Apple Pestel Environment Analysis

September 11, 2017 Cultural

APPLE PESTEL ENVIRONMENT ANALYSIS Political These refer to government policy such as the degree of intervention in the economy Apple, being a Cupertino based company in California, is subject to American laws and regulations. These include taxation laws and product manufacturing regulations. Economic * These include interest rates, taxation changes, economic growth, inflation and exchange rates.

For example:                – higher interest rates may deter investment because it costs more to borrow                – a strong currency may make exporting more difficult because it raises prices                – inflation may provoke higher wage demands from employees and raise costs                – higher national income growth may boost demand for a firm’s products. Apple survived the recession fairly well, and with the recession over, business is booming. The currency is also very low at the moment, especially compared to the Australian dollar, which leads to big increase in exports into the gray markets overseas.

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Socio- Cultural Changes in social trends can impact on the demand for a firm’s products and the availability and willingness of individuals to work. Apple is at the forefront of social trends, it not only follows trends, it starts them. The ubiquitous iPhone is a massive trend in itself. It is very good at market research and finding out what it is exactly that people want. Technological New technologies create new products and new processes. Technology can reduce costs, improve quality and lead to innovation. These developments can benefit consumers as well as the organisations providing the products.

Apple, being a consumer electronics company has a core competency in technology, and also a competitive advantage given some of the revolutionary products it has. For example, its Retina display is the first mass produced screen with over 300ppi (pixels per inch). At that given pixel density, it is said that the human eye cannot differentiate individual pixels. The software it has developed is widely acclaimed to be very polished and user friendly. Environmental Environmental factors include the weather and climate change.

With major climate changes occurring due to global warming and with greater environmental awareness this external factor is becoming a significant issue for firms to consider. The general move towards more environmentally friendly products and processes is affecting demand patterns and creating business opportunities. Apple has to comply with environmental regulations such as recycling and safe disposal. Apple is also taking initiatives such as making their products more energy efficient and the packaging smaller and easier to dispose of in a safe, recyclable manner.

Legal Legal factors are related to the legal environment in which firms operate. The company relies on access to patent and intellectual property obtained from third parties. The company might unknowingly encounter infringe issues with existing patents of others. Apple has been involved in several legal battles, sueing many companies over what it claims are infringements on its patents. These companies include HTC, LG, Motorola, Samsung and Google. Some of these companies such as Google and Samsung have countersued.

Interestingly enough, Samsung is a partner of Apple and supplies many of the components for Apple’s products, eg. The A4 1ghz processor found in the iPhone. Bibliography http://www. oup. com/uk/orc/bin/9780199296378/01student/additional/page_12. htm http://www. niceessay. com/2008/05/apple-strategic-analysis-this-paper-includes-swottows-analysis-pest-analysis-and-strategic-environmental-scan/ http://www. scribd. com/doc/11983566/A-Strategic-Analysis-of-Apple-Corporation http://www. andreaslindinger. net/downloads/strategicmgmts-lindingeretal. pdf http://www. apple. com/environment/ http://www. apple. com/about/

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