Analysis of Marketing Environments and SWOT Analysis of Apple iPhone X

The report includes the analysis of the external and internal factors that helps the company in evaluating the forces and bringing the changes in the product that the company is offering. PESTLE analysis and SWOT analysis of the selected company that is Apple and its product iPhone X. The report includes the identification and description of the target market with the help of 4 segmentation. It also reflects the recommended marketing strategies for the company and its product.

Introduction to Marketing

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Executive Summary
The purpose of the report is to assess the external and internal environment of a company that is
essential to identify the new offering considering the result of the environment scanning. The
analysis is done with the help of the PESTLE analysis which is a tool used for the external
analysis of the environment and SWOT analysis which is used for internal analysis. The
company that has been selected for this report is Apple and its product that is iPhone X. The
findings of the report include the innovation of the new product that is iPhone X2 with the new
features and services. The recommendations related to the company new product has been
provided which will help the company to generate the awareness for the new product and for
making the other related strategies for the same.

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Contents
Introduction......................................................................................................................................4
Overview of company..................................................................................................................4
Analysis of marketing environments...............................................................................................5
PESTLE analysis.........................................................................................................................5
Political factors........................................................................................................................5
Economic factors.....................................................................................................................5
Social factors...........................................................................................................................6
Technological factors...............................................................................................................6
Environmental factors..............................................................................................................6
Legal factors............................................................................................................................7
SWOT analysis................................................................................................................................7
Strengths......................................................................................................................................7
Weaknesses..................................................................................................................................8
Opportunities...............................................................................................................................8
Threats.........................................................................................................................................9
Recommendations............................................................................................................................9
Segmentation...............................................................................................................................9
Target market.............................................................................................................................10
New product description............................................................................................................11

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Marketing Mix...........................................................................................................................11
Conclusion.....................................................................................................................................13
References......................................................................................................................................14

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Introduction
The aim of the report is to conduct the analysis of the external and internal factors that helps the
company in evaluating the forces and bringing the changes in the product that the company is
offering. PESTLE analysis and SWOT analysis of the selected company that is Apple and its
product iPhone X. SWOT analysis has been conducting as it helps the company in determining
the factors that may affect the proposed business concept that is the new product or new services.
This analysis defines the strength, weakness, opportunities, and threats of the company. The
report includes the identification and description of the target market with the help of 4
segmentation. It also reflects the recommended marketing strategies for the company and its
product.
Overview of company
Apple Inc. is an American multinational technology corporation who has headquarters in
Cupertino, California. The company designs develop, sells end user electronics, computer
software, and online services. The company is well-known in the market because of its hardware
products that consist of the iPhone Smartphone, iPad Tablet, Mac Personal computer and other.
The company was founded in the year 1976 April and was originated by Steve Jobs, Steve
Wozniak and Ronald Wayne (Apple, 2018). The company is known as the leading information
technology corporation in terms of the profits. In addition, it is the 2nd biggest mobile phone
manufacturer across the world.

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Analysis of marketing environments
The environment analysis includes the evaluation of external factors that can influence the
working of the corporation. PESTLE analysis is a framework which has been used to determine
the external factors that impact the working of the company.
PESTLE analysis
The analysis consists of political, economic, social, technological, legal and environmental
forces that affect the working of the company. PESTLE analysis of the Apple Company has been
done to analyze the external factors (Kotler, 2015).
Political factors
The political factors include the changes in rules and regulations that can affect the working of
the company (Chernev, 2018). Apple is an American technology business that has collected a
huge quantity of cash. The company found an opportunity of stable politics in the developed
countries which helps the Apple in improving their sales for the new product iPhone X.
Moreover, there is an improvement in the free trade policies which is another opportunity for the
company.
Economic factors
The economic constancy of the greatest advanced nations forms an opportunity for numerous
corporations like Apple to increase their business operations. The rise in the economic growth
rates in the developed countries leads to the rise in the purchasing power of the company that
provides the benefit to the company because this will lead to the rise in the sales and revenue of

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the company. The rise in the purchasing power helps the company to bring a rise in sales of
Apple iPhone X.
Social factors
The social factors might affect the working and operations of the business. The cultural factors
which include the behavior of the customers and knowledge of customers towards the product
and services directly affect the sales and revenue of all the products of the company especially
iPhone X (Lombardo, 2017). The rise in the use of the social media also leads to the opportunity
for the digital devices which brings the change in demand and trends of the product.
Technological factors
The technology plays a vital role in the Apple Company because all the products of the company
involve technology. The change in the technology affects the company because of cloud
computing trend, technology integration and the growing apps market (Aaker, 2013). Apple
Company makes use of advanced technology to bring the innovation in their products and
services which makes their product more advance For instance; the new Apple iPhone X
includes the advanced technology and unique features.
Environmental factors
The environmental factors majorly affect the working of the company. Apple believes in
maintaining the environment as this is the responsibility of the company. The company is
addressing the chance to keep up the sustainability in the business with the help of recycling and
connected programs (Hollensen, 2015). Corporation seeks for the new technological
explanations to bring improvement in the energy competence of the product like better-quality
batteries, processors, and components that emit less heat. The supply chain of the company for

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their products includes iPhone X contributes to improve the employment opportunities which
shows the social contribution of the company towards the environment.
Legal factors
The legal factors affect the working of the company as the government knows the fact that there
are privacy issues that are associated with the digital technology use. Apple Company in the
developing products includes the broadcast of the private information. This factor leads to an
chance for the brand to bring the improved product features that defend privacy. The company
ensures that they are able to fulfill all the legal obligations related to their products and services.
SWOT analysis
SWOT analysis is a corporate analysis technique that the business performs for every product
and services that are available in the market (Wild and Wild, 2012). The SWOT analysis helps
the company to achieve the future growth of the product in the market.
Helpful Harmful
Internal origin Strength Weaknesses
External origin Opportunities Threats

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Strengths
 Apple iPhone X has the strength because of a blend of a good design, extensive apps,
sophisticated camera and the high retail presence of the product in the market.
 This iPhone X is one of the innovative devices with a fantastic camera and beautiful
display which makes it most attractive phone in the market (Fowler, 2017).
 The display of iPhone X is Apple's first OLED phone screen. Along with this, the camera
of the phone is the best ever with the combination of the improved performance.
 The convenient face ID of Apple iPhone makes the phone unique for the customers.
 The high brand recognition is one of the strengths of the product because the most of the
customers are aware of the product that is offered by the brand. Along with this, it is one
of the highly demanded and new in the market (Price, 2018).
Weaknesses
 Broken glass is one of the biggest downfalls of the iPhone X. The phone was only able to
survive the 4 falls onto a concrete surface from a height of 5 feet (Spence, 2018).
 The life of the battery of the iPhone X hurt the customers who are making use of this
product in the market. The consumer reports make use of the robotic finger programmed
to put the phone with the help of different choice of tasks that are intended to put on a
end user average day (Spence, 2018).
Opportunities
 The opportunity for the iPhone X is to bring the improvement in the iPhone Siri. The Siri
of apple is a virtual associate portion of the Apple Inc’s IOS, watches, macOS and tvOS
operating systems. The company should link their Siri with the AI technology through

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which it can act and work like humans. Currently, the Siri helps the human for the small
task but after linking it with the AI technology it can support the major and important
task that is performed by the human beings.
 The improvement in the charging of the iPhone X is also required because of the wireless
charging the issues arise. It is difficult for the people to carry the chargers with them
which makes it difficult (Thompson, 2017).
Threats
 The competition in the current market is rising due to which the companies are bringing
the new innovation on their phone with the help of technology.
 The emergence of the new technology is also a threat to the companies in the global
market because the use of technology leads to the threat to the company.
Recommendations
The below given are the recommendations to the company for their strategies which will help
them in improving their business operations.
Segmentation
The segmentation involves dividing the population into different groups considering the certain
characteristics. Apple company segment the market on the basis of 4 types of segmentation
which are discussed below: -
 Geographic segmentation: - This segmentation includes the areas where the company is
offering its products and services to the customers. Apple product iPhone X is offered to
the only urban region.

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 Demographic segmentation: - The demographic factors on which segmentation is done
include age, gender, income, and many others (Grant, 2016). Apple Company believes in
segmenting both males and females with the age group of 18-25, 25-40 and others who
like to make use of iPhone X. The brand generally segments the people who are high-
income group people. The segmentation includes the people who are a student,
professionals, and managers by occupation.
 Behavioral segmentation: - The behavioral segmentation includes the behavior of
customers, a degree of loyalty and user status towards the product that is offered by the
company. Most of the customers are aware of the quality of the product and about the
brand due to which they buy the product of the Apple (Dudovskiy, 2018). The iPhone X
is the most awaited phone for the customers as the phone as numerous attractive features
and design.
 Psychographic segmentation: - This segment distributes the customers on the base of
social class and lifestyle of the people (Wilson and Gilligan, 2012). The new product that
is iPhone X is available for the middle and upper classes people and for the people who
believe that the use of the branded product is part of their lifestyle.
Target market
The target market is the segment to which the company is looking to propose its products on the
priority basis. It is recommended the brand to make practice of the multi-segment targeting
strategy in which the primary targets the people with the age group of 18-25 years with the high
income and having the profession of managers and businessman. Along with this, these
customers are loyal towards the brand and aware of the fact that this is their lifestyle. The brand

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believes in offering the iPhone X to the primary target and then focus on the secondary target
market.
New product description
The new product that is recommended to the brand is the iPhone X2. This is the updated version
of the product which includes improved features considering the SWOT analysis of the
company. This new product includes different features such as a new service of Siri that is linked
to the AI technology. AI technology helps the brand to act and work like the humans which helps
them to perform the major task, for instance, a human who is operating the phone can give the
command to the Siri to book an appointment with the doctors, event, hotel or many other
activities. Along with this, the customized face id with the face scanning and it also include the
ways through which they can scan the objects or rooms in 3D. In addition, the phone has the
feature of the wireless charging along with the normal charging system because it becomes
difficult for the company sometimes to carry the air charger while traveling or at other places.
This new iPhone X2 include all these new features which will help the brand to bring the
improvement and to satisfy the needs of customers.
Marketing Mix
It is recommended to the company to ensure that they are implementing the effective marketing
strategies. These marketing mix strategies of the company include strategy linked to the product,
price, place, and promotion of the new product (Pride, 2012).

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(Source: Pride, 2012)
Product: - The new product of the brand is iPhone X2. The iPhone X2 is incorporated with the
new features and services. The link to the Siri with the AI technology will make it a new feature
for the customers. Along with this, the product includes some more features which make the
product innovative and new to the customers.
Price: - Price is one of the important elements of the marketing mix. The company should follow
the premium pricing strategy for their new iPhone X2. This means that the product is available to
their customers at high prices. The pricing strategy is the only way through which the company
can achieve their goal for the high revenue and sales.
Place: - Company offers the products to the customers through different ways which include
stores, outlets, departmental stores, online medium and many other ways. The distribution of the
iPhone X2 should be done effectively because this is the only way through which they can make
the product easily available to their customers (Rushton, Croucher and Baker, 2014).
Promotion: - The promotion of the product plays a vital role in the company. The company
should generate the awareness for the iPhone X2 through different ways which include effective

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use of the marketing tools (Simon, 2017). Below given are some of the tools that can be used by
the company for promoting the products.
 Advertisement: - The advertisement of the product is done through TV commercial, print
media, hoardings, and pamphlets. Apple should make use of this promotion tool as this is
the effective way through which they can reach to a large number of customers.
 Digital marketing: - The digital marketing is a tool to generate the awareness through
online medium. The use of the social media channels and different other channels allows
the brand to promote the products in the market. This is one of the effective tools to
promote the iPhone X2 in the market.
Conclusion
In the end, it can be concluded that Apple company need to analyze the market through which
they can identify the internal and external factors that can influence the working of the company.
These factors will identify the strategies that the company need to take to bring the improvement.
In addition, the SWOT analysis of the iPhone X will help the company in analyzing the internal
business activities. This SWOT analysis helps the company to bring the improvement in their
product and to create the new product that can help the company. In addition, the
recommendation related to the target market and marketing mix is stated which helps the
company in improving the sales and revenue of the company for their new product that is iPhone
X2.

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References
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Apple (2018) iPhone X [Online]. Available from: https://www.apple.com/iphone/ [Accessed on
1st June 2018]
Chernev, A. (2018) Strategic marketing management. Chicago:Cerebellum Press.
Dudovskiy, J. (2018) Apple Segmentation, Targeting and Positioning [Online]. Available from:
https://research-methodology.net/apple-segmentation-targeting-and-positioning/ [Accessed on 1st
June 2018]
Fowler, B. (2017) CR's Final iPhone X Test Results: Top-Scoring Camera and Display But Also
Some Flaws [Online]. Available from: https://www.consumerreports.org/smartphones/iphone-x-
review-test-results/ [Accessed on 1st June 2018]
Grant, R.M. (2016) Contemporary strategy analysis: Text and cases edition. New Jersey: John
Wiley & Sons.
Hollensen, S. (2015). Marketing management: A relationship approach. India: Pearson
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Kotler, P. (2015) Framework for marketing management. India: Pearson Education.
Lombardo, J. (2017) Apple Inc. PESTEL/PESTLE Analysis & Recommendations [Online].
Available from: http://panmore.com/apple-inc-pestel-pestle-analysis-recommendations
[Accessed on 1st June 2018]

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Price, D. (2018) New iPhone 2018 release date, price & specs rumors [Online]. Available from:
https://www.macworld.co.uk/news/iphone/new-iphone-2018-3646340/ [Accessed on 1st June
2018]
Pride, W. (2012) Marketing principles. South Melbourne, Vic.: Cengage Learning.
Rushton, A., Croucher, P., and Baker, P. (2014) The handbook of logistics and distribution
management: Understanding the supply chain. Kogan Page Publishers.
Simon, M. (2017) How Apple’s unconventional iPhone X marketing strategy will make you want
one at any cost [Online]. Available from: https://www.macworld.com/article/3235955/iphone-
ipad/apple-iPhone-x-strategy.html [Accessed on 1st June 2018]
Spence, E. (2018) Apple's iPhone X Facing Major Battery Problems [Online]. Available from:
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problems/#32c9e938747f [Accessed on 1st June 2018]
Spence, E. (2018) Why iPhone X Biggest Weakness Is Apple's Secret Strength [Online].
Available from: https://www.forbes.com/sites/ewanspence/2018/03/12/apple-iphonex-iphone-
notch-android-google-galaxynote-nokia9/#101dfcdd5741 [Accessed on 1st June 2018]
Thompson, L. (2017) Missed Opportunities: iPhone X Welcome Campaign [Online]. Available
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[Accessed on 1st June 2018]
Wild, J. and Wild, K. (2012) International business. Upper Saddle River, N.J.: Pearson Prentice
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