Apple Inc. Case Study
* The online sales of computer are rapidly increasing.
* Large population, which are extremely brand conscious and individualistic. * Laptops are highly demanded products of Apple Company therefore more types of laptops can be developed which will meet as many needs as possible. * Increase in worms and viruses on PCs so the antivirus solution can be developed by Apple * Downloadable music and MP3 players are highly marketable. * Increasing bonds and developing partnerships with other companies.
* The switching in technology is very fast.
* In laptop segment Apple is facing strong competition from Dell, HP, Sony and Toshiba. * In phone segment Apple is facing huge competition from Nokia. * Media Piracy (Downloading free music from other online source without paying cost is common it may impact the iTunes sales.) * The long lasting recession may impact the sales of the company due to higher prices of the products and services * Companies not seeing Apple as compatible with their software. * Apple software, Cell phone and hardware are expensive as compared to other competitors such as Dell. * Microsoft launched Microsoft Vista, Windows 7 which is gaining market share.
As it was reported in 2007 52% of sales were outside the U.S. which means any changes in relationships with U.S., wars or terrorism might influence the performance of Apple gradually, moreover these factors can’t be controlled by Apple. Apple produces a lot of its products and parts outside the U.S. like China, Korea, Ireland, Czech Republic etc., any changes in regulations or political conflicts influence Apple’s outcome significantly. Taxation, consumer protection and employment law are important for Apple as it can significantly affect its strategic development.
Economic downturns can have a significant negative effect on the company. Consequences of global recession are: the inflation rate becomes very high, no changes in consumer’s income, unemployment rate increases, these factors lead to less spending, especially on “luxury products”. The recession impacts Apple sales dramatically. Moreover the value of the dollar is unstable, therefore Apple Inc. is not as endangered economically.
Globalisation leads to continuous development of the technologies, nowadays computers, mobile phones became an integral part of everyday life. Apple recommended itself as a King of technology, not because of most usage, but because of its design and quality.
Music industry is the big social influence; music became more virtual and Apple Inc. succeeded in this sphere by having the biggest virtual media store, iTunes. Social influences have positive effect on Apple Company.
The technology market for computers and mobile phones became huge, therefore the competition is increasing everyday; technology innovations are changing very fast, but Apple Company with its continuous investments in Research and Development department became number one on the market, regarding innovative products.
As environmental issue gain more and more popularity, nowadays companies has to deal with environmental issues while doing its businesses. Such a well-know multinational company as Apple has to think about the green issue even more, as the image can be spoiled dramatically. Apple has been criticized by some environmental organizations for not being a leader in removing toxic chemicals from its new products, and for not aggressively or properly recycling its old products. But after investigating Apple’s current practices and progress towards these goals, Apple is ahead of, or will soon be ahead of, most of its competitors in these areas. As it was...
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