Therefore, we will explain these four external factors that placed an impact on Apple Inc business process and also how they handle problems that comes out from these PEST factors.
Apple has a command on higher price than average price due to highly personalized and people friendly devices.
On the other hand, technological integration of devices is a major trend. Apple is globally seen as the King of technology caused by their virtual media development and design improvement. It took less than a year for Google to roll out a payment app; Android Pay, with the same capabilities as Apple Pay.
Legal Factors Apple has recently accepted high regulated services which are offered via Apple pay. Focus on environmental issues also affects brand image and popularity in global markets.
Political challenges will continue to haunt Apple, especially with EU bent on taming the tech giants. Market Growth by units sold in millions in Source: To reduce their operating cost Apple also spread their product manufacturing to different companies outside America.
This will increase level of regulation and also Government oversight. For example, when there is political instability between US to states where Apple operates their business, a business delay could be occur and as a result the image of Apple Inc could become bad to its customers and retailers.
Apple has focused on the creation of renewable energy to offset its environmental impact.
Social Factors Two factors always have been on forefront of Apple product throughout the history, the design and the quality. However, the dominant position of company also leads to a political pressure and antitrust concerns which will limit market share.
The decision of China to limit the use of fossil fuels and cutting down greenhouse gasses will increase electricity costs increasing manufacturing expense for Apple. These factors present opportunities or threats that impact the business.
The importance of Asian markets has grown and China and India both have emerged as potential markets for the Western brands. Analysis of industry competition……………………………………………………………. Music market to cyberspace has big roles that influences people to use this virtual world.
The past decade has seen rapid technological changes which have greatly altered the market dynamics. Its supply chain is quite complex and spread virtually all over the world. Cloud computing trend opportunity Technological integration opportunity Growing apps market opportunity Cloud computing is becoming popular among individuals and organizations.
Though the company spends a lot on the research and development, little efforts need to be made to track down the rate of technology change and the way competitors are competing. Political Factors This factor shows the governmental factors that can influence the organization.
However, there are challenges and the Indian government and bureaucracy do not seem highly inclined to favor premium brands like Apple. Threat of new entrance Entering more companies in the market means decreasing the market share of Apple Hill and Jones, Environmental and pollution concerns in China will finitely affect growing concern which will increase regulation and result in high manufacturing costs.
So socially consciousness among customers is highly recommended. On the other hand, governments are also imposing stricter telecommunications regulations, which are a threat because they could potentially limit the usability of Apple products.
For instance, the high economic growth rates of Asian countries are major opportunities for Apple to increase revenues through sales in these foreign markets. The expense of disposing of devices, particularly those containing lithium batteries, could be high.
Strategies used by Apple Figure 8: In order to achieve this different analytical tools and models will be applied. The expense of lithium batteries disposal costs very high. For example, when there is political instability between to states where Apple operates their business, a business delay could be occur and as a result the image of Apple Inc could become bad to its customers and retailers.
It is why in PC sales Apple lost its market share to brands like Lenovo and HP which have a better brand image in these markets. The competition also gets harder as technology changes and innovation developed much faster.
Investors have always looked forward for investing in Apple due to its strong revenue and high return on investment.
Therefore, we will explain these four general environment factors that placed an impact on Apple Inc business process and also how they handle problems that comes out from these PEST factors. However, this factor is also an opportunity for the company to improve product features that protect privacy.
Stagnating 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. So, if these suppliers suddenly decide they want to charge Apple a lot more for those components, Apple doesn't have a lot of options.
Political unrest in Asia could disrupt product manufacture. apple Political Contributions & Expenditure Policy 1.
APPLE INC. POLITICAL CONTRIBUTIONS AND EXPENDITURES POLICY The success of Apple Inc. (the “Corporation”) depends on sound and consistent public policies that encourage a healthy business environment.
Political Factors There are many problems which cannot be controllable by the company such as; geopolitical uncertainties, war against terrorism, authority to work and health issues which can affect the sale of Apple’s product worldwide.
PESTEL is a strategic analytical tool and the acronym stands for political, economic, social, technological, environmental and legal factors. Apple PESTEL analysis involves the analysis of potential impact of these factors on the bottom line and long-term growth prospects. Political Factors • It is reported that more than a half of sales of their products come from countries other than America.
• Apple Inc manufactures a number of its parts and products from outside the US, like Czech Republic, Ireland, China, Korea and Cork. 2. Economic factor analysis. World economic condition is also becoming one of the factors that influence Apple Inc business process as this company is recognized internationally.
Inflation, recession and currency are three important economic factors that Apple noticed.Political factors of apple