Question

critically analysing and evaluating the strategy of an organisation in a country of your own choice with a view to recommending strategic options for further growth and international expansion, by carrying out an external environmental analysis using appropriate international marketing theory. also required to evaluate the wider and competitive environments.

(2,000 words)

Answer 1

Apple is a multinational company based in California. Apple sells electronic products to the consumers, softwares, and serves large variety of services to the customers.

The PESTLE ​​​​​​analysis of Apple Inc. :-

a) Political factors :-

As EU targets the largest tech companies for tax paying, so Apple also got affected and thus pays high tax which in turns decreases it's revenue. Also due to the political unrest of some countries, Apple decreases it's sales in those countries. Due to the complex supply chain of China, Apple shifted it's some parts of the manufacturing department which indeed affected the company.

b) Economic factors :-

Economy is one of the main factors which helps a business grow. As the economy of many Asian countries has developed, so Apple has also got the chance of entering the potential market of China and India for it's better sales. It is very true that when the global economy improves, the consumers too can be able to buy premium products such as Apple.

c) Social factors :-

The lifestyle of average Asian consumer has improved from a few years so it has become favourable for the Apple computer. On the other hand, as the tradition and lifestyle of African consumers are still down and many of them also didn't heard about the brand. Due to the premium processing of the products, Apple has a disadvantage for Indian and other parts of Asian market and thus Lenovo and HP captured the market. But Apple has a good market in U.S.

d) Technological factors :-

As Apple is a tech company, so whenever any technological changes occurs, it gets affected. Due to the technological changes in the past decade, the company has changed it's market and strategies. As Google is emerging as a Tech giant, so there is huge chance that in later future may be Apple loose it's market position to Google. Also, Samsung provides similar features to the consumers, and at a less price which is not good for Apple.

e) Legal factors :-

It is very important for the companies to follow rules and regulations or else they may have to pay a large sum of money as fines. As Apple is much advanced in technology, it has always an issue regarding patent laws and Intellectual property rights where the company faced many challenges regarding patent. Although there is a chance to increase it's sales by modifying the prices of the products and services.

f) Environmental factors :-

Due to the manufacturing processes, Apple creates greenhouse effects in the environment as it has high content of lead and arsenic. To mitigate the pollution, Apple few years back started the creation of renewable energy and e-wastage. To focus on environmental issues, Apple has also started to reducing the uses of toxins in the products.

PORTER 5 FORCES OF APPLE :

1 )bargaining power of buyers-( customer)

it is medium-

• the retailer may pressurize for lower prices and better terms.
• the consumer may reduce spending on the computer due to an economic slowdown
• end-users (customers) are mostly loyal.
• switching cost of an apple PC is high.
• PCs have a presence in the market place.
• threats of switching to Wintel platforms always present.

2)The bargaining power of suppliers

from the supplier side is a low

• supplier of processor and computer memory.
• sources of music
• suppliers compete among themselves and therefore have no bargaining power.

3)threats of substitute products and services.

threat is medium

• PCs are available in different configurations, and price ranges.
• PCs represent above 90% market.
• huge network externalities for PCs.
• no MAC clone available, no competing product with the quality provided in mac clone present in a market.
• some negative threats-
• satellite radio for music.
• alternative means of acquiring music( DVDs)

4)threats of new entrants-

threats from new entrants are low.

• high capital investment commoditized market makes apple unique in the market.
• substantial dominance of low-cost scale players( HP, DELL)
• on-demand online services.
• new entrants with disruptive technology.

5)competitive rivalry

• competition to MAC OS X ( Linux)
• alternative sources of computer hardware(DELL, HP)
• NAPSTER, online music app

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