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Prepare a report on PEST analysis for Apple. look at how various micro and macro factors are affecting your chosen company - Assignment Example

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An analysis of all these factors will help an organisation like Apple Inc. to adapt itself to the changing conditions.
Social factors seem significantly…
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Prepare a report on PEST analysis for Apple. look at how various micro and macro factors are affecting your chosen company

Download file to see previous pages... globalisation, which involves the integration of economies into the international economy through capital flows, foreign direct investment, and trade. This, in turn, results in the spread of cultures and technology and improvement in lifestyle and affluence.
Apple is able to make use of the cheap labour and growing markets in the newly developing nations like India, which were once considered poor. In the opinion of Schifferes (2007), Apple has become a virtual firm by shifting its production units to countries like China in Asia through outsourcing. In an effort to reduce its operating costs, the company has spread its product manufacturing to states like Korea, Ireland, China, and Czech Republic. In addition, there are suppliers from Canada, Germany, France, Taiwan, Japan, Mexico, and Brazil (Apple Inc. 2014).
In addition, there is a thirty-fold increase in the world trade since 1950s as a result of this globalisation (WTO, 2007). According to reports, Apple depends on countries other than America for about 58% of its total sales (Kane & Rohwedder 2010). Thus, globalisation has a positive effect on the company’s performance.
Apple benefits from the modern life style because the company has managed to present itself as a lifestyle brand (Saviolo & Marazza 2012). As Roumeliotis (2014) identifies, a lifestyle brand touches a number of emotional factors, ranging from social status, self-esteem and desires. By creating such an image, Apple is now able to reap profit from the increasing number of tech-savvy youth who consider the possession of an Apple iPod and headphone as an important element of modern lifestyle. As Apple has a significant role in online music market and cyberspace, the modern lifestyle is well-suited for the company’s growth. (Apple’s branding strategy 2012).
Technological factors are the biggest challenge for the company. Firstly, though the company leads the hardware sector by introducing new ideas every time, like mouse, 3.5 inch ...Download file to see next pagesRead More
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