Assignment 2

Contents
1. Introduction to the company……………………………………………….

2.SWOT Analysis ………………………………………………………….

2.1 .Apple’s strength……………………………………………….
2.2. Apples’s weaknesses………………………….
2.3 Apple’s opportunities………………..
2.4 Apple’s threads………………………

3. PESTLE Analysis ………………………

3.1. How political factors affect Apple…………………………
3.2. How economic factors affects Apple……………………..
3.3. How social factors affects Apple……………………….
3.4 How technology factors affects Apple…………………………
3.5 How legal factors affects Apple……………….
3.6. How environmental factors affects Apple……………….

4.Conflucion PESTLE

5.Conflucion SWOT
APPLE COMPANY

APPLE is one of the most successful companies in the world, but it is not immune
to the forces of the external environment. The company has been providing
robust technology products and exceptional software services. Apple is head
quartered in Cupertino, California and was founded by STEVE JOBS.

Apple launched it’s first product ‘APPLE 1 computer’ in 1976. Since then, apple
has grown exponentially in terms of products and services.

Today; one of the most successful products of apple is the’IPHONE’. In the fiscal
year 2022, iphone sales of $205 billion represents over half [52%] of apple’s
overall revenue of $394 billion.

Tim cook is the current CEO of the company

Steve Jobs
Founder of Apple
SWOT and PESTEL analysis of APPLE.
Here’s a detailed analysis of apple’s [strengths, weaknesses, opportunities, and
threats] and [political ,economical, social, technological, environmental, and legal
factors.

2. SWOT analysis.
2.1 APPLE’S STRENGTH.

1.MOST VALUABLE BRAND

Apple is ranked #1 position for 9th year by inter brand –with a brand value of $408
billion. Followed by amazon ranked at #2 with a brand value of $249 billion, and
Microsoft ranked at #3 with a brand value of $210 billion.

2.STRONG BRAND RECOGNITION AND LOYAL CUSTOMERS.

Apple is one of the best known brands in the world. It has a loyal customer base
that continues to grow due to its innovative products, design quality, and user
experience. Apple’s brand recognition extends to it’s app store, making it easy for
new users to find the apps they need quickly. This can be seen by the sheer
number of downloads that app developers receive for their apps on the app store
many developers report a huge increase in sales when releasing an app on apple’s
platform compared to other platforms.

3.TOP TECHNOLOGY.
Apple is one of the most reliable company when it comes to personalized
advanced computers and smart technology devices. It has millions of loyal
customers with steady increment.
4.INNOVATIVE PRODUCTS AND SERVICES.
Apple is known for pushing the boundaries and creating innovative products and
services that often revolunize industries. One such example would be I pod, which
kick started a whole era of digital music players, with portable devices now
becoming a part of every day life. Also when it comes to mobile phones that
allowed access to internet streaming services like spotify, thereby allowing users
unprecedented access to content anytime, anywhere, through their phones
themselves.

5.TOP TECHNOLOGY.
Apple was the first to introduce some of the most innovative products that have
changed the world [I phones, I pads, Air pods]. Apple is still determined to build
and craft better, more proficient technology devices.

6.HIGH-QUALITY PRODUCTS WITH UNIQUE FEATURES

Since it’s inception in 1976, apple has become synonymous with high-quality
products that are unique yet easy to use for customers across all demographics
and segments of society worldwide. The company’s commitment to providing
excellent customer service and quality devices has earned it’s loyal fans, as well as
a massive following on social media platforms such as twitter and you tube.

From I phones to I pads, mac books, and much more, their product range is
extensive enough for everyone, from kids, just starting out using computing
devices up to more experienced professionals looking for the latest technological
advancements found only within apple products. The features included both on a
software and hardware level within these devices make them stand out against
competitors.

7.BRAND OF CHOICE.
It isn’t big news that apple is a favorable brand in corporate offices ,especially a
among creative professionals. Apple offers top-quality technology solutions for
every corporation’s needs. Professional prefer high performances technology
such as mac-pro or i-macs for visual design, animation, video production, and
other creative work.

8.LEADING TECHNOLOGY EDGE.

When considering apples strengths, it would be remiss not to mention the
company’s leading technological edge. As one of the most innovative tecg giants
of the modern era, along with amazon and Google, apple continually sets ne
trends when it comes technology development. From introducing ground
breaking features like facial recognition through face ID or augmented reality
apps through ARKIT, apple pushes boundaries by bringing state-of-the-art
solutions into consumer markets faster than any other competitor can keep up.

The impressive speed at which they do this can largely be attributed to the
company’s recent move into developing custom chipset specifically designed for
their devices- know colloquially as “system on a chip” designs- which allow them
to build hardware better suited for each task instead of being forced to use off the
shelf components available from other manufactures. This gives them a much
quicker path from the concept stage to the finished product compared to almost
anyone else operating outside silicon valley.

9.PROFICIENT RESEARCH AND DEVELOPMENT.

Apple puts dedication into its product designs. Careful study and extensive
research is performed to help understand customer needs and market trends.
Apple continues to invest a substantial amount of money in research and
development for future growth and a competitive edge. For example, apple
spends $26.25 billion of its revenue R&D.
2.2 Apple’s weaknesses.

1.HIGH PRICED PRODUCTS.

Apple’s products can be considered a luxury due to their premium prices. The
products are priced for middle and high income consumers. Low-income
consumers can’t simply afford apple products.

Due to their premium pricing, only middle or high earning individuals can afford
their products.

2.HIGH DEGREE OF LITIGATION.

The highly competitive environment in which apple operates often leads them
into legal battles with other tech giants or patent holders over intellectual
property rights or trend mark disputes. This has been especially seen regarding
their battle with Qualcomm Inc., where each company sued the other various
patents, resulting in long terms costs and delays while trying to reach an
agreement between the parties involved.

Recently, in October 2022, apple was fined $19 million by the Sao Paulo State
court because of its decision to remove chargers from I-phone packages. These
are just a couple of some litigation over the past few years.

3.LIMITED ADVERTISEMENT AND PROMOTIONS.

Apple has solidified their grounds by establishing loyal customers, even with
limited advertising resources. Apple marketing relies heavily on its iconic and
flagship retail stores.

Because of their success, apple does not feel the need to have excessive spending
towards advertisement in comparison to other big brands such as P&G, Pepsi
Verizon, and coca cola etc.
4.LACK OF NEW INNOVATIVE PRODUCTS IN RECENT YEARS.
In recent years, apple has not been as successful in introducing new and
innovative products as it had been in the past. Rather than developing
revolutionary pieces of technology like their Iconic I-pod, I-phone, and I-pad, their
more recent releases have tended to have features already found on earlier
models, which makes it difficult for them to stand out garner a new customer
base.

5.ENTERING INTO AREA OF NON-COMPETENCY

Apple is rapidly expanding into new services such as video content streaming,
game streaming, payment services [credit cards]- competing with the dominant
players such as Netflix, Disney, Citi chase, PayPal, etc.

They might be entering into areas in which they lack competencies, remember
the failure of apple maps.

6.COMPLACENCY IN THE FACE GROWING COMPETITION.

In recent years, apples has seen its market share reduce as other competitors
emerge. The most significant challenge has come from Google, Samsung, and
even Xiaomi, all of which offer a range of android based smart phones and other
mobile devices that compete directly with apple’s product.

As fierce competition continues to grow, apple has restored to relying on its

brand recognition rather than investing in research and development or
innovation initiatives to remain ahead of the curve. While this strategy may have
served them well in the past, it is becoming increasingly evident that relying
exclusively on brand recognition will not be enough going forward to keep abreast
of rivals rapidly developing products and services.

If apple wishes to continue dominating the industry, it must actively innovate and
invest more deeply in research and development, failure to do so risks further
losses in its market share as it falls behind its challengers
7. LIMITED CUSTOMIZATION OPTIONS.
As part of its strategy towards providing complete user experience control out of
the box and avoiding unnecessary technical support headaches down the line,
apple has implemented relatively strict limitations on customizing its hardware
and software beyond what comes preloaded with the devices upon purchase.
While this greatly simplifies matters for novice users, who woudn’t need any
assistance beyond unlocking and setting up their device right out of the box, more
experienced users may find themselves restricted when seeking more advanced
options.

2.3 Apple’s opportunities.

1.LEVERAGING ITS STRONG BRAND IMAGE TO ENTER

EMERGING MARKETS.
With over 1.8 billion active devices expected to be in use by in use by 2023,
apples colossal size and reach and unparalleled amongst technology firms around
the world. Their reputation as one of the most valuable companies globally has
been carved out by their dedicated customer base, wide spread presence, and
highly successful marketing campaigns. This has enabled them to successfully
enter markets such as china, India, Russia, etc. where they previously had little or
no foot hold

Through an effective marketing strategy consisting of advertisements leveraging

apples iconic brand logo and name recognition, they jave the potential to tap into
billions of dollars worth of untapped opportunities available in these new regions.

2.INCREASED FOCUS ON CONTENT STREAMMING SERVICES

In recent years, apple has shifted its focus toward content streaming services in
response to the rapidly increasing consumer demand for video and audio
streaming. To capitalize on this growing trend, apple podcasts, apple music and
apple tv+. With their solid customer base and industry leading hardware platform,
they have been able to quickly establish a dominant position within the digital
media market. Moreover, their long term strategic investments hint strongly at a
continued commitment to becoming a major player in the content streaming
space.

3.CONSISTENT CUSTOMER GROWTH.

Apple has been dominating the technology sector for years now. They provide top
quality and cutting edge technology that offers a break through in customer
experience.

Their customer retention rate of 92% is phenomenal. Apple can always rely on the
power of the internet for future opportunities to gain new customers and from
new alliances.

4.QUALIFIED PROFESSIONALS.
qualified professionals that have years of experience in branding consumer
products. With the expansion of their team, apple can continuously bluid new
opportinites.

5. DELIVER SELF DRIVING SOFTWARE.

The demand for autonomous is increasing rapidly. Apple has the expertise needed
to deliver self riving car technology rather than fully functional autonomous or
electric cars.

Apple has the opportunity to focus on delivering self driving software technology
instead of building an actual car like tesla does.

2.4 Apple’s threats.

1.AFTER EFFECTS OF CORONA VIRUS OUT BREAK.

Apple is highly dependent on china for its manufacturing and supply chain. The
recent events have significantly affected and disrupted its operations. In addition,
about 19% of its $394 billion in revenue came from china [ a big market for
apple]. The outbreak has significantly affected and may continue to disrupt
apple’s business in coming years.

2. INCREASING COMPETITION.
Although apple as a brand has solidified itself, it will faces threats from
competitors. With the advancement in technology, brands like Samsung, google,
and dell are giving apple tough competition.

As the competition its getting stronger, apple either has to introduce new
technologies or revise its pricing policy. To stay ahead of it’s competition.

3.BACKDOOR MACHANISM.
The potential for government agencies to access user data stored on the I-phone
through backdoor mechanisms is a significant threat facing apple. Government
attempts to force apple into unlocking for law enforcement, and intelligence
gathering purposes present huge vulnerabilities, putting user’s private
information at risk.

To protect customers from malicious actors, apple has refused to provide

such back door mechanism. However the mere possibility of one
jeopardizes consumer trust in I-phone security if ever exploited by bad
actors. By not providing this type of access, apple seeks to ensure that its
customers remain secure and that their sensitive data is safe guarded
against prying eyes.

3. PESTEL analysis
Apple is multinational world’s leading consumer electronics brand. As I mentioned
above in SWOT analysis apple was founded in 1976 by Steve jobs, which is know
for its size and revenue. Investors always prefer apple for its high return on
investment and fast growth.
It has a limited but out class product line and designed with innovative
technology. Apple product line consist I-phone, mac, apple watch, I-pad, music
and TV and different accessories. Apple also designs proprietary software and IOS
operating system to cater all its devices.

On april 30, 2017, according to the wall street journal apple cash reserves reached
to $250 billion. The news was also confirmed by apple officials with accurate
figures of $256.8 billion. As on august 2018, apple became the world largest
publicly traded corporation by market value. Apple is ranked number 4 on the
fortune 500 list.

3.1 How political factors affect apple?

The china-US trade war is an alarming political issue that affects apple
performance and market share in the Chinese market. If the US tariffs rapidly
increases on Chinese imports into the US then apple products can also face
heavily taxes from Chinese government. This political issue can affect Chinese
consumers demand for I-phone and other apple product.

The Ireland government and apple resolved the back taxes and interest dispute.
In this regard apple paid more than 15 billion[pounds]. Apple is leading tax payer
in the world and such political issues can affect its financial performances.

There many other political factors that can affect apple’s performance in many
countries. Political instability and unrest are one of them that affect apple sales
and supply chain.

India is in the good books of apple Inc. as it is the third biggest smart phone
market in the world. If the Indian government and premium brand that can be a
great success for the company.

The cost associated with finding alternative to Chinese manufacturing could

increase price of many apple products in the world.
3.2 How economic factors affect apple?
In PESTEL analysis, economic external factors mean both positive and negative
influences that can affect the business environment and performance of a apple
Inc. economic growth, inflation, deflation, unemployment rate, wage policies are
good examples of economic factors.

The economics stability of many developed countries in world can create

opportunities for a tech brand like apple. It can exploit these opportunities for
business expansion. For example the higher growth rates of Asian countries are
great opportunities for apple to increase market share and revenue. Keep in mind
the competitors; apple must exploit such opportunities in the first place.

Increased labor cost in the apple manufacturing countries can affect apple
products and profitability.

A strong US dollar can negatively affects exchange rate that make it more
challenging for apple to do business operations in countries like china, India,
Pakistan.

Apple manufactures premium products that mean it targets high and end markets
only. Using the premium pricing strategy apple is unable to penetrate in the asain
targeting low and high-end consumers ruling the smart phones market.

Apple is also facing furious competition from top tech companies like Samsung
and Lenovo. These companies offer premium laptops and smart phones on
affordable prices.

3.3 How social factors affect apple?

The current trends of the increasing popularity of smart phone devices are some
what a great opportunity for apple unless they provide easy to use and affordable
phones in the market. Increasing social media and mobile trends present both
opportunities and challenges to apple.
Apple has a close connection with china and many customers from north America
and Europe can feel offended. If the tension increases between US-china it can
affect brand image of apple.

Another social factors is urbanization trends in both india and china can be more
favorable for the world leading brand apple.

Africa is another country where consumer spending is growing but still many
people are un heard of apple products.

3.4 How technology factors affect apple?

There are many competitors who are providing advance technological products of
high value at affordable prices which negatively affected brand image and
financial performances of apple. For example like Lenovo maintained its position
in the PC market while apple lost it. It is because of these competitors who are
providing technologically advanced products at low prices.

Cloud computing is another technological impact becoming more popular these

days. Apple has a great opportunity to exploit it by offering cloud related devices
and apps.

These days the app market is growing that is another opportunity and challenger
ho

Another opportunity for apple is the trend of integrating different devices. Apple
should exploit this opportunity by providing products that can easily connected
devices and platforms.

3.5 How legal factors affect apple?

Legal factors are external environment factors that can create threat to apple.
Compliance is mandatory or apple can face law suit and fines that will lead to bad
brand image.
Privacy issues are another concern for technology users and governments at the
same time. Few months back US congress was asking apple and Google to protect
users privacy. This legal factor is threat to apple that creates more challenges for
those products that deals with private information.

Technology companies like apple has strict Tele- communication regulation that is
an alarming threat to apple.

Apple is also planning to enter in the auto mobile industry and also working on
electric car project code name “titan”. Apple is facing immense pressure from
investors to launch the car and return their money.

3.6 How environmental factors affect apple?

Apple is manufacturing most of its products in china where pollution and
environmental side effects are great concerns for the company that can affect
manufacturing cost and regulations.

Apple is also working for new technology solution by providing energy efficient
products like batteries and processor and other equipment with less heat
emission.

Apple is working on business sustainability program through disposal and

recycling non working electric devices.

Global warming is creating climate change that can effect apple supply chain.

Apple is depending on huge internet infrastructure and data center that can lead
to increase the electricity cost in the future.

4.Conclusion [PESTLE]
In conclusion, the PESTLE analysis is a valuable tool for businesses that want to
understand the external environment and identify risks and opportunities. In the
case apple, the analysis reveals a number of both opportunities and challenges.
By understanding these factors, apple can make informed decisions about how to
navigate the changing landscape and maintain its position as a global leader.

5.Conclusion [SWOT]
Apple is a market leader in the technology industry for a reason; its high quality
products are extremely popular among consumers. Their strong brand recognition
and diverse product portfolio give them and advantage over competitors. The
company’s strengths have allowed them to maintain a solid competitive edge.

However, they also face numerous challenges that need addressing. To remain
successful in the long term, apple must continue leveraging its strength, take
measures to address its weaknesses, and constantly monitor external
opportunities or threats that might arise. Through proactive strategies in
marketing and operations management, apple can capitalize on opportunities
presented by the ever changing digital landscape while mitigating risks to ensure
continued success in the years ahead.