Apple external environment analysis Essay

Business backgroundorchard apple tree.Inc. was put ined in 1976 by Steve Wozniak and Steve Jobs. It became boffo in the personalized company effort because of its incredible innovative yields and business strategy. smooth computer was the costumer- friendly produce that has a clear future vision. Steve Jobs found this foodstuff and believe the demand for this mart was grown. orchard apple tree was the most successful initial public offering after Ford Motor familiarity in 1980. apple as well was the fast company that hit the portion 500 in the history. However, orchard apple tree nearly goes into bankruptcy by the put of 1990s due to the fierce external contention from the IBM and the Microsoft and the internal quickly harvest-festival. In localize to stay afloat, apple sharpened on innovated their personal sedulousness line. This helps apple became successful ever after.Nowadays, the orchard apple tree Company complex in designs, manufactures, and markets person al computers, bustling communication and media devices and portable digital practice of medicine players. It in any case sells the relative good, softwargon pack sequence, third- officey digital con disco biscuitt and applications and and so on The master(prenominal) output include IPh unrivaled, IPad, Mac, Ipod, orchard apple treeTV. The professional softw be applications and operating remains IOS and OS X ar also the part of product for the orchard apple tree. orchard apple tree sells the delivers digital content and application online through ITunes Store, App Store, iBooks Store, and Mac App Store to go out table service for the item they sale such as Mac. Customer substructure defile the entire product through online submit, the retail stores, direct sales thrust that located worldwide. Not only these, guest can buy the apple product as well as through third-party cellular bring in income carriers, wholesalers, retailers, and value-added resellers. ( apple Inc. Form 10-K, September 28, 2013)Mission pedagogy jibe to the information go far on the Apple website, there is no clear official Apples mission command. The following paragraph can be comprehend as the mission for the Apple Inc on the Apple stomach website.Apple designs Macs, the best personal computers on the world, along with OS X, iLife, iWork and professional softw are. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile ph unmatchable with its subversive iPhone and App Store, and is defining the future of mobile media and figuring devises with iPad. (Apple Inc. Form 10-K, September 28, 2013)This is Apples mission statement because it matches with the characteristics of a mission statement in some parts. During this paragraph, the product, services and the market for Apple has been clearly described. Customer can understand who are they and what they do through this short paragraph. However, in other way , this mission statement is more(prenominal) standardized a product enumerate. Without list whole the product, this mission statement nether mentioned customer nor the value or the purpose for the company. It is clear to see that Apple Corporation is the product-oriented company.Vision statementThe vision for the Apple Corporation is also can be seen as its mission statement.Apple is committed to speech the best personal computing experience to student, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings. (Apple Inc. Form 10-K, September 28, 2013)Un corresponding the mission statement, the vision statement is clearly customer- oriented. The market, product, customer and the self-concept for the future Apple Corporation has been mentioned in this one sentences. The future path of the Apple is clearly described as to take the best personal computing experience to each(prenominal) the customers.Strateg y base on the vision of Apple Corporation. Company go forth get across bringing the best product for the customers by innovation. Using unique ability Apple will march on design and improve its own operating system and all the other service, hardware and application to customer. Let the customer bonk the stark naked product that more easy-to-use and innovated design. Apple Corporation will continue investment in research, design, marketing and advertising. All these investments will play principal(prenominal) contribution at growing and sale the new products. As the part of online store, all the customers who have IOS devices can discover, buy and download application and daybook from Apple store and iBook. Third- party application and digital content also are the measurable parts of iTunes store, which provide braggart(a) physique of tax for Apple Corporation. To expand the discovery and delivery platform for the third- party who provide last quality hardware or softw are are also parts of strategy. The company believes that knowledgeable salespersons who can transform the value of product has the ability to attract and keep customers. The strategy for the marketing part is included that enhancing and expanding both(prenominal)(prenominal) online and retail stores to reach more customers and provide them a high-quality get and post sales experience. (Apple Inc. Form 10-K, September 28, 2013)Strategy objectiveThe pecuniary objective- Continuing campaigning in product innovation to extent the menstruation product lifecycle. Through update the current system or demonstrate the new product to maintain and growth market share and have got profit.The customer related objective- the best way to keep loyal customer is by launch new innovative product. Keeping current customer base and extent the new market with the special focus on the growth countries give care China and India will help Apple Corporation win the competition with the competitor s.External Macro surroundings analysis policy-making FactorsApple Corporation manages its business based on the geography base, which are general based on the location of its customers. Nowadays, Apple has retail store in 13 countries and sell their product through reseller and other shipway all over the world. tally to the annual report of 2013, the domestic and transnational sales accounted for 39% and 61%. The international market plays an important role for Apple Corporation. Wars, disasters, bad global relations and terrorism can match business. In order to inter the foreign market, the company activity is abnormal by the local rightfulnesss and regulation. For example, tax import and export requirement, intellectual property, labour, ownership and infringement, foreign exchange bears, milieu and etc. those policy are diametric in different countries. In some of the countries, to enter the market whitethorn need to do the additional testing, product modifications, d elays in product cargo ships dates, or decline product from the product list. All these will enlarge the operation cost and affect the sales of Apple product. As the policy whitethorn consistent change, in the future, the cost of doing business will continue increase. Any delay the introduction of new product caused by the changes of law or regulation has the possible result that product or service are slight attractive to the customer even worst whitethorn damage the Apple image in its customers and retailers. (Apple Inc. Form 10-K, September 28, 2013) economic FactorsIn the past few years, the worlds economy contracts acquire better from the recession. but the inflation rate still high, while the earning for the customers did non change. The unemployed rate is increase in many countries. Due to all these reason, customers purchasing berth may take down. People inclination to spend less and do not buy the product that is experience. According to the finance data provide b y the Apple annual report, the net income of 2013 (37,037 million) was less than the 2012(41,733 million). (Apple Inc. Form 10-K, September 28, 2013) The sales in some product are decreased. During the economic recession period, gold exchange rate die volatile. Apple using the margins on sales of the products in foreign countries to paid the foreign suppliers. Using this way to minimum the affect of foreign currency exchange rate fluctuations.Social FactorsAs the global warming go away more and more serious. Environmental protection problem become major(ip) issues in many countries. Some of them are where Apple operates. Most of the Apple product is produced outside the American. For example, iPhone is principally produced in China. However, in the past few years, as the deal and government in China are start consider the environment issues that caused by the manufactories. And the chore cost has increased in China. The total cost for producing iPhone has consistent increa se.Technology FactorsApple Corporation is in the market that has fast technology changes, no matter for personal computer, mobile phone and all the other electronic products. All of products are face up the heavy competition to the other companies such as Samsung. The characters of the technical application are short product life period, need to introduce new product frequently and need to improve product performances frequently. In order to facing the rapidly changes in this industry, companies need to spend tons of coin on research, design and development. However, this is good for Apple Corporation as they are using the unique operation system that designed by themself.Macro- environment affect industryEnvironmentApple Corporation are run low to the electronic industry, which is the industry that worth billions of dollars. More and more masses work and daily life communication are relay on the consumer electronic such a computer and mobile phone. The size of the electronic manufactories continues increase. The electronic wastes are coming with the development of industry. The electronic devices are usually make by the toxic materials that are very hard to recycle. In one year, over 3 million tone electronic waste are produced in the United States. (EPA.)Its clearly to see that in straight offs society pile are trend to be more environmental friendly. Not only the material that use to make the electronic devices need to be save, but also the other materials. Currently, the people in the industry are trying to design the sustainable electronics to help reduce the wastes. Tim Cook reveals his vision of industry. The future of the electronic industry is to use greener materials, less packaging, keep electronic product out of the landfills. (Jay Yaro, 2014)DemographicsCurrently, the customer for the electronic devices like computer and mobile phone are the young people at age among 18 and 35. Its turn out that lots of company are forgot a important mark et-the middle age bountiful. The adult in the age between 40 and 60 should be the major market as most of them are earning money. Nowadays, with the technology development people are forced to use electronic devices. Especially for the middle age people who has a job. Those people are willing to buy the product for the work and start learning technology. Middle age is the group of people that has the highest purchasing power no matter in what time. After ten years, the young people at age of 18 to 35 are growing to the middle age and start work. This group of people is both familiar with all the electronic device and have money will provide much more revenue for the electronic industry.The developing countries like China also have a potential to growth in the future. Based on the population of those developing countries, the major market for the electronic industry in the future will transform from developed countries to the developing countries.EconomicElectronic industry is one o f the fastest developing industries in the world. In some way, it is driving the economy growth. Electronic is important for closely every major industry in the world. The trend for the global industry is to become more and more automated. The productivity for the electronicindustry or the information technology industry will increase much more than the other industry, oddly in the developing country where skilled labor are experience.Porters Five Forces modelRivalry Among alert Competitors- StrongThe electronic and information technology industry are both well know as the fast growth industry. The competition between companies is strong. This is the reason why the larger companies for the industry are less. The threat of real competitors is very high for the Apple. The company is now operating three major markets personal computer, mobile phone and the music players. For the personal computer area, Apple needs to contend with the big company like Dell, Toshiba, HP and etc. App le using its unique operation system successful industrious parts of the market. However, as the difference of the market strategy, all the company is focus on different market. For the mobile phone area, Apple has to compete the big companies like Samsung and Blackbarry. For the music player area, Apple occupied 72% of the market. (Cole, 2013)However, the competitors like Sony are continue improve themselves. The only way to keep all the market share is to consistently improve and provide new product.In the future, as the market for the industry are moving from the developed countries to the developing countries, how to win the competition without lower price will be the expire issue that Apple should work with.Bargaining Power of Buyers StrongFor the Apple Corporation, the vendees will be almost every one in the world. According to the large customer base, its clearly to say that the talk terms power of buyers is strong. There are so many choices for buyers. (different brand that provide the quasi(prenominal) product.) Customers can easily switch between the brands. The individual buyer oft knows the basic information for the product. These group of customer looking for thecomputer that has high quality but lower price. The bargaining powers for them are moderate. Apple is mainly targeting the customers that have academic institute, colleges and schools students, and retail buyers. School and some other ecesis is the big buyer for the apple computer area. Their bargaining power as a buyer is high.As the technology industry continues development, the new buyer come into the market. This large number of customers may change the current market. But one thing will not change is that the power is control by the customers.Bargaining Power of Suppliers WeakExpect the suppliers like Intel. The bargaining power for the suppliers is low. For the big company like Apple, there are thousands of suppliers wishing to establish the relationship with it. For the su ppliers, the competition between their own industries is strong. The low enter requirement caused lots of new enter. However, its hard to get large order since the existing relationships between current suppliers and company. Apple has lots of choices, the number of satisfaction substitute suppliers are many. The cost for Apple switch the supplier from one to another is low. The bargaining power for Apple as the buyer is strong, which sometime can influence the price for the product. Not only Apple as a buyer can influence the price, the price competition between the suppliers will also lower the price, which lower the cost for Apple.Currently, people are start pay more attention on the environment protection. According to Tim Cooks vision of environment, the current supplier may have to become even greener to maintain the relationship with Apple.Threat of new Entrants moderateThe electronica industry keep attracting to the new enter with its rapid growth and increasing customer b ase. In another way, the industry are not attracting new enter as they are enter to the mature market that have to face the fierce competition. The giant player like Apple, Dell, Samsung arein the market and control the most of market. Its hard to compete with these companies.To enter the high-tech industry the capital requirement are relatively high. The giant company like Apple are already controlled the offer and marketing channel. It is hard for a new enters get assessing to those channel. Another important parts is that in the current market, customer are usually commitment to the larger and old brand. This is the challenge for the new enter to get market share from the well-know competitors.Threat from Substitutes moderateThe threat from the substitutes is moderate for Apple. There is not much product can substitute the electronic devices like computer, smartphone and music player. However for some of people, they do not need these entire products especially for the elder people. They may more like to read news on newspaper preferably than on the websites and writing on the paper rather than taping on Computer. The traditional way is the substitute for this industry. However, as the industry continually developing, the threat from this part will consistently decrease.ReferenceApple. Inc (Sept.29, 2013) Apple Annual Report Form 10-K. Apple.Inc.Jay Yaro (APR. 21, 2014) Tim Cook Reveals His Vision For Apple In An Environmental Video. Retrieved from http//www.businessinsider.com/tim-cook-apple- video-2014-4EPA (n.d) Cleaning Up Electronic Waste. EPA.govRetrieved from http//www2.epa.gov/international-cooperation/cleaning-electronic-waste-e-wasteShane Cole (December 19, 2013) Apples iPod continues to lead anever-shrinkingmarket of portable media players. Retrieved fromhttp//appleinsider.com/articles/13/12/19/apples-ipod-continues-to-lead-an-ever-shrinking-market-of-portable-media-players