Apple company PESTLE analysis, risks and opportunities

1. Business risk
Apple company
Marta Diana Bilogan Mvfu-09
Jolanta Kostecka Fvfu-09

2. Introduction
• Company activity in brief
• PESTLE analysis
• Risks and opportunities in company activity
• Risk map
• Conclusions

3. Company activity
• Apple is an American multinational corporation that designs and
sells consumer electronics, computer software, and personal
computers. The company's best-known hardware products are the
Macintosh line of computers, the iPod, the iPhone and the iPad.

4. • Political analysis: •Legal analysis:
Apple design, develop and market •All laws related to work
numerous product and service conditions, age
lines. They sell their products to discrimination and
education, consumer creative minimum wage
professional, business and • All laws related to
government customers. environment protection
and requirements for
recycling
• Economical
• All laws related to
analysis:
copyrights, property
Through January 2005, • All laws related to
Apple has opened competition.
102 retail stores. • Environmental analysis:
Apple is holding a lot of
cash PESTLE analysis
• weather, climate, and climate
chance
• Social analysis:
• A lot of fans
• Technological analysis:
• Research And
Development
• Internet availability
• New technologies in
related sectors

5. Opportunities and
risks in company
activity

6. Opportunities:
Opportunities are external factors that influence the
company’s current and future position; they are
presented as offers, trends, needs that promise
beneficial outcomes for the company.
The production of computer anti-viruses, which are
increasing on PC’s
Political
-Increasing bonds and partnerships with other companies
-Getting free market entries
Economical
-Selling products in international markets( such as the case of iPhone in China)
-Open more stores in different places in order to increase sales
Social
-Focus on customer needs
-Large and increasing population resulting in more potential customers of
tomorrow
-Use other forms of advertising apart from product placement advertising

7. • Political Analysis : -While apple seems to display
numerous products and
conduct business on
different segments, it is
legitimate to wonder what
the company is really good
at? Too much diversity is
exactly what can crush
-Apple Inc. Apple
produces many of
its parts and
products outside the
U.S., like Ireland,
Czech Republic,
Korea, China, and
Cork. Political
Conflicts between
the U.S. and any of
these states may
have awful
outcomes for Apple -Bad international
Inc. relations, wars and
terrorism might
influence Apple in a
huge manner

8. • Economical Analysis :
-The global economic
depression might
have immense impact
on Apple Inc
-Having too much cash in
reserve might either mean
that the company does not
know yet how to allocate it
or that they may have some
risk concerns about future
-The U.S. dollar has potential investment.
lost value
-Very little market
share compared to -Its product
main competitor expensiveness
Microsoft threatens Apple being
-Company is facing the risk
of cannibalization and undercut by low-cost
might deeply suffer imports.

9. • Social Analysis : -Another big social influence is
the music industry. Apple
-Apple’s image also portrays having developed the
the modern individual’s biggest virtual media store,
lifestyle, combining iTunes, is well ahead any
functionality with design, other competition of this
leading to brand direction.
identification and loyalty.
-Media piracy: iPod users
illegally downloading
music for free instead
buying at iTunes
-Apple is the globally
seen as the King of
technology, not
because of most
usage, but quality
and design. -Low presence in
advertising other than
products placement in
publishing and
educational areas

10. • Technological Analysis :
• Risk
• R&D investment will
not come through. • Opportunity
Apple high
investment for R&D
• New products. New
• Packaging new
technologies always give
technology inside
for Apple opportunities to
old design will not
create successful
come through
products.
• Changes of
customer
preferences related
to technologies.
SMS decreasing.

11. Legal Analysis
• Risk
• Reduced output
and productivity.
Case of factories
• Opportunity
where Apple
products are • Increased protection
manufactured. of products. Piracy
• Oppurtunity for problems. ACTA.
competitors copy
Apple products.
Case of Samsung.

12. • Environmental Analysis:
• Risk • Opportunity
• Fees 1.New products to meet
• Damage to brand new regulations. More
or image environment friendly
products of Apple.
2. Improved or
differentiated brand.

13. • Risk Map : A.
B.
political conflicts
too much diversity
C. bad international
relations
D. global economic
Impact depression
E. lost currency value
F. Cannibalization
5 L K C J B G. expensiveness
H. little market share
I. Low presence in
A advertising
4 I G J. R&D investment will not
come through
K. Packaging new
H technology inside old
design will not come
3 E through
N P L. Changes of customer
preferences
M. Fees
N. Damage to brand or
2 D O F image.
O. Reduced output and
productivity
P. Oppurtunity for
M competitors copy Apple
1 products.
1 2 3 4 5 Likelihood

14. Conclusion
Apple company is impacted by several internal and external
factors for which identification helps PESTLE analysis. Such
factors put Apple in risky position as well as gives for it
opportunities.

15. Thank you for your attention!
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