About Apple Inc.

APPLE

Apple Inc. is an American multinational technology company headquartered in Cupertino, California that designs, develops, and sells consumer electronics, computer software, and online services. The company’s hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smart watch, the Apple TV digital media player, and the Home Pod smart speaker. Apple’s consumer software includes the macOS and iOS operating systems, the iTunes media player, the Safari web browser, and the I Life and iWork creativity and productivity suites. Its online services include the iTunes Store, the iOS App Store and Mac App Store, Apple Music, and I Cloud.

Environment can be characterized as, the amalgamation of outside physical conditions that encroach and impact the growth, improvement and survival of creation. Consequently, the business environment would characterize as same, all the factors internal and external that influences its productivity and development. It is critical for the business pioneer to complete business environmental analysis to comprehend their business geology at present time. Apple Inc. is an American organization which works in various nations as it were. This report quickly portrays the Apple UK environmental analysis. The environmental analysis will concentrate on internal environment SWOT (qualities, shortcoming, openings and dangers) and external environment will concentrate on PESTEL (political, economic, social, technological, environmental and legal) of Apple UK with the support of academic models and theories.

SWOT Analysis of Apple

Strengths

Leading innovators among electronics brands:

Apple has been ranking consistently at the top of the BDG’s list of 50 companies since 2005 due to its innovation in electronic devices. It is also regarded as the pioneer of introducing the most innovative products in the market such as iTunes Media Player, I Life (for organizing editing, publishing photos, music and movies) and iWork (a presentation program). Additionally, in recent years, Apple has expanded its reach to entertainment and information services and is now one of the largest online retailers for streaming music and video and software solutions.

Terrific sales growth with each passing year, Strong and effective marketing team.

Weaknesses

High prices:

Many criticize the brand for its high prices, but Apple fans justify the situation by tagging the brand as a ‘premium’ gadget-maker. They also say it is for those people who can afford a pony. Apple, in other words is like BMW, not Ford. But problem arises when consumers have access to cheaper products with more or less same features. Samsung, Microsoft and many other companies provide low-priced products compared to Apple. Here’s where apple loses its customer base. In 2013, Strategy Analytics found that 88% of iPhone users would purchase another iPhone compared to 93% in 2012. So with each passing year, its customers are being lured by the competitors. Unsuccessful anticipation, Incompatibility of different OS.

Opportunities

High demand of products:

Studies show that there is a high demand for new Apple products, especially a flourishing demand for recently introduced PowerBook and Power Mac products, as well as new upgrade to MAC OS X. Apple CEO Tim Cook asserted that the demand for new Apple Watch was exceeding the available supply. This is why so many pre-order deliveries were pushed back to May or later. Apple consumers are also waiting for new iMac line and iDVD. Growth in communication devices market.

Threats

The evolving environment of electronic communication:

The complex structure of electronic environment communication devices is constantly innovating. The company must keep up with the pace or it will lag behind with its competitors. It poses a serious challenge to Apple Company and the future market positions. Due to the fierce competition in communication market, this company is forced to constantly design and modify its product to match the needs of consumers. Reputation damage due to tax scandal, Infringement of intellectual property (IP) rights.

PESTLE Analysis of Apple

Political

Apple is one of a number of American technology companies that has accumulated a large amount of cash. It had $34.7 billion in the bank on June 30, 2015. This is generating calls for higher corporate taxation in the United States, where income inequality has become a major political issue. Apple is heavily dependent on lower cost manufacturing in China. Social and political unrest in China could disrupt manufacturing or increase manufacturing costs in that country.

Economic

Stagnating middle-class incomes in some developed countries, including the United States, could shrink the potential market for higher-end consumer goods such as those marketed by Apple. A strong U.S. dollar could increase exchange rates, making it more expensive for Apple to do business in key markets like Europe and China.

Social

An accessory of high-status lifestyle, Potential market place in third world country, Brand acquisition in many countries, Global warming: Due to increasing rate of global warming, Apple could face the problem of transoceanic shipping that is the core part of Apple chain supply.

Technological

Competitors such as Google and Samsung have demonstrated a strong ability to duplicate Apple’s products and services. It took less than a year for Google to roll out a payment app; Android Pay, with the same capabilities as Apple Pay. This means that many of Apple’s signature services and products are no longer unique. The number of new consumer products Apple can bring out is limited. Many of its new offerings, such as Apple TV, will have a limited market. Growing use of smartphones and tablets will lower demand for Apple’s popular personal computers.

Legal

Apple depends on a variety of products covered by intellectual property laws, such as software and music, for much of its income. This leaves the company highly vulnerable to both piracy and litigation

Environmental

The biggest environmental issue facing Apple is the disposal of used or nonworking electronic devices. The expense of disposing of devices, particularly those containing lithium batteries, could be high. Apple could be forced to assume that expense because of concerns about such devices in landfills. Pollution and other environmental side effects from manufacturing facilities in China are a growing concern. This could lead to increased regulation and higher manufacturing costs at some point in the future.

Conclusion

They are fruitful in offering their items and had most elevated consumer loyalty proportion. Issue with Apple is that real customers can’t purchase because of higher costs, Apple’s don’t have more than paper work for provider codes, backhanded reachability to most extreme markets, application store depends on third party contractor. It is confronted with conceivable human resource turnover, feedback on its administration and issues, for example, it is a not socially responsible organization. It is prescribed that Apple along with cost minimization should deal with value minimization. Apple can diminish its future risk by means of increase investments, as of now which is a billion dollar on yearly which is basically not adequate. Organization should pay more concentration in developing markets like China and India which as of now been possessed by competitors.