Apple was founded in 1976. It is a relatively young company; a company with its own unique philosophy as to the way things ought to be. Apple exerts significant creative influence on the technology industry. Today, the company has three major products: Mac computers, iPod music players, and the iPhone. In addition to these offerings, the company also offers operating systems, developer tools, and database software.
Apple’s recent success in the marketplace is founded on a philosophy that derives its insight at the intersection of technology and consumer values. Apple’s unique, defiant, and sophisticated philosophy is all about revolutionizing life’s experiences; convergence of digital consumer electronics and the personal computer.
Currently, Apple creates immense value for their consumers by offering products that are difficult to imitate. Unfortunately, this will not stop current and possible new companies from copying Apple’s success by developing similar products and launching similar target methodologies. Hence it is important to define and analyze the current position that Apple in terms of its internal and external environment in order to gain a detailed picture of Apple itself, its industry and the strength and weakness associated with them.
In analyzing the macro-environment, it is important to identify the factors that might in turn affect a number of vital variables that are likely to influence the organization’s supply and demand levels and its costs (Kotter and Schlesinger, 1991; Johnson and Scholes, 1993). Macro environment is a far environment which comprise of few forces that raise strategic issue to Apple. These forces are social force, economic force, politic force, and technology force which well known as PEST as shown in diagram 2.1 below. Diagram 2.1 PEST Chart Analysis
(Source: Kotter and Schlesinger, 1991) 2.1
Joining China to WTO creates opportunity as well as threat for Apple. Lower investment barrier and market barrier gives opportunities for Apple to take advantage of low cost labor and getting potential market. On the other hand, similar opportunities are also available to competitors. When competitors move its plant into China and become more efficient, Apple has to respond or will get cost inefficiency disadvantage over competitors. 2.2
Economic situation has affected the spending power of consumers especially over IT products. Apple has categorized into premium brand, thus the products is more expensive if compare with other brands. For instance, if the economy is in good situation, the spending power of consumer will be increased, they willing to pay more in order to get a premium product; if the economy is in dire situation, the spending power of consumer will be decreased, meanwhile majority of them will chose not to spend money on a premium product. 2.3
Different and dynamic change of needs and lifestyle push Apple to continuously innovate to adapt with it. Lifestyle and need of consumers are continuously changing. The motives of consumers on purchasing computer can be segmented into the following: I. Entertainment. Customers in this segment need better graphics and better sound. Therefore, this segment needs to have a computer with faster processing power, graphical purchasing power and good sound system device. II. Travel & mobility. Customer in this segment need smaller, lighter computer as well as longer time of battery life. III. Status. This segment needs computer with great brand and brand new design. In additional, market demand is continuously changing. There is trend of decreasing PC demand on developing countries such as US, Japan, Singapore whereas the trend of increasing demand moves to emerging countries such as China, Malaysia and Korea. This moving of demand has to be responded by Apple in order to better manage its resources...
Please join StudyMode to read the full document