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Apple Swot and Pestle Analysis Case Study

Free PPT & Video of Case Study Apple SWOT & PESTLE/PESTEL Analysis

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A Brief Introduction of Apple Inc

Students search for an Apple SWOT and PESTLE analysis case study on the internet. But MyAssignmenthelp.com is here to give you a comprehensive picture of the company.

With its uniqueness and innovative spark, Apple rose to become the most significant digital technology brand globally. It has a wide range of products under its umbrella. It is hailed as one of the most recognisable and notable brands for digital devices, which sells, designs and develops computer software, consumer side electronic goods and a wide variety of online services.

It is a multinational corporation which has managed to create its niche among a broader range of customers. Since the company's birth, the company has observed a sporadic rise in such a short timeframe. The corporation was started by two Computer science college dropouts, Steve Wozniak and Steve Jobs. It has steadily brought the biggest revolution in the space of personal computers and fashionable digital devices.

Undoubtedly, Apple is recognised as the most significant technology company in total revenue and assets. It is also the highest grossing mobile phone company globally, with more than 1,24,000 employees worldwide. This figure was recorded in 2017, though.

In the recent past, Apple has surpassed the number one company Samsung in terms of total revenue and manufacturing in Q4. While recently, Samsung has sold 74 million handset Iphones recorded a sales of 7735 million.

So, stop searching with Apple SWOT and PESTLE analysis case study, and get unlimited SWOT and PESTLE analysis of Apple from the experts of MyAssignmenthelp.com.

Swot and Pestle Analysis of Apple

This case study is divided into two key sections.

  • The SWOT analysis of Apple and
  • PESTLE analysis of Apple

Everyone is noticing the high performing index of Apple in all products. Therefore, it is pretty easy to acknowledge the contributors are both external and internal factors. This study aims to showcase how both micro and macro level performances have impacted the success and occasional slump in the company.

The data are collected from different published resources and several case studies conducted by Apple. Here, two major types of analyses are taken into consideration. SWOT analysis and PESTLE analysis. While SWOT describes the internal factors, PESTLE analysis points out the external factors here.

The data are collected from different published resources and several case studies conducted by Apple. Here, two major types of analyses are taken into consideration. SWOT analysis and PESTLE analysis. While SWOT describes the internal factors, PESTLE analysis points out the external factors here.

So, without further delay, let’s look at the SWOT and PESTLE of Apple Inc.

SWOT Analysis

When it comes to strategic management tools, SWOT is the favourite of most analysts. Managers and leaders use this tool to organise and assess all possible ideas while scanning their business environment. Here's what SWOT stands for.

  • Strength
  • Weakness
  • Threats and
  • Opportunities.

The SWOT analysis is considered the best way to analyse is its ability to enhance the internal condition of the organisation by working on the organisation's strengths, negating the weaknesses, seizing upon the opportunities and cutting out impending threats. Check out this Apple SWOT analysis for further studies.

Strengths

The engine of innovation among other digital brands

Since 2005 Apple has been ranked as the top brand of electronic devices in innovation and novelty in the top 50 companies on the BDG list. It has introduced some top digital applications that revolutionised the music industry, such as iLife, iTunes and iLife. All these brands have topped their respective fields in several rankings, according to a recent Etop analysis of Apple.

Uninterrupted growth in sales

Since 2016, Apple has been observing a massive growth in annual sales. In addition, its cash flow policy has led it to the top of Forbes magazine in that very year. Also, Apple has reached out to the information services sector and entertainment industry. Undoubtedly, Apple is steadily becoming the biggest streaming brand for online digital solutions and videos. This has been excessively discussed in the recently published Etop analysis of Apple.

In 2011 Apple recorded an annual gross sales of $108.6 billion, which rose to $228.57 billion in 2017. However, the highest peak was observed in 2015. The company's total capital became $416.65 in 2016 when it was declared the most valuable brand in the world. In the next fiscal year, the organisation expects a steady growth of 40%.

Robust marketing team

A recent Apple SWOT & PESTLE analysis published in CEB elaborates that the most impactful way to address our current products is not through complex websites and digital marketing strategy. That's why Apple has adopted this simple strategy to overtake its competitors. The enterprise celebrated 40 years of journey as a leading brand in 2016. Apple decided to release a video to commemorate the trip on this occasion. However, in none of its advertisements, Apple has showcased the list of features and options. Instead, it tried to convey how it is better than Microsoft and Android.

Best experience with the customers

Apple's masterstroke is building a cordial relationship with the customers to win over their hearts. This resulted in way more sales of their products than its competitors. Apple's most effective customer strategy is called 'customer centricity. Here are a few strategies which Apple follows to maintain the top class customer policy.

  • Make personal approaches to the customers
  • Understand the demands of the customers
  • Present reachable solutions
  • Receive requests and work on the key areas meticulously.
  • Returning customers an invitation gift is a sign of gratitude.

These are extensive features of the Apple SWOT analysis published in the latest business articles.

Weaknesses

High price point

The usual complaints with Apple's products are its high price points. This is why Apple has remained a niche in the market. However, the brand's fans have acknowledged it as a 'premium brand' among its peers. A recently published Apple PEST analysis showed that the best comparison of Apple can be made with BMW as opposed to Ford. The fall of consumers retaining the brand is also observed over time. For instance, in 2012, the Apple users who bought another iPhone after finishing within 93%. This has fallen to 88% in a year.

Wrong prediction

In a famous statement, Steve Jobs predicted that people would stop buying big phones in the coming years. But this turned out to be wrong. Apple invested in many tablets but did not mind increasing the screen resolution in its products. Some competitors like Phablets have spread across the market, which displays how it is predicted a wrong outcome in the future. In 2011 Samsung Galaxy was launched and quickly wiped the market. This new genre of Phablet gained the maximum hype during the last 10 years, which led to Apple rethinking its policies big time.

Ill-suited for different OS

This has remained a stray problem for Apple products. The applications are designed with such an intense coding language that very few applications can enter the IOS system. This has left Android phones and models having a huge swipe over Apple products for a considerable time. Even today, Apple cannot deal with this problem. A PEST analysis of Apple depicted how Apple users' retention rate is steadily decreasing each year. Therefore, after the price, the most ensuing reason is the incompatibility of using a different OS.

Opportunities

Products are still in high demand

Almost all studies show that Apple's new products are in high demand from customers. Apple has introduced two magnificent products called the Power Mac and PowerBook with an upgraded MAC OS. These innovations have brought some serious hope in the company. People are seen in long queues to buy these products. Also, the Apple watch has gained many potential market shares outshining many contenders.

A growing 'communication device' market

Apple CEO Cook said that Apple has never intended to sell iPhones at a cheaper price. Instead, the company aims at high-end products all the time. Despite having a high margin with the price, it has a market share of 51% in the global smartphone market.

The growing market of developing countries

Developing countries are steadily increasing the market share of global purchases of smartphones and digital devices. The thriving, middle-class sections of many south Asia and African countries are making headlines as the highest purchasers of Apple products each year.

Threats

Declining market share of iPhones

According to a SWOT and PESTLE analysis of Apple in recent years, the total sales of iPhones and Ipads are decreasing. The total revenue generated out of these products is 72% of the figures for 2013. These figures have a clear adverse effect on the company's reputation in the international smartphone market. The viability and sustainability of the company's leading products are thus under serious question. Market shares of Android have increased from 68.5% to 75.6% in 2016. At the same time, the share of Apple has fallen from 20.2% to 18.9%.

Ultimately, the continuous influx of Android users is causing a serious threat to the IOS system.

These are part of MyAssignmenthelp.com's SWOT and PESTLE analysis for Apple.

Apple PESTLE analysis

What is Apple PESTLE analysis?

PESTLE analysis signifies the external macro-environmental scenario of an organization. Every organization has both external and internal environmental factors to impact themselves. It is an acronym that signifies the political, economical, social, technological, legal and environmental are highly important for any company to assess the external situation for manufacturing and management. Every PESTLE analysis of Apple shows how different external factors in different countries have shifted its sales, marketing and pitching policy from time to time.

Importance of Apple PESTLE analysis

Apple is a multinational company that supplies high-quality technological devices introducing path-breaking innovation in the related field. Recently a PESTLE analysis on Apple showed how the company witnessed both profit and loss in different parts of the world. It clearly shows how these factors have affected the company's business strategy. Following are some examples of factors that affected the prospect of Apple.

  • Political factors - Every country has its political reality. For any country, Apple starting its operation will be a significant investment in any condition. It involves a high political stake.

  • Economic factors - The policies of Apple will be significantly influenced by the currency value, inflation, exchange rate etc.

  • Social factors - Every company needs a vast pool of employees to function, which depends on several social factors.

  • Technological factors - Sometimes, a high-tech company like Apple builds all the necessary technology due to insufficient infrastructure in the host country. As a result, it impacts the finance of Apple a great deal.

  • Legal factors - Some prominent legal factors affecting Apple’s policies are company law, taxation, import duty, export duty etc.

  • Environmental factors - Every country has taken the environment seriously in the past few decades. As a result, it impacts the company's manufacturing process, sales and marketing strategies.

So, if you are looking for a PESTLE analysis of Apple, contact our case study experts now.

PESTLE analysis for Apple

A PESTLE analysis of the Apple company stands for the external macro-environmental factors that shape Apple's policies, procedures, and performance. This PESTLE analysis of Apple, the company, suggests focusing on the following areas.

Here is the detailed PESTLE analysis of Apple.

Political factors

Almost 113.8 billion dollars of its annual revenue of Apple comes from countries outside of the US. While in the US, the revenue is $68.8 billion. So, if any international country faces a political upheaval, the sales of Apple will be impacted directly.

Suicide cases

A recently published Apple PESTLE analysis mentions a suicide case registered against the biggest supplier of Apple's products called Foxconn. The case entails charges of forcible work and working outside working schedules. Incidentally, two workers committed suicide, citing the unlawful work schedule of the company. Furthermore, there was another incident where 16 other workers of Apple were severely injured by an explosion in the production facilities of Apple. These are published in a recent PESTLE analysis of a case study on Apple.

Risk of terrorist attacks

The United Kingdom is a relatively safe space for common citizens. The government is stable, and the system is business friendly. But there are multiple threats of terrorist attacks there. It leaves a constant negative impact on the office environment of Apple. A PESTLE analysis of a case study on Apple shows how terrorist attacks have increased the vulnerability of the people working at Apple.

Ban on Tim Cook

According to a PESTLE analysis case study published online, a politician in Russia has baned the entry of Tim Cook inside Russia due to a stricter stance of Cook in gay propaganda. Tim Cook was debarred from entering Russia as he declared himself a homosexual.

High tariffs in China

Tim Cook has taken Apple from a prospectus company to a household name in China. It has grown to become a $50 billion empire there. The recent US government has announced a tariff on Chinese products if it is found to be selling more than the worth of $200 billion. A PESTLE analysis of the case study of Apple meticulously showed the new tariff rule imposed by the American administration is creating instability in the business prospect of Apple in China. The situation will worsen if China hits back at the US with a hamstring.

Economic factors

The international recession

The PESTLE analysis of Apple shows that the economic recession in 2013 has struck hard the global sales of Apple Inc, which made it impossible for the company to recover from it still. In 2013 and 2014, Apple has observed a steady economic decline among its peers. In 2011-12 the company witnessed a 50% growth in overall sales in the US which fell to 9% in 2012-13. In Europe, the growth before the recession was 31% which declined to 4% in 2012-2013. In China, steady growth of 78% got diminished to 13%. So naturally, the company couldn't recover from the deadly blow in 10 years.

Economic difficulties of Europe

Many PESTLE analyses of Apple showed that successive recessions had made a sharp impact on the economic health of Apple for a significant amount of time. However, the recession has hardly hit Europe more than any other continent. Hence, it was obvious that the consequence below would be suffered by Apple to the maximum possible extent. As a result, the annual sales of Apple have witnessed a slump of 16% in the third quarter of 2013. The situation, however, quotes the reverse in the same quarter of the previous year.

Increasing inflation

The US is observing a sustained period of inflation. This inflation is predicted to be the stacking of large volumes of cash. But an individual named David Einhorn, a hedge fund owner, has sued the company to pay $137 billion as forced payments. This added pressure when the economic condition was already in the doldrums.

All these are detailed with descriptions in the PESTLE analysis of Apple published this year.

Social factors

High-status lifestyle

All over the world, Apple has been considered as the symbol of a high-status symbol. This has diminished the overall sales of the products. However, this does not coordinate with the innovation, uniqueness and design of the iPhones. Consumers have created the brand despite its high price.

High potential in third world countries

The company is predicting a steady growth of its sales with an expanding market in third world countries like India and the African nations. That's why many manufacturing units of Apple were moved into these countries from developed countries like China and America. This has been depicted in the PESTLE analysis on Apple punished in many journals.

Technological factors

Assessment of consumer preferences

Apple has successfully assessed the minds of the consumers. They know that their consumers know their value. So they don't want to become an easy solution for the buyers' basic electronic necessities. Rather they would happily become the second or third choice of the consumers.

  • Many consumers prefer Apple’s screen size over other phones.
  • Some competitors are offering the same facilities as Apple to catch the market, which resulted in some loss of customers.
  • There is much domestic legal exhaustion that has impeded the company's growth considerably.
  • Apple has offered many financial services through their payment services.
  • Many smaller brands have breached the intellectual property laws, resulting in legal skirmishes with the company.

Environmental factors

  • In China, many Apple facilities are shown a signal from the government.
  • The manufacturing cost of Apple will increase as China is changing the greenhouse gas emission standards in the country.
  • Global warming has compelled Apple to change its manufacturing standard drastically.

So, here are the successive SWOT and PESTLE analyses of Apple. Hope the case study has touched all points in its analysis.

Conclusion

After assessing all the factors in SWOT analysis and evaluating the 5c and 5cs analysis reports of Apple, it is seen that Apple has more opportunities and strengths compared to threats and weaknesses. Given the company’s current leadership in the industry, Apple is in a position to enjoy these opportunities. But the company should devise few strategies to address effectively the threats and weaknesses that it recently developed or has chances of developing.

On the basis of PESTLE analysis, Apple should be able to thrive in electronic device industry in the next five years in spite of the challenges because it demonstrates an impressive ability to adopt to a challenging environment. The uniqueness in its design gives the company a competitive advantage which reflects in their sales and revenues. So, based on the PESTEL analysis reports of Apple it can be said that Apple will continue to be the leader in the electronic industry in years to come.

References

Apple Info.
www.forbes.com/sites/susanadams/2015/12/08/is-apple-the-worlds-most-innovative-company/#1cadfd617557
www.forbes.com/powerful-brands/list/3/#tab:rank
www.marketwatch.com/investing/stock/aapl/financials
www.forbes.com/sites/jaysondemers/2014/07/08/heres-the-simple-secret-to-apples-marketing-success/#19108e0d63ab
www.forbes.com/sites/carminegallo/2015/04/10/how-the-apple-store-creates-irresistible-customer-experiences/#135b249f2a0c
www.forbes.com/sites/chuckjones/2015/04/06/apples-worldwide-iphone-market-share-declining-except-in-china/#368e9d923165
tech.firstpost.com/news-analysis/apple-admits-some-iphone-5s-devices-have-manufacturing-defects-107447.html
www.bloomberg.com/bw/articles/2014-09-04/for-iphone-6-defects-apple-has-failure-analysis-team-ready
techcrunch.com/2015/08/20/peak-android/
www.businessinsider.in/Apple-Just-Reported-A-Record-Quarter-But-Analysts-Only-Wanted-To-Talk-About-The-US-Dollar-Heres-Why/articleshow/46044551.cms
www.fool.com/investing/general/2015/07/24/heres-how-much-the-strengthening-us-dollar-hurt-ap.aspx

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