PESTLE Analysis

PESTLE Analysis of Apple

Abstract

This paper is about the PESTLE Analysis of Apple Inc. and how does it manage to control the various factors affecting its growth and success.

Table of Contents

Introduction1

Body1

What is PESTLE Analysis?1

PESTLE Analysis of Apple Inc.1

Political analysis1

Economic Analysis1

Social Analysis2

Technological Analysis2

Legal2

Environment2

Recommendations3

Conclusion3

References4

PESTLE Analysis of Apple

Introduction

Apple Inc. previously known as Apple Computers was established in 1976. It changed its name in 1977 to reflect its venture into the consumer electronics market with a previous focus on personal computers. According to a data gathered in 2010, the company has 46,600 employees worldwide with annual sales of $65.23 billion (Anonymous, 2010). The best known products include the Macintosh, iPod, iPhone and the iPad. It has 301 retail stores worldwide and an online store too. Apple has managed to establish a good reputation in the industry. It has a large customer base which is truly devoted to the company and its products. According to Fortune magazine 2007, Apple is the most admired company of the United States. The following paper has a brief over its PESTLE analysis, and how the company caters to the affects posed by various factors in the environment (Anonymous, 2010).

Body

What is PESTLE Analysis?

It is a concept used in marketing to track the environment in which the company is operating and plan its new projects and services. Here, P denotes the political environment, E is for the economic environment, S is the social factor, T is for the technological factor, L is for legal application and E is for environment (www.pestleanalysis.com). All these aspects are important for business, and the business must have a comprehensive understanding of these environmental factors.

PESTLE Analysis of Apple Inc.

Political analysis

According to the data gathered in 2007, it was reported that 52% of the sales of Apple come from other countries than America. So if United States has bas international relations with other countries, then this would have a vast effect on the sales of the company. War, terrorism and declining relations are the factors that Apple is cannot control (Batalli et.al, n.d). On the other hand, Apple Inc. outsources the manufacturing of its parts and products to Ireland, Czech Republic, Korea and China. If there is any political conflict of U.S. with any of these countries than this would have devastating outcome for Apple Inc. Apple has different product lines and different types of customers. However, the company must understand on which business area it can work well. Too much crowd may seem to be unhealthy for the company.

Economic Analysis

There is a big concern over the money kept in reserve and not allocated. This poses the fact that the company either does not know where to allocate the cash or it has a fear of making any investments for the future. With the number of retail stores growing day by day, Apple is facing cannibalization. The global depression has an impact on Apple Inc. With the increasing inflation rates, unemployment rates and decreasing incomes, people are not able to buy Apple products as these are considered as ...