PEST Analysis for the Iphone in the UK - Essay Example

IPhone in the UK With the increasing levels of globalization resulting from liberalization of markets, efficient flow of information and integration of economies, the level of competition has increased tremendously. This has mainly resulted from the entry of multinational companies which have a huge financial base to segment the market, position their products strategically in the market, and attract customer loyalty towards their products. Electronic industry is one of the most competitive sectors (Overton 2007). However, Apple Company remains competitive with the demand for its products increasing in UK. One of the company’s products that are highly demanded in the market is iphone. This paper will discuss the technological and social factors and how they affect the demand of the product in the UK market The young people make the largest market segment in UK. These are people with a disposable income which they are willing to spend on high quality products in the market. Having an iPhone is currently being considered as a social symbol. The current generation has a perception that owning one of these phones is an indication that one belongs to a higher social class (Meek, Meek, & Chartered Institute of Marketing 2003). Therefore, young people across the UK are working hard in order to ensure that they get hold of this gadget. This has played a significant role in increasing the demand for the product in the market. The design and the quality of iPhone make it ideal for majority of the UK population. The local population believes that Apple Company produces high quality products which meet the demand of the current generation. As a result, people are willing to go to any extent in order to purchase the product. Moreover, the innovative nature of the company makes the customer more eager to wait for the next product (Nykiel 2003). However, iPhone has been able to satisfy the interests of very many customers in the UK. Therefore, the demand for the phone continues to rise each day. Apple Inc has been using various media in order to reach the target market. Currently, it has shifted towards social media in order to reach its customers across the country. The social media platforms have given an opportunity for the company to communicate directly with the customers (Pogue 2010). As a result, the customers are able to raise their grievances concerning the company’s product. Therefore, the issues are addressed before they get out of hand. This has been instrumental in developing a very close customer relationship (Lancaster & Reynolds 2002). On the other hand, the firm has been using social media as a research tool. Initially, the firm was investing huge sums of money to finance its research. However, this aspect has changed with the entry of the social media and the internet in the market. Currently, the company is able to collect the views of the customers through the media. As a result, it is able to understand different aspects that affect the consumption behavior of the target market. Consequently, the organization is able to make the necessary changes. This has been significant in improving customer loyalty towards the products. Loyal customers believe in the quality and the designs of the company’s products (Hasan 2013). Therefore, since the entry of the iPhone in the market, each person has been looking for the product. This hype for Apple products has made the sales of the phone to increase immensely. Constant innovation by Apple Inc has made people to believe that the company’s products are futuristic. Moreover, the design of iPhone has made people to think that this is a revolutionary mobile device which a modern person should possess (Chen 2011). Therefore, after its entry in the market, customers have been purchasing the products, thereby, pushing up the sales. Media-views mocking and increased critics by the competitors have even made the customers curious on the specifications of the iPhone. Since the company has a good reputation in the UK market, the loyal customers believe that iPhone is being criticized by the competitors because of its quality. Many think that the adverts by company such as Samsung to promote its Galaxy phone is aimed at deceiving people in order not to realize the quality of the new phone that has been introduced in the market (Groucutt 2005). This has pushed up the sales of the phone. The technology in the market keeps on changing. The competitors are investing heavily on innovation. Moreover, they keep on developing new products in order to attract a larger market segment. This is posing a major threat to the existence of the iPhone in the market (Schneiders 2011). This is because Apple Inc must keep on enhancing the product features in order to satisfy the changing interests of the target market. Furthermore, it must keep on enhancing its production systems in order to lower the costs of the product. Many of the customers have been complaining that the company has been overpricing its products (Clark 2010). This is because the competitors have invested heavily in the modern technology. Therefore, they are able to produce the products at very low costs. With the current levels of competition in the market, the companies are remaining relevant through introducing new products. Developing a new product is an initiative that requires heavy investments. As a result, the company has to forego or reduce the budget of some operations such as marketing. This has been affecting the success of iPhone in the market (Baig & LeVitus 2014). This is because intensive marketing is required in order to clear the negative perception that some customers have towards the product. The global market has become so huge to be covered by the company’s department. Therefore the company has branched out and allowed some firms to sell the company’s products. Although this aspect has enabled the company to reach a larger market, it is becoming very hard for the firm to ascertain whether the product reaching the market meets the quality parameters (Sadeghi 2012). Unlike other products where the company has an opportunity to rectify mistakes when they occur, mistakes in the technological sector can affect the reputation of the company in the market. This might have a major impact on the success of the iPhone in the UK market. References Baig, E. C., & LeVitus, B. 2014. IPhone for dummies. Chen, B. X. 2011. Always on: How the iPhone unlocked the anything - anytime - anywhere future--and locked us in. Cambridge, MA: Da Capo Press. Clark, J. 2010. Tapworthy: Designing great iPhone apps. Beijing: OReilly. Groucutt, J. 2005. Foundations of marketing. New York: Palgrave Macmillan. Hasan, M. R. 2013. 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Apples secret of success: Traditional marketing vs. cult marketing. Hamburg: Diplomica Verlag. Read More