This essay examines the opportunities and threats existing in the emerging markets for investment in an industry. This essay examines the case of investment by Apple Corporation in China and Brazil. The external environments in both these nations are evaluated to examine which country is most suitable for investment by Apple Corporation…
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PESTEL analysis is used for the external environment analysis here. Moreover, the marketing strategies for the firm to be adopted if they want to invest in these markets are examined with the help of Ansoff matrix. Recommendations regarding the appropriateness of investment in both markets by Apple Corporation are made based on the analysis here.
This essay consists of the following sections. Section 2 discusses the results of PESTEL analysis for these two nations. Section 3 discusses the recommendations based on the analysis and the marketing strategies to be adopted by the firm for investment using Ansoff matrix. Section 4 concludes the essay.
PEST analysis means the analysis of Political, Economic, Social and Technological (PEST) factors that assess the strategic decisions of a company (Oxford University, 1998;Bennet,1999).This analysis is also called STEP analysis(Peng and Nunes,2007).PESTEL Analysis is an updated form of PEST analysis which includes analysis of Environmental and Legislative factors also. This analysis is very important in assessing the external environment factors affecting an organization....
EST analysis means the analysis of Political, Economic, Social and Technological (PEST) factors that assess the strategic decisions of a company (Oxford University, 1998;Bennet,1999).This analysis is also called STEP analysis(Peng and Nunes,2007).PESTEL Analysis is an updated form of PEST analysis which includes analysis of Environmental and Legislative factors also. This analysis is very important in assessing the external environment factors affecting an organization. Here the PESTEL analysis of both Brazil and China are done to examine the most appropriate destination for investment by Apple Corporation. The analysis of Political, Economic, Social and Technological, legal and environmental factors that assess the strategic decisions of a company are examined in both the cases. 2.1. PESTEL Analysis China Political Factors China has a stable political system with only one party ie Communist party (Cui, 2009). In the recent years, however, China has reported a trend towards democratic form of government while Communist party still remain the single party here without any change (Price Water House Coopers, 2005). This stable political system is an important factor conducive for international investment in China (Word Press, 2011).The political environment for international investors is very favourable in China due to the various incentives provided by the government in spite of the complexity of norms for the new investors. Reports show a preferential treatment towards foreign invested enterprises since 1979 by Chinese government (Tian, 2007). Approval procedure is complicated while after getting approval, it is easy there (Word Press, 2011). Economic Factors A very good indicator of the strength of Chinese economy is its GDP of 10.1 percent which shows the continuous
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Apple Inc., formerly Apple Computers, was founded in 1976 by Steven P. Jobs and Steve Wozniak and was converted to public ownership in 1980. It is the company who introduced first personal computer in 1982 with John Sculley as the CEO of Apple.
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