Apple Pestle Analysis Sample

EXTERNAL SITUATION ANALYSIS OF APPLE

Table of Contents

1. Introduction. 3

2. Most influential elements of the marketing management tool 3

3. Positive and negative effects that these elements. 4

4. Conclusion. 4

Reference list 5

Introduction

Apple Inc. is a multinational American technology company that designs, manufactures, and markets smartphones, tablets, personal computers (PCs), and portable and wearable devices, and it is headquartered in Cupertino, California, United States. The company was founded by Steve Jobs in April 1976. The company’s market share is US$365.8 billion in 2021 (Apple, 2022).

Most influential elements of the marketing management tool (PESTEL)

Political

The political atmosphere influenced the organizational performance of Apple. Such as the China-Us trade war and alarming political issues affect Apple performance and market share in Chinese market, whereas the stable political establishment in the country has influenced the company’s performance to a great extent. The federal structure of the USA has been effective in bringing peace and harmony (Pathiranage, 2019). In form of the political condition, besides good side, Apple has suffered huge issues regarding corporate taxation in the United States. In addition, in the present scenario, Apple depended on the Chinese manufacturing and this is accountable for driving political issues.

Economic

The GDP of the USA has been affecting the company prospectus in a positive manner. In 2022, the GDP of the USA was 3.2 %, which is considered quite impressive (Rahmanzadeh et al. 2020). Additionally, Apple Inc. is heavily reliant on consumer spending, and changes in consumer sentiment can also impact its sales. As results of this condition, due to increasing the rapid economic growth, the company has faced the low range sales problems. Moreover, apple products stand in premium category, thus, the company’s target audience is high- end- customers (Nie et al. 2019). On the other hand, others tech companies provide same features within reasonable price, thus this throws some challenges to the company.

Technical

As far as technology is concerned, Apple Inc is known for its innovative products and cutting-edge technology. There is a lot of research going on technological advancements in the consumer electronics industry, with products such as the iPhone, iPad, and Mac computers. The company’s ability to stay ahead of technological trends and continuously innovate is a major competitive advantage.As an example, Lenovo company kept their business same in laptop sales, yet, apple could not keep same position in selling laptops due to increasing their price day by day.

Positive and negative effects that these elements

PESTEL factors have both positive and negative impacts on Apple. Political factors such as stability in the USA have been keyto the growth of Apple. As suggested by Doz (2020), the economic factors in the USA have benefitedfrom impressive organizational growth to a growing extent.. Moreover, the excess inflation rate is not good for organizational development. As per the pestle analysis, the company has suffered issues regarding sales, and the behind the reason is lots of company provides same features within affordable price. Thus, the company has lost some their customer base line up. In addition, due to using premium quality materials the company cannot decrease their fixed price, results of it, company faced issues in economically.

Conclusion

The research has shed light on the political atmosphere of the USA and the way it has impacted Apple. It is understood that the political atmosphere has an in-depth importance on the scenario of the company factor. Modern technology such as AI, block chain has been facilitating the growth of the company significantly.

Reference list

Apple. (2022). Apple – Apple Investor News. Apple.com. https://investor.apple.com/investor-relations/default.aspx

Doz, Y. (2020). Fostering strategic agility: How individual executives and human resource practices contribute. Human Resource Management Review, 30(1), 100693.

Nie, M., Zhao, Q., Bi, S., Xu, Y. and Shen, T., 2019, July. Apple external quality analysis based on bp neural network. In 2019 1st International Conference on Industrial Artificial Intelligence (IAI) (pp. 1-5). IEEE.

Pathiranage, J. (2019). Organizational culture and business performance: an empirical study. International Journal of Economics and Management, 24(2), 264-278.

Rahmanzadeh, S., Pishvaee, M. S., &Rasouli, M. R. (2020). Integrated innovative product design and supply chain tactical planning within a blockchain platform. International Journal of Production Research, 58(7), 2242-2262.

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