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Apple - Essay Example

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Summary
Assess the major macro-environmental trends facing Apple Inc as they operate in the technology and software sector and highlight the implications on the organizations strategic decisions of the trends identified.
Macro environment are external factors which affects operations…
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Download file to see previous pages issues affecting business; technological changes; environmental factors in business; and finally legal issues influencing organization’s operations. For us to get a an understanding of the macro environment affecting Apple Inc, then a deep study of the overall technology industry must be done (Kotler Phillip and Gary Armstrong, 2006).
The first factor influencing operation of Apple Inc is the technological force; the company continuously experiences changes in technology, each year the computer electronic components became faster, cheaper and convenient hence computer design frequently changes. Apple is affected by changes in the technology industry; hardware producers like Intel and competing software producers like Microsoft are always innovative in their designs, and therefore Apple must be creative and innovative to ensure superior products and differentiation (RodgerRafter, 2002) Microsoft is a major software producer for Intel computers, and the major competitor of Apple; continuous innovation by Microsoft in software product (especially new versions of windows) has created pressure on Apple to continuously upgrade software like MacOS.
Economic factors which affect computer sector include market competition. There is a lot of competition in the technology industry because of low entry barriers; which allows easy entrance by competitors hence increased industry competition. Also, the bargaining power of suppliers is limited due to the limited number of hardware and related software suppliers like Intel and Cyrix. On the contrary; the bargaining power of customers is strong because of the low costs of switching and searching (Jobs, S., 2005). Marketing strategy during entry should take into consideration the purchasing powers of potential consumers; the purchasing capability of developed states is high, while that of developing countries especially in Africa is low.
Social change includes the dynamic lifestyle of customers that make apple to be ...Download file to see next pagesRead More
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