Analysis of Apple Inc.'s Contemporary Business Environment Report

This report provides a comprehensive analysis of Apple Inc.'s contemporary business environment. It begins with an introduction to the dynamic nature of the business landscape and the importance of understanding both internal and external factors. The main body delves into the mobile phone industry, highlighting its rapid growth and technological advancements, and positions Apple Inc. within this context. The report then examines both microeconomic factors such as customers, employees, suppliers, and competitors, and macroeconomic factors including political, economic, social, technological, legal, and environmental influences through PESTEL analysis. Furthermore, the report uses SWOT analysis to assess Apple's strengths, weaknesses, opportunities, and threats, providing insights into its internal capabilities and market position. The Porter's Five Forces model is also applied to analyze the competitive dynamics within the industry. The report concludes by summarizing the key findings and emphasizing the importance of strategic adaptation in the face of market competition. The report also mentions the impact of innovativeness, pricing, and market share in the overall success of Apple Inc.

Contemporary business
environment

Table of Contents
Introduction......................................................................................................................................2
Main body........................................................................................................................................2
conclusion........................................................................................................................................7
References........................................................................................................................................8

Introduction
Contemporary business environment refers to the business environment for the same
period or for present time. Under it the business has vast competitive market and the business
man has to understand the needs and requirements business has to fulfil to survive in this
dynamic business environment. In this report Apple Inc. is taken as organization. The detailed
discussion of internal and external environmental factors affecting the company is done in the
below report. The environment in which business operates is dynamic and very challenging. So,
it is not easy for the businesses to survive in such a changing business environment (Fedosova,
Kheyfits, and Ilyina, 2016). Every business has to analyse the overall external and internal
factors effecting the business. And has to consider these factors while implementing the business
strategies into action.
Main body
Mobile phone industry is one of the fastest growing industry in the world. With the
increased need of communication, the use of mobile phones has also been increased, the mobile
phone industry has been dynamic since its origin due to technological upgradation from time to
time. They had become more handy, affordable. The change in technology has a great impact on
this industry (Hioki and Ding 2018). The mobile phones has become an integral part of
individuals life and thus this industry is very high demanding due to change in peoples

preference from time to time. These companies do regular innovation to their product to get the
competitive advantages in this tech-friendly environment. The industry support various other
services like banking, insurance, business communication, media, share market, etc. This
industry has been an important part for all other industry. Mobile phones have become part of
individual’s life without which they may seems to be lost.
Apple Inc. is American multinational company dealing in technology products. Its
technology products include computers, iPad, mobile phones, earphones, etc. It is headquartered
at California. It is considered among the four-tech company in the world. The company mobile
phone is called iPhone smartphone. The company also produces numerous software, services and
networking services. It is well known for its size and revenues. It is the world largest technology
company in terms of revenue (Arocha 2017). And it is considered as world largest growing
mobile company. The company is also known for its brand loyalty and considered as one of the
most valuable brands in the world.
There are many factors which are present inside or outside the company which have
positive or negative impact on the working of the company. These factors include micro-
economic and macro-economic factors. The analysis of all these factors is necessary before
implementing business strategies. They will be helpful in attaining business objectives efficiently
in a planned manner.
Micro-economic factors are those which impacts the business individually. These
includes customers, employees, suppliers, competitor, investors, media and general public. The
customers are king of market the overall sales of the company are dependent upon the customers.
The company here fulfils the overall expectations and need of its potential customers to make
them loyal towards brand (Ismael and Aziz 2016. ). The next is employees the employees of
Apple. Inc are well verse with technological innovations and managerial efficiency this is helpful
in achieving the goals efficiently. The employees are also helpful in the expansion of the
business over the other sectors of the company. Suppliers are the key elements responsible for
supply chain management of the company. The overall supply chain management and
distribution channel of the company is fully dependent upon the supplier. The overall costing of
the company’s products is dependent on the supplier. Competitor of Apple. Inc. are Samsung and
other emerging mobile phone brands that have tough price competition with the company.

Investors and other external mediators also had an impact on working of Apple Inc. The internal
analysis of the company is done to get the possible strength and weakness available through the
resources available. It is also helpful in getting the opportunities and threats to the company from
the market. The analysis is done on basis of examining the internal strength and weakness that
are available due to internal business resources.
The internal environment of Apple Inc. can be analysed with the help of SWOT analysis.
It is helpful in analysing the internal environment of the company which is helpful in
understanding the current and future positions of the company. It shows the strength as Apple is
doing its best weakness are factor in which company does not have its best opportunities are
apple can achieve using its resources and threats are factors which will alter the growth and
profit of the company. Which includes analysis of strength, weakness, opportunities and threats.
following is the analysis of internal environment of the company (Duarte Alonso and Bressan
2016.). Strengths, the company is ahead in field of technological innovations in hardware and
software developments along with this it has experienced management team. The experienced
management team has gained high skills in managing the innovation and any difficulty if arises.
This is also an important factor behind the success of the company. The weaknesses of the
company are that it focuses only on advanced market and limits that how to target in developing
and underdeveloped economies. It ignores the under-developed economies of the sector. Their
pricing is relatively higher than its competitor as customers prefer products whose pricing is
lower. This limits the company to increase its market share. The opportunities for the company
are managerial efficiency gained by the employees through innovations gives a company an
opportunity to expand its operations. The innovative expertise of the company is helpful in
competitive advantage in the market. The next opportunity company enjoys is of financial
capabilities. Company has gained too much financial revenue from customer loyalty and
repurchases. The company has more option to expand due to its innovativeness and financial
capabilities. The threats for the company are competitors. The availability of multiple sellers in
the mobile phone industry with the substitute product to i-phone . there is always threat of
entrance of new competitors in the market. New entrants are also a great threat to communication
industry. Due to huge market demand and availability of technological skills there is always
threat for new entrants in mobile phone industry. It may be concluded from the above study that
if not the price competition Apple Inc. will be positioned to sustain profitability. And long term

advantage over its competitors in technology as well pricing. The company should focus how to
reverse the pricing strategy to attract new potential customers.
Macro-economic factors are those factors which are present outside the business and all
the units of business are affected by these factors. The effect of these factors may be positive or
negative depending on the nature and working of the business. To analyse these external factors
PESTEL analysis is one of the most recommended models. PESTEL is used to evaluate the
environment of the company is working in. This is used to do business planning, strategic
planning, marketing planning, product development, organisational planning, and research and
development. This analysis of Apple. Inc. is necessary to compete the price competition among
the market. As people are price conscious and Apple Inc as premium brand has high prices as
compared to its competitors. The proper analysis of all the factors is compulsory to get the price
advantage over the others. PESTEL analysis helps the company to analyse the Political,
Economic, Social, Legal and Environmental factors which have direct or indirect influence on
the company.
The PESTEL analysis of the company is as follows First is political factors affecting the
company. The innovation has a positive response from the government of U.S.A. The alliance
from U.K., Australia and japan has also welcomed the innovation, but china was not left in the
path it opens a production for making its place in Asian market, the reason behind welcoming
Apple Inc. by all these countries is increased opportunities for employability in these countries
due the entrance of this company. The company has also to deal with the impact of political
factors at international level. The other political factors influencing company are political
stability level of bureaucracy, freedom of press. Another factor is trade union which has great
impact on the company. The next is economic factors. the increased demand and increased brand
loyalty have put a company economically positive in the market, the company has put itself in
the market of U.S.A., Australia, japan, china due to its innovative efficiency. The increased rate
of labour and change in disposable income is of consumers is most influencing economic factor
for the company .Another factor which influence the Apple Inc. are rate of currency exchange,
rate of taxes, inflation rates, The company has placed its production unit at china with
availability of skilled and cheap labour which is positive factor the company. Socio-cultural
factors also had a great influence on the working of the company the increased trend to use more
efficient and easier to use handsets has increased the sale of Apple mobile phones. It is an

innovative brand that understand and work to fulfil the needs of its customers. The age
distribution, technical know-how are also factors affecting the company’s socio-cultural
environment. Technological factor has a great influence on the working and efficiency of Apple
Inc. the technology adopted by the company had a positively affected the company the
differentiation of technology from other brand is also a positive point for the company. It also
had an innovative tool to distinguish itself from others. Legal environment of the business
around which it operates is very much organised and planned. Apple Inc has patented its
products and its technology used. The last is environmental factors, with the increased pace of
online payments the company has listed its products on the online websites where customer can
directly place an order for his desired handsets. The increased reach in the market through online
websites has been helpful for market expansion for the company.
The above analysis shows the numerous factors and its effect onto the business and overall
understanding of macro-economic factors is necessary for the success of Apple Inc. Here it can
be understood that increased competition means surviving through innovative spheres.
The macro-economic environmental analysis can also be done with the help of another
model that is porter five forces model. The model states that a company has five factors in the
industry which may affect the working of the company. These five factors are threat of new
entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitute goods,
industrial rivalry. These factors are helpful in external, industrial analysis of the Apple Inc. There
is always threat of new entrants to the company as resources needed are always available and nay
company can enter mobile phone industry. Now, assembling the technology has become more
easier due to availability of advanced technology. Since the threat of new entrants is high so it
can be assumed that Threat of substitute product will also be high for the company. Consumers
always choose the product with lower price in availability of its substitute, so, it is major
drawback for Apple Inc. With the numerous option consumers will always have high bargaining
power and company has to worry about this (Szydełko and Rubik 2016). It can be seen that there
is subsequent availability of raw material from supplier side. So, company here is positively
impacted by the supplier side. With the availability of multiple brands like Samsung, moto, etc.
there is competitive rivalry for the company which may be stated as pricing rivalry also.
The Insights of micro-economic factors on Apple Inc. are the factors which are present
within the company and had positive or negative impact either directly or indirectly. There are

some of the micro-economic factors which influence the efficiency of the company, the first and
most important internal factor is innovativeness, the company is high at the innovative
technology, Apple Inc. is one of the best leading Mobile phone brands in the world. The
innovation of technology from time to time makes it leading mobile phone brand in the world.
The company goes to upgrade its mobile phone from time to time keeping the customers’ needs
and preferences in consideration. The company also has skilled manpower for technical as well
as managerial innovations to keep the company at top amongst its competitors. The company had
a great training and development programmed for its employees. It also offers high incentive to
its managers and technical persons for their excellent results. They are the key persons behind
the innovative upgradations in the company (Freeman and Barrentine 2015). The next point is
pricing policy of the company. They have high pricing for its handsets that is relatively higher
than its competitors. Which may result in shift to others. So, company has to work to decrease its
costing so as to retain customers for long term. Loyalty of customers is also a great influencer of
company’s brand image in the market. They are successful in making customers loyal towards
the brand and makes them repurchase the products. Apple Inc. is having a high financial
capability due to its branding and profitability over the time. Apple is one of the most profitable
mobile phone brands due to its revenue and profitability over a long period of time (Dumitru-
Alexandru 2016). The weakness of the company is that it only focuses on the advanced market
segment as premium mobile phone brand and does not pay attention on the under-developed and
developing sectors of the world. Availability of efficient and skilled staff with the company is
one of the most important assets. Company always work for the betterment of its employees
through various incentives and rewards to its employees. The main aim behind it is to gain
maximum efficiency from them. Thus, company can gain maximum benefit from the efficiency
of its employees and their skills.
conclusion
It may be concluded from the above report that Apple Inc. is one of the fastest emerging
mobile phone brands in the world. There are various factors responsible for this brand
positioning of the company. The various economic factors influence the company which are
micro and macro-economic factors. These are present inside or outside the company they may
directly or indirectly impacts the company. The main factors responsible for the company’s

success is innovation and managerial efficiency. The innovation in the technology plays a very
important role in the success of the company. The innovation may be considered as key to get
efficiency in the company operations and profitability. It makes the company differentiated and
helpful to survive in the competitiveness. It is also concluded that Apple Inc. is lacking behind in
price competition due to its costing and unique technological use. The company has efficient
workforce with the innovative, technological, managerial skills to get the advantage over the
competitive market. The company is still lacking in the price advantage over the others. Hence it
can be said that Apple Inc. is leader in mobile phone industry due to its innovations,
technological upgradations
References
Books and journals
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networks and value-chain linkages: a case study of China's mobile phone manufactuing
industry (No. 698). Institute of Developing Economies, Japan External Trade
Organization (JETRO).
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Dumitru-Alexandru, B., 2016. Business Intelligence for decision making in economics. In Artificial
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