Analyzing Apple Inc.'s Issues & Devising a Marketing Survival Plan

This essay examines the current issues faced by Apple Inc., starting with an overview of the company's background and the challenges it encountered in recent times, including the Chinese spying incident. It delves into both the macro and micro environments affecting Apple, utilizing PESTLE and Porter's Five Forces analyses. The essay then proposes a marketing plan aimed at overcoming these challenges and ensuring the company's continued survival and success. The analysis covers political, economic, social, technological, environmental, and legal factors, as well as the competitive landscape and customer dynamics, providing a comprehensive understanding of Apple's current position and potential strategies for future growth. Desklib offers similar solved assignments and past papers for students.

Running head: PRESENT ISSUES OF APPLE INC. 1
Present Issues of Apple Inc.
Name of the Student
Name of the Instructor
Course Code
Date

PRESENT ISSUES OF APPLE INC. 2
Executive Summary
The overall research concentrated on the current issues that are being faced by Apple Inc. and
recommendation for the necessary solutions related to the issues. Primarily, the research
concentrated on the organizational background of the chosen organization. The research then
focused on current issues and challenges faced by the chosen organization. in the recent times.
The discussion further continued with the macro environment and microenvironment of the
chosen organization. The report concentrated on the marketing plan for the chosen organization.
to overcome the present issues. Finally, the report ended with a conclusion.
Table of Content

PRESENT ISSUES OF APPLE INC. 3
s
1.0 Introduction................................................................................................................................4
2.0 Organizational Background of Apple Inc..................................................................................5
3.0 Current issues and challenges faced by Apple Inc. in the recent times.....................................6
4.0 Macro Environment of Apple Inc..............................................................................................7
5.0 Micro Environment of Apple Inc..............................................................................................9
6.0 SWOT analysis of Apple Inc...................................................................................................12
7.0 Marketing plan for Apple Inc. to overcome the present issues...............................................14
8.0 Conclusion...............................................................................................................................15
9.0 References................................................................................................................................16

PRESENT ISSUES OF APPLE INC. 4
1.0 Introduction
The chosen organization for the overall research is Apple Inc. and the issue that affected
the organization occurred on October 2018. In the recent times, it can be seen that most of the
reputed organization are trying to implement innovative technologies within their organization
for surviving in the long run. But in spite of getting business success sometimes, those reputed
organizations also face several kinds of financial, economic, and technical loss that seems to be
quite difficult to overcome in the future. The chosen organization is known to be one the creative
and technologically active organization is the whole world for several inventions that are being
done by Steve Jobs who is known to be one of the founders of the chosen organization. In this
year it has been found that two of the reputed organizations including Apple Inc. and Amazon
had become victims of the Chinese spies as their data had been stolen illegally.
The research focuses on the current issues that are being faced by Apple Inc. and
recommendation for the necessary solutions related to the issues. Primarily, the research
concentrates on the organizational background of the chosen organization. The research then
focuses on current issues and challenges faced by the chosen organization. in the recent times.
The discussion continues with the macro environment and microenvironment of the chosen
organization. The report concentrates on the marketing plan for the chosen organization to
overcome the present issues. Finally, the report ends with a conclusion.

PRESENT ISSUES OF APPLE INC. 5
2.0 Organizational Background of Apple Inc.
Apple Inc. was earlier known to be “Apple Computers, Inc.” which was first recognized
on 1st April 1976 with a partnership among Ronald Wayne, Stephen Gary Wozniak, and Steven
Paul Jobs in Cupertino, California. Firstly, the company was concentrated on producing
Macintosh computers and afterward, in the year 1977, the company managed to incorporate its
own identity by not involving the third partner known to be Ronald Wayne (Meola 2016). Apple
Inc. is a company which concentrates on planning, fabricates and showcases versatile
correspondence and media gadgets, PCs, and convenient advanced music players (Akana et al.
2018). The chosen organization likewise results in offering various kinds of programming,
organizing arrangements, peripherals, administrations, and applications. The organization offers
items and administrations, for example, iPhone, Mac, iPod, iPad, Apple TV, an arrangement of
expert programming applications and clients, the iOS and Mac OS X operating systems, iCloud,
and various kinds of accessories, administration and bolster contributions (Kim and Jun 2017).
Moreover, the organization additionally offers and conveys advanced substance and applications
through online stores the iTunes Store, App Store, iBookstore, and Mac App Store. The
organization offers its items all inclusive through its retail locations, direct sales force, online
stores, via the carriers of the third-party cellular network, retailers, wholesalers, and esteem
included resellers. Not just that, the organization results in offering varieties of outsider iPhone,
iPad, Mac, and iPod good items (Fullerton, Chen, and Watch, 2015). The organization's
objective market is end-client buyers, little and medium-sized organizations, and training,
venture and government clients.

PRESENT ISSUES OF APPLE INC. 6
3.0 Current issues and challenges faced by Apple Inc. in the recent times
According to the chosen newspaper article, it has been found that the bombshell report
which has been published by Bloomberg have identified the factor that the Chinese military had
tried for inserting spying chips within the motherboards of the server which are being used by the
government agencies as well as the US companies. This incident intern had created a major issue
within the tech sector thereby creating China-oriented uncertainty. Another issue has been
identified from the newspaper report that in the present time China is playing a crucial role in the
electronics supply chain globally and for that reason, the US organizations will be trying hard for
limiting they are economic disruption which has been caused due to this incident (Jhonsa 2018).
Based on the sources gathered by Bloomberg it has been found that the Chinese army
operatives have utilized plants which used to run with the help of manufacturing subcontractors
who had been working for San Jose oriented Super Mario. It has been done for inserting minute
chips within the server motherboards which further helps in instructing the operating systems of
the server for communication as well as accepting codes from the anonymous computer. In
response to this report of Bloomberg, it has been said by Apple Inc. that they have found no
evidence for supporting the claims related to hardware modifications and malicious chips
(Jhonsa 2018). The research it has been found that as China is known to be responsible for
manufacturing majority of the electronic products across the globe and for that reason to increase
their economic growth they have tried to blame the reputation of Apple Inc. by declaring about
the hacking issue.

PRESENT ISSUES OF APPLE INC. 7
4.0 Macro Environment of Apple Inc.
For analysis of the macro environment, it is essential for identifying various kinds of
factors that result in influencing the overall supply level and demand level of the organization
followed by influencing their costs. According to the research, it has been identified that the
business environment consists of different factors which result in bringing effect on the
operations of the organization that includes customers, economic and social factors, competitors,
suppliers, and various kinds of technological developments (Thomas et al. 2016). For achieving
the formulation of organizational strategy it is necessary to consider that all the decisions been
taken are appropriate for the business processes.
It has also been found that different kinds of external as well as internal factors are
associated with the business processes for their overall development and accordingly Apple Inc.
need to consider those factors for their business growth and sustainability in the marketplace
(Charan 2017). For understanding the macro environment it is necessary to perform PESTLE
analysis which is regarded as a strategic tool to understand the growth or decline within the
marketplace followed by the understanding about the business position and direction related to
the business operations.
According to the research, it has been identified that the macro environment is regarded
as the highest layer of the framework that is being utilized for analyzing the changes within the
business environment for any company. It can be seen that the PESTEL system is being used for
recognizing how the future business-related issues in the political, social, economic,
environmental, legal, andtechnological environments may affect the business firms (Bai et al.
2017).

PRESENT ISSUES OF APPLE INC. 8
Political Influences: Tax proposals and in addition administrative course of action, for
example, may complete being extraordinarily convincing for the organization. Over the bit of the
affiliation's business pay is made outside the U.S. Thusly, terrible worldwide relations, war or
mental fighting would affect Apple in an imperative troublesome way. Apple has obliged order
over these components.
Monetary Influences: National advancement rates and costs of unrefined materials are
budgetary factors which can affect the affiliation. They can in like manner help choose overall
arrangements and demand of Apple things in the regular equipment industry. Diverse
components which are out of the affiliation's control, for instance, the current worldwide
financial subsidence adversy affects Apple Inc (Mhlanga 2018).
Social Influences: The necessities and lifestyle of Apple's customer base are reliably
advancing. People are using their things more for energy, which infers they require phones and
PCs with much better plans sounds and getting ready power. People nowadays are constantly
advancing so humbler, lighter PCs and tablets are needed by the customers. Social effects have
emphatically influenced Apple as they are seen as the 'Ruler of Technology', in view of the
quality, framework, and helpfulness.
Mechanical Influences: The difference in the web and broadband workplaces all
through the world effects Apple. As these organizations improve, so too are Apple to ensure we
can get the best involvement from our convenient handsets, PCs, and tablets. The advancement
division is creating and building up each year and consequently, the competition is transforming
into altogether more grounded (Kormishkina et al. 2015). Apple is best of the market concerning

PRESENT ISSUES OF APPLE INC. 9
innovative things; this is a direct result of their huge advantages in their Research and Product
Development Department.
Environmental Influences: In the ongoing years it has been discovered that Apple Inc.
has shown their obligation to guarantee the earth. They emerged to clear pernicious toxic
substances, for instance, BFR and PVC from their things, and furthermore lead and mercury
(Charan 2017). They are one of the fundamental associations to archive broad reports their
nursery surges. They are the producers of the most essentialness capable PCs on the planet. All
things outperform 5.2 Energy Star government principles.
Legitimate Influences: During the season of propelling another item in the market, for
instance, the iPhone, or entering ebb and flow markets spots, laws and bearings, for instance,
Consumer Protection and Employment Laws can massively affect the affiliation. Governments in
these new market zones give the fundamental legal controls and imprisonments that can affect
the way by which Apple make and offer their things (Bai et al. 2017).
5.0 Micro Environment of Apple Inc.
During the research, it has been analyzed that the microenvironment comprises of the
forces which are quite close to the organization that results in affecting the ability of the
organization for serving their customer which includes the organization, customer markets,
channel firms, marketing, and competitors (Schmidt and Woebken, 2017). This particular
environment results in influencing the organization in a direct manner. It incorporates providers
that deal specifically or by implication, buyers and clients, and other nearby partners. Smaller
scale has a tendency to recommend little; however, this can be misleading in nature. In this
unique situation, smaller scale depicts the connection among firms and the main impetuses that

PRESENT ISSUES OF APPLE INC. 10
control this relationship. It is a more neighborhood relationship, and the firm may practice a level
of impact (Burke 2017).
In the research, it has been found that the microenvironment comprises various kinds of
forces which are related to the organization that further results in affecting the ability of the
organization for serving their customers. For understanding the microenvironment of Apple Inc.
it is necessary to consider Porters 5 forces.
In the cell phones industry, Apple Inc. challenge as a producer because of it finished up
of all simple and computerized handsets which have utilized in versatile broadcast
communications. Apple Inc. has been a significant giver in each real market and had discovered
its prosperity at local and global (Hatch 2018). The center skills such as touch screen capacities
had coordinated with the effective commercialization methodologies by Apple Inc., so it ready to
present another time of telephone. An outline of the business is an examination by Porter's five
powers with the five power of rivalry such like contention, the danger of passage, purchaser
control, provider power and risk of substitutes (Smither, Houston and McIntire, 2016).
Accordingly, Porter's five forces will have the capacity to characterize the positioning of Apple
Inc. inside the cell phone marketplace.
Dangers identified with New Entrants: The threat of new competitors was low in the
PDAs feature which particular of associations that starting at now works in the mobile phone
industry. The cost of capital required for the associations charmed be another component is
exceedingly exorbitant due to the normal to set up headway, research and age workplaces.
Nevertheless, the Apple has introduced the iPhone for example of a contraptions firm and
furthermore broadened its item contributions in the mobile phone industry (Bowie et al. 2016).

PRESENT ISSUES OF APPLE INC. 11
Another business can't fight on account of Apple's flourishing is attributed to its ability to convey
an imaginative thing on a sensible age cost.
The hazard related with Buyers: In the PDAs business, the most unending buyers are
the framework chairmen and retailers. The latest frameworks and style in phone development are
basic to finish by these substances so it can to make the best an impetus for end customers.
Notwithstanding the way that the framework executives every so often will confine the
association's execution with contracts, yet their wrangling power also will be compelled because
of its flourishing is immovably related to the outstanding mobile phone things (Hollebeek,
Jaakkola and Alexander, 2018). For instance, for example, Motorola, remove buyers from the
store organize and additionally lessen the buyers bargaining power in the mobile phones industry
as it had oppositely mixed things which offer direct to the end customer.
The hazard related with Suppliers: In the mobile phone industry, the suppliers had
given the basic unrefined materials to make phones. Inferable from the item and gear segments
are most particular, and a short time later, the produces PDAs are reliant on the suppliers for
astonishing materials. In this way, the suppliers augment the cost or diminishing the gave rough
materials' quality to limit the execution of makes. Moreover, there are few total livelihoods for
suppliers which made by business in the mobile phone industry in light of the way that the
suppliers have supply materials for different industry. Since the mobile phone industry is
definitely not a basic figure in the suppliers signify wages, they can affect the supply contracts
(Acquaah and Agyapong, 2015).

PRESENT ISSUES OF APPLE INC. 12
The hazard related with the Substitutes: The voice-over-web options and settled line
telephones are the substitutes in the phones promote. Moreover, inferable from confining the
customers to change to others benefits, the mobile phones are giving an assortment of
organizations. The danger of substitutes was low in the PDA business in light of the way that the
associations have built up deterrents of entry for battling things.
6.0 SWOT analysis of Apple Inc.
The SWOT analysis for Apple Inc. is going to discover various kinds of strengths,
weaknesses, opportunities, and threats associated with the organization. The lists of strengths
related to the organization are as follows:
1. Worldwide presence: Apple infers over half of its incomes from outside U.S., its
household advertises. An adjusted nearness in develop and additionally
developing markets has empowered the organization to record a consistent
income development.
2. Brand Image: Apple is a standout amongst the most settled and sound IT marks
in the World, and has an extremely faithful arrangement of eager clients that
promoter the brand. The organization's solid image acknowledgment makes
boundaries to passage inside the market, and furthermore empowers it order a top
notch evaluating for the items (Khan, Alam and Alam, 2015). It gives an
aggressive edge over territorial and other worldwide contenders.
The lists of weaknesses related to the organization are as follows: