International Business Environment: Apple

This presentation provides an analysis of the international business environment of Apple Inc. including its industry, served areas, products, corporate objectives, growth factors, SWOT analysis, PESTLE analysis, competing in international market, comparison of business environments, global strategies, and conclusion. The presentation also includes references for further reading.

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International Business Environment: Apple

 Industry served: computer hardware, computer software, consumer electronics
 Served Areas: Worldwide
 Products: iPod, iPad, Apple TV, iCloud, applications such as iTunes Store, Mac App
Store , iPhone, laptop, computer, tv
 Apple Current CEO: Tim Cook
 Competitors: Samsung Electronics, Cisco Systems Inc, Google Inc, Sony Corporations
Introduction:

 Corporate Objectives
o Mission statement- ‘Apple
designs Macs, the best personal computers
in the world, along with OS X, iLife,
iWork and professional software . Apple
leads the digital music revolution with its iPods
and iTunes online store.
o Their objective is to sell premium quality products to the customers through innovation and creativity.
 Growth factor
 Well positioned for sustained growth
 Financial results of the company has been solid
 In 2017 every product segment of Apple has featured revenue development
Corporate Objectives and Growth of Apple

 Strengths:
 One of the leading innovators among the brands of electronics
 Excellent growth with passing of each year
 Recognition as high brand
 Customer quality of rich experience
SWOT Analysis:

 Weakness:
 High price
 Different OS incompatibility
 Decline in the market share of Apple iPhone
Continuation..

 Opportunities:
 Products having high demands
 Growth within the market of communication devices
 Augmentation in cloud based services
Continue…….

 Threats:
 Growth of Android OS
 Electronic communication’s evolving environment
 Damage in reputation due to tax scandal
Continuation:

Political Factors:
 China’s Political unrest
 Russia’s ban on Tim Cook
 Chances of terrorist attack
Economic Factors:
 Difficulties within the European economy
 Increasing cost of labor in China
 US dollar’s rising value
PESTLE Analysis:

Social Factors
 China’s manufacturing moral factors
 Potential market place within the countries of third world
Technological Factors
o Assessing the minds of the consumers
o Screen size preference
Continue…..

Legal Factors
 Breaching of IP laws
 Legal stress domestically
Environmental Factors
 Concern on pollution in China
 Global Warming
Continuation…..

 Joint Venture and Alliances- these are used to share the risk with partners and
helps in beating the rivals.
 The competitors of Apple helped in revolutionizing their business model and
making them the most profitable and biggest selling company.
 Korea (LG Display)
 USA (HP and Intel)
 Japan (Toshiba)
 Strategy of Licensing:
o China (FOXCONN)
Competing in International Market:

 Apple has the highest market capital in comparison to its competitors
Google, HP and Blackberry
 Second largest in employee population
 Highest revenue
 Net income is the highest
 Second highest gross margin
Comparison of business environments

 Innovative Design Strategy- the
company focuses on product
differentiation and technology for
bringing superior quality of mobile
communication
 Strategy of Brand Loyalty
 Apple strategy of ‘own store’
 Educational Sales
company
Global strategies of Apple:

 Apple has the strengths of creating most inventive products such as
iPhones.
 The high price of the products are justified for being the most superior
gadget manufacturer
 The company needs to come up with few strategies for addressing
efficiently the weaknesses and threats recently being developed
 Apple has the ability of adopting to the challenging environment it is in
within the electronic industry.
Conclusion:

 Khan, U.A., Alam, M.N. and Alam, S., 2015. A critical analysis of internal and
external environment of Apple Inc. International Journal of Economics, Commerce
and Management, 3(6), pp.955-961.
 Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John
Wiley & Sons.
 Smith, A.D., Rupp, W.T. and Offodile, O.F., 2017. Amazon. com, Inc.: Retailing
Giant to High-Tech Player?(pp. 3-6).
 Castro, R.B., 2016. Apple Inc.–A Marketing Success Story.
 Thour, M.T.Y., Doraisamy, B. and Appanan, S., 2014. An Investigation of the
Factors Affecting Consumer Decision Making of Smartphone in Kedah,
Malaysia. Global Management Journal for Academic & Corporate Studies, 4(2),
p.147.
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