Apple Case Study Analysis Assignment 2022

0
2020
Zoey
U1975171
Apple Case Study Analysis

U1975171
Contents
Introduction....................................................................................................................2
Main body......................................................................................................................2
Brief of Apple..........................................................................................................2
PESTLE analysis.....................................................................................................2
Political............................................................................................................3
Economic..........................................................................................................3
Social................................................................................................................4
Technological...................................................................................................4
Legal.................................................................................................................5
Environmental..................................................................................................5
Conclusion......................................................................................................................6
References......................................................................................................................7
Appendix........................................................................................................................8
1

U1975171
Introduction
Surviving in the market is not easy. Every business is confronted with aggressive
competition in all areas of its business. Extending a view on external environment,
businessman can know opportunities and threats to keep own core competitiveness.
This paper that follows will present brief profile of Apple, PESTLE analysis and
porter’s five forces of competition to analyze how factors affect the company
performance.
Main body
Brief of Apple
CEO Tim Cook（since 2001）
Founding date 1976
Location Worldwide
Headquarter Cupertino, CA
Revenue $267.7 Billion (2019)
Employees About 123,000
Products
iPhone, iPod, iPad, Apple TV, software applications
system iOS, OS X operating system, portable
digital music players, iCloud and its accessories,
applications like App store, iTunes stores, iBook
store, Mac App store, and more
Website www.apple.com
The above is the basic information of Apple. There are four basic market structures
2

U1975171
including perfect competition, monopolistic competition, oligopoly and monopoly,
Apple sits between monopolistic competition and oligopoly. The company maintains
oligopoly in competition of iPhone, which has the large majority of market share, and
monopolistic competition in the computers. Compared with monopolistic competition,
oligopoly means higher barriers to entry. Under this competitive environment, leading
innovator, high brand recognition and strong marketing team are its main comparative
advantages. SWOT is often a tool used to analyze these, while PESTLE analysis is
more thorough and deeper than it.
PESTLE analysis
Political
Political factors always involve in changes of government policies that affect the
development of Apple positively or negatively to a great extent.
Tax consideration directly impacts the business. The report revealed that in 2017 the
U.S. enacted the Tax Cuts and Jobs Act, lowered income tax rate from 35% to 21%.
[CITATION Min19 \l 2052 ] Once tax cut is enacted, it is an effective action for Apple
to lighten its financial burden and then develop its development internal force.
Investors can put more money into the company, through stock purchases. That leads
to gain more net profits which the company will use to research and develop. Instead,
If Apple’s effective tax rates were to increase, or if the actual tax paid exceeds
expectation, the company’s financial conditions and operation results will suffer from
3