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APPLE CASE STUDY

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Introduction

Apple Inc. creates, manufactures, and sells handsets, tablets, wearable, and accessories, as well as a number of connected services. IPhone, Mac, iPod, Wearable, Home, and Attachments are among the company's goods. The iPhone is Apple's series of smartphones that run on the iOS operating system. The Mac range of microcomputers is founded on the industry's macOS operating system. The iPad is a range of multi-purpose tablets from Apple that run on the iPadOS operating system. AirPods, Apple TV, Apple Watch, Beats devices, HomePod, iPod touch, and other Ios and third-party accessories are included under Wearables, Housing, and Fittings. AirPods are the Company’s bluetooth headphones that communicate with Siri. The Apple Watch is the company's wearable device line. Advertising, AppleCare, Cloud Services, Performance Management, and Merchant Services are among the company's offerings. Its clients are largely from the consumer, small and medium-sized company, education, industrial, and government sectors.
Apple Inc. is one of the world's most well-known corporations, specialising in the production and sale of consumer goods, computer software, and other online services. It is a multinational corporation with its headquarters in California, United States of America. The firm was founded by the world-famous Steve Jobs, Steve Wozniak, and Ronald Wayne. Apple began by producing and selling personal computers, but has now grown into a variety of industries. After Samsung, Apple is the world's second largest phone maker now. Apple Inc. is, in reality, the world's largest IT company. It employs approximately 120,000 people and has nearly 500 retail shops across the world.
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SWOT Analysis of Apple

Strength

Inter brand has placed Apple #1 for the eighth year in a row, with a brand worth of $322 billion. When it comes to personalising modern computers and smart technological gadgets, Apple is one of the most dependable companies. It has a continuous increase in the number of devoted consumers. Apple was the first company to debut some of the world's most ground breaking goods. Apple is still on a mission to create better, more capable technological gadgets. It's no surprise that Apple is a sought-after brand in workplace settings. Apple has a business page that provides high-quality technological solutions for any company's needs. Apple devotes a lot of time and effort to the creation of its products. To better understand client wants and expectations, a thorough investigation is launched, followed by more research. Liam is an iPhone recycling robot that dissects and breaks down the device. It strips them down to just a single bolt. The majority of an iPhone's components may be reused. Liam was created with the goal of producing as many reused parts as possible. These reusable pieces are then classified and kept properly in order to be reused in future production. Apple has been steadily extending its service offerings for several years. Digital content shops, streaming services, iCloud, and AppleCare are just a few of Apple's offerings. In addition, Apple has launched a slew of new services.

 

Weakness

Because of their high pricing, Apple's products might be considered a luxury. The items are targeted at people in the medium and upper income brackets. Apple items are out of reach for low-income people. Only the middle and upper classes can afford their items due to their exorbitant prices. Even with minimal promotional expenditures, Apple has maintained its position through cultivating devoted consumers. Apple's famous and flagship retail locations play a big role in its marketing. In comparison to other large companies such as P&G, Coca-Cola, and Samsung technologies, Apple somehow doesn't feel the need to spend huge amounts of money on advertising due to their success. Apple is fast growing into new services such as video content streaming, game streaming, and credit card issuance, putting it in direct competition with established businesses such as Netflix, Disney, Citi, Chase, Paypal, and others.

 

Opportunity

For years, Apple has dominated the technology industry. They offer top-notch service and cutting-edge technology that transforms the consumer experience. Their 92 percent client retention percentage is incredible. For future possibilities to attract new consumers and establish new partnerships, Apple can always rely on the internet's strength. Apple's researchers, developers, and product experts are a group of highly trained individuals with extensive expertise in consumer product branding. Apple may continue to expand their staff, which will allow them to create new opportunities. Apple Inc. has a chance to broaden its distribution network. 

 

Threat

Apple's production and supply chain are heavily reliant on China. Furthermore, China accounted for 14.5 percent of the company's $274 billion in revenue. The epidemic has had a substantial impact on Apple's revenues in fiscal year 2021, and it may continue to do so. Its activities have been substantially impacted and interrupted as a result of recent events. Due to supply chain concerns, it announced flat sales in the second quarter of 2020 and declined to provide annual revenue forecasts for FY2020. Third-world countries have used Apple's brand image to sell counterfeit goods, making the company susceptible. Apple counterfeit items are sold at the same price as genuine Apple devices by illicit vendors.
 

PESTLE Analysis Of Apple

Political

Over time, better overall free trade policies emerge. Apple Inc. will be able to distribute more of its products throughout the world as a result of this external strategic element. The stability of the political environment of developed countries is also seen as an opportunity for Apple to grow in this PESTEL/PESTLE research, given the lessened political difficulties influencing corporate operations in these countries. Despite these positive improvements, the political external element of trade conflicts, particularly between the US and China, poses a danger to the company's future growth and worldwide sales revenues of its products, such as consumer electronics.

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Economic

Apple's expansion will be aided by the economic stability of industrialised countries. However, in this PESTEL/PESTLE analysis instance, the rapid development of emerging nations is a more significant economic external factor in terms of support for increasing the technological firm. For example, Apple may benefit from the strong economic development rates of Asian countries by selling its products in these overseas markets. Higher disposable incomes, in turn, offer more possibilities for the firm to market its comparatively high-priced technological items. These external strategic variables point to the company's and its rivals' potential for growth.

 

Social

Apple Inc.'s sales can benefit from the growing usage of mobile access. The rising demand for gadgets such as smartphones and tablets is a social external force. This PESTEL/PESTLE research also highlights a growing reliance on digital technologies, which is another socio political trend that allows Apple to sell more items due to increased demand. Despite these advantages, the corporation is threatened by societal resistance to its commercial activities. Anti-Apple sentiment is growing, prompting questions about the company's business methods, such as its litigation against third-party repair service providers that fix items like the iPhone.

 

Technological

The rising demand for cloud computing is seen as a growth potential in this PESTEL/PESTLE research of Apple Inc. Although only to a limited extent, the firm now offers cloud services. Developing an extended cloud infrastructure, in conjunction with assistance from Apple Inc.'s corporate structure, may enhance the business's profitability in delivering web services. In this regard, the external strategic element of expanding technology integration provides a chance to improve the company's services and develop the business by selling its technical goods and services to a wider range of consumers, including organisations.

 

Legal

In the digital era, governments' insistence on privacy has resulted in increased privacy rules for companies like Apple Inc. This legal external element poses a risk to the technological firm, as it might result in costly regulatory compliance obligations and additional restrictions. This PESTEL/PESTLE study, on the other hand, sees the same external issue as a trend that offers Apple with a chance to grow its business through improved privacy safeguards. In addition, the corporation faces legal issues relating to its after-sales support methods and policies, as well as other aspects of the business.
 
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Environmental

The business sustainability trend is an ecological element that is connected to a growing preference among businesses to embrace sustainable practises as a result of worries about the negative environmental effect of their activities. Such an ecological trend gives the chance to improve Apple Inc.'s corporate image, according to this PESTEL/PESTLE research. Furthermore, the energy efficiency trend is an environmental external force that encourages firms and customers to embrace newer, more efficient technology. Apple has the chance to increase operating cost efficiency while also providing more appealing products to a growing number of environmentally conscious customers.

Conclusion

It may be argued from the above case study that the vast majority of external elements in Apple's distant or macro-environment creates possibilities. Given its existing industry position, the firm may take advantage of these possibilities to broaden its reach in the worldwide market for information technology goods and services. Apple, on the other hand, must devise effective methods to handle the challenges outlined, particularly those in the legal dimension of its distant or macro-environment.

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