PESTLE Analysis is a analysis of the external factors of a company, which plays a significant part of company’s new project. Managers identify the risk factors by using this method before taking any steps for the company. There are six factors associated with PESTLE, namely Political, Economical, Social, Technological, Legal and Environmental. Unalike SWOT analysis, this focus on the external macro environmental factors that would cause any negative effect on the business now or coming future.
Political Factors
Most of the income for Apple Inc is from outside the USA, Which is accounted for 63 percent in 2016. So, any political insurgence in any of its countries would negatively affect Apple’s revenue.
Suicide cases against …show more content…
Apple Pay Services
Apple pay is a financial service provided by the company recently. This services would cause increased level of litigation for offering financial services.
Breach of IP laws
All of the Apple’s brands are covered by intellectual property laws such as software and music store. The company’s most of the revenues is from the same. This makes the Apple vulnerable to piracy and litigation.
Entering automobile Industry
Apple is all set to enter into automobile industry with production of electric vehicles around 2020. This multinational giant already invested $ 6.04 billion in Research and development so far. Tim Cook , CEO of the company is facing much pressure to return this money its shareholders.A case is filed against this company stating that “ Apple has started the campaign of hiring best minds for battery making, despite a company who is starting from scratch needs more than 10 years to launch its products. Apple is planning to unveil it as soon as …show more content…
This would cost enormous amount of money. Now, the company is trying to reduce its the expense due to Environmental problems.
Pollutions Concern in China
The production units in China are causing concern about the Apple because of pollution and Environmental impacts. In order to minimize the environmental issues in the facilities, the company needs to shell out more money in the near future, which would lead the company to a huge expenses.
Attempt to cut greenhouse effect increase cost in China
The Chinese Government has taken the initiative to cut short the greenhouse effect by reducing the use of fossil fuel. This good effort would eventually affects the cost of Electricity bill. As a result, the cost for Apple products will end up with high price.
Global Warming
Due to global warming, The company would face problem with transoceanic shipping, which is the main part of Apple’s chain supply.
Increased Electricity Costs
Apple is vulnerable to increase cost of electricity due to its dependence on data centers and other internet and electronic infrastructure. The Apple needs to shell out more expenses in the production