Conclusion on the Internal and External Environment in Apple Inc
Apple Inc is a multinational corporation operating in almost every part of the globe, but the company is specifically well established in the United States. Apple Inc specializes in providing technological products and faculties especially personal computers, mobile phones, tablet, portable MP3 players, software’s, and networking services. Moreover, the company is also involved in the issuance of online services. This thesis has outlined various factors in the peripheral and in-house setting of the company that can negatively or constructively affects the performance of business activities. Using the Porter Five Model to identify the factors in the external environment, Apple Inc has been able to increase the bargaining power of customers through customer loyalty using the various product tailored according to the diversified needs of the company. However, apple has low bargaining power of supplier due to partnership with Mac operating system. Moreover, the company faces stiff competition from well established organizations such as Dell and HP in the provision of personal computer. Google is also a stiff competitor in the overall market for Smartphone and tablet. The technology industry is faced with little or no threat of new entry due to government regulations that prevent entrance of new companies. However, there is an imminent threat of substitute products especially in production of music devices such as IPhone, IPod, and MP3 music players. Also, various companies are involved in the production of diversified software’s serving different purposes. Other threats include terrorism, ethical issues including public health, political instability, global recession, legal constrains, fast growing technology, global economic crisis, and inflation in almost every segment of the financial system in a worldwide perspective. In additions, the company has an opportunity to provide networking services and products to developing countries including Japan mobile market, which has high demand for mobile phones among the young people, improvement of performance and build a positive reputation through manufacturing of environmentally friendly products.
However, the company has a well established internal environment that has the capabilities to exploit the available opportunities and eliminate possible threats. The company has a globally recognized brand and occupies a large percentage of the market share. The company has managed to employ a professional management and employee team which have enabled continuous innovation and development of the product. Moreover, the organization has facilities and human capital required to conduct market research. Also, the system uses an effective internal and external communication system. Use of websites and online distribution strategies has also increased the effectiveness of the business distributing channels including Hypermarket and authorized dealers.
In deciding the appropriate recommendation and the course for change, the company should analyze the results for both PESTEL and SWOT analysis so as to identify factors and influences surrounding the business. Most principally, Apple Inc should integrating various strategies aimed at directing the internal strengths of the company in espousing the available opportunities and eliminating the possible threats. The company has to change the attitude in people’s mind that Apple products are for the rich through reduction of their prices to a considerable level. This will enable the company gain more revenue since it will target the neglected social classes in developing countries will guarantee the creation of larger market coverage. The company should also utilize the outflow finances to attract professional employees as a means to enable internal innovation and manufacturing of new devices.
It is essential for the company to form a Customer Relationship Management under which the company will collect customer views and respond to them accordingly. The CRM system is very crucial in discovering unexploited market. It is also a means by which the company ensures consumer satisfaction. Regarding the PESTEL analysis, Apple should establish their branches in countries that are politically stable as well as peaceful. Also, Apple should reduce the expenditure costs due to the increased inflation and global crisis in almost every sector of the economy. Moreover, the PESTEL analysis shows that the social segment is afraid of health defects due to waves produced by the electronic devices and also the public is concerned about health matters such as loss of hearing abilities due to improper use of musical devices. Therefore, the company should ensure they make safe portable music products with quality sound effects to prevent hearing ailments. Also, on the issue of technology, the company should hire several software developers and professionals in the information and technology area who will be responsible for innovating new technology and also ensure that the corporation is using the most recent technology. As outlined by the PESTEL analysis, the company should collaborate with the environmental conscious organizations as a means to protect the environment and as a method to build the reputation of the company. Lastly, the company should comply with all legal regulations and standards in the specific region or country. In addition, Apple should also protect the existing copyrights and trademarks to prevent imitation by other industries or companies.
Over to the SWOT analysis, the company has a competitive advantage over other organization due to the multiple strengths and aptitudes. Apple has employees who ensure constant innovation; a strategy that can be used to develop new technology that can create devices that are compatible other products such as mobile applications and software’s. Also, the firm should come up with appropriate warrantee methods in case some of the products do not function as initially anticipated. This will help the business to eliminate unethical practices in the business. The company should reduce the prices of different commodities since the increased level of inflation has changed customer perception of such devices as mobile phones and personal computers as luxuries. The company should collaborate with other commercial enterprise operating similar business to address the issue of the fast technological changes. Technology is growing at a very accelerated pace hence the organization expenditure cost increases rapidly every year. Therefore, if these organizations can amalgamate their efforts, it will be easy to regulate the rate at which technology is growing. In addition, the company should diversify their products to suit the Y generation. The company should also invest in the human capital and other resource involved in the production and issuance of amenities and products.
Apple as seen in the above report, requires to organize the internal environment, in a way, to ensure that the company will embrace the available opportunities and possible eliminate imminent threats. Basically, the company should perform all its endeavors using ethical approaches, conduct global market research to determine available market prospects and customer needs and preferences, and form a reliable communication channel where customers can post their criticism, complains preferences, and suggestions. Moreover, the company should comply with all the legal formalities set by the government.
Zamborsky, P., 2008. Foreign Direct Investment, Performance and Competitive Advantage in Apple Inc. Washtenaw: ProQuest.