Apple has to face the most important political external factors like improvement in the free trade policies and stable and consistent politics in the developed countries. The company viable approach to environmental issue is due to its strategy for health consciousness that is being analyzed in legal and socio-cultural impacts.
The past decade has seen rapid technological changes which have greatly altered the market dynamics. Additional free trade policies increase the opportunities for Apple to distribute more of its products to various markets around the world. In addition, the company continually seeks for new technological solutions to improve the energy efficiency of Apple products, such as through improved batteries, processors, and components that emit less heat.
This could lead to increased regulation and higher manufacturing costs at some point in the future. Please consider supporting us by disabling your ad blocker. Apple should be able to thrive in spite of these challenges because it has demonstrated an impressive ability to adapt to a changing environment.
Due to the brand image and size of Apple it already gets a lot of exposure and publicity. The popularity of the I-phone is growing in the Asian markets and this presents an important opportunity before Apple. The environmental external factors are considered very important, which are business sustainability trend, labor rights trend and product energy efficiency trend.
Economic Factors There is consistent increase in the labor costs in China, which has reduced the cost advantage on the products of Apple.
Technological Factors The technological external factor of the company is made to provide the opportunities to use the latest technological developments. Investment in Branding and marketing: 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.
Apple is highly vulnerable to increases in electricity costs because of its dependence on data centers and other Internet infrastructure. This shows the importance of political factors in the context of business and particularly in case of global brands like Apple.
Now apple is in the perfect position to take advantage of these opportunities with the technological advancement in the business environment.
This could mean a bigger tax burden and less profits for the tech giant. Conclusion To conclude, Apple is a well-established firm operating from more than 40 years has a firm grasp on all the aspects discussed in PESTEL analysis.
There is enough reason for them to do so. The economic stability of developed countries has a positive impact for the company as they can expand business across the globe. Brand advantage — Apple is a global brand and among the most valuable brands of the world. Though it is having a firm strategy for anti-trust law and health and safety laws, but copyrights, patent and international property laws are still a threat for the company.
Potential Impact of Social Factors on Apple The biggest growth in consumer spending in coming decades will be in areas of the world such as Africa where people are unfamiliar with Apple products.
Speed and effectiveness are important because competitors are also targeting these high-growth economies. The biggest weakness of the I-phone for which it remains unaffordable and inaccessible for many is its price.
However, competition may continue to bother it in the coming years. The rising use of social media is also an opportunity because it increases demand for digital devices like Apple products. PESTEL five forces and SWOT analysis of Apple.
Print Reference this. Disclaimer: PESTEL Analysis. The business of Apple shall be evaluated within the context of its operations in the UK.
Investor sentiment attached to the country plays a major role in iPhone, its related products and services; iPad and related products and services. PESTEL is a strategic analytical tool and the acronym stands for political, economic, social, technological, environmental and legal factors.
Apple PESTEL analysis involves the analysis of potential impact of these factors on the bottom line and long-term growth prospects. In Apple case study, PESTLE analysis is done critically. PESTLE is the analysis of the external factors that play a crucial role in conducting an extensive research before starting up of a new project.
Apple Inc. (NASDAQ: AAPL) is one of the world’s most visible and recognizable consumer electronics brands. Apple has long been an investor favorite because of its strong revenue growth and high return on investment.
The company is going to use this opportunity with the introduction of iPad, IPhone, and Apple Watch and they also use social media as the demand of.
The Apple PESTLE analysis reveals the challenges that the tech company needs to take up to thrive and propel its revenue growth for decades to come.Apple iphone pestel analysis