Strategy Enterprise and Innovation: Analyses of Internal Resources and External Environment Impact on Apple Inc.

This report analyzes the internal resources and capabilities of Apple Inc. that provide the organization with a competitive advantage. It also evaluates the impact of changes in the external environment on the organization's operations, using tools such as SWOT analysis, PEST analysis, and Porter's Five Forces model.

Strategy Enterprise
and Innovation

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................2
Analyses of the internal resources along with the capabilities which provide the firm a ruthless
benefit.....................................................................................................................................2
Identify the key changes in the external environment. How they impact on the entrepreneurial
undertakings of the organisation. With the use of suitable framework and any applying tools
such as mind map for the purpose of analysing the external environment............................4
Evaluation of competitive forces which are affecting the entrepreneurial undertakings and
profitability by the use of Porter’s five forces structure or any other suitable tools..............6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
A well developed strategy and the ability to execute on the strategy are the two requirements
of a successful business. It has been found at several of organizations develop robust strategies
but they not able to operational zing their strategies into implementable steps. Apple Inc. is
considering for this report. It is an American multinational technology company having
specialization in consumer electronics, online services and computer software. In 1976, it was
founder by Steve Jobs, Steve Wozniak and Ronald Wayne. This report covers the internal
resources and capability is a which give the organization a competitive advantage along with the
several changes in the external environment by evaluating their collision on the organizational
operations of Apple Inc. Along with this, it also deal with the porter's five forces structures
which is used for the purpose of evaluating the impact of the main competitive forces which are
affecting business undertakings and advisability of the organization.
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MAIN BODY
Analyses of the internal resources along with the capabilities which provide the firm a ruthless
benefit.
In order to identifying the internal wealth and power of a firm, they are required to do
SWOT analysis. It is a tool which is used to analysing the several internal environmental factors
which are affecting the business operations of an organisation. SWOT analysis in the context of
Apple Inc. is given below:
Strengths Weakness
 Innovative products: First seventh of
Apple is that they are inventing their
new products over the years. They are
presenting beating products after one
by one and it is the major strength of
this organization. This company brings
Mac Book, then iPod, the iPhone, the
iPad and the iWatch. This organization
has covered all the needs of an
individual (Silva 2021).
 Leadership Position: Apple is the
company which is related to the
technology in the world with
consideration of generation of revenue.
It is additionally known as the second
largest Smartphone producer. It has
been founded at this company has
crossed 700 billion dollars and became
the first US company. It was also
founded as the largest publicly traded
company in the world in 2014.
 Design and Technology: The main
 Matching the expectations of
customers: After being all leading
company disorganization occupied a
major market share which result in the
going through the roof of customers
expectations. Now the consumers are
expecting several new things from the
organisation year after year and it is not
an easy task to maintain these
Expectations level for the organisation.
 Incompatibility: Disagreement with the
third party accessories for software is
considered as the key issue in Apple
Inc. It has been found that if any
consumer enters into the Apple
Universe they have to resume with
apple only. They do not have any
option to select any third party
accessories or software. It impact the
decision of consumer a lot regarding
the products.
 Dependency on few products: Apple
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reason behind the fantastic brand equity
e is considered as the designs and the
technology of the product they are
using. The products of Apple has
always been stylish and charming in
designs.
Inc. Has all limited products in their
portfolio as compared to the the various
products available in the portfolio of
their closest competitors such as
Google and Microsoft. It makes the
dominion of apple on each of its
product is giant.
Opportunities Threats
 IWatch and Apple TV: Apple Inc. Have
the opportunity to increase their
presence in the market by launching I
watch and Apple TV. These both
products have objective to increase the
digital presence of the organisation. In
US Apple I watch has already taken
almost 50% market share of smart
watches.
 The growing market: Apple is found as
a company which is getting larger in
size in the market. Rise of GDP of
developing countries are equally
important for the organisation.
Increasing GDP of any country result in
the higher consumption of the products
of brands like apple (Tsangas and et.
al., 2018). Every company require a
larger market base along with the
Marketplace is slowly being built by a
territory growth of Apple.
 Technological advancement: The
 Market penetration in Smart phones:
First important threat of Apple Inc. is
the penetration in the market done by
the other brands in the market of smart
phones. Android has covered almost
47.5% of market share. On the other
hand, IPhone has covered only 42% of
market (Rees and et. al., 2021).
 Laptop Competition: It has been found
that the competition is being increased
in the sector of laptop as well. Due to
availability of several organisations
such as sony, Lenovo and Dell, Apple
Inc. is facing stiff competition.
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advancement of technology is an
important aspect in the technology
industry which leads to the success of
organization. Apple Inc. is a brand
which is using technology to its best.
They have opportunities to introduce
more advances MacBook’s, Ipads,
Iphones and Iwatches.
Identify the key changes in the external environment. How they impact on the entrepreneurial
undertakings of the organisation. With the use of suitable framework and any applying
tools such as mind map for the purpose of analysing the external environment
Political Factors:
Political factors have an important two plays in determining the factors which are
affecting the the long-term profitability of Apple company in a specific market or country. Apple
company is dealing with electric apparatus in several countries and reveal itself to various types
of political environment and political system risks. Below mentioned importers which are
analysed by Apple Inc. before entering in a certain market:
 Risk of military occupation
 Administration and intrusion in electronic equipment industry by government.
 Interchanging the protection of property
 Recommending partner for trading
 Work week regulations in electronic equipment
 Stability in politics and significance of electronic articles sector in the economy of a
specific country.
 Corruption Level- mainly level of ruling in consumer goods sectors.
 Rules and regulations related to the wages such as minimum wages and overtime.
Economic Factors
Savings rate, foreign exchange rate, interest rate factors` of macro environment which helps in
analysing the lump demand and collection of investment in an economy (López López 2017). On
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the further side, micro environment factors which comprise competition standard affect the
competitive benefit of the firm. In order to forecasting the path of growth, Apple Inc. use growth
rate inflation and industries economic measure such as electronic equipment industry extension
rate, consumer status and many more (Yu 2017). Below mentioned are the some economic
factors which Apple Inc. should think about while conducting PEST analysis:
 Administration interference in the free market and connected consumer goods.
 Planning of financial markets
 Competitive advantages of host country and consumer goods sector in the certain nation.
 Economic growth rate
 Unemployment rate
 Inflation rate
 Interest rate
 Labor costs and productivity in the economy.
 Exchange rates and solidity of host nation legal tender.
 Base quality in electronic equipment industry.
 Level of education in the economy.
 Expertise level of employees in electronic apparatus industry.
Social Factors
The culture of society and ways of doing things affect the art of an organisation in an
environment. For the objective of pledging the customers of a given market, it is necessary for
the marketers of Apple Inc. to know about the the attitude of the population and shared believes.
By knowing their beliefs and attitudes the organisation can take the decision of Designing the
marketing messages related to the Electronic equipment industry customers. Some of social
factors of Apple Inc. are mentioned below:
 Class structure, hierarchy and power structure in the society.
 Culture (Social Conversation, Gender role and many more)
 Attitudes (Environmental consciousness, health and many others)
 Leisure interests
 Demographic and expertise level of the inhabitants
 Instruction extent as well as teaching quality in the Apple Inc. industry
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 Entrepreneurial soul and wider creation of the community. Some public hearten
entrepreneurship while some don't.
Technological factors
Technology is growing very speedy over the world. Transportation industry can be taken as an
good example of this point. From the last five years this industry is growing day by day which
bring several changes. Uber and Lyft all the examples of taxi industry. Car industry is fast
moving to the automation lead biotechnology form like as Google and production is disturbed by
Tesla, which has expressed an electronic car rebellion (Lancaster and et. al., 2017). Close speed
of Technology implies the consumption of time by the rapid speed of technological disturbance
implies a little time conjunction and make organisation more profitable. Some technological
factors in the context of Apple Inc. are given below:
 Impact of technology on the products offered by Apple Inc.
 Collision on worth Chain form in the sector of consumer goods.
 New technological development by the competitors of Apple Inc.
 Crash on Cost structure in electronic apparatus industry.
 Descent of technological scattering.
Evaluation of competitive forces which are affecting the entrepreneurial undertakings and
profitability by the use of Porter’s five forces structure or any other suitable tools.
 Threat of new entrant: Apple Inc. is facing moderate level of threat new entrants. This is
because of requirement of higher amount of capital. Along with this huge cost involved
in the brand evolution and ability of the possible beginner is necessary. In order to
establishing a new business it is necessary for that business to fight against the surviving
form in the market like Apple. It will be very expensive for an organisation to create
brand development. On the other hand It is analysed tattoo several of organisations have
the capacity for entering in a new market. For instance: Introduction of smartphones by
Samsung and Nexus has been introduced by Google.
 Bargaining power of buyers: Apple Inc. is highly pretentious by this part due to the
determination of purchasing power and the Seasons of buyers and their related attention
and liking which effect the business. It has been analysed that the bargaining ability of
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buyers are powerful due to low redirecting, cost higher level of information to buyers and
small customers. For a customer, it is not a difficult task to switch the brand. It is a
difficult task for Apple to please their customer from every feature to. Each and every
single acquire of customer is compared to the revenue of the organisation.
 Bargaining power of suppliers: In the context of Apple Inc., the bargaining power of
suppliers is weak as they are considered as the vital component of the model which
analyse the impact of supplier in the terms of impressive the demand on company and
contestant. Due to the high extent of company attentiveness to the supplier concentration
the bargaining power of suppliers feeble. This company has a lot of suppliers all over the
world, which stated that there are lots of suppliers available for Apple Inc. Hence, it is
not possible for the organisation to put the demand of suppliers as the priority.
 Threats from the Substitute Products : Due to the technology and online services, the
threats of replacement products are frail. There are limited substitute available in the
market which state that the substitute products apply the weak force (Chapman 2019).
But some of products are also available in the market like sooner than using iPhones
customers have option to use landlines and digital cameras. These products I have a low
performance because of the availability of Limited features. Apple is having the
advantage in this case.
 Rivalry of existing player: Apple Inc. is cladding a strong rivalry in the same industry.
This factors of porter's five model helps in identifying the strength of impacts on the firm
by the contenders. In the context of Apple Inc. small level of product differentiation, low
switching cost. Load the cost of switching to Android creates a lots of loss to the Apple
Inc. because people mostly prefer Android as the cost of iOS is very high.
CONCLUSION
From the above report it has been concluded that Apple Inc. is a electronic equipment provider
organisation which is performing business operations all over the world. There are several
internal as well as external factors which are affecting the business operations of the
organisation. This report is stating the internal assets and potentiality which give the firm a
ruthless benefit. Furthermore, it also include the PEST analysis which helps in recognizing the
key operators of changes in the external environment. Porter's five Force model helps in
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analysing the collision of main merciless forces which are affecting the entrepreneurial
undertakings and the profitability of the organisation.
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REFERENCES
Books and journal
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Resilient Supply Chain Using 3D Printing in Oil and Gas Industry. In Abu Dhabi
International Petroleum Exhibition & Conference. OnePetro.
Chapman, R.J., 2019. Exploring the value of risk management for projects: improving capability
through the deployment of a maturity model. IEEE Engineering Management
Review, 47(1), pp.126-143.
Lancaster, G. and Massingham, L., 2017. The development of a strategic approach to marketing:
Its culture; internal macro-and external micro-environmental issues. In Essentials of
Marketing Management (pp. 1-32). Routledge.
López López, N., 2017. Different ways to assure the continuity of the business.
Rees, G. and Smith, P. eds., 2021. Strategic human resource management: An international
perspective. Sage.
Silva, J.H.B.B., 2021. Business plan: Lost Doc, an efficient way to find and deliver lost items to
their owners (Doctoral dissertation).
Tsangas, M., Zorpas, A.A., Jeguirim, M. and Limousy, L., 2018, March. Cyprus energy resources
and their potential to increase sustainability. In 2018 9th International Renewable Energy
Congress (IREC) (pp. 1-7). IEEE.
Yu, S.O. ed., 2017. Art of modern oriental management: Applying the Chinese, Japanese and
Korean management styles at work. World Scientific.
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