The Apple Company is a Multinational Corporation that deals with manufacturing and designing of various items like Electronics, software used by computers and also manufacturing computers for individuals. It is the manufacturer of ipad, ipod and also Macintosh computers. It has been able to make various soft wares like Mac OS X operating system, browser for media called ilife among others.
The company is well known of its classic electronics that are superior in quality and of great value. It has global market share that has a liking of their products and brands, mostly in the U.S.A. Having been in the industry for a long period of time, the company has braved the market to an extent of being the choice computer and electronic supplier across the world. This has led to fierce competition from companies like Microsoft fearing the likely dominance in the market of Apple Corporation.
In this regard the rivals have designed various methodologies to ensure they remain relevant in the market. However, Apple has been ahead in the use of most recent technology to provide cutting edge electronic and computer solutions across the globe. Some companies like Toshiba have even tried to outsmart Apple, by designing similar products. This depicts the superiority of the corporation as a leader in technology that sets the performance pace.
The PESTL analysis entails a detailed study and explanation into how the political climate of a given country affects the economy. They include the taxation policy in place, the laws governing employees, environment, tariff, political attitude and trade barriers. The issues relating to economy are its growth, the rate of interest from financial institutions, inflation and exchange rate. The society equally contributes to the business environment through enabling culture which includes population growth, age, high education standards and desire of safe working environment. These will determine the ability to buy and the quantity to be bought.
The existing technology enhanced by research and development, use of automatic production methods and other incentives have led to new methods of production making it possible to produce innovative products. The main factor includes the change of climate which is taking centre stage as it is altering the way of life and goods produced. There is new market coming up to address the new ecological scenario while destroying some which have been in existence. The business environment is governed by set laws that aim at protecting the market, consumer protection and freedom of workers, their health among others (Grant 99).
In this case we will use the above points to fully analyze and understand the market situation of Apple Corporation in the market as a tool that will help foster our knowledge and expertise on the company’s performance.
Political and legal environment
Considering that the company has many branches across the world, it is facing a challenge of different kind of legislation that is very strict as such limiting the potential and the opportunities of the company. However, the European Union has opened the market to the company, with laws that encourage investment. The acts of terrorism are having a major impact in the future of business in some regions. The company does not develop its own products but relies on patents from other companies. This makes it difficult to have total and absolute control of the technology it is using. The court cases are numerous and are affecting the company negatively. The company is bound to follow the environmental laws especially on disposing waste and these require huge investment (Grant 101).
The social and cultural environment
The growing use of internet has led to increase in sales of the company which is increasing its profits and investments. The customers of today are becoming computer literate as days go by, thereby opening up new market for the company. The increased need of education is promoting the use of computers, as such creating new market.
The economic environment
The recent slow growth of the world economy, has affected the buying power of the consumers, however there is renewed hope as the economy is recovering. This will increase consumer spending. The exchange rate is affecting profitability due to the fluctuating tendencies as well as the regulations in the international market. The rapid evolution of technology today is bringing advancement which is being appreciated across the globe. The current growth in internet service is proving an icon of opportunity for the company with increased sales. The existing desktops are being replaced by new generational computers.
Threats
There is an upsurge of manufacturers in the computer market, especially in cheaper but new generational computers. They pose a major threat to the dominance of Apple Corporation. The discovery of electronics like digital television, screen phones are becoming very popular thereby lowering the sales in the computer industry. The company only source its products from a few suppliers whose prices are usually high as such may lower the markets share by losing to the competitors. The buyers of today do bargain a lot thus lowering the profit margin of the company. In addition, there is high competition from other companies like Toshiba.
The internal environment
The company is committed to innovation and hard work. It has wide spread branches that promote its marketability. The company workers are committed and hardworking. These are people from diverse background representing various cultures from across the globe. The company is committed to the safety of the environment as a policy to ensure that it is fully responsible. Its resources are all original and the products it sells are of good quality and presentable. It has been developing new uses of its products while enhancing the existing abilities. The company works together with the Pepsi Company to promote its products.
It has joined with Hewlett placard to produce new innovative products. The company has invested widely in research and development making it possible to gain competitive advantage over its rivals. The human resource is well established to provide a good working relation with the workers. They are paid well and motivated using various work programmes. The company has been able to come up with the most recent information system that has enhanced efficiency and effectiveness of their products. The company is creating market for its products making it possible to increase its revenue by a wider scale.
The company has focused on product differentiation as a tool of promoting her products. The strong company management has also been able to gear it to high standards. The company is working round clock to improve relations with the resellers.
Works Cited
Grant, Robert, Contemporary Strategy Analysis. Malden: Blackwell Publishing, 2008.