PA1.docx

PA 1

APPLE INC. COMPANY

The market has grown more competitive than ever as lot of startups are entering to sells products or services. This put emphasis on the products how they are being marketed to make them standout of the competition whether it may be low prices or appealing, targeting a particular demographic to establish themselves. For a consumer it comes down to the value proposition of the products as it directly relates to customer satisfaction and helps in building up long term relationship, in other words customer loyalty (Marshall, 2019). This paper aims at the SWOT and PESTEL analysis for Apple Inc.

SWOT analysis for Apple Inc. Company

Apple Inc. is a company based in the US which deals with multinational technology. It was started in 1971. Its main offices are in California, US. Since its start, it has made many products.

Strengths of Apple Inc.

One of the strengths of Apple Inc. is that they produce wide spectrum of various products that help the company to make a lot of profit. Apple has products like Mac, iPhone, Apple Watch, Apple TV, software, services like apple music, iCloud and many more. The company established itself with its products as customer oriented high-tech products with compelling features. Another strength enjoyed by the Company is the technical prowess of its workforce (Tilak et al., 2017).
Apple has a strong brand image. Since its start, Apple has been known to produce good and quality products which enabled the company to win a big market share. It was able to capture a market share of 46% in Q1 2020 in United states (Hindustan times, 2020). Apple has also been the most successful Company since its start. In the computer world, the Company has been the best performing for a long time. Apple has been recognized for its success in solving phone theft challenges. Apple is capable of financing all its projects because it’s financially stable. This has helped the Company to carry out successful research on whatever they want to work on. Apple has been able to develop amazing designs. All their products make unique designs that are pleasing to customers.

Weaknesses

Apple products are expensive compared to other companies. The pricing strategy applied in Apple Inc. is premium in nature. Apple Inc. products are priced higher than the capability of most customers. Apple doesn’t recognize middle-class people while pricing their products. Products from Apple Inc. are not compatible with products from other companies. The are bound by the iOS eco-system and are not compatible for cross platform devices that are not from Apple Inc. and their products limit to use only software from their providers.
It’s impossible for one to install any software from other sources. There are fewer variations in their phone designs (Tien 2020). For example, iPhone 2 is almost similar to iPhone 6. This makes customers switch to another brand to try something new. In contrast, other companies have tried to manufacture varying phones with different designs and good looking. Apple targets niche customer and only focused on first-class ers while avoiding other classes of customers.

Opportunities for Apple

There is a high demand for laptops and computers. In recent days computers and laptops are highly used (Adel, Omar & Abdulammeer 2021). Almost every sector is making use of computers in its operations. Some of these sectors that have embraced the use of computers are the education sector, medication, business sector and others. There is also increased dependency on technology. People depend on smartphones and laptops much. The rate of dependency on laptops and smartphones is still increasing. There is a globalization of market which is helping people getting gadgets easily. Due to this, individuals are now capable of ing a product and getting it after a while.

The threats for Apple Inc

There is a drop in demand for tablets and smartphones. This has been a result of people using one phone for a long time. People are reluctant to shell out huge amount of money before ing a new phone while the old one is still functioning well (Beyel & Blake 2019). There are new competitors in the field. There are new manufacturers making the same products as Apple. These new competitors are giving their product at a lower price. Apple Inc is also facing the challenge of imitation. Once Apple Inc launches its product to the market, a counterfeit of the same is manufactured immediately by other manufacturers.

PESTEL analysis

Apple is well known for being capable of managing well its external environment (Nepal et al., 2018). Apple has been able to achieve this due to good management. This Company has also been able to utilize all the opportunities around it. Apple Inc. Company success has also been a result of strategic handling of stress. This part of the paper will discuss how the Company manages its external environmental factors.

Political factors related to the Company’s activities

The political factors within this Company affect it positively (Payne 2017). The political environment has been providing opportunities for Apple Company. There is stable politics in areas where Apple carries out its businesses. The politics in these areas have also improved trade free laws. The only political factor that is a threat to Apple is the trade disputes between countries where it has its businesses. For instance, the trade dispute between China and the United States. Most of these factors have led to the success and expansion of the Apple Company.

Economic factors affecting Apple Company

Most of these economic factors have a benefit to this Company. Apple Company caries its activities mostly in developed countries. The economy of these developed countries is always stable hence giving an opportunity to Apple to shine. Apple Company carries out its activities in countries with the rapid growth of the economy. This growth has enabled the Company to be able to realize huge profits from its sales.

Sociocultural factors

There has been a rapid use of smartphones in most societies. Smartphones are one of the products of Apple Company. The increased use of phones makes it to be an opportunity for the Company. Most cultures now highly depend on digital systems. Apple Inc. mostly deals with these systems, so this highly favours them. This makes Apple have higher sales and a good profit ratio.

References

Apple’s iOS gains market share in Q1 2020 but stays behind Google’s Android: Report. (2020, Apr 11). The Hindustan Times 
https://www.proquest.com/newspapers/apples-ios-gains-market-share-q1-2020-stays/docview/2388288069/se-2?accountid=158986

Adel, A. F. S., Omar, A., &Abdulammeer, H. D. (2021). EMPLOYEES’PERFORMANCE ON APPLE COMPANY. PalArch’s Journal of Archaeology of Egypt/Egyptology, 18(4), 1405-1413. Retrieved 
https://archives.palarch.nl/index.php/jae/article/view/6493
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Beyel, B. Apple Incorporated Improving Competitive Advantage in Early Career Retention. Retrieved from 
https://blakebeyel.com/wp-content/uploads/2021/04/Apple-Paper-Human-Resources-1A-converted-2.pdf

Marshall, G. & Johnston, M (2019). Marketing management (3rd ed.). McGraw-Hill Higher Education
Ng, E. H., Nepal, B., Schott, E., &Keathley, H. (2018).TOTAL QUALITY MANAGEMENT & APPLE SUCCESS. Retrieved 
https://www.proquest.com/openview/451a246bba7b00544ed85649f58206dc/1?pq-origsite=gscholar HYPERLINK “https://www.proquest.com/openview/451a246bba7b00544ed85649f58206dc/1?pq-origsite=gscholar&cbl=2037614″& HYPERLINK “https://www.proquest.com/openview/451a246bba7b00544ed85649f58206dc/1?pq-origsite=gscholar&cbl=2037614″cbl=2037614

Payne, B. (2017). Brand Positioning and its Usefulness for Brand Management: the Case of Apple Inc. Newcastle business school student journal, 1(1), 51-57. Retrieved 
https://novaojs.newcastle.edu.au/uonsbj/index.php/uonsbj/article/view/10

Tien, N. H. (2020). International distribution policy comparative analysis between Samsung and apple. International Journal of Research in Marketing Management and Sales 2019, 1(2). Retrieved from 
https://d1wqtxts1xzle7.cloudfront.net

Tilak Naik, G., & Vaikunth Pai, T. (2017) A Study on Products and Services of Apple Inc. Retrieved 
https://srinivaspublication.com/journal/index.php/ijcsbe/article/view/453