PESTLE Analysis Of Apple Inc. Apple Inc. Essay

Length: 11 pages Sources: 15 Subject: Education - Computers Type: Essay Paper: #88738703 Related Topics: Nano Technology, Environmental Analysis, Analysis, Swot Analysis
Excerpt from Essay :

PESTLE analysis of Apple Inc.

Apple Inc. is a technology company, which designs, produces and sells goods of the Computer, Music and Mobile-Phone Industries. It is differentiated by its brand-perception and identification. Over the last couple of years, Apple has become a cult-brand, thanking its life to iTunes, QuickTime and iMaclines. Apple Inc.'s short-term goals are currently increasing the sales of the just launched iPad (the most innovative web-browser in market). In the long-run, Apple aims are to be on the top of the market, becoming the number one leader.

Products of the Apple are profitable. Be it the best of time, just a single or double Windows OEMs earns a profit. We now see even Microsoft had no obligation but to layoff workers so that it to keeps its head above water. Dell as well is seen taking a major hit. Low-end computers tend to be cheaper that customers are capable of buying, although they are not so much cheap to manufacturer. Dell at one time was notorious in applying its low-end so that they could get the customer, though Apple do not posses resort to bait- and-switch tactics.

Apple is therefore seen as a big corporation with a huge startup, with a corporate culture that is geared towards engineering and is known to minimize as much as possible the bureaucracies as well as taking absolutely good care for its employees. The corporation is run by the engineers as Apple does not have a lot of product management with really small project teams that are driven by engineers (Business Insider, 2011).

The objective of the paper will be to look at the various aspects, ranging from the mission, financial objectives to the market mix that enables the Apple Inc. To be a perpetual leader in it field and the drive that keeps it the leader of invention.

Market Summary

Products of the Apple are profitable. Be it the best of time, just a single or double Windows OEMs earns a profit. We now see even Microsoft had no obligation but to layoff workers so that it to keeps its head above water. Dell as well is seen taking a major hit. Low-end computers tend to be cheaper that customers are capable of buying, although they are not so much cheap to manufacturer. Dell at one time was notorious in applying its low-end so that they could get the customer, though Apple do not posses resort to bait- and-switch tactics.

Apple Computer Inc. is a multinational company which is based in America that it dealing is on computer software's as well as consumer electronic goods. The widely known hardware products of the company are Macintosh Computer, iPhone and iPod, while the software products are itunes, Mac operating system among others.

PESTLE analysis of the Apple Inc.

PESTLE analysis is a method of strategic planning that is utilized in the analysis of the Political Economic Social Technological Environmental and Legal aspects that Apple Inc. encounters in their daily operations. It is identifying the factors from internal and external that is favorable and unfavorable in achieving an objective.

Political analysis: Apple is known for its numerous service lines and products that it designs, develops and markets. This display of numerous products and business of numerous kinds with education institutions, professional bodies and governments it is not absurd to wonder what Apple is really good at since there are diverse products from Apple.

The other political concern is the issue of varying taxation that is found in the various countries where Apple has diversified into. The difference in the tax rates means that the management has to keep varying the prices of the products with the country it invests in. unfortunately, some taxation laws are very stringent on imported goods hence Apple would suffer in such countries where...

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This means that it will be a challenge for the top management to be conversant with the laws of these countries, and at times these laws may mean loss of profits for the organization.

Economic Analysis: Apple has been on the trend of opening numerous retail stores in the U.S.A. Management Paradise (2010) estimates that in 2005 they opened 102 retail stores in the U.S.A. These stores could be potentially beneficial the Apple could be hurting the resellers to the extent of killing some of them. Taking into account that the resellers still constitute more than 50% of the domestic sales, this means that their closures may mean the decline of the sales of Apple products as well.

Apple was also affected by the recession just like all the other businesses. There were layoffs that happened mostly in the overseas stores. There was also a decline in the demand for the goods that they produce hence negatively affecting the incomes.

Apple has several opportunities that it can still exploit to enhance its existence in the communication and IT market. There is opportunity by the Apple of developing its music player as well as iTunes technology into the format of the mobile phone. The developed Rokr mobile phone which was developed by Motorola, has advance camera system, stereo speakers and colored screen. Apple iTunes music store version has been developed in the phone to enable users of the phone to manage the track they store on it. There is availability of downloads via USB cable, whereas software within the handset pauses music in any case there was a coming in phone call. Strategic alliances and new technologies offer Apple with opportunities.

There are Podcasts which are downloadable radio shows that are capable of being downloaded from the Internet after that they are capable of being played back on iPods as well as the rest of MP3 devices whenever they want to. There is free subscription to Podcasts for the listeners, as ultimate revenue is generated from subscription which has been paid or from generated sales revenue of the rest of downloads. Rise up in viruses as well as worms on PCs makes Apple to develop the antivirus solution.

There is large population (Gen X&Y) that is highly individualistic as well as brand conscious. Apple's ties with the rest of the companies are weak; it is capable of developing a relationship which is good for joint ventures. The sales of computer through online are rising with quick speed. The growth of market for the laptop is high; Apple Computers are supposed to focus in developing new models to cater for the need of the customers.

Apple has pressure of increasing their music download file's price from the industry of music itself. Most of such companies make more money out of iTunes such as downloadable music files as compared to their sales of original CD. There has been sale of up to 22 million of iPod digital music players in Apple as well as over 500 million songs from its iTunes music store. This accounts for U.S. 82% of the entire downloaded music legally. It could be observed as a commercial weakness if the company gives in to the music producers, though the company is resolute.

Apple has had one of the most amazing marketing strategies ever put in place. They have been in a position to perpetually expand their market base despite the highly priced products that they usually introduce in the market. Some of the marketing strategies that are used by Apple are as below as noted by Steve M. Chazin (2007) who is a former Apple marketing executive and a consumer market expert.

Social analysis: In the World, Apple is among the healthiest and established IT brands and it contain a highly loyal set of customers who are enthusiastic and advocate the brand. This loyalty which is powerful imply that Apple recruits new customers as well as retaining them, for instance they return to get more products as well as services that offered by Apple, and the company as well get the privilege of their new product extension to them, iPod being an example, (Adam, 2009).

Many individuals and Companies tend not to look at Apple as being compatible with most software. It is common to download free music from the rest of the online sources without fee a thing that is not possible with the iTunes which may impact the sales iTunes. Software of Apple, hardware and Cell phone are always expensive than the rest of the competitors like Dell. The recession which is long lasting is capable of impacting the sales of the company because of product and service's prices. Technology switch is quite fast.

Technological analysis: Apple has been known to be one of the best organizations when it comes to technological advancements. It is known to be on the leading edge of technology and doe improve the existing technology so as to ensure that they come up with the best possible design and functionalities.

Apple Computers have…

Sources Used in Documents:

Reference

Adam (2009). Apple SWOT Analysis. MBA Tutorials. Retrieved November 23, 2011 from http://www.mba-tutorials.com/marketing/273-apple-SWOT-analysis.html

Business Insider, 2011). 8 Management Lessons I Learned Working At Apple. Retrieved November 25, 2011 from http://www.businessinsider.com/management-lessons-i-learned-working-at-apple-2010-7#a-tech-company-should-be-run-by-engineers-not-managers-1

Hill, T. & R. Westbrook (1997), "SWOT Analysis: It's Time for a Product Recall," Long-Range Planning, 30, No. 1, 46-52.

Management Paradise (2011). Pest Analysis on Apple.Inc. Retrieved November 22, 2011 from http://www.managementparadise.com/forums/principles-management-p-o-m/208663-pest-analysis-apple-inc.html


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