apple macro environment analysis case study

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Apple PESTLE/PESTEL Analysis

This PESTEL/PESTLE analysis of Apple Inc. identifies external factors in the company’s industry environment. The PESTLE/PESTEL analysis framework evaluates the political, economic, sociocultural, technological, ecological, and legal (PESTEL) factors relevant to the business. These strategic factors are opportunities or threats that impact business performance relative to Apple’s competitors, such as Google (Alphabet) , Microsoft , Amazon , Samsung, Dell, HP, Sony , Lenovo, Huawei, and LG, as well as IBM ’s artificial intelligence, and the video streaming services of Disney , Netflix , and Facebook (Meta) . While Apple has a leading position in the premium consumer electronics market, this PESTEL analysis shows that the company must continue evolving its strategies to keep its leadership. Effectiveness in addressing these external strategic factors ensures that Apple remains strong despite tough competition in the global market.

The external factors in Apple’s remote or macro-environment indicate the value of flexible long-term strategic planning in managing opportunities and threats. This PESTLE analysis serves as a guide for strategic formulation processes to address external pressures on the technology corporation. Apple’s generic strategy for competitive advantage and intensive strategies for growth are examples of strategic congruence for countering such pressures.

Political Factors Affecting Apple’s Business

The political factors in Apple’s remote or macro-environment mainly present opportunities. This aspect of the PESTLE/PESTEL analysis model indicates the influence of governments and related organizations on businesses. In Apple’s case, the following are some of the major political factors:

• Improving free-trade policies (opportunity)
• Stable politics in developed countries (opportunity)
• Trade disputes, especially between the U.S. and China (threat)

Better free-trade policies are created over time. This external strategic factor increases the opportunities for Apple Inc. to distribute more of its products around the world. This PESTLE analysis also identifies the stability of the political landscape of developed countries as an opportunity for Apple to grow, considering the minimized political problems affecting business operations in these countries. Despite these trends that present opportunities, the external factor of trade disputes, especially between the United States and China, creates a threat to the company’s potential growth and the global sales revenues of its products, such as consumer electronics. For example, growing China-U.S. tensions could lead to higher tariffs on imported electronic components used in the company’s product assembly. This part of the PESTEL analysis of Apple indicates potential performance improvement by taking advantage of political opportunities in the company’s remote or macro-environment, although caution is needed to ensure business stability despite trade disputes.

Economic Factors

Many of the external factors in Apple’s remote or macro-environment create economic opportunities. This aspect of the PESTLE analysis model indicates market and industry conditions that impact firms. In this external analysis case of Apple Inc., the following economic factors are the most significant:

• Stable economies of developed countries (opportunity)
• Rapid growth of developing countries (opportunity)
• Unstable disposable incomes among target customers (threat)

The economic stability of developed countries creates opportunities for Apple’s expansion. However, the rapid growth of developing countries is a more significant economic factor in this PESTEL analysis case, in terms of support for growing the technology business. For example, the high economic growth rates of Asian countries are opportunities for Apple to increase its revenues through more sales in these markets. On the other hand, unstable disposable incomes create unpredictability in selling the company’s premium-priced technology products.

In exploiting economic opportunities, it is essential to consider competitive forces in the international market, as described in the Five Forces analysis of Apple Inc . External strategic factors indicate growth potential for the corporation and its competitors, especially Google, Samsung, and other large multinational firms. Based on this economic part of the PESTLE analysis, speed and effectiveness are critical in Apple’s growth and expansion efforts, although caution is needed regarding unstable disposable income levels.

Social/Sociocultural Factors in Apple’s Industry Environment

Apple’s business is subject to the effects of social or sociocultural trends. This aspect of the PESTLE/PESTEL analysis model points to the social factors that influence customer behaviors and expectations. In Apple’s case, the following sociocultural trends are significant in the remote or macro-environment:

• Rising use of mobile access (opportunity)
• Increasing dependence on digital systems (opportunity)
• Anti-Apple sentiments (threat)

The rising use of mobile access is an opportunity to grow Apple’s revenues. This external factor relates to the increasing demand for mobile devices, like smartphones and tablets. This PESTLE analysis also points to people’s increasing dependence on digital systems, which is another trend that creates opportunities for Apple to sell more of its products. However, the company faces the social threat of opposition to its business operations. Anti-Apple sentiments question business practices, such as the company’s lawsuits against third-party repair service providers that repair products, like iPhones and MacBooks. In the PESTEL analysis context, these sentiments can reduce brand image and consumer confidence in the corporation’s technological products. These sociocultural factors emphasize the importance of Apple’s corporate social responsibility (CSR) and ESG strategy for sustainability and stakeholder management . Such a strategy helps satisfy stakeholders, including customers and governments. Also, Apple’s organizational culture (work culture) is relevant because it influences the quality of service provided to customers. In this part of the PESTEL analysis of Apple Inc., growth opportunities and threats are identified. These strategic concerns require improvements to the company’s policies, practices, and approaches to technological innovation, service provision, and marketing. Apple’s marketing mix (4Ps) must include strategies that match social factors.

Technological Factors

The external factors in Apple’s remote or macro-environment provide technological opportunities for the enterprise. In this aspect of the PESTLE analysis framework, current technologies and technological trends are evaluated based on their effect on businesses. In Apple’s external analysis case, the following technological factors are the most significant:

• Growing demand for cloud computing (opportunity)
• Increasing technological integration in businesses (opportunity)
• Growing mobile market (opportunity)
• Growing technological capabilities of other firms (threat)

This PESTLE analysis of Apple Inc. identifies growing demand for cloud-based services as an opportunity to grow the business. The company now offers cloud services, although to a limited extent. In exploiting this opportunity, together with support from Apple’s organizational structure (business structure) , developing an expanded cloud infrastructure can maximize business profitability in offering cloud-based services. Also, 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. Furthermore, this PESTEL analysis includes the growth of the mobile market as an opportunity for Apple Inc. to gain higher revenues, such as through the App Store and related digital content distribution platforms for iOS and iPadOS. However, the technological advancement of other firms threatens the company, as more new players can enter the market. Thus, to ensure the achievement of the goals of Apple’s mission and vision , it is beneficial to reinforce business capabilities for exploiting technological opportunities and for protecting the business against the competitive threats shown in this part of the PESTLE analysis.

Ecological/Environmental Factors in Apple’s Business Environment

The ecological factors in Apple’s remote or macro-environment provide opportunities for business improvement. This aspect of the PESTLE/PESTEL analysis model highlights ecological trends and their impacts on business. In Apple’s case, the following ecological factors are important:

• Business sustainability trend (opportunity)
• Energy efficiency trend (opportunity)

The business sustainability trend is an ecological factor linked to increasing favor among businesses to adopt sustainable practices to reduce the environmental impact of business operations. In this PESTLE analysis of Apple Inc., such an ecological trend offers the opportunity to strengthen the company’s corporate image. In addition, the energy efficiency trend is an external factor that promotes the adoption of newer and more efficient technologies among businesses and customers. In this regard, Apple’s technology business has the opportunity to improve its operational efficiencies, while offering more attractive products to an increasingly environmentally aware customer population. Based on this part of the PESTEL analysis, Apple addresses these ecological/environmental factors in its remote or macro-environment. The company’s strategic measures, such as supplier responsibility policies, respond to these ecological trends. Apple’s operations management also supports business efforts to exploit opportunities based on these trends.

Legal Factors

The external factors in Apple’s remote or macro-environment create legal and regulatory threats to the business. This aspect of the PESTLE analysis framework indicates the impact of laws or regulations on businesses. In Apple’s case, the following are significant legal factors:

• Increasing privacy regulations (opportunity & threat)
• Legal challenges against Apple’s policies and practices, especially after-sales service and repair (threat)

Governmental pressure for privacy in the digital age has resulted in increasing privacy regulations on businesses, like Apple Inc. This legal factor is a threat that imposes costly regulatory compliance requirements and more limits on the technology company. However, this PESTLE analysis identifies the same external factor as a trend that presents the opportunity for Apple to boost its business through enhanced privacy measures. In addition, the company faces legal challenges related to its practices and policies on after-sales service and other areas of the business. For example, in Australia, the European Union, and the United States, the company faces criticism and legal battles regarding its policies on third-party repair services. Based on this part of the PESTEL analysis, Apple must emphasize privacy protection and regulatory compliance in all its products and consider adjusting its policies and practices to address current legal pressures on its business.

Insights: Apple PESTLE/PESTEL Analysis

This PESTLE analysis shows that many external factors in Apple’s remote or macro-environment provide opportunities. Given its current industry position, the company can exploit these opportunities to expand its reach in the global information technology and online services market. However, the company needs strategic measures to address the threats, especially in the legal dimension. Based on this PESTLE analysis, it is expected that Apple will remain in its strong industry position. Nonetheless, the dynamics of the market and the presence of aggressive competitors can drastically change the company’s strategic position. In this context, it is of critical importance to further improve the business strengths identified in the SWOT analysis of Apple Inc .

• Apple Inc. – Environment .
• Apple Inc. – Form 10-K .
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• U.S. Department of Commerce – International Trade Administration – Software and Information Technology Industry .
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Apple PESTEL Analysis

Table of Contents

1. Introduction

Being the world’s most valuable brand that is known for innovation, Apple Inc.’s success could be directly linked to its proactive response to the changing external environment. With efficient strategic management, Apple exploits the opportunities and mitigates the threats that challenge its market leadership position. 

Apple pest analysis, or more comprehensively, Apple pestle analysis identifies the important external factors that Apple must strategically address to protect its competitive positioning in the market. Pestle analysis of apple discusses political, economic, social, technological, environmental and legal factors that shape Apple’s macro-environment. These factors act as opportunities or threats, and have important implications for Apple Inc.

2. What industry is apple in?

To understand the impact of macro-environment on Apple, we have to firstly see what industry is apple in?

On NASDAQ exchange, Apple Inc. is listed as a technology company that operates in computer manufacturing industry. As company has recently diversified its portfolio, it currently operates in three industries- consumer electronics, software services and online services. 

3. Company overview

Customer centricity and innovation underpin the Apples business model , due to which people consider Apple synonymous with innovation. The company was founded in 1976 by Steve Jobs, and is known for manufacturing personal computer, smartphones, wearables, tablets and accessories. Recently, the company has started investing heavily on a range of services, including- Apple TV+, Apple News+, Apple Fitness+, Apple Care+, iCloud, Apple Card and Apple Arcade.

Apples business model innovation and its marketing strategy- both are two core reasons behind tech giant’s enormous success. We have discussed the secret behind Apple’s market leadership success in our previous article, and have also conducted SWOT analysis of Apple by taking an inward view. In this article, we discuss the Apples business model resilience by taking an outward view.

To do this, we conduct Apple pestle analysis, which is a useful framework to understand how external environmental forces are influencing the Apples business model , how company is responding to these forces, and what company can do to enhance its resilience in post-pandemic world.  

Before we conduct external environmental scanning by applying PESTLE framework, have a look on Apples business model:  

Now, let’s discuss how each external environmental force is influencing different areas of Apples business model. 

4. PESTLE Analysis of Apple

4.1. political factors.

‘P’ of Apple PESTLE analysis refers the ‘political factors’ that shape overall political environment in which Apple operates in. Here are some most important political factors that have strategic implications for Apple Inc. Each factor is classified as ‘Threat (T) and/or Opportunity (O)’:

4.1.1. US-China trade war (T)

As per CNBC , on-going political tensions between China and USA has become a serious political issue for Apple Company. Rapid increase in the US tariffs on Chinese imports and consequent rise in taxes by Chinese government on Apple products is shrinking the Apple’s market size in China. Apples business model heavily relies on low cost manufacturing in China. So, it can affect the revenue and cost structure of Apple Inc. 

4.1.2. Taxation (T)

Apple benefited from the Trump’s corporate tax reduction from 35% to 21%. However, Bloomberg reported that Biden administration plans to end the corporate tax cuts, which can increase the Apple’s production cost and harm its profitability. 

4.1.3. Political lobbying (O)

Apple Inc. heavily invests on political lobbying, which directly serves the Apple’s business interests. Apple Insider reports that Apple has become lobbying powerhouse, which shields the organization against antitrust threats. Following graph shows the Apple’s spending on political lobbying from 2009 to 2022:

Source:  Statista

Bloomberg’s recent report considers Apple’s CEO as one of the most powerful and politically active corporate leader in the country.

4.1.4. Trade policies (O and T)

In post pandemic world, free trade agreements are on rise. Like, UK government is entering into free trade agreements with USA, New Zealand and Austria. Apple Inc. is likely involved in these free trade agreements, which will expand the company’s reach to target market. But, US-China political tension is limiting trade opportunities for Apple, as China is a big market for Apple’s products. So, this factor imposes both- opportunity and threat to Apple Inc. 

4.1.5. Apple-Twitter tension (T)

The recent tension between Twitter’s Elon Musk and Apple signals a new possible war between two tech-giants. If this issue remains unresolved, it can hurt both companies. 

4.2 Economic factors

4.2.1. chinese and korean manufacturers (o and t).

Emergence of Chinese and Korean manufacturers, and their growing popularity among smartphone users has become a threat for Apple. However, Apple’s strong brand positioning is proving to be a shield against intense competition. As reported by Telecom , Apple captured half of the total high-end smartphone sales in China. Despite the growth in Chinese and Korean high-end manufacturers, consumers are still preferring Apple due to its strong image. 

Currently, Chinese and Korean high-end smartphones are unable to compete Apple. However, to preserve this opportunity in long run, Apple has to work really hard , or otherwise, it will be unable to preserve its leadership position.

4.2.2. Consumers’ purchasing power post-pandemic (T and O)

As reported by CNBC , Pandemic has negatively affected the consumers’ purchasing power. Apple Inc. targets both- upper and middle class segments. It has noted a decline in sales as consumers’ purchasing power has shrunk. However, a report by Reuters that this impact could be temporary, and consumers’ purchasing power will grow back as economies rebound. So, in short-term, consumers’ reduced purchasing power could be a threat, which may eventually turn into an opportunity for the company. 

4.2.3. Inflation (T)

Inflation is negatively affecting the Apple Inc. as it directly increases the global logistics costs . However, as company operates in luxury market segment, so it will somehow be protected from the inflation impact due to luxury industry’s inflation immunity. 

Source:  Insider Intelligence

The graph shows that despite the inflation, the luxury sales will likely rise from 2022 to 2026 in USA, but the market growth rate will fall from 13.3 percent to only 1.3 percent.

4.2.4. Cost of production (T)

Apple’s production cost has raised significantly due to multiple factors (like post pandemic inflation, reduced purchasing power, increased tariffs due to US China tensions etc.). If production cost raises further, it can affect the Apple’s profitability. 

4.2.5. Tagnating wage growth (T)

Due to stagnating wage growth, Apple workers are unionizing against the company and are demanding better work conditions. If Apple does not timely responds to workers’ demand, it can hurt the brand image. 

4.2.6. Exchange rate (T)

As Apple has strong worldwide presence, the volatility in exchange rate of major currencies is directly affecting the Apple’s performance. 

4.2.7. Emerging economies (O)

In post-pandemic environment, leading world economies are quickly recovering from pandemic effects. Like, US economy returned to pre-pandemic growth rate in second quarter of 2021, and Asian economy is expected to grow by 4.3% in 2023 . 

Following figure shows the Asian smartphone market growth projections 2020 to 2027:

Source:  Research and markets

Other than Asia, many emerging economies from the Middle Eastern region also present growth opportunities to Apple Inc. and other smartphone manufacturers:

Source:  Canalys.com

Strong re-bound of emerging economies and their positive growth projections ahead present exciting growth opportunity to Apple Inc. 

4.3. Social factors

4.3.1. longer upgrading time (t).

As reported by CNBC , the societal expectations of upgrading the phone every 1 to 2 years are on decline, as customers now wait for longer before upgrading their expensive smartphones. Apple is known for quickly introducing new models. So, this trend can negatively affect the company performance.  

4.3.2. Growing love for branded products in Africa (O)

Luxury brands are considering Africa as the next market with high potential. Apple has potential to further penetrate into African market. As Apples business model targets affluent customer segment, Africans’ growing love for luxury branded products presents an attractive opportunity to Apple. 

4.3.3. Growing tech-savvy, younger population (O)

The tech savvy youth is offering hope to the companies that have positioned themselves as innovative, high-tech brands. Apple can consider youth’s tech savviness and love for innovation as an opportunity, and develop products that meet their expectations. 

4.3.4. Anti-Apple sentiments (T)

The anti-apple sentiments are growing for various reasons, like too high prices, poor communication and anti-consumer practices. If unresolved, this issue may harm the Apple’s brand reputation. 

4.3.5. Generation Z less loyal (T)

Generation Z is more demanding and less loyal than previous generations. A study by Forbes indicates only 37% of generation Z falls in loyalist category compared to 56% baby boomers. They continuously look for the innovative solutions, and it’s harder for Apple to maintain loyalty as proportion of generation Z is growing. 

4.4. Technological factors

4.4.1. growing dependence on digital platforms (o).

In post pandemic environment, the digitalization trend has accelerated, which presents an exciting growth opportunities to the cloud service providers. As reported by Forbes , the Cloud spending has increased by 37% during 1 st quarter of 2020. Apple can take it as an opportunity and expand its iCloud services to cater the businesses’ growing digital needs.

4.4.2. Growing demand for streaming services (O)

There is sharp increase in the demand for streaming services. According to PR Newswire , market size of online streaming services is likely to grow by 18.74% during 2020 to 2025. As Apples business model generates revenue from online services as well, so Apple can take it as an opportunity and grab bigger slice for its Apple TV+. 

4.4.3. Growing cybercrimes (T)

Cyber security venture reports that the growing cybercrimes may cost world more than $10.5 trillion annually by 2025. Apple has high vulnerability to the cyber-attacks that can affect the millions of consumers.  

4.4.4. Growing digital maturity (T)

The pandemic has accelerated the digital transformation process, and has compelled firms to build their technological capabilities. Apples business model mainly relies on the innovation and technology. Growing digital maturity and improving technological capabilities of other firms can threaten the Apple’s positioning as the ‘most innovative firm’. 

Although, Apple’s eco-system is highly resilient. But other tech firms are quickly catching up, and are introducing their own innovative versions of tech products/services. So, remaining the king of innovation can be a serious challenge for Apple. 

4.5. Legal factors

4.5.1. data privacy laws (t).

Data privacy laws are getting stricter. Consumers are increasingly concerned about their privacy. Although, Apple claims it prioritizes the consumers’ privacy, but Guardian reported that Apple shared consumers’ data with the law enforcement agencies 90% of the times, and as per experts, Apple needs to work more to ensure privacy of its customers’ data. 

4.5.2. Anti-trust legal actions (T)

The prevailing regulations discourage the monopoly. But, Apple has been receiving criticism for engaging in monopolistic practices. As per Verge , Apple recently faced lawsuit for having illegal monopoly over contactless payments. Such lawsuits hamper stakeholders’ trust, hurt brand image, and deteriorate the financial performance. 

4.5.3. Patent infringements (T)

Apple faces the threat of reputation damaging lawsuits for patent infringements. Recently, Qualcomm sued Apple for using its patented technology . Inability to avoid infringement issues can not only damage brand image, but can also affect the company’s financial performance. 

4.5.4. Legal conspiracies (T)

Recently, Apple was accused of intentionally slowing down performance of older phone models to push the sales of new models. Resultantly, it paid $500 million as compensation to its customers ( Reuters ). Any such conspiracy in future can hamper customers’ trust and threaten the Apple’s competitive positioning in the market. 

4.5.5. Legal complexities (T and O)

The tensions between US and China and US and Russia have made legal environment much more challenging for Apple. However, Apple is handling these issues wisely. Recently, the legal complications compelled Apple to abide by Russian law offering government-approved apps. Users will opt out whether they want to install the government approved apps or not. 

4.6. Environmental factors

4.6.1. sustainability trends (o).

Forbes reports that consumers (particularly generation Z) are becoming more environmental conscious after pandemic. This growing environmental consciousness is compelling companies in invest on sustainability. Recently, Apple has expanded the use of recycled materials in product manufacturing, and to achieve the closed loop goal, company is investing on new disassembly technology. Apple can take further such initiatives and consider sustainability investment as an opportunity to reposition itself as an environmentally responsible brand. 

4.6.2. Green technologies (O)

Use of clean, energy efficient and green technologies is on rise. Apple can take it as an opportunity to invest on green technologies and reduce emissions. Since 2016, Apple has issued three green bonds (worth $4.7 billion) to bring clean power and release pressure on environment.  

4.6.3. E-waste disposal (T)

The e-waste disposal has become a serious environmental issue. However, as per Guardian , Apple is currently not playing an effective role in tackling its e-waste issue. Inability to respond to this problem can harm the brand image, and draw criticism from environment protection groups. 

5. Apple PESTLE analysis summary 

Here is a snapshot of Apple PESTLE analysis :

PESTLE analysis of Apple

6. Recommendations

• Apple should decrease dependence on China, and explore other low-cost areas

• Remain prepared for the possible tax increase. 

• Introduce more budget smartphones to widen the reach to market

• Resolve workers’ concerns and improve their working conditions to avoid strikes / disruptions

• Expand operations in emerging economies, particularly Africa

• Take some time in introducing new models as consumers now take more time in upgrading their phones

• Understand unique needs of tech-savvy youth (generation Z)

• Resolve anti Apple sentiments by investing on public relations and improving communication

• Improve relation building strategies with generation Z that continuously looks for innovative solutions

• Expand iCloud services, and leverage opportunity offered by quickly growing streaming industry

• Win customers’ trust by ensuring security and privacy of customer data

• Proactively respond to the allegations, and take measures to win back customers’ trust after a series of law suits

• Adopt effective strategies for e-waste disposal

• Invest more on sustainability and green technologies to position Apple as environmentally responsible brand. 

7. Concluding remarks

Apple’s case study shows how successful firms proactively respond to the macro-environmental changes. If you want to know more about Apple’s success, have a look on Apple SWOT analysis , or read story “ Secret behind Apple’s market leadership ”

Apple’s market leadership is directly challenged by Microsoft. To know more about “ Microsoft marketing strategy ”, click here. 

8. References

Why Apple is the most valuable brand in the world . (n.d.).

Access Denied . (n.d.).

Leswing, K. (2019, May 14). Here’s why Apple is so vulnerable to a trade war with China . CNBC.

Bloomberg – Are you a robot? (n.d.-c).

Peterson, M. (2022, July 21). Apple has become a lobbying powerhouse amid growing antitrust scrutiny . AppleInsider .

Statista. (2022d, December 9). U.S. lobbying expenses of Apple 2009-2022 .

Chen, X., Liu, Y., & Gong, H. (2021, December 15). Apple Inc . Strategic Marketing Analysis and Evaluation . Atlantis Press.

Telecom, E. T. (2022, July 3). Apple captures half of all smartphones sold during Chinese online fest . ETTelecom .com.

Bradley, S. (2022, February 24). Apple is a market leader , but can it keep its hold on creative hearts and minds? The Drum.

Leswing, K. (2022b, July 1). How inflation will affect Apple . CNBC.

Mutikani, L. (2022, October 28). Rise in U.S. consumer spending beats expectations; wage inflation slows . Reuters.

Feger, A. (2022, November 22). What’s happening with luxury in 5 charts . Insider Intelligence.

Peterson, M. (2022a, February 18). Apple Store workers are starting to unionize, citing stagnating wages . AppleInsider.

Regional Economic Outlook for Asia and Pacific, October 2022 . (2022, October 13). IMF.

Ltd, R. A. M. (n.d.). Asia Pacific Smartphone Market 2020-2027 by Operating System, Display Technology , Screen Size, RAM Capacity, Price Range, Distribution Channel, and Country: Trend Outlook and Growth Opportunity . Research and Markets Ltd 2022.

Canalys Newsroom – Middle Eastern smartphone market to return to double-digit growth in 2023 . (n.d.).

Ng, A. (2019, May 17). Smartphone users are waiting longer before upgrading — here’s why . CNBC.

Brooks, R. (2022, August 10). 3 Things You Need To Know About Gen Z And Brand Loyalty . Forbes.

Borcherding, B. (2021, April 27). The Future Of Cloud In A Post-Pandemic World . Forbes.

Keary, T. (2022, August 22). Why Apple products are more vulnerable than ever to security threats . VentureBeat .

 Bhuiyan, J. (2022, September 23). Apple says it prioritizes privacy . Experts say gaps remain . The Guardian.

Clark, M. (2022, July 19). Apple’s getting sued for having a monopoly on the iPhone’s tap-to-pay . The Verge.

Brittain, B., & Brittain, B. (2022, October 3). Apple loses second bid to challenge Qualcomm patents at U.S. Supreme Court . Reuters.

Stempel, J. (2020, March 3). Apple to pay up to $500 million to settle U.S. lawsuit over slow iPhones. U.S .

Engadget is part of the Yahoo family of brands . (n.d.).

Paoletti, J. (2022, June 1). Gen Z And Environmental Issues: How To Earn Young Consumers’ Trust . Forbes.

Apple. (2022a, November 2). Apple expands the use of recycled materials across its products . Apple Newsroom .

Apple. (2022b, November 2). Apple’s $4.7B in Green Bonds support innovative green technology . Apple Newsroom.

Laville, S. (2020, November 26). Amazon and Apple “not playing their part” in tackling electronic waste . The Guardian.

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Apple inc. pestel & environment analysis, strategic management essays, term papers & presentations.

Apple Inc. PESTEL analysis is a strategic tool to analyze the macro environment of the organization. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Apple Inc.. Changes in the macro-environment factors can have a direct impact on not only the Apple Inc. but also can impact other players in the Electronic Equipment. The macro-environment factors can impact the Porter Five Forces that shape strategy and competitive landscape. They can impact individual firm’s competitive advantage or overall profitability levels of the Consumer Goods industry.

PESTEL analysis provides great detail about operating challenges Apple Inc. will face in prevalent macro environment other than competitive forces. For example an Industry may be highly profitable with a strong growth trajectory but it won't be any good for Apple Inc. if it is situated in unstable political environment. Spanish oil giant Repsol had to face a similar instance. It started an above average profitability operations in Argentina and made strong returns in 5-7 years. But the business was later expropriated by the Left Wing government. So the decade long profits didn’t materialize in the end.

Political Factors that Impact Apple Inc.

Political factors play a significant role in determining the factors that can impact Apple Inc.'s long term profitability in a certain country or market. Apple Inc. is operating in Electronic Equipment in more than dozen countries and expose itself to different types of political environment and political system risks. The achieve success in such a dynamic Electronic Equipment industry across various countries is to diversify the systematic risks of political environment. Apple Inc. can closely analyze the following factors before entering or investing in a certain market-

• Political stability and importance of Electronic Equipment sector in the country's economy.
• Risk of military invasion
• Level of corruption - especially levels of regulation in Consumer Goods sector.
• Bureaucracy and interference in Electronic Equipment industry by government.
• Legal framework for contract enforcement
• Intellectual property protection
• Trade regulations & tariffs related to Consumer Goods
• Favored trading partners
• Anti-trust laws related to Electronic Equipment
• Pricing regulations – Are there any pricing regulatory mechanism for Consumer Goods
• Taxation - tax rates and incentives
• Wage legislation - minimum wage and overtime
• Work week regulations in Electronic Equipment
• Mandatory employee benefits
• Industrial safety regulations in the Consumer Goods sector.
• Product labeling and other requirements in Electronic Equipment

Economic Factors that Impact Apple Inc.

The Macro environment factors such as – inflation rate, savings rate, interest rate, foreign exchange rate and economic cycle determine the aggregate demand and aggregate investment in an economy. While micro environment factors such as competition norms impact the competitive advantage of the firm. Apple Inc. can use country’s economic factor such as growth rate, inflation & industry’s economic indicators such as Electronic Equipment industry growth rate, consumer spending etc to forecast the growth trajectory of not only --sectoryname-- sector but also that of the organization. Economic factors that Apple Inc. should consider while conducting PESTEL analysis are -

• Type of economic system in countries of operation – what type of economic system there is and how stable it is.
• Government intervention in the free market and related Consumer Goods
• Exchange rates & stability of host country currency.
• Efficiency of financial markets – Does Apple Inc. needs to raise capital in local market?
• Infrastructure quality in Electronic Equipment industry
• Comparative advantages of host country and Consumer Goods sector in the particular country.  
• Skill level of workforce in Electronic Equipment industry.
• Education level in the economy
• Labor costs and productivity in the economy
• Business cycle stage (e.g. prosperity, recession, recovery)
• Economic growth rate
• Discretionary income
• Unemployment rate
• Inflation rate
• Interest rates

Social Factors that Impact Apple Inc.

Society’s culture and way of doing things impact the culture of an organization in an environment. Shared beliefs and attitudes of the population play a great role in how marketers at Apple Inc. will understand the customers of a given market and how they design the marketing message for Electronic Equipment industry consumers. Social factors that leadership of Apple Inc. should analyze for PESTEL analysis are -  

• Demographics and skill level of the population
• Class structure, hierarchy and power structure in the society.
• Education level as well as education standard in the Apple Inc. ’s industry
• Culture (gender roles, social conventions etc.)
• Entrepreneurial spirit and broader nature of the society. Some societies encourage entrepreneurship while some don’t.
• Attitudes (health, environmental consciousness, etc.)
• Leisure interests

Technological Factors that Impact Apple Inc.

Technology is fast disrupting various industries across the board. Transportation industry is a good case to illustrate this point. Over the last 5 years the industry has been transforming really fast, not even giving chance to the established players to cope with the changes. Taxi industry is now dominated by players like Uber and Lyft. Car industry is fast moving toward automation led by technology firm such as Google & manufacturing is disrupted by Tesla, which has stated an electronic car revolution. A firm should not only do technological analysis of the industry but also the speed at which technology disrupts that industry. Slow speed will give more time while fast speed of technological disruption may give a firm little time to cope and be profitable. Technology analysis involves understanding the following impacts -

• Recent technological developments by Apple Inc. competitors
• Technology's impact on product offering
• Impact on cost structure in Electronic Equipment industry
• Impact on value chain structure in Consumer Goods sector
• Rate of technological diffusion

Environmental Factors that Impact Apple Inc.

Different markets have different norms or environmental standards which can impact the profitability of an organization in those markets. Even within a country often states can have different environmental laws and liability laws. For example in United States – Texas and Florida have different liability clauses in case of mishaps or environmental disaster. Similarly a lot of European countries give healthy tax breaks to companies that operate in the renewable sector. Before entering new markets or starting a new business in existing market the firm should carefully evaluate the environmental standards that are required to operate in those markets. Some of the environmental factors that a firm should consider beforehand are -

• Climate change
• Laws regulating environment pollution
• Air and water pollution regulations in Electronic Equipment industry
• Waste management in Consumer Goods sector
• Attitudes toward “green” or ecological products
• Endangered species
• Attitudes toward and support for renewable energy

Legal Factors that Impact Apple Inc.

In number of countries, the legal framework and institutions are not robust enough to protect the intellectual property rights of an organization. A firm should carefully evaluate before entering such markets as it can lead to theft of organization’s secret sauce thus the overall competitive edge. Some of the legal factors that Apple Inc. leadership should consider while entering a new market are -

• Anti-trust law in Electronic Equipment industry and overall in the country.
• Discrimination law
• Copyright, patents / Intellectual property law
• Consumer protection and e-commerce
• Employment law
• Health and safety law
• Data Protection

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Apple PESTEL Analysis

PESTEL is a strategic analytical tool and the acronym stands for political, economic, social, technological, environmental and legal factors. Apple PESTEL analysis (or Apple PESTLE analysis) involves the analysis of potential impact of these factors on the bottom line and long-term growth prospects for the tech giant.

Political Factors in Apple PESTEL Analysis

The extent to which Apple is able to achieve its primary objective of profit maximization depends on a wide range of political factors. These include government stability, level of bureaucracy, corruption, freedom of press, home market lobbying groups etc. Additionally, activities of trade unions can be mentioned as important external political factors for Apple.

Tax Payments

The payment of taxes is a noteworthy political factor affecting Apple. The multinational technology company uses complex legal means to keep its tax payments as low as possible globally, especially in the US and Ireland. In the US, the tech giant holds the majority of its cash offshore so that it can avoid paying corporate income taxes in the US. [1] Any changes in government taxation policies may affect the bottom line for the iPhone maker.

In Europe, European Commission concluded that Apple should have paid the Irish state at least €14 billion (USD 16.2 billion) in corporate tax for 2004-2014. However, in 2020 the General Court of the European Union ruled that European Commission was wrong, a decision that was welcomed by the Irish government. [2] Changes in taxation policies in general and the stance of governments and government agencies towards the iPhone maker in particular are external political factors that have implications for the business.

Dispute with US Federal Bureau of Investigations

The most significant case that illustrates the potential impact of a political factor relates to Apple’s battle with US Federal Bureau of Investigations (FBI). 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 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. [3]  At the end FBI used Azimuth, a hacking firm based in Australia to unlock the iPhone to achieve their objective. [4] The incident cemented Apple’s reputation as a company that prioritizes customer privacy even over the requirements of law enforcement agency.

Moreover, some members of US Congress demanded Apple to remove controversial Saudi Arabia government Absher app. 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” [5] The pressure from Congress members to get the app removed from App Store is another stark illustration of potential impact of political factors for Apple.

Political Lobbying

Political lobbying is a bid to influence politicians and external political environment with positive implications for the iPhone maker. As illustrated in Figure 1 below, the amount the tech titan spends on political lobbying has been mainly increasing for more than two decades to reach the peak USD 9,4 million in 2022. It is an increase of 44% compared to the previous year. Specific policies the company attempts to influence include antitrust bills, online privacy, taxes, semiconductor policy, content moderation, climate change, immigration and LGBTQ issues including the Respect for Marriage Act.

Figure 1 Annual lobbying by Apple Inc . [6]

Nevertheless, the iPhone maker’s lobbying spending is less compared to other tech giants. For example Microsoft, Google and Facebook-owner Meta spend USD 9,8 million, USD 10,9 million and USD 19,2 million on lobbying respectively. The biggest spender here is Amazon with the lobboing budget for 2022 reaching USD 19,7 million. [7]

Impact of global political issues

Apple had to deal with the impacts of political factors in international scale as well. 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” [8] can be referred to as an example where politics interferes with business. 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 [9] .

Trade war between USA and China can be mentioned as another global political factor that affects revenues and long-term growth prospects of the iPhone maker. These cases can be interpreted as a clear illustration of potential impact of a political factor on Apple sales in Russia. It is important to clarify that both cases mentioned above relate to political factors that are associated with Apple in a direct manner.

Economic Factors in Apple PESTEL Analysis

There is a wide range of economic factors that affect Apple directly, as well as, indirectly.  These include overall macroeconomic climate in the market, inflation rate and interest rate, as well as, foreign currency exchange rates. Moreover, the world’s largest IT company by revenue is affected by the cost of labour and changes in disposable incomes of consumers.

Currency exchange rate

Apple generates more than 57% cent of its total sales from international markets outside of United States [10] . Accordingly, company revenues are negatively affected by the current tendency of strengthening USD. Apple’s CEO Tim Cook adopted a currency hedging program in 2014 aimed at easing the negative effects of strengthening USD.

The tech giant hedges portions of its forecasted foreign currency exposure associated with revenue and inventory purchases, typically for up to 12 months. [11] It has to be noted that 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.

Interest rates

Changes in interest rates can affect Apple revenues to a significant extent. Based on investment positions as of September  24, 2022 and September  25, 2021, a hypothetical 100 basis point increase in interest rates across all maturities would result in a $4.0 billion and $4.1 billion incremental decline in the fair market value of the portfolio, respectively [12]

Cost of Labour

Apple has based its manufacturing units in China due to cost-efficiency of resources in general and cheaper human resources in particular. However, the cost of labour is increasingly rising in developing countries in general and in China in particular. As illustrated in Figure 2 below, manufacturing labour cost in China reached USD 6,5 per hour in 2020 and this trend is forecasted to continue.

Rising costs of labour is a significant economic factor that has direct implications on the profitability of the business. Specifically, rising cost of labour erodes the profit margin of the world’s largest IT company by revenue.

Figure 2 Changes in cost of labour in China, Mexico and Vietnam [13]

Inflation rate

The company is also affected by increasing rate of inflation in the US due to its large amount of cash reserves.  Interestingly, in the past one of many Apple’s investors, hedge fund billionaire David Einhorn has attempted to sue the company to force payment of dividends of USD 137 billion [14] so that negative impact of inflation could be addressed.

Apple Inc. Report contains a full version of Apple PESTEL analysis. 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. Moreover, the report contains analyses of Apple business strategy, leadership, organizational structure and organizational culture. The report also comprises discussions of Apple marketing strategy, ecosystem and addresses issues of corporate social responsibility.

[1] Hoxie, J. (2018) “Commentary: Apple Avoided $40 Billion in Taxes. Now It Wants a Gold Star?” Fortune, Available at: https://fortune.com/2018/01/18/apple-bonuses-money-us-350-billion-taxes-trump

[2] Sullivan, A. (2020) “Apple tax ruling for Ireland shines light on global tax avoidance” DW, Available at https://www.dw.com/en/apple-ireland-tax-avoidance/a-54274213

[3] 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/

[4] Nakashima, E. & Albergotti, R. (2021) “The FBI wanted to unlock the San Bernardino shooter’s iPhone. It turned to a little-known Australian firm” The Washington Post, Available at: https://www.washingtonpost.com/technology/2021/04/14/azimuth-san-bernardino-apple-iphone-fbi/

[5] 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

[6] Open Secrets (2020) Available at: https://www.opensecrets.org/federallobbying/clients/summary?cycle=2019&id=D000021754

[7] Feiner,  L. (2023) “Apple ramped up lobbying spending in 2022, outpacing tech peers” CNBC, Available at: https://www.cnbc.com/2023/01/23/apple-ramped-up-lobbying-spending-in-2022-outpacing-tech-peers.html

[8] Russia Today (2014) Available at: http://rt.com/politics/210675-russian-parliament-iphone-ban/

[9] 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

[10] Annual Report (2022) Apple Inc.

[11] Annual Report (2022) Apple Inc.

[12] Annual Report (2022) Apple Inc.

[13] Source: Statista (2021)

[14] 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

A Critical Analysis of Internal and External Environment: Case Study of Apple Inc.

Apple Inc. is a famous information technology firm in the global market. The organization has a wide range of products which consists of MacBook, iPhones, Apple TV, iPad and Apple watch. In this era of globalization with technologies, Apple’s users seek for unique performance products that are aesthetically pleasing as well as emphasize good product qualities. In 1976, Apple was established by Steve Jobs and his partners to develop modern technology products. In order to assess Apple’s strategic capabilities, Osterwalder’s Business Model Canvas is applied in this case study. There is several competitive analysis tools are written in this article including Internal Factor and External Factor Evaluation matrix, SWOT and SPACE Matrix, Boston Consulting Group (BCG) analysis as well as Internal-external (IE) analysis to evaluate Apple’s competitive intelligence. Throughout the report, every component in the evaluation model reflects the direction of how Apple overcomes the hurdles and how Apple could benefit by expanding their business in the international market. Lastly, Sun Zi’s Art of War is also being studied and included into business strategies of Apple. Keywords: Apple, Osterwalder, Factor Evaluation Matrix, SWOT, SPACE Matrix, Internal-external Analysis, Sun Zi’s Art of War

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Apple Inc.’s Macroenvironmental Analysis Essay

Introduction, pest analysis, uncertainty, reference list.

Apple is among the globally renowned organizations. It has continued to record remarkable performance levels, thanks to the company’s capacity to efficiently manage external forces available in its macro-environment. Apple’s leader, Tim Cook, has steered efforts to implement approaches that have helped this company to identify prospective ideas while at the same time securing it from potential risks. Conducting a PEST analysis can reveal key external elements that business managers may need to incorporate when implementing strategies for managing the prevailing macro-environment. The issue of uncertainty is also presented as good for business.

Apple operates in an environment dominated by politics. However, the available political factors are beneficial to this company. For instance, the current free trade policies and the friendly political atmosphere in industrialized states have favored its global operations (Liu 2017). Regarding external economic forces, Apple enjoys the high pace of growth among emerging economies that are expected to boost its clientele base. It also benefits from operating in stable industrialized nations such as the U.S and Singapore (Liu 2017). The prevailing socio-cultural atmosphere presents an opportunity for this organization. Presently, the number of people who deploy cell phones, iPhones, and iPads is increasing. In addition, the need for joining Internet-facilitated social media platforms has pushed customers to seek the company’s digital gadgets. Regarding technology as an external force, Apple operates in an environment that is currently marked by increasing demand for cloud-computing services in many companies. Moreover, this organization stands to gain from the booming apps business.

PEST analysis is vital for business administrators, especially those who operate in the technology sector. In particular, business managers rely on it to understand various changes that are being witnessed in various markets. Such forces may operate against a company by interfering with its prevailing business networks or promotion techniques. Hence, organizational administrators can deploy findings from PEST analysis to implement the most appropriate decisions before such counterproductive issues happen.

Many businesses plan ahead of time by developing strategies that can help them to deal with any uncertainties. According to Antonczyk and Salzmann (2014), such efforts indicate the extent to which they view uncertainties as counterproductive to their day-to-day operations. Specifically, companies that embrace this perception argue that the improbability of the future has the potential of interrupting their valuations (Antonczyk & Salzmann 2014). However, scholars such as Browne (2017) present a different perspective whereby some organizations, including Wolters Kluwer, regard uncertainty as to good for business.

I agree with this perspective because this company’s CFO captures the client as the most important resource that a business can have. While organizations that share a contrary opinion focus more on the impact of uncertainty on their assets, they fail to realize that without customers, such wealth would be nowhere. In fact, the study by Senn, Thoma, and Yip (2013) supports the CFO’s viewpoints by depicting clients as valuable possessions. In my opinion, preparing customers to deal with an uncertain future is a crucial step that not only safeguards their loyalty to particular companies but also saves them from making inappropriate financial decisions. Hence, uncertainty becomes an essential business element when viewed from the perspective of clients.

Businesses that wish to remain operational in the present-day competitive environment deploy tools such as PEST analysis to find out forces that may be acting against them. This tool is important for managers because it helps in proper decision-making, especially regarding ways of managing potential threats. The issue of uncertainty is viewed from diverse viewpoints. While some companies regard it as counterproductive, I agree with the CFO of Wolters Kluwer when he depicts this aspect as good for business. In my opinion, failing to prepare customers to face difficulties brought by the uncertain future may compromise their loyalty to particular companies and, consequently, profitability.

Antonczyk, R & Salzmann, A 2014, ‘Corporate governance, risk aversion and firm value’, Applied Financial Economics, vol. 24, no. 8, pp. 543-556, Web.

Browne, R 2017, ‘Uncertainty is good for business, says Wolters Kluwer CFO’ , CNBC, Web.

Liu, G 2017, ‘International business analysis empowered with research’, Online Searcher, vol. 41, no. 5, pp. 42-46, Web.

Senn, C, Thoma, A & Yip, G 2013, ‘Customer-centric leadership: how to manage strategic customers as assets in B2B markets’, California Management Review, vol. 55, no. 3, pp. 27-59, Web.

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Analysis of the strategy of the Apple Inc.

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Nostalgici ce n'è sempre stati. Nostalgici ce n'è sempre stati. Ma i Toscani che in epoca cesariana (fine I) si mettevano i nomi dei propri convincimenti è un mio retropensiero. Vellano capoluogo di circondario nella montagna pesciatina (Svizzera Pesciatina di Sismondi) che sia *Sillano è nostra convinzione. S>T>V e>i. Pracando lo strano nome di una sposa defunta è viscerale come i Toscani *Pricordium quasi i precordi perfino l'anticamera del cuore era "sillana" mentre vinceva un "populares" seguace di Mario Il Sillano dell'alta Garfagnana lo faremmo invece derivare da *Avellano tombe repositoria coi Dalli *tallo taphoi sepolcri e Pradarena SEPULCHRA quindi una zona di seppellimenti del I avanti vedi per l'epoca Ciampoltrini La colonizzazione augustea in Etruria SETTENTRIONALE Augusto colonizzava nella Scaptia tribus di Cesare qui Monte Ischia e Argegna potrebbe essere Corcyra Corfù o Algeri per Tapso e Munda zona Africa assai probabile zone di assegnazione verso Modena che vi faceva angolo Nismozza verso il Monte Giovagallo e Lago di Calamone (a BUSANA-Cervarezza) sarà LEMONIA la tribus di Bologna che controllava tutto il Settore Montuoso__

The International Journal of Literacies

Marilyn Mitchell

International Journal of Education

Pavle Lederer

The aim of this study was a verification of a gyroscopic measurement device mounted on the heel counter of a running shoe. For this purpose 15 subjects performed 10 running trials in a laboratory environment. Rearfoot angular velocities from the gyroscope were compared qualitatively and quantitatively to rearfoot angular velocities observed with a 3D motion analysis system (VICON). Based on the qualitative and quantitative analysis the results are very good in the sagittal plane, good in the frontal plane and poor in the transverse plane.

Pulmonary circulation

Sphingosine 1-phosphate (S1P) is a potent bioactive endogenous lipid that signals a rearrangement of the actin cytoskeleton via the regulation of non-muscle myosin light chain kinase isoform (nmMLCK). S1P induces critical nmMLCK Y and Y phosphorylation resulting in translocation of nmMLCK to the periphery where spatially-directed increases in myosin light chain (MLC) phosphorylation and tension result in lamellipodia protrusion, increased cell-cell adhesion, and enhanced vascular barrier integrity. MYLK, the gene encoding nmMLCK, is a known candidate gene in lung inflammatory diseases, with coding genetic variants (Pro21His, Ser147Pro, Val261Ala) that confer risk for inflammatory lung injury and influence disease severity. The functional mechanisms by which these MYLK coding single nucleotide polymorphisms (SNPs) affect biologic processes to increase disease risk and severity remain elusive. In the current study, we utilized quantifiable cell immunofluorescence assays to determine t...

Komputasi: Jurnal Ilmiah Ilmu Komputer dan Matematika

Yuli Wahyuni

Pengukuran LILA pada kelompok wanita usia subur (WUS) baik ibu hamil merupakan salah satu cara deteksi dini yang mudah dan dapat dilaksanakan oleh masyarakat awam, untuk mengetahui kelompok beresiko KEK. KEK merupakan keadaan dimana ibu penderita kekurangan makanan yang berlangsung menahun (kronis) yang mengakibatkan timbulnya gangguan kesehatan pada ibu. Selama ini sistem pencatatan ibu hamil di posyandu masih menggunakan sistem manual yaitu data ibu hamil yang diperoleh masih menggunakan kalkulator untuk mengetahui kondisi kategori ibu hamil selain itu data yang digunakan untuk mengarsif data masih menggunakan buku dan Microsoft excel hal ini sangat menyulitkan petugas posyandu apabila mau mencari data ibu hamil dan kesulitan dalam melakukan laporan karena data tidak disimpan dengan baik. Data seperti ini sangat rawan kehilangan data dan kerusakan data apabila suatu waktu dibutuhkan lagi. Penelitian ini telah berhasil dilakukan yang dapat menyimpan data pada cloud berupa data-data...

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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. Apple products have innovative and distinct features for each of its range of products. This multinational corporation is known for its unbeatable niche in the industry. It is has created a benchmark and revolutionized the world of personal computing since its formation. Steve Jobs and Steve Wozniak are the two college dropouts, who co-founded Apple. Today, In the IT industry Apple has carved its name on top as the world’s largest IT Company. It is world’s largest information technology company may that be in terms of total assets, revenue. It is also the world’s second largest company in the mobile phone manufacturing industry having with 115,500 employees(as of July 2016).

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For Apple case study , let us discuss some of the basic information about the company:

SWOT and PESTLE Analysis of Apple

In this Apple case study , the aim is to identify the internal as well as the external factors that have an impact on obtaining achieving high performances by Apple. From the study, the conclusion is if the company wants to continue to succeed the same way then it must consider macro and micro environmental factors. To determine these aspects from this Apple case study, data has been collected from a varied source like published paper, journals and many case studies, which were conducted by the company.To review Apple’s business operation framework there are two methods used for analysis –SWOT analysis for internal factors and PESTLE analysis for external factors that affect the performance of the company.

SWOT Analysis

SWOT analysis is the most popular and basic analytical tool for identifying internal strengths and challenges, and external available opportunities and threats for the assessment, enabling managers to scan the environment properly to organize everything more efficiently.SWOT stands for,

Opportunities

To improve an organization's strength, making sure its weaknesses have to be eliminated, grab the opportunities and foresee the threats. SWOT Analysis of Apple Strengths Leading innovator amongst the electronics brands: Since 2005, Apple has persistently been ranked at the top position on the in BDG's list of 50 companies because of its uniqueness in electronics devices. Apple is regarded as a leader for innovating products in the market like I Work (a presentation program) and iTunes Media Player (publishing photos, movies, organizing editing and music). Moreover, Apple has now become one of the biggest online retailers for streaming music, videos and software solutions. Apple has extended its coverage by reaching out to more customers.

Remarkable sales growth every year.

From the year 2016, Apple has observed high growth in its sales and that resulted into, Apple has prudently managed to be on top of the Forbes 100 Most Valuable Brands (2016) list having a total capital of $416.62 billion. In one year Apple is likely to wait for 38% revenue growth by the end of March 2017.

Annual Financial Report of Apple Inc. Fiscal Year October – September, all values are in USD

High brand recognition In Apple case study that to review the market broadly, Apple has invested $4.5 billion in 2013 for Research and Development as compared to $2.4 billion in 2011. Apple with the aim of targeting direct sales, it has located its branches in densely populated locations that can contribute to earn more revenues and to ensure more results that are terrific. For improving goodwill and brand recognition, it took over whole control of supply chain and provided a report of the code of conducts to the suppliers. The same practice is still maintained for which Apple has earned great trust from the customers who wait eagerly to get the latest version of Apple products.

Strong and effective marketing team: In Apple case study , CEB elucidated that to approach customers they furnished correct information to the customers about what they exactly looking for, instead of very complicated and multifaceted websites.This is exactly what Apple is doing since long while involving a simple process to market its products.

To have a better understanding of Apple case study , we can take the Mac vs. PC advertisement into consideration. There are two boys in this ad standing with a white backdrop, not discussing about its features in length, even not about price, no professional background voice over sort to give emotional pinch, not even telling about how to purchase MAC; just one focal point and that is MAC is better than PC in every sense.

Premium quality of customer experience In Apple case study, we will see how it pursues to make a magical solution to ensure the long-lasting relationship with the customers to increase its sale of products. In order to persuade undeniable or unbeatable trust of the consumers, Apple’s customer service follows the following steps:

• Reach to customers by giving a more personalized touch.
• Empathically identify and understand the customer’s need.
• Bring solutions to the consumers that are acceptable to them.
• Always first, hear the problems raised by the customers and then resolve it at your best capacity.
• Close the status of current visit of the customer by offering the return.

High price If Apple has one limitation then that has to be its high price. Many people pinpoint the brand for its prices however there are its fans that validate the state by labeling it as a ‘Premium’ gadget- maker. These fans justify by saying that this brand is for those who can afford to keep a pony. In other words, Apple is labeled as BMW, not as Ford. However, this has left a negative impact on its sales, as consumers have many options available other than Apple. These brands like Samsung, Microsoft, are much cheaper and offer most of the apple phone features and various. As per strategy analytics, Apple has faced loss in its customer base, as compared to 2012 from 93% iPhone user purchase has come down to 88% in 2013.Hence, every year its competitors are offering the customer by reducing prices or adding features similar to Apple.

Wrong prediction Steve Jobs founder of Apple anticipated that ‘No one' is going to use big phones. Clearly, his prediction was incorrect. Apple unsuccessfully predicted few brand’s futures like Phablets. Even after launching a tablet, Apple has not introduced big screen mobiles. Samsung has performed far better than Apple by launching its Samsung Galaxy Note in 2011 in place of Phablets. The craze and demand for big screen size smartphones are just increasing day-by-day.

Incompatibility of different OS Customers, who have been using any other operating system, find it very difficult to apt or comfortable to use iOS or OSX. The reason behind this is simple, it is not easy to switch to completely different oS after being comfortable with the one, like one switching to Mac from PC finds it practically difficult to use it for the first time. For instance, as in PC, an individual is in practice of using ‘Start’ menu, while in Apple the individual needs to use ‘Finder’ to find out all the apps, documents, and other files.

Market shares of Apple iPhone are declining According to a survey conducted to analyze the sales of smartphones in the year 2015, which was conducted by Kanter Worldpanel ComTech, the market share of Apple phones declined. As per the February findings of the survey, this decline in the sales continued for two months in the US, Japan, Germany, Great Britain, Italy, and Spain. Resulting in the loss of a significant number of the customer by the company. It was not even able to convincingly influence its customers to buy iPhones. Let us consider data comparing the declining market share of iPhones in different countries:

Over dependency on iPad and iPhone Income of Apple Inc. is prominently dependent upon iPad and iPhone sales. In the year 2013, 72.1% of its total income was from these two ranges of products. Eventually, the sales of both the products declined, which adversely affected the sustainability and feasibility of the brand.

A defect in new products

Apple confirmed about the manufacturing defect in iPhone 5sby giving the statement to New York Times. iPhone 5s users have faced multiple problems like poor battery life etc. Some problems were also observed in iPhone6 after its launch. However, the engineers of Apple resolved those problems immediately.

Rising demand for Apple products As per the recent studies, Apple products are gaining high demand, majorly for latest launch PowerBook and Power Mac products along with the new upgrade to Mac OS X. CEO of Apple Tim Cook said that the demand of new Apple Watch has been exceeding its availability or supply. Due to which many of pre-order deliveries pressed back to the month of May or later.Apple's loyal customers are eagerly waiting for new iMac line and iDVD products.

Rapid growth in the market of communication devices In one of the interviews, CEO Cook said that Apple products are not made for selling at low- cost or priced phones. It always aimed at selling high-end products. In the field of smartphones, Apple celebrates its growing demand in the market with each passing time even after having price difference from its competitors.

Worldwide share of Apple in SmartPhones

A wide undiscovered potential marketplace in commonwealth countries: Apple has not yet realized the prospect of growth in the electronics market. High level of possibility of earnings is possible in the middle-class strata of the commonwealth nations. Apple needs to take this fact into account that the UK is working on increasing proximity with the Commonwealth countries. Therefore, it is a great opportunity for Apple UK to gain the advantage by allocating itself in these member-countries’ markets.

Increasing cloud-based services It is predicted that forthcoming iCloud innovation will redefine the earnings of the company in future. In apple case study , it is suggested that Apple has a prospect of expanding its services or chance of adopting new strategies to engage new customers in these services to meet the high rising demands of services of iCloud.

Ever developing surroundings of electronic communication The world of electronic communication and its devices is consistently innovating in a complex structure. The company needs to maintain the pace; otherwise, its competitors will leave it behind in no time. As per apple case study , it is a potential and serious challenge in front of Apple and its market position in future. Communication market has robust competition and the company is compelled to introduce great designs and modifications in its products to meet the expectations of the customers.

Tax scandal and repute damage Involvement of Apple in tax sandal caused huge damage to its reputation. The news of its involvement in tax scandal went viral in no time. Apple kept a substantial amount of $44 billion of its earnings from reaching into the approach of the taxmen. The company tax perspectives are nil and minimal taxes are paid by it. To analyze the source of income from Apple’s foreign operations, the tax professionals had to make a guess.

Contravention of the intellectual property (IP) rights There was a flaw in company’s IP rights policy, due to which if there is any infringement of patent rights of Apple, then instead of being immediately notified about the theft, it gets to know about it after some time. As it always takes time to know about such activities, the result is it has to bear serious damages to its brands and services.

The growth of Android OS Data on sales of the year 2015 of Smartphones to consumers as per Operating System (Thousands of Units).

As shown in data, it is evident that the company has a serious threat of losing its customers to the Android operating system.

PESTLE Analysis In Apple case study, PESTLE analysis is done critically. PESTLE is the analysis of the external factors that play a crucial role in conducting an extensive research before starting up of a new project. The risk posed by the identified factors is assessed by the managers and application of the knowledge is ensured to make the constructive decisions for the company. PESTLE is composed of six significant factors, mentioned below:

• Technological
• Environmental

In contrast with SWOT analysis, it majorly focuses on the macro environmental external factors, which might affect the present or near future position and situation of the business.

PESTLE Analysis – Apple

Political Factors It is pertinent to know that Apple receives a major portion of its sales from outside the US. Sales contribution of Apple sales from outside the US is of more than $113.8, whereas, the sales income from the US is $68.8 billion. In the Apple case study, it is important to understand the amount of negative impact of any political disturbance or revolution on the company in its operating countries.

Suicide cases against the biggest Taiwan Supplier of Apple Several suicide cases were registered against its one the major supplier, Foxconn (a Taiwanese company). Due to this unexpected situation, Apple had to undergo immense political pressure. Several cases of suicide were registered against Foxconn in May 2010, claiming is responsible for the suicide of its employees. It was held responsible to compel its employees for long working hours, due to which two of its employees were forced to commit suicide. In another reported incident of one of the other Apple’s suppliers, 16 of the employees got injured.

Political disturbance in China China being a low labor cost country, manufacturing of Apple is enormously dependent on China. However, the troubled political scenario of China affects and disrupts its manufacturing every now and then. Due to which its manufacturing costs keeps on increasing. In addition, to promote the manufacturing within the US, the Chinese imports have imposed restrictions. In the Apple case study , the fact of impact and effect on apple, which is a US-based company, of the political bonds of the US government with the Chinese government is also taken in the account. One of the major concerns of Apple is that if it tries to get an alternative to production in China, it will increase the cost of production, resulting in an increase in prices of Apple products. In addition to it, Apple may face a major loss of market share in China, due to growing nationalism amongst the Chinese. In such condition, Apple may become a target to show protest against anti-Americanism in China.

The threat of terrorist attack Even though the UK government is a stable government, the risk of a terrorist attack is always there. It can leave a negative patch on the company. Apple is encountering the current political situation of growing tensions amongst the coalition of ruling and sagging government popularity.

Tim Cook Ban in Russia The CEO of Apple Tim Cook made a public acceptance of his homosexuality in the month October. This led to a suggestion on the ban on his visit to Russia by a lawmaker in Russia, who is popular for having a strict and harsh approach to gay propaganda.

Economic Factors Due to a situation like recession and other economic issues or crisis, the income of the company can adversely get affected. While in comparison with other businesses, Apple is likely to get affected badly, because of its premium class products and huge pricing.

Impact of global recession Apple witnessed a very slow economic growth in the year 2013 and 2014, this was the time of global recession in 2013. Apple was amongst those companies, who were the most affected ones during the global recession.

The decrease in sales because of the global recession

Economic challenges and difficulties of Europe In Apple case study , it is discussed that the change in the economy of Europe has affected Apple directly. It has led to a downfall in its revenues to 16%, during the third quarter of 2012, as compared to its revenue in the same period of the last year.

The increased inflation rate in the US The company reserved a huge amount of cash, which affected it during the increased inflation rates in the US. However, the company was sued by a cautious fund billionaire, David Einhorn, asking it to pay the dividends of $137 billion. It helped the company to use the abundant cash in paying the dividend.

Increase in labor cost in China It was a world known fact that for manufacturing of Apple products, China is the hub. However, now the government of China decided the minimum wages within the country, this led to increases the labor cost in China. Although, it depends upon the area to area and there are various other deciding factors like a house, food, overtime pay etc. While considering the official figures by Trading Economies in this Apple case study , increase in the wages was seen in some areas like Northern Hebei Province areas witnessed 22% rise in wages in past year, whereas Southern Guangdong city had 5% to 17 %wage rises. It is evident that rise in wages is affecting and causing an increase in the prices of the products of Apple. Furthermore, even if the company looks out for any other option or alternative to sort this, it will cost a fortune to the company.

Growing worth and value of the US dollar There is a rise in exchange rates, because of increasing value of the US dollar. The price of the products of Apple gets affected due to this increase in the exchange rates. Apple’s potential and key markets are countries like Europe and China, but the rising difference between the US dollar and other currencies of these countries like Euro and Yuan results in increasing the cost and making Apple products even more expensive. In normal circumstance, the revenue of Apple would have been higher by 800 points. This implies, if there was no such increase in the value of the dollar then Apple would have made revenue of $52.8 billion instead of recorded revenue of $49.6 in 2015.

Social Factors Due to globalization, various factors have contributed and marked a massive impact on Apple like the rapid increase in the popularity and usage of the virtual world, present lifestyle etc.

Defines the high –status lifestyle of an individual Everyone knows that Apple is the leading and premium brand in the world. It defines its own brand, this is that one name with which people across the world wish to move with. This is not about possession of an iPhone and iMac. It is desirable and wishes by the customers because of its unique selling proportion, innovative design, simple and straight marketing strategies of its products and high pricing of its products. Eventually, it has become a status symbol in the society across the world, due to its exceptionally high prices, making it affordable to the high class of the society.

Potential market share in the third world country The Apple case study suggests, in coming decades Apple has a huge scope of finding its potential market share in the third world countries like Africa. The people of these countries are unaware of the products of Apple. The company must formulate strategies to explore and penetrate its products in these unexplored, unapproached markets to understand new possibilities of generating revenues.

Moral factors of determining manufacturing process in China Some people may find the company that the company lacks social- consciousness and responsibility, as it carries out its manufacturing process in China, while it can be a job-creator for the home country. Still, it is attracted to China to get low-cost labor for its manufacturing. This factor may limit its appeal to some people.

Brand acquisition in lots of countries The brand made acquisitions like Embark Prime Sense and Topsy and alliances with Sony, Motorola, Philips, and AT&T, to attain customer satisfaction and fulfill the needs of the customers in the best possible manner. The company takes into account the social background of various brands.

Technological factors When it is about earning revenues, Information technology’s stakes are higher than any other industries. Apple is one of those rising industries who has grown with the time. It is proven that any company who wishes to earn well must innovate time to time.

The advantage of 760 China Mobile Subscriber In the year 2013, Apple revealed that it has made a deal with China Mobile to attract customers towards its iPhone, which was previously under the influence of other low-budgeted android smartphones. Through this deal, Apple could get a massive entry to the Chinese market and China Mobile’s 760 subscribers at very large level. As per the contract, Apple products iPhone 5, iPhone 5S are accessible in China at Apple retail stores and China Mobile.

Assessing the consumer’s minds As per the report of 2015, Apple spent $8.7 billion in its Research & Development that cost it for around 3% of the total company’s net sales. The purpose of these researchers is to understand the approach of customers by having the short product life cycle of the industry.

Preferences to screen size Its spectacular design is Apple’s unique selling point. Apple is committed to better designs and concepts. The edgy and attractive designs of Apple products are unbeatable to match for its competitors. However, with the time people are preferring the bigger screen sizes.

However, Apple’s last product iPhone 6 has merely 4.7” screen size, and iPhone 6 Plus has 5.5” display.

Competitors offering the same Samsung and Google are the main and strongest competitor of Apple who is catering products and services that were once apple's prime features. Google did not take a year to make payment app just like, Apple has offered. Almost within no time, Apple Pay has its competition from Google Pay. Google has shown that it has got the capability to develop the exact product, app or any service that can be a threat to the leading company Apple.

Limited market for new products Apple has a very limited customer base as it launches limited products for consumers. Along with these products like Apply TV has got really selected customers.

The growing menace of cyber crimes In this virtual era, Apple is not being up to the mark when it comes to the cybercrime as it is quite vulnerable and less protected for customers. When it is about safety and security Apple wins in it and takes away the competitive advantage over others.

Legal factors As legal aspects are concerned Apple becomes quite vulnerable as it deals worldwide that involves various legal factors and legal issues.

Domestic legal stress America, the homeland of Apple is causing its legal problems. In the last year, the company had to restore imports of some of its parts that are used in iPhone. The US government banned these parts.

Offering financial services by Apple Pay There are financial services, which are offered by Apple in the form of Apple Pay. Lately, it entered the highly regulated financial sector, which can take the company to increased regulation level. For rendering such financial services, it could lead the company to various litigations.

Breach of IP laws: Apple has a variety of intellectual property like Software and music that are produced by its brands. The major part of the revenues of Apple comes from the software produced by it. This makes it more susceptible to piracy as well as litigation.

Entering automobile industry Apple is all set to enter into the automobile industry. It is pushing hard its team to start with the production of electric vehicles by 2020. In the past year, the company has already invested $6.04 billion in research and development. The CEO Tim Cook is under huge pressure of shareholders to return the invested money. As per legal case filed against his company states that, the company is aiming to start a new campaign and is hiring the best of minds to develop the battery, though the company is starting from the scratch and hence in general phenomena to launch such a product at this stage a company requires time period of at least 10 years, Apple is rushing to launch it by 2020.

Environmental factors The company’s revenue can be affected badly because of varied environmental factors such as disposal.

Disposal of used or non-working electronic devices Apple is facing huge issues while disposing of all the electronic junk that is not required anymore or not in the condition of usage. Due to lithium contained batteries in its electronic items the company is going through massive hurdles while discarding them. It may cost a fortune to the company. As it involves environmental factors, Apple has to incur all the cost.

Pollution issue in China The growing pollution and environmental issues along with its various side effects, that manufacturing process, and facilities are the reason of concern for Apple. To ensure a reduction in environmental issues in the process and facilities, the company needs to spend more money on future processes. This will lead to increases in expenses at a great level.

Attempt to cut greenhouse effect increases cost of production in China In today's environment we are surrounded by harmful greenhouse gases and for reducing greenhouse gases and use of fossil fuel, China has come forward to take this commendable initiative. This initiative possibly could increase the rates of electricity in China. Resulting manufacturing costs might also increase for Apple.

Global warming As global warming is increasing rapidly, Apple may face the issues regarding transoceanic shipping. It is pertinent to mention here that it is the crucial aspect of the supply chain of Apple.

Increase in costs of electricity Dependability of Apple upon data centers and internet infrastructure makes it more susceptible to electricity rates. The company needs to carry out more expenses in the manufacturing processes.

Based on PESTLE analysis, in the next five years despite the challenges, Apple can prosper in the electronic device industry. The reason behind its assured success is it has a unique ability of always adapting to the challenging environment. Its distinct features like exclusive and unique designwin it the competitive advantage, which can be seen in its sales growth and rising revenues. Hence, it is appropriate to state that Apple is and will be in the years to come, be leader in the electronics industry.

References Apple Info.

[1]www.forbes.com/sites/susanadams/2015/12/08/is-apple-the-worlds-most-innovative-company/#1cadfd617557

[2]www.forbes.com/powerful-brands/list/3/#tab:rank

[3]www.marketwatch.com/investing/stock/aapl/financials

[4]www.forbes.com/sites/jaysondemers/2014/07/08/heres-the-simple-secret-to-apples-marketing-success/#19108e0d63ab

[5]www.forbes.com/sites/carminegallo/2015/04/10/how-the-apple-store-creates-irresistible-customer-experiences/#135b249f2a0c

[6]www.forbes.com/sites/chuckjones/2015/04/06/apples-worldwide-iphone-market-share-declining-except-in-china/#368e9d923165

[7]tech.firstpost.com/news-analysis/apple-admits-some-iphone-5s-devices-have-manufacturing-defects-107447.html

[8]www.bloomberg.com/bw/articles/2014-09-04/for-iphone-6-defects-apple-has-failure-analysis-team-ready

[9]techcrunch.com/2015/08/20/peak-android/

[10]www.businessinsider.in/Apple-Just-Reported-A-Record-Quarter-But-Analysts-Only-Wanted-To-Talk-About-The-US-Dollar-Heres-Why/articleshow/46044551.cms

[11]www.fool.com/investing/general/2015/07/24/heres-how-much-the-strengthening-us-dollar-hurt-ap.aspx

[12]www.phonearena.com/news/Heres-how-screen-size-preferences-have-changed-through-the-years-infographic_id71924

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Apples Macro Environment - Case Study Example

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PESTEL Analysis for Apple

PESTEL Analysis Overview 

PESTEL analysis is a strategic tool used to examine the different factors within a macro environment likely to have some type of an impact on a business enterprise.

Due to its importance in devising business strategy, assignments such as  writing an essay  or  business case study  on PESTEL analysis are common in business school and the business world.

In business school, such an assignments usually focus on industry leaders. Common case studies could therefore include PESTEL analysis for Apple,  PESTEL analysis for Amazon , and  PESTEL analysis for Coca Cola .

Apple Company Profile

Conducting a PESTEL analysis for Apple requires a good understanding of the company.

Per se, Apple Inc. is a company that deals with the designing, manufacturing, and marketing of smartphone devices, personal computers, tablets, and portable music players.

It also deals with the manufacturing and sale of numerous related services, software, networking solutions, accessories, and third-party applications and content.

Apple Company profile can be summarized as below.

The PESTEL analysis would entail a close examination of the different external environmental factors affecting Apple Inc.

This analysis is usually important in identifying the different opportunities and threats facing the company.

That said, business factors to be included in an Apple macro environment analysis case study or a PESTLE analysis of Apple essay are as discussed below.

Political Factors

Political factors are quite critical in the analysis of Apple Inc.’s external macro environment. This is because all businesses operate within an environment defined by the government of the day.

For that reason, some of the factors to consider in the case of Apple macro environment analysis case study include:

1. Political stability in developed countries

2. Trade policies

3. Government policies

4. Trade disputes

Political stability in developed countries presents Apple Inc. with business opportunities. This is particularly the case in the Americas, Europe, and some parts of Asia.

Such stability can be considered as one of the external environmental factors affecting Apple Inc.’s operations in a positive manner.

This is because political stability minimizes the negative business impacts associated with political instability risks such as civil unrest, sanctions, and embargoes.

As well, trade policies are an important political factor to consider in the PESTEL analysis for Apple. These policies encompass agreements and regulations controlling exports and imports within a country.

A good PESTEL analysis should therefore look into the nature of trade policies in Apple Inc.’s existing and potential markets with the intention of identifying prospective opportunities.

Government policies are also key external environmental factors affecting Apple Inc. They include the different regulations and measures put in place by the government that affect the company’s operations.

In the case of Apple Inc., the US government has in the past contemplated developing policies against accumulation of huge sums of cash, assets, and wealth.

Note that large cash amounts in the bank have over the years become a prominent part of Apple company profile identity.

In addition, trade disputes are a major factors to examine in an Apple macro environment analysis case study.

This is particularly in the case of China, which is a major market for Apple Inc. products.

It is important to note that the rising trade disputes between the US and China arising from espionage allegations and accusations on COVID 19 pandemic have serious implications on Apple Inc.’s operations in China.

Economic Factors

Economic factors as well feature significantly in the PESTEL analysis for Apple. Some of the key economic factors to examine include:

1. Economic stability

2. Economic growth

3. Disposable income

4. Cost of production

Economic stability entails factors like GDP over a period, unemployment rates, and inflation levels. Accordingly, a PESTLE analysis of Apple essay would examine such factors from a global market perspective.

These factors have serious implications on Apple Inc.’s operations since they influence the company’s ability to offer products at stable prices as well as achieve stable and sustainable growth.

For economic growth, you need to analyze the short-term and long-term impacts of emerging economies like China and other economic tigers on Apple Inc.’s market growth and share.

A good Apple macro environment analysis case study should as such evaluate how these economies present the company with an opportunity for growth.

Disposable income is also an intricate factor to consider in the PESTEL analysis for Apple. This factor is closely related to economic growth mainly in the emerging economies.

In this, you should explore how the rise in household and individual incomes is likely to impact Apple Inc.’s operations.

This should be in consideration of the company’s premium priced products.

Additionally, cost of production has to be deliberated as one of the external environmental factors affecting Apple Inc.

This is more so with the cost of labor as it is a major factor in the production of Apple Inc.’s line of products.

Note that the cost of labor in Apple’s key regions of production such as China has been on a constant rise over the past several years.

Social Factors

Social factors are equally central to the PESTEL analysis for Apple. Key social factors affecting Apple Inc. include:

1. Digital trend

2. Overreliance on the digital world

3. Ethical concerns

4. User perceptions

The prevalence of the digital adoption trend mostly among the younger generation across the globe is one of the major external environmental factors affecting Apple Inc.

Analysis of the digital trend requires you to examine how the emergence of smartphones as social and status gadgets effects Apple Inc. market operations.

This trend could be an opportunity for the company.

Closely related to prevalence of the digital trend, overreliance on the digital world for the execution of day-to-day business is a critical factor in PESTEL analysis for Apple.

This factor should look at the extensive use of smartphones in activities like learning, workplace tasks execution, and personal entertainment and their influence on Apple’s market decisions.

This factor could provide the company with an opportunity for growth.

On the other hand, ethical concerns as a PESTEL analysis factor could entail the different social issues arising from Apple’s operations in China, including human rights violations and cheap labor.

You could therefore explore the impact of Apple Inc.’s manufacturing operations on the social appeal of its products among potential customers.

Also, the general perceptions about the company are an important social factor to consider in the PESTEL analysis for Apple.

This could be approached from the dimension of increasing tensions between the company and other players in the industry.

Such tensions could be in the form of legal disputes that can be interpreted to be a result of uncompetitive practices by Apple Inc.

Technological Factors

Technological factors also feature prominently in the PESTEL analysis for Apple. These factors include:

1. Integration of technology in business

2. Cloud computing demands

3. Technological limitations

4. Capabilities of competitors

Integration of technology in almost all business operations is a major factor to explore in your PESTLE analysis of Apple essay.

This would require you to evaluate how the adoption of technology in business processes like networking, inventory control, accounting, and communication impacts Apple Inc.’s operations.

The integration is likely to be an opportunity for the company.

Similarly, you should look into rising cloud computing demands as a critical factor in the PESTEL analysis for Apple.

This analysis would examine the impact of rising need for cloud services like network storage, application hosting, and virtual IT on Apple Inc.’s operations.

The rising demand is also an opportunity for the company.

Further, you can study technological limitations as external environmental factors affecting Apple Inc.’s operations in different ways.

This would entail examining the impact of the company’s operating system used by its smartphones.  The iOS usually bars the installation of some application in iPhone.

Such limitations could be considered as some of the weaknesses of Apple.

Also, the ability of Apple Inc.’s competitors to rapidly come up with programs, systems, and applications that match its own is a key factor to consider the analysis of the company.

This includes all apps in the App Store and other innovations like mobile payments.

Environmental Factors

Your PESTEL analysis for Apple also has to include the different environmental factors that have an impact on the company.

Some of such factors include:

1. Disposal of electronic waste

2. Environmental pollution

3. Energy conservation

Disposal of electronic waste is an important factor to include in an Apple macro environment analysis case study.

This is because the company is associated with huge volumes of e-waste from its disposed gadgets.

In this analysis, you should evaluate the impact of renewed CSR campaigns agitating for proper waste management on Apple Inc.

Environmental pollution is another environmental factor to consider in the Apple’s PESTEL analysis. Although it is closely related to e-waste management, it focuses on the manufacturing stage.

Usually, you should look at how environmental management policies in different countries affect the company’s operations.

This could focus on huge manufacturing plants in countries like China.

As well, a PESTEL analysis for Apple should study the impacts of energy conservation drives on the company.

As an environmental factor, energy conservation raises numerous issues like adoption of energy efficient systems such as solar run plants, use of natural lighting, and energy-conscious procurement processes.

Legal Factors

Lastly, the PESTEL analysis for Apple has to examine the various legal factors likely to affect the company.

Some of these factors include:

1. Legal battles

2. Third-party products legal liability

3. Data privacy regulations

Apple Inc. have had numerous legal battles with different entities where in some cases the company has incurred significant costs.

Accordingly, you could explore the impacts of the serious legal battles the company has had with the US government and competitors like Samsung, Qualcomm, and Shanghai Zhizhen Network Technology Co.

Close to the legal battles, a PESTEL analysis for Apple should look at the legal liability the company bears from third-party applications.

This includes legal cases like the iTunes gift card scheme or the Apple Inc. v. Pepper et al. case that focused on Apple’s app store conduct.

As well, data privacy regulations is another legal factor examine in your PESTLE analysis of Apple essay.

This may look at the regulatory compliance requirements imposed on Apple Inc. and other technological companies concerning data management.

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