advantages?
The exit barriers for the technology industry is quite low because most of the electrical shop’s expenditure are on fixing machines, employee’s training fees, rental fees, and other running cost only. It means that the rivalry will decrease. Apple Company has the strength because if the performance of Apple is good, even though the industry is facing losses, Apple can still survive in the industry and since the competitors who facing losses will choose to quit the industry, Apple is able to generate more market shares. The strong brand identity and the innovation is the result of how strong the leadership of Apple so that it able to sustain and survive in the market with good
Further, the growth of the world’s economy was also very slow in 2012 and was expected to be same in 2013-14 as obvious. Apple has been affected by a crisis such as the change in American regional sales for the current year was 9% in 2012-13 compared to 50% of 2011-12, in Europe, 4% in comparison to 31% and in greater China 13% in comparison to 78% (Apple INC, 2012). The unemployment rate in U.S was 7.9 during 2012- 13, 4.1 in China and 4.6 in Japan, was one of the significant causes of the downturn in sales growth (Trading Economics, n.d). Euro crisis, U.S fiscal problems and hard landing of large developing countries will likely continue in the coming couple of years leading Apple to more toughen economic situations (IMF, 2013). Moreover, stringing dollars had also source of problem for Apple product prices, transportation cost and profit margins (Apple INC, 2012).