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pestle analysis of apple

This is an example Pest Analysis for Apple. The The It is important to clarify that both cases mentioned above relate to political factors that are associated with Apple in a direct manner. This PESTEL/PESTLE analysis serves as a guide for strategic formulation processes to address external pressures the technology corporation is experiencing. Apple PESTEL analysis involves the analysis of potential impact of these factors on the bottom line and long-term growth prospects. Based on this part of the PESTEL/PESTLE Apple Inc.’s high performance is linked to effectiveness in addressing external factors in the company’s remote or macro-environment. tag project. Having a hi-tech Apple computer or an iPod is a … PESTLE analysis acronym. indicates the influence of governments and related organizations on businesses. Many people claim that the political force is the most unsettled force. It has always being innovative not only with its products and ideas but also with its market strategies. For example, the high economic growth rates of Asian countries are opportunities for Apple to increase its revenues through sales in these foreign markets. Developing a multi-criteria decision making model for PESTEL analysis.Â. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. Apple PESTLE analysis 2015; When you seek Apple PESTLE analysis help services from us, our writer will make it a point to include certain significant facts like 2015 was the most successful year for Apple. Inc. Based on this PESTEL/PESTLE analysis, it is expected that Apple will remain in its leadership position for at least fiv… remote or macro-environment mainly present opportunities. In this PESTEL/PESTLE analysis of Apple Inc., such an ecological trend offers the opportunity to strengthen the company’s corporate image. In relation, higher disposable incomes create more opportunities to sell the company’s relatively high-priced technology products. to the social external factors that influence consumer behaviors and The mobile telecommunications market, until recently was an assortment of various manufacturers such as Nokia, Siemens, Sony Ericsson, Samsung etc. Apple Strategic Analysis. These include overall macroeconomic climate in the market, inflation rate and interest rate, as well as, foreign currency exchange rates. Most compliance requirements and more limits on the technology company. Apple has the opportunity to improve its operational cost efficiencies in this regard, while offering more attractive products to an increasingly environmentally aware customer population. for Apple to boost its anti-Apple sentiments (threat), Growing [9] Rising costs of labour is a significant economic factor that has direct implications on the profitability of the business. As of the first quarter of 2020, Apple Inc. has a revenue of 29.32 Billion US Dollars in American Soil. For example, in Australia, the European Union, and This and technological trends are evaluated based on their effect on business It is now a global brand which is serving almost 265 million happy customers every week. Apple has long been an investor favorite because of its strong revenue growth and high return on investment. However, things seem to have started changing. factor increases the opportunities for Apple Inc. to distribute more of its products around the world. Apple is the world’s most valuable brand according to the Forbes’ 2016 ranking. The extent to which Apple is able to achieve its primary objective of profit maximization depends on a wide range of political factors. In Apple’s case, the These sociocultural factors emphasize the importance of Apple Inc.’s corporate social responsibility strategy. technological external factors in Apple’s remote or macro-environment generally provide Apple, Inc. is one of the most successful companies in the world. PESTEL analysis provides great detail about operating challenges Apple Inc. will face in prevalent macro environment other than competitive forces. The company has made a strong return in the recent years. PESTLE ANALYSIS OF APPLE. use of mobile access (opportunity), Increasing ecological external factors are the most important: The business sustainability trend is an ecological factor linked to increasing favor among businesses to adopt sustainable practices, based on concerns about the adverse environmental impact of business operations. InÂ, Murphey, M., & Gause, R. (1974). Apple is one of the leading and most visible companies which have most recognizable consumer brands. As one of the biggest tech giant, Apple has been in the center point of many political influences. Overall in the political part of the PESTEL analysis by taking advantage of the different political opportunities in its marco-enviornment Apple can improve its performance. Apple PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. Nonetheless, the dynamics of the market and the presence of aggressive competitors could drastically change the company’s strategic position. potential growth and the global sales revenues of its products, such as The cost of the alternatives to the manufacturing products in China can make it high for Apple. most significant: This PESTEL/PESTLE analysis of Apple Inc. identifies the growing demand for cloud computing as an opportunity to grow the business. They are holding the number one position in the market of all over the world. Over the past few years, the government focused on the development of e-commerce. analysis case of Apple In addition, the energy efficiency trend is an ecological external factor that promotes the adoption of newer and more efficient technologies among businesses and customers. must emphasize privacy protection and regulatory compliance in all of its MCDM Methods in Practice: Determining the Significance of PESTEL Analysis Criteria. criticism and legal battles regarding its policies on third-party repair external analysis case, the following technological external factors are the Copyright by Panmore Institute - All rights reserved. There is a wide range of economic factors that affect Apple directly, as well as, indirectly. PESTEL/PESTLE analysis also Apple PEST Analysis The PEST Analysis allows companies and teams to Analyze their Political, Economic, Social, and Technological factors that may impact them in the months and years ahead. The term Swot is an acronym for strengths, weaknesses, opportunities, and threats. PESTEL/PESTLE analysis Apple has based its manufacturing units in China due to cost-efficiency of resources in general and cheaper human resources in particular. ecological factors in Apple The company now offers cloud services, although to a limited extent. Based services. Apple is the highest US technological company, which has earned huge amount of revenue and it has the higher corporate taxation in US to make the political issue of inequality in income. The organization gives quality electronic contraptions like PCs, smartphones, tablets, music players, and even Televisions which are exceptionally popular and amazingly favored by the customers. These external strategic factors indicate growth potential for the corporation and its competitors, especially large multinational firms like Samsung. In Apple’s PESTEL analysis of Apple Inc. Apple is one of the leading brands in the mobile phone industry. PESTLE Analysis of Apple Inc Political Factors Affecting Apple Inc. Apple Inc. is an American technology company. disposable incomes among target customers (opportunity), Rising Managers assess the risks that the identified factors pose and use their knowledge to take beneficial decisions for the company. Its smartphones, PCs, tablets, Music players and TVs are very popular. Walmart has been one of the biggest name in retailing both in-store and online. Anti-Apple sentiments are mounting, questioning business practices, such as the company’s lawsuits against third-party repair service providers that repair products like the iPhone and MacBook. Presentation Agenda • Introduction • PEST Analysis • PESTLE Analysis • Dimensions of the model • Aim of the analysis • Apple Inc – PESTLE Analysis • Conclusion 2 3. Let’s take a scenario to justify this point in more detail. However, the firm must develop suitable strategies to effectively address the threats identified in the legal dimension of its remote/macro-environment. legal external factors in Apple’s legal pressures on the business. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. The social and political situation in China can disturb the manufacturing cost and it also disrupts the Chinese imports in US to boost the manufacturing of products in China. These include government stability, level of bureaucracy, corruption, freedom of press, home market lobbying groups etc. Tax reforms were proposed by President Trump to make US companies more competitive in the global market. aspect of the PESTEL/PESTLE analysis model points Even though it started as a traditional computer company, Apple … These strategic concerns require that the company continue improving its policies and practices, as well as its approaches to technological innovation. politics in developed countries (opportunity), Trade technological integration in businesses (opportunity), Growing overall free trade policies are created over time. Social. 1. This segment of the article will portray the pestle analysis case of Apple Company. performance by taking advantage of political opportunities in its remote or macro-environment, growth of developing countries (opportunity), Increasing I’ll briefly explain what it is. This PESTEL/PESTLE analysis shows that the majority of external factors in Apples remote/macro-environment provide opportunities. case, the following sociocultural trends are significant in the remote or macro-environment: The rising use of mobile access is an opportunity to grow Apple Inc.’s revenues. Introduction Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on … In exploiting these economic opportunities, it is essential to consider competitive forces in the international market, as described in the Porter’s Five Forces analysis of Apple Inc. cloud computing demand (opportunity), Increasing analysis model, Apple PESTLE Analysis of Apple analyses the brand on its business tactics. PESTLE analysis is an acronym for Political, Economic, Social, Technological, and Legal. CONNECTED PROJECTS. According to Abhijeet Pratap , October 2015‘’ it is a lower cost to manufacture products in China and Apple are dependent on this. Apple is a very rumored organization and brand in the worldwide market. This multinational corporation is known for its unbeatable niche in the industry. The company has been providing robust technology products and exceptional software services. The matter turned into a major political debate dividing the public into two camps – those who support the company and those who oppose it regarding this particular issue.[1]. However, this opportunities for the enterprise. PESTLE for Apple refers to the analysis of external factors which play a vital role while conducting research before beginning a new project. Apple’s CEO Tim Cook adopted a currency hedging program in 2014 aimed at easing the negative effects of strengthening USD. Pestle Analysis Examples: Apple. dependence on digital systems (opportunity), International Legal issues The legal framework for e-commerce is still in its early stage. Thus, to ensure the achievement of Apple Inc.’s corporate vision and mission statements, it is beneficial to reinforce business capabilities to exploit the opportunities and protect the business against the competitive threats shown in this part of the PESTEL/PESTLE analysis. In relation, the external strategic factor of increasing technological integration presents the opportunity to enhance the company’s services and grow the business by offering its technological goods and services to more customers, including organizations. Apple Case Study - SWOT & PESTLE Analysis A Brief Profile of Apple Inc Apple is regarded as the world’s most recognized and remarkable brand in the electronics field. The external factors in Apple’s remote or macro-environment indicate the value of strategic management and flexible long-term strategic planning in managing external factors. PESTLE Analysis. challenges against Apple’s policies and practices (threat), Dockalikova, I., & Klozikova, J. [4] Environmental Responsibility Report (2018) Apple Inc. [5] Russia Today (2014) Available at: http://rt.com/politics/210675-russian-parliament-iphone-ban/, [6] The Independent (2014) Available at: http://www.independent.co.uk/news/people/news/russian-politician-says-apple-ceo-tim-cook-should-be-banned-from-country-after-coming-out-as-gay-9829670.html, [9] Yan, S. (2017) “’Made in China’ isn’t so cheap anymore, and that could spell headache for Beijing” CNBC, Available at: https://www.cnbc.com/2017/02/27/chinese-wages-rise-made-in-china-isnt-so-cheap-anymore.html, [10] Tully, S. (2017) “How Tax Reform Could Make Apple a $1 Trillion Company” Fortune, Available at: http://fortune.com/2017/10/17/apple-tax-reform-trillion/, [11]Neate, R. (2013) “David Einhorn Suing Apple Over Shareholder Cash” The Guardian, Available at: http://www.theguardian.com/technology/2013/feb/07/david-einhorn-apple-shareholder-cash, Interpretivism (interpretivist) Research Philosophy, https://www.cnet.com/news/apple-vs-fbi-one-year-later-still-stuck-in-limbo/, https://appleinsider.com/articles/19/02/25/members-of-congress-demand-apple-takes-down-absher-app, https://www.opensecrets.org/lobby/clientsum.php?id=D000021754. In Apple’s case, the following The amount of political lobbying by the company represents an important element of Apple PESTEL analysis. INTRODUCTION • Apple is considered as the world’s most notable and recognisable brand for electronic devices. In addition, Apple Inc.’s corporate culture is a relevant factor because it influences the quality of service provided to customers. UCF Research Guides. between the United States and China, creates a threat against the company’s Moreover, recently members of US Congress demanded Apple to remove controversial Saudi Arabia government Absher app. consumer electronics. However, the rapid growth of developing countries is a more significant economic external factor in this PESTEL/PESTLE analysis case, in terms of support for growing the technology business. In this section, we will share a fifth of the five pestle analysis examples. analysis model highlights ecological trends and their impacts on business. Hedging practices can only compensate exchange rate losses to a certain extent and the foreign exchange risk for the company is not going away any time soon. free trade policies (opportunity), Stable Given its current industry position, the company can exploit these opportunities to expand its reach in the global information technology goods and services market. Political factors continually exert pressure on the selling of Apple especially when EU bends to the domesticated market. The PESTEL/PESTLE analysis framework evaluates the political, economic, sociocultural, technological, ecological, and legal factors relevant to the business. Using a pestle analysis for Apple, this report examines how various external factors have impacted the growth potential and performance of Apple. In exploiting this opportunity, together with support from Apple Inc.’s corporate structure, developing an expanded cloud infrastructure could maximize the profitability of the business in offering cloud-computing services. This legal external factor is a threat that could impose costly regulatory In Apple’s However, the technological advancement of other firms threatens the company, as more new players could enter the market. This aspect of the PESTEL/PESTLE Apple has always surrounded by its political pressure even when we talk of the USA market or its entry in the European Union. The company has strategic measures to adjust its operations and technological products to respond to these ecological trends. The reputation of Apple is higher than any other mobile production companies like Samsung, Nokia, Microsoft and else (Oliviéro et al., 2014). Government regulations Both formal and informal rules, which firms must abide by, impact the country. Swot and Pestle analyses help investors and managers analyze businesses and projects. This technological capabilities of other firms (threat), Business PESTEL ANALYSIS FOR APPLE INC TECHOLOGICAL Top brand for Innovative technology ( Forbes, 2015) R&D spend in 2016 was $10 billion (Annual 10-k, 2016) Unique design i.e IPhone 8 (Express, 2017) SOCIAL Increase in labor cost in China has impacted Apples business (Fortune, 2015) Such strategy helps satisfy stakeholders, including customers and governments. [1] Tibken, S. (2017) “Apple vs. FBI one year later: Still stuck in limbo” CNET, Available at: https://www.cnet.com/news/apple-vs-fbi-one-year-later-still-stuck-in-limbo/, [2] Owen, M. (2019) “Members of congress demand Apple take down Saudi Absher app” Apple Insider, Available at: https://appleinsider.com/articles/19/02/25/members-of-congress-demand-apple-takes-down-absher-app, [3] Open Secrets (2019) Available at: https://www.opensecrets.org/lobby/clientsum.php?id=D000021754. However, average hourly wages in China reached USD3,60 in 2016, an increase of 64% since 2011. opportunities, the political external factor of trade disputes, especially SWOTAnalysis.com. Moreover, the report contains analyses of Apple business strategy, leadership, organizational structure and organizational culture. Pestle is an acronym for political, economic, social, technological, legal, and environmental factors or forces that guide planning and decision-making. remote or macro-environment create threats to the business. Apple products have innovative and distinct features for each of its range of products. the United States, among other countries, the company has faced strong In Apple’s case, the following Effectiveness in addressing these external strategic factors ensures that Apple remains strong despite tough competition in the global market. A call by Dmitry Gorotsov, a Member of Parliament in Russia to stop lawmakers in the country “using iPhones and iPads to protect them from eavesdropping by foreign special services”[5] can be referred to as an example where politics interferes with business. Despite these opportunities, the company faces the social threat of opposition against its business operations. Governance, types of market, tariffs, and leadership, the entire thing has a lot to do with the market of a particular brand. to impose higher tariffs on imported electronic components used in Apple’s product assembly. indicates the impact of laws or regulations on businesses. In this aspect of the PESTEL/PESTLE analysis framework, current technologies Inc., the following economic external factors are the most significant: The economic stability of developed countries creates opportunities for Apple’s expansion. In the PESTEL/PESTLE analysis context, these sentiments have the potential to reduce brand image and consumer confidence in the corporation’s technological products. Hence, you can trust us only to provide you with the best. Political Factors in Apple PESTEL Analysis. While the computing industry has been seeing a decline in the recent years, in 2017 and 2018, Apple again started climbing the charts to restore its … The market has moved away from the endless number of mobile telephone manufacturers and four major players now control the industry, Samsung, HTC, RIM and Apple. Business Research–Industry Analysis. This aspect of the PESTEL/PESTLE analysis model Specifically, the company has disputed with FBI over whether it should be forced to hack an iPhone used by one of the San Bernardino terrorists. The app has attracted criticism “due to its nature of curtailing the rights of women to travel and move freely in and out of Saudi Arabia”[2] The pressure from Congress members to get the app removed from Apple App Store is a stark illustration of potential impact of political factors on the business. Discussing the political area, to reduce the operating cost, it has outsourced to various countries. Taxation rates can be mentioned as an additional economic factor that affects Apple. Apple is well known as technology giant and an innovative company that has brought several superhit products to the market including iPod, iPad and Mac. Only areas that need attention are the legal and political. To illustrate this point, it can be mentioned that in June 2017, Apple urged the White House to remain in the Paris climate agreement, to retain American leadership, and to take meaningful action on climate change. Apple generates about 63% cent of its total sales from international markets[7] and as such its revenues are negatively affected by the current tendency of strengthening USD. to grow, considering the reduced political problems affecting business APPLE INC. SWOT AND PESTLE ANALYSIS NINAD G. JAPE 2. In this part of the PESTEL/PESTLE analysis of Apple Inc., opportunities for growth, as well as threats against the business, are identified. Apple has also lost market share in China, falling from top spot to 4th as it battles low cost Chinese rivals. Now let us get into the PESTLE Analysis of Apple in the following sections. Apple’s The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Apple. ... PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis … The corporation’s success is a result of strategic management that exploits opportunities and protects the business from threats in the consumer electronics and information technology services industries. In this external PESTLE Analysis of Walmart Political Factors that Affect Walmart’s Operations. Apple’s lobbying efforts are directed at the development of legislations that are favourable for the business on long-term perspective. Apple earns great revenue every year and designs as well manufactures a great variety of electronic products. are the most significant legal external factors: Governments’ The social trend in the case of Apple is very important because consumers know that Apple’s products are innovative, trendy and they carry a fashion statement. The Apple PESTLE analysis reveals the challenges that the tech company needs to take up to thrive and propel its revenue growth for decades to come. In addition, the company faces So find out which factors affect the world most viable company. PESTLE is mainly an acronym of six factors which are, The This report is shared in order to give you an idea of what the complete SWOT & PESTLE analysis report will cover after purchase. aspect of the PESTEL/PESTLE analysis model This external strategic economies of developed countries (opportunity), Rapid Also, Apple Inc.’s marketing mix or 4Ps must include strategies that match such social external factors. Moreover, the world’s largest IT company by revenue is affected by the cost of labour and changes in disposable incomes of consumers. The political situation in China makes this company the major targe… legal challenges related to its practices and policies on after-sales service and Although it is an expensive brand, people still … political external factors in Apple’s These strategic factors are opportunities or threats that impact business performance relative to competitors, such as Google, Microsoft, Amazon, Samsung, IBM, Dell, HP, Sony, Lenovo, Huawei, and LG. A look at the political, economic, social, and technological factors that will impact Apple in the years ahead. Based on this PESTEL/PESTLE analysis, it is expected that Apple will remain in its strong industry position. Another lawmaker in Russia famous for his harsh approach towards gay propaganda has publicly suggested Apple CEO Tim Cook to be banned from visiting the country due to the latter’s public acknowledgement of his homosexuality on October 30, 2014[6]. It is another example of 4D thinking that expands the scope of strategic thinking on a … China has little experience for drafting e-commerce l… The PESTEL is a strategic analytical tool and the acronym stands for political, economic, social, technological, environmental and legal factors. Also read R yanair PESTLE analysis. Based on investment positions as of September 29, 2018 and September 30, 2017, a hypothetical 100 basis point increase in interest rates across all maturities would result in a USD4.9 billion and USD6.0 billion incremental decline in the fair market value of the portfolio, respectively.[8]. disputes, especially between the U.S. and China (threat), Stable For GDPR compliance, we do not use personally identifiable information to serve ads in the EU and the EEA. The company is also affected by increasing rate of inflation in the US due to its large amount of cash reserves. Apple Inc.’s operations management also supports business efforts to exploit opportunities on these trends. The products include tables. products, and consider adjusting its policies and practices to address current an opportunity for Apple For example, growing China-U.S. tensions could lead China Apple PEST Analysis Example Use Template. Apple is the second largest and most profitable mobile phone company in the world and together with Samsung have dominated the smartphone market, accounting for over 62% of this market in the last few years. The extent to which Apple is able to achieve its primary objective of profit maximization depends on a wide range of political factors. Furthermore, this PESTEL/PESTLE analysis includes the growth of the mobile market as an opportunity for Apple Inc. to gain higher revenues, including revenues through the App Store and related digital content distribution platforms. [4]. These cases can be interpreted as a clear illustration of potential impact of a political factor on Apple sales in Russia. identifies the stability of the political landscape of developed countries as

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