Description -- Apple Inc. PESTLE Analysis & Case Study - This case study covers all factors of PESTLE i.e. Political Factors , Economic Factors , Social Factors , Technological Factors , Legal Factors , Environmental Factors which has positive or negatively affected the company's growth.
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2. ABSTRACT
This analysis investigates the current state of Apple Inc., the
American multinational giant and predicts the future
advancements
The most significant external factors of Apple have been
analyzed with the help of PESTLE tool
Secondary information has been gathered to get an insight into
the matter
The outcome of the study indicates Apple’s remarkable growth in
information technology industry in the coming years.
3. Introduction
This renowned hardware and software company is best known
for designing, developing and selling consumer electronics,
computer software and online services.
Steve Jobs, Steve Wozniak and Ronald Wayne are the founding
members of Apple Computer, Inc., which was later renamed as
Apple Inc in January 2007
Due to its innovative marketing strategies and unique business
model, this recognizable consumer electronics brand continues
to enjoy fame as world’s largest information technology
company.
INTRODUCTION
4. MATERIALS & METHODS
To conduct this analytical study, the required data is gathered
from various published sources and case studies written on
Apple Inc
One method of analysis has been employed to evaluate the
business framework of Apple Inc
PESTLE analysis assesses the key external factors (macro
environment) that the company must address to keep its
leadership position
MATERIALS & METHODS
5. PEST Analysis:
• PEST is widely used analysis tool to analyze the
Political, Economic, Socio-Cultural and Technological
changes in business environment
• PEST analysis is used not only to understand the
external environment, but also to adapt business
strategies for achieving business goals.
PEST ANALYSIS
6. PESTLE Analysis:
• To make the analysis more comprehensive, legal and
environment factors have been added which makes
PEST,
• P E S T + L (legal) E (Environment) = PESTLE analysis
• It adds two more different aspects to see the whole
environment and keep a track while achieving certain
goals.
PESTLE ANALYSIS
8. Political factors:
• Political pressure on the company
• Limitations on import
• Political insurgence in different countries
• Stability of government
• Company’s approach on recent issues
POLITICAL FACTORS
9. Economic factors:
• Impact of recession
• Exchange rates
• Cost of labour
• Recent trends in stock market
• Rates of growth
• Rate of inflation
• Job Opportunities
ECONOMICAL FACTORS
10. Socio-cultural Factors:
• High-status lifestyle
• Buying habits
• Brand acquisition
• Age distribution
• Standard of education
• Consumer mind-set
SOCIO-CULTURAL FACTORS
11. Technological Factors:
• Entry to Chinese market
• Product life cycle
• Screen size
• Tough competition
• Cyber crimes
• Restricted customer base
• Attention to research and development
TECHNOLOGICAL FACTORS
12. Legal Factors:
• Increasing privacy regulations
(telecommunications regulations)
• Intellectual property law
• Employment law
• Breach of law
• Consumer law
LEGAL FACTORS
13. Environmental Factors:
• Air and water pollution
• Population
• Greenhouse effect
• Global warming
• Increased electricity cost
• Transoceanic shipping
ENVIRONMENTAL FACTORS
14. Aim of the analysis:
• The analytical study is conducted to evaluate the relation
between Apple’s success and external and internal factors
• This analysis unravels the macro environmental factors that
influence organizational goals and business strategies
• It also identifies the changes that the organization should
adapt to do better in competition.
AIM OF THE ANALYSIS
15. Political Factors:
• Apple faced an awkward situation when suicide cases were
registered against its supplier. This company was held
responsible for making its employees work for longer hours
• Owing to the political insurgency in China, Apple has faced
increased labour and manufacturing cost
• There is always a risk of terror attacks in its base country,
America and the countries that it serves.
POLITICAL FACTORS
16. Economic Factors:
• Apple’s economic growth touched a new low due to the global
recession in 2013
• Changes implemented in Europe’s economy have affected
apple directly. It led the company to 16% less growth in third
quarter of 2012
• The company had to suffer when the inflation rate was
increased because it possessed a large amount of cash.
ECONOMICAL FACTORS
17. Social Factors:
• Apple has become simply a symbol of social status due to its
extremely high prices
• Owing to the growth in consumer spending in third world
countries, Apple sees a big potential of business
• Apple chooses China for manufacturing instead its home
country due to the low labour cost. It could, however, limit
the product appeal.
SOCIAL FACTORS
18. Technological Factors:
• Apple got entry to Chinese market under the agreement that
Apple products would be made available in both China Mobile
and Apple retail stores
• Apple had invested 3% of the net sales (which is more or less
$8.07 billion) on R&D (research and development)
• As consumers started preferring larger screen, Apple is now
forced to increase its screen size.
TECHNOLOGICAL FACTORS
19. Legal Factors:
• US government imposed a legal ban on the import of some of
iPhone parts, which are brought back later
• Apple could engage in litigation as it started offering financial
services through Apple Pay
• The company is exposed to the threats like piracy and
litigation as a large number of people use its products.
LEGAL FACTORS
20. Environmental Factors:
• Apple has been forced to spend money on discarding used
and non-used electronic junk as it can cause environmental
hazards
• Environmental issues caused by manufacturing facilities in
China has become a growing concern for Apple
• China’s attempt to minimize the environmental side effects
could lead Apple to increased manufacturing costs.
ENVIRONMENTAL FACTORS
21. Conclusion:
After evaluating all the factors in PESTLE
analysis, it can be predicted that Apple will
continue to hold its top position in information
technology industry. The reason being it boasts
of adaptive qualities to perform well even in a
challenging environment.
CONCLUSION
