External Factor Analysis for Apple Inc

Apple is an American organization that specializes in the conception and manufacturing of consumer electronics as well as connected software products (Breillatt 45). It operates over 300 stores in the world. The company has an employee base of about 50, 000.In order to understand and analyze the external environment and to know the current state of affairs and what the future holds, the PEST analysis method is used in this paper. Societal Environment

Political Concerns
There are a lot of problems which Apple does not have control over.

They include geopolitical factors, the antiterrorism war, work authority and health concerns that affect the sale of its products. In order to reduce its cost of operation, the organization has outsourced to different countries like Ireland, Korea and China (45). When these countries are affected by political issues it will affect the sale of Apple Inc Products. Economic Concerns

The world economic conditions determine the consumers’ purchasing power. In the last couple of years, unemployment has been on the rise in many countries.

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This means that the consumer purchasing power is also lowered. However, it is worth noting that the situation is becoming favorable and this has led to increase in revenue at Apple Inc.

Social Concerns
The Apple products are driven by two factors which are design and the quality. More people around the globe are now going into purchasing of luxury products. This has been the reason why products like the iPod and the latest iPads are being sold out widely (47). Music has also grown and Apple has tapped into this market through the iTunes.

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Technological Concerns

Apple is always coming up with high technology and innovative products.It has invested huge amounts and resources in research and development. This has been the reason why the company is able to come up with very innovative products (46). Task Environment and Competitor Analysis

Apple is a big technology industry player. It makes and sells so many innovative and latest products. However, it still faces competition in the market. Its main competitors include Samsung, Google, HTC, Hewlett Packard Company and Nokia (46). Intensity of Rivalry

Intensity of rivalry in the market is always rising. However, Apple may not have to worry much having provided technical support, selling quality products and creating customer loyalty. It has been able to maintain its productivity while at the same time ensuring that it delivers the best quality and designs.

Works Cited

Breillatt, Andrew. “You Can’t Innovate Like Apple. Pragmatic Marketing, 6. 4 (2013): 45-50.Print.

Cite this page

External Factor Analysis for Apple Inc. (2016, Apr 23). Retrieved from https://studymoose.com/external-factor-analysis-for-apple-inc-essay

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