Natural Physical Environment of Apple

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The Natural Physical Environment of Apple Inc.

Apple Inc. is an American intercontinental organization with a hub on conception and fabricating consumer electronics and intimately connected software products. The Company began as “Apple Computer,” best known for its Macintosh personal computers in the 1980s and 1990s.

Despite a strong brand, rapid growth, and high profits in the late 1980s, Apple almost went bankrupt in 1996. Then Steve Jobs went to work, transforming Apple Computer into “Apple Inc.” with innovative non-PC products, starting in the early 2000s. As of November 2010, Apple operates over 300 stores worldwide and online shop where its products are sold. The Apples well known hardware products involve Macintosh for personal computers, the iPod for media players and iPhone.

Apple employs over 49,400 employees worldwide and Apples financial results for its stock was making history of its own. Apple became the most valuable company in the world in 2012. Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumer around the world through its innovative hardware, software and internet offering.

The Societal Environment

Demographic trends in current U.S are part of the sociocultural aspect of the societal environment. Even though the world’s population is growing, not all regions will grow equally. Most of the growth will be in the developing nations. The population of the developed nations will fall. Developing nations will continue to have more young than old people, but it will be the reverse in the industrialized nations. Apple’s products users are mainly young people. The demographic bulge in the U.S. population caused by the baby boom in the 1950s continues to affect market demand in many industries. This group of 77million people now in their 50s to 60s the largest age group in all developed nations. Hopefully Apple can find opportunities to offer products or services to attract older customers.

Recession, the world wide economic crisis have one of the largest negative impacts on Apple sales. Comparing with other electronic device manufacturing companies, Apple’s products are higher in price. Even many customers want to use Apple’s products, there are lower cost substitute.

Intense competition in the smart phone industries led to numerous lawsuits on design and intellectual property. In 2010, Apple initiated litigations against Android devices, first against HTC and then Samsung.

Combining the computing power of the personal computer, the networking of the Internet, the images of the television, and the convenience of the telephone, these appliances will soon be used by a majority of the population of the industrialized nations to make phone calls, send e-mail, and transmit documents and other data. In this digital lifestyle, Apple’s “Digital Hub” strategy has achieved success. The Mac could be the preferred “hub” to control, integrate, and add value to these devices. Apple’s control of both hardware and software is one of the few remaining in the PC industry, as a unique strength.

These days, people are more concern about environment. Increasing of environmental awareness affect Apple’s strategy. Apple highlighted its computers as well as the world’s “greenest lineup of notebooks” that were energy efficient and used recyclable materials.

The Task (Industry) Environment

Porter’s Five-Force Analysis

Threat of new Entrant

Competition is high and every organization wants to diversify its business so it is easier for companies to enter in new market. Apple is electronic organization, already has many competitors around so threat of new entrant is high for Apple.

Scale economies in the production and sales of digital devices gave Apple a significant cost advantage over any new rival.

Apple manufacture products such as MacBook Air, IPod, create high entry barriers through their high...
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