Introduction of the topic Apple is an American worldwide association and was formed and recognized on the 1st April 1976 in Cupertino, California. Apple Inc. Produced the first ever extremely successful personal computers. It has been always on the forefront of the innovating new products. Apple Inc. Has transformed its image from an inventive computer manufacturer to a fully fledged consumer’s electronic company. Other than developing personal computers they are manufacturing other related software products and manufacturing electronic products such as IMP players, pod, phone ND the latest pad.
Formulating and applying SOOT analysis on apple. SOOT analysis is a useful technique for understanding our strengths and weaknesses, and for identifying both the opportunities open to us and the threats that we may face. Apple SOOT analysts 2013 Strengths 1. Apple is a leading innovator in mobile device technology with the slick looks with new and amazing technology and millions of applications 2. Powerful Brand image and reputation associated with best quality and best design 3. Many retail stores world wide and has direct contact with its consumers and it stores. . Strong marketing and advertising teams that promotes the company and its products with full trust in its products and their services.
Strong growth of mobile advertising market 5. Increasing demand for cloud based services Treats 1. Rapid technological change 2. 2013 tax increases 3. Price pressure from Samsung over key components 4. Android SO growth External Analysis External environment determines the present situation of Apple Inc, and also helps find out the possible influences of the political, economical, and social and the technological factors on the organization. Political Factors Apple Inc has reportedly obtained 52% of its business from outside US in 2007.
Due to the bad international relations, wars and terrorism might influence Apple Inc in a huge way, and also the organization has no control over these factors. Apple Inc manufactures a number of its parts and products from outside the US, like Czech Republic, Ireland, China, Korea and Cork. The bad political relations between US and the other world have bad outcomes for the Apple Inc (Sentences 2012). Economic Factors The global economic crisis had huge impact on Apple Inc.
The inflation rate went high and so did the unemployment rate in the country, and since Apple Inc products were viewed as luxury products, the customers started pending less on them. US dollar value keeps fluctuating, and thus again which have a bad impact on Apple Inc reduces, however the company has purchased itself foreign currencies and thus, the economic effects on the company are minimized. Thus, Apple Inc revenue has increased in the global market (Apple Inc 2012). Social Factors Throughout the history of Apple Inc, two factors have been on the forefront of Apple Inc products, the quality and the design of the product.
Thus, globalization plays a very important role in Apple’s products. As the world cannot be imagined without the gadgets, thus Apple products have marked their presence on the international market. Also, as the purchasing power of the common has risen in various markets across the world the purchasing of luxury products have gone up, for e. G. The phone, pods and the latest technology pad. Possessing these items are considered as status symbols in many societies which have also increased the sales of Apple Inc products.
Another big social influence to Apple Inc products is the rapid growth of the music industry, which have increased markets over the cyber space as well. The main virtual music store is the tunes. Thus, in all Apple products have benefited room the social factors as it has began defining a modern individual lifestyle. Technological Factors Apple Inc NAS invested largely in its product research and development titled and thus, Apple products are at the top of the new innovative products ranking.
The technology has been fast changing in the world and the market for it has become gigantic, which has added to more and more competition and thus, as soon as technological change are concerned the product life cycle has been shortened drastically, which the Apple Inc takes the advantage of by introducing newer products in the market, which ultimately lead the market. Legal Factors Monika has filed various lawsuits against Apple Inc, claiming the violation of 13 additional patents by phone, pad and pod touch, this apart from US complains covering 24 Monika patents.
Also, in China Apple Inc has been fighting the battle for its right to the pad trademark. Scope of External Analysis Potters 5 Forces Intensity and rivalry of existing competitors Windows SO and media players for playing music and videos competing with the apple tunes Competition to Mac SO from Linux and windows operating systems Alternate sources of computer hardware like Dell. Hp, and Leno Small and stylish IMP Player like creative Samsung and Sony. Online music stores similar to tunes The treat of new entrants. Streaming audio and video with youth. On demand online services similar to tunes.
Conclusion Thus it can be concluded that Apple Inc, continue to launch its innovative products in the market, and has been a luxury brand for its existing customers, and its best competitive advantage is its brand image, the quality of the product and the design, however with various analysis, like Porter five force model, BRIO framework, SOOT analysis and PESTLE analysis, helps us in analyzing the work environment of the company and what strategies can be adopted like lowering down the price of its products a bit, increasing the number of retail stores, advertising more can all be adopted to increase the sales even more in the future.
Phone has been a major revolution in the case of smart phones; however company has developed pad, which is another revolutionize technological breakthrough. Thus, a lot many strategies could be adopted to make even more and better products in the future (Bright Hand 2010).