An environment analysis for Apple Inc

An environment analysis for apple IncApple consists of significant resources and considerable potential in the business human. Even though it consists of such capabilities there occur dissimilar trends in the general environment that causes the threats which pull down the progress and success of the firm. These threats can be marginalised only with the inspection and repair of appropriate planning and suitable action which concentrates much than on the value added core competencies in the business. This may lead the company to get out valuable products and work leads to a mounting opportunity for the shareholders and customers.Economic EnvironmentBooming Global EconomyOn revising the past years of global economy the world has attained the complete progress from recession in recent years. This uncertainty makes people looming of the money. This makes people to depart from the quality to less expensive products. The Apple cognize for its brand, quality, Innovative technology a nd luxury has mislaid due to its supreme pricing position paves the way for its competitors the producers of less expensive products. However the consumers attracted more towards the valuable Apples tribute products during the economic upturn than its secondary pricing competitors.Chinese EconomyRecent growth in Chinese economy catches the attention of some(prenominal) companies to sell their products in china. due(p) to the growth of the Increasing economy proportionally there is besides increase in the labour wages. This may results the buying power which makes people to draw more attention towards the Innovative products such as Apple i phone and i pad.Political EnvironmentPotential world-wide climate regulationOne among the effective threat to the potential environment is the global warming. Several steps move over been implemented in reducing the global warming. The Copenhagen conference has been suggested norms to the companies for the low co2 firing products which may lead to strictly controlled environment. frankincense in order to manufacture the less emission the Apple must transmits its products. Suppliers of the apple should have the provision to produce the low emission products or it has to switch to the other suppliers. This may lead to senior higher switching costs amidst the suppliers and bring deviates to the margin of the products when the manufacturing costs getting higher.Import taxes and dutiesChina poses superior government policies and low manufacturing costs in order to attract the more investors. These factors made Apple to manufacture its products in the various parts of the China. Even though Apple manufacturing lies in china the good market is positioned only in the countries like United States and the parts of Europe sluice though it has to offer more import duties. According to the current tax report produced by the Apple it pays around 32% of rate of tax in the year 2010.Socio cultural EnvironmentIncreasing desire f or Wireless devicesApple plays at the front position of the radiocommunication transition. As there is a unusual increase in the value of the Inter realize and the wireless connectivity creates a powerful demand comparatively to the other devices. This is due to its portability and accessibility everywhere makes these rapid hie wireless technologies valuable. The devices such as the portable includes the Smart phones and the tablet computers wireless-connected devices allows its user to perform several operation by the use of internet in the uninterrupted and secured manner as wherever they go. As these devices is extremely received by the people than the traditional computers such as PC or laptops. This technology has been create widespread by Apple and its competitive manufacturers such as Google. This technology has been faced al lot of relevance as all these manufacturers focussed on the consumers preference. Among them the Apple differs by its Innovative technology accor ding to the recent technological landscape. Apple spends its extensive investment in the field of look for and modernistic cultivation for the creation of highly well-liked devices such as the iPhone and i-Pad..Technological EnvironmentThe world has been going behind the analogue music trunk Apple made a revolution through its innovation of iPod. This made a impulsive progress in the revenue of the Apple. Due its consecutive pioneering researches resulted in the creation of iPhone. Even though the Apple is younger in the mobile phone industry comparing the Giants like Nokia, HTC and Blackberry it poses a radical technology. To withstands its market Apple has been spend 3.1 % of its net sales i.e. almost $ 1,333 million for the Research and Development (apple). The worlds ongoing mobile technology is landed in 3G manufacturing technology. But Apple is been ahead of them by ledger entry its 4G due to the supremacy of the Apples RD. This makes the Apple withstand as a leader in it s high innovation and portability.Competitive Environment AnalysisRivalry between CompetitorsTechnological growth has put forth the electronic industry ahead as it leads to lot of manufacturers. Due the entry of electronic industry in casual life the PCs, mobile phones and laptops has become a commodity product into the peoples life. Most users prefer the business cost than that of the performance of the devices. This may resulted in the various levels of provider strategies. The providers who provides at low price may not be able to satisfy the users with the best features. Whereas the providers such as Hp, Dell, Samsung and Sony Ericson offers the customers a wide range of options for the alter prices. Apple differs from those of the Providers as they provide a High Quality and High Cost products but without the diverse models. For example Apple consists of Single model iPhone variable only in its memory and its cost whereas the Samsung may vary its product options from the var iable technology by varying its costs from 4-400.Supplier military unitSuppliers are those who pose the entire control in manufacturing of computers as Apples Mac book or the mobile phones. Apple Suppliers also embark on the excess responsibility for producing the best inputs which is the most challenging for its competitors. In the computer manufacturing industry Intel and Advanced Micro devices (AMD) are the two suppliers of the processors. Both of the chips have their own integrated motherboard. They are incompatible with one another as they cannot be swapped with the other parts of the device. If Apple has to switch their processor it is also essential to modify their motherboards excessively resulting in high switching costs. This may results in high supplier power as the company has to rely on them.Buyer Power just about all the industry consists of buyers who have high influence on thier manufacturers. Each buyer has their own choice of the product needs. This leads the c ompany to launch the wide modification of products into the market. Thus power of the buyers has influences on the bargaining in the Quality, Price, and the Service. Apple exclusive products such as IMac and IBook are unique from its competitors in features of higly technological operation system, modernistic functionality and brand value attracts the customers by avoiding them to switch to its competitors. Even though it has attracted the customers through its functionality there arose a chance to switch to its competitors if there is no product differentiation. little terror of new entrantsEvery business has own threat of new entrants. The field of Computer market have the highest possibility of new entrants. The portable pcs market is widespread effortlessly paves the way for the new entrants. Despite the possibilities it also consists of several hindrances from its successful entrants. Apple have been deep rooted in field of computers and mobile products by its substantial rec ognition, own advance(a) technology and royalty among the other manufacturers. It has been a high challenging to the entrants in order to make its brand successful and changeless in the competitive market. Apple maintains their price of the products based on the economies of scale which is not possible by the new entrants without the huge investment.Even though it has the high possibilities of hindrances to entry it consists of some successful possibilities of entry which can be listed as follows.1. There is a chance of suppliers to enter the field of manufacturing2. A well completed giants of some other field of computer can also deep routed in this field as they have a well established familiarisation in the market.Threat of substitutesRecent Development of the technology makes the computing products handy. As every features and functionality of the computers has been substitute by the tablet pcs or smart phones. Time has changed where the users rely on the stable pc but now it has been grown substantially the computers are back behind the users and posses wide variety of application than pcs by core of wireless internet technology. This occurs in the case of Apple as due to the entry of the Smart phones the buyers of Mac pc are apparently reduced. Thus these show the change for substitutes of the consumers. Considerably Apple has been analysed all these cases and introduced the iPhone and iPad to satisfy its consumers who are in search of substitutes to a new technology. apprize added core competenciesValue added core competencies of Apple includes its highly Innovative ideas, featured design, well known brand, and critical creativity as all these united to make the company a most competitive favour among its competitors. Thus Apple has almost set all these strategies to the company in order to withstand its high position in the competitive market.Risks of the apple have been initiated with its supplier and foreign factories. Apple has its own guideli nes for its suppliers in manufacturing its product they dont have the direct control of their suppliers. The suppliers derived their profits based on the high volume low margin. Thus in order to increase the profit the suppliers produces the goods by low quality raw materials. As a result of this the quality of the Apple products has been diminished. Thus in order to purify these defects Apple have been undergone the mutual understanding of its suppliers to retain its qualityAdministrationEco- Friendly AppleApple has always been burning on the environment factors in its manufacturing. Apple has been taken several steps to avoid the usage of harmful chemicals in manufacturing of its product. Shipment of the products plays a vital business office in emitting combustion during its raptus. Thus in order to reduce the emission of Co2 Apple considers the portable packaging result in the less transportation and less combustion.Strong cash positionApple has less long term debits and run its business efficiently without the financial intervention by means of its own cash. The financial status of Apple helps its business to run efficiently as it may not depend on any of the creditors in scathe of the decision making such as the financial capital purchases, decision on expansion.Human resource managementHiring processApple recruits its employee by means of Selective hiring. It highly picks up the persons based on their innovative skills and high creative skills rather than by recruiting process. It focuses more on the well experienced professionals and innovative freshers rather by trainees.Employ benefits and appraisalsApple places a leading enjoyment in motivating its employees by means of high benefits and appraisals. It possesses a high role in the employee satisfaction. The benefitted employees provide full support and dedication to the company by means of their highly innovative ideas.Technological DevelopmentResearch and DevelopmentApple believes the researc h and development is one of the key factors of the success of its organisation. As it believes analysis on various factors determines the current requirement of the product have been pushed towards the new innovative product which paves a way for non competitive industry. It has been estimated that Apple spends around $1.3 million for its research and development.ProcurementRelationship with suppliersApple has maintained the good relationship with its suppliers. As it manufacturing its product based on the low cost and high quality. Despite it sets the high marginal cost for its product whereas in turn it spends its profit for the research and development. It also concurrently updates about its new technology to its suppliers by means of short courses and practical classes.Inbound LogisticsApple maintains a highly automated system for placing goods. The stock has been ordered to its suppliers in JIT process i.e. Just in Time when there is an lessening of the stocks it will be order ed automatically to its suppliers this may helps in avoiding the overstocks. Thus it hoard the cost spend for the stock management system.OperationsDesign of the product is been implemented by the Apple and hence it outsources its production to several factories in china by implementing its design. This may results in the reduction of risk factors as it is apart from its firm. Thus it modifies its management and Economy scale according to its outsourcing. outbound LogisticsApple has its production department in china whereas the goods have been transferred to various countries from china rather than bringing to US the head office of the Apple. This may leads to the reduction of shipment cost and the warehousing cost.Marketing and SalesApple uses the television advertisements as their marketing strategy by comparing its features and functionality of the product towards its competitive products. It also brings its own marketing strategy by means of the customer attraction towards the product. Apple discloses the new launch of the product which in turn acts as an substantiating marketing which pulls the customers to know about its launched products.ServiceApple genius is a person acts as a tech assistant in considering the consumers problem and rectify them. Apple provides a extended warranty to their customers within 90 days of product shipment also poses an opportunity of replacement within the given time.LimitationsRecommendationsConclusionsValue chain analysisRecommendation1. licencing of MAC software to other PC makers2. Increase entertainment diet so that the acceptance of the apple product more among the customers3. increase retail presence in developing economies4. increase customer service capabilities1. even though apple spending ore rD nw it has design related antenna proble in iphone 4