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Apple INC - Essay Example

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A PESTEL analysis is utilized by companies in order to identify aspects in their external environment which influence their performance and operations. External factors affect both the demand and supply of the company’s products and their costs in the market. This section…
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Apple INC
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Download file to see previous pages most of these factors are caused by the fact that there are many countries which are involved in the manufacture of Apple’s products. While most of the manufacturing activities take place in Japan, assembling activities take place in Europe and the United States. This process can be affected in terms of transport across borders considering that situation in one country have a bearing on the activities of Apple products in other counties (Porter, 1985). The PESTEL analysis of Apple Inc. can be understood as following.
Most of the operations of Apple are done outside America. This implies that the overall performance of the company is prone to problems raised by bad international relations such as war of terrorism, political issues, and geopolitical instabilities, natural and man-made disasters (Apple Inc. 2008). Other problems are caused by distribution and transport issues between the two counties which can disrupt the whole operations. Such international challenges which are beyond the control of the company are common in Apple (Bright Hub, 2010).
The economic factors affecting Apple Inc. are attributed to the depression which caused immense negative effects on most sectors of the economy (Business Case Studies, 2012). The rise in the inflation rate has led to overall reduction in the purchasing power of consumers. Most countries where Apple operates experience economic problems such as inflation, unemployment and slow growth. USA and Europe are experiencing high rates of unemployment recently which reduced the sales of their technological products (Marketing Magazine, 2005).
Globalization has positive effects on Apple Inc. this is because technology is very influential in promotion of globalization. As such, Apple is able to market and promote most of its products globally. Furthermore, the MP3 sector of Apple enables it to cater for a wide market since the social influence is positively ...Download file to see next pagesRead More
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