Pestel Analysis
Political Factors :
* War, terrorism, geopolitical uncertainties; issues beyond company’s ability to control.
* 52% of the company’s net sales in 2007 coming from countries outside America. * Manufacturing or logistics might be interrupted by political events in the manufacturing countries.
Economic Factors :
* Overall global economy outlook is not good.
* Inflation reduced consumer’s expenditure on luxuries.
* Economic crisis influencing Apple’s retail’s business.
Social Factors :
* A variety of regulations & law for health and Safety may adversely affect company’s financial condition.
* It is reported that the improper use of iPod may lead to hearing loss for users.
* Technological Factors :
* Fast technological changes.
* Frequent introduction of new products and the continual improvement in product performance.
Legal Factors:
* Employments laws nationally and internationally
* Tax laws in the U.S. and other countries
* Foreign trade laws
* Environmental Factors
* Apple products are made from a high grade titanium which is to reduce pollution during the making and be recyclable as well
* Products are also energy star qualified so they do not burn as much energy as traditional laptops do
Porter Five Forces
Threat of New Entrants-Low
* As the Apple leads the market with the different products like Pc, iPhone, iPad and iPod which are full of the features.
The Essay on International Market Products Chinese Companies
1. INTRODUCTION There is no doubt that England acts an important role in the world! s market system, especially in Europe. But it seems that English products have little effects on Chinese market. To research the influence of English companies and products in China, I make a hypothesis that is! ^0 there is just a few Chinese consumers realize that English companies and products are famous in ...
* As the Apple’s customer are loyal and they are ready to pay even the premium price to the company.
* Apple has no debts. New entrants will not affect them initially. * The leaders of the market already capture the major distributors like
* AT&T and Verizon in U.S which gain the 60% of the market. Same thing with Hp, Toshiba, etc.
Threat of Suppliers: Moderate
* The supplier of the products like, memory, chips, disks and drive are not the same.
* The products that are provided by the companies are standardized and had no substitute.
* The companies are going to use the standardize products to reduce the cost hence the suppliers products essential for the industry.
* As they are many suppliers in number, so the switching cost is low.
* The products that are provided by the companies are standardized and had no substitute.
* The industry is the growing industry and for the suppliers it is very profitable.
Bargaining Power of Buyers: Moderate
* The buyers are few and the customers are now moving towards the big stores like superstores, electronic retailers and web based retailers.
* The buyers are seemed more concern about the product features and availability.
* The products like PC’s and the mobiles phones are very individual and the brand is definitely critical for the success.
* As there are many suppliers of the products like the
* Apple, HP, Dell etc in the market and they all struggle for the distribution. The switching cost for buyers is low.
Competitive Rivalry: High
* The industry is fastest growing industry as the product lifecycle is not long.
* The business has a high cost as in the case the all the players fight for the market share by cutting their cost.
* The products are highly differentiated, because all are branded. *
* The brand is definitely is critical for the success that is why the
The Term Paper on Industry Analysis: Airline Companies
... the airline industry switching costs are relatively low, because of the minimal search costs to find alternative suppliers, and learning costs, linked ... occasional travelers that usually use substitute products like trains and cars. The company offers tickets for a price that ... alliance captures twenty-eight percent of the global market measured by revenue passenger kilometers. Because the frequent ...
* Apple has a larger profit margins.
* The competitors in the industry are using the different strategies.
* The companies in the industry are in the market with the different strategies
Threat of Substitutes: Low
* There are many substitute of the technologies
* Switching brands sometimes is costly but sometimes is easy. It may depends on the how much the product is standardized with the demanded features.
