Environmental analysis is a strategic tool and it identifies all the external and internal elements which can affect the organization’s performance. Apple’s high performance is linked to the company’s effectiveness in addressing external factors in its macro-environment. There are five factors that impact Apple and IPhone, which are economic, political, social, technological, and legal forces. These factors present opportunities or threats that impact Apple business.
Economic: There are several economic factors important to Apple. The rapid growth of developing countries provides opportunities for Apple to do business. For instance, the high economic growth rates of Asian countries help Apple to increase sales revenues in those foreign …show more content…
The rising use of social media is also an opportunity which it increases demand for digital devices like Apple products. However, iPhone is considered as a high priced product. Some customers against expensive and stylish products in the United States and Europe. Otherwise, the biggest growth consumer spending in coming decades will be in areas of the world such as Africa where people are unfamiliar with Apple products. Those people are more likely choose lower priced mobile phone.
Technological: Cloud computing is becoming more popular among individuals and organizations. Apple can offer cloud-friendly devices and apps to exploit this opportunity. Apple has iCloud which is very useful for iPhone users. In addition, the apps market is growing. Apple can use this opportunity to grow its App Store. Whereas, many of Apple’s services and products are no longer unique from other brand products. For instance, Google took less than a year to launch a payment app which is Android Pay which has same capabilities as Apple Pay.
This analysis shows that the major external factors for Apple company. Apple is already in a leadership position in the industry. However, the firm must develop suitable strategies to address those threats identified above.
Porter’s Five …show more content…
The easier it is to switch suppliers; the less bargaining power they have. The switching cost for iPhone to exchange one supplier for another is relatively low and it is not a significant obstacle. IPhone also stay strong competitive by buying products from suppliers in large volume. Moreover, iPhone can stay strong competitive in the market by the software that Apple developed by
Economic: There are several economic factors important to Apple. The rapid growth of developing countries provides opportunities for Apple to do business. For instance, the high economic growth rates of Asian countries help Apple to increase sales revenues in those foreign …show more content…
The rising use of social media is also an opportunity which it increases demand for digital devices like Apple products. However, iPhone is considered as a high priced product. Some customers against expensive and stylish products in the United States and Europe. Otherwise, the biggest growth consumer spending in coming decades will be in areas of the world such as Africa where people are unfamiliar with Apple products. Those people are more likely choose lower priced mobile phone.
Technological: Cloud computing is becoming more popular among individuals and organizations. Apple can offer cloud-friendly devices and apps to exploit this opportunity. Apple has iCloud which is very useful for iPhone users. In addition, the apps market is growing. Apple can use this opportunity to grow its App Store. Whereas, many of Apple’s services and products are no longer unique from other brand products. For instance, Google took less than a year to launch a payment app which is Android Pay which has same capabilities as Apple Pay.
This analysis shows that the major external factors for Apple company. Apple is already in a leadership position in the industry. However, the firm must develop suitable strategies to address those threats identified above.
Porter’s Five …show more content…
The easier it is to switch suppliers; the less bargaining power they have. The switching cost for iPhone to exchange one supplier for another is relatively low and it is not a significant obstacle. IPhone also stay strong competitive by buying products from suppliers in large volume. Moreover, iPhone can stay strong competitive in the market by the software that Apple developed by