Business Analysis Project: Apple Industry Attractiveness Assessment

This business analysis project examines the attractiveness of the Apple industry, evaluating its strengths, weaknesses, opportunities, and threats (SWOT) and its political, economic, social, technological, legal, and environmental factors (PESTLE). The analysis highlights Apple's strong brand value, global presence, and high profitability, while also addressing weaknesses such as its narrow product line and technological incompatibility. The project discusses opportunities for market expansion and potential threats from competitors and economic downturns. The PESTLE analysis explores the impact of political scenarios, economic growth, social trends, technological innovations, environmental concerns, and legal regulations on Apple's business. The analysis concludes with recommendations for product innovation and research and development, emphasizing the importance of adapting to changing market dynamics and maintaining a competitive edge.

Running head: BUSINESS ANALYSIS PROJECT
Discussion on whether apple industry is attractively high, medium or low
Name of the student:
Name of the university:
Author note:

1
BUSINESS ANALYSIS PROJECT
Is Apple industry attractively high, low or medium?
Finance or accounting is one of the greatest strengths of Apple. Within this, mention
can be made of wide supply chain network, where computer industry plays a major role.
Incorporation of Dell Direct Model enhances the transparency within the business activities.
This model is effective in terms of fulfilling the specific needs, demands and requirements of
the customers (Apple.com, 2018). The major drive behind this is the use of high standards
machines, which help in production of quality products. According to Jenkins and
Williamson, (2015), wide supply chain networks helps Apple in maintaining the stability in
the professional relationships. This is one of the major strengths for popularizing the brand
image.
Stability in the market position makes Apple industry attractively high. This is
because of the competitive advantage, which it enjoys in the software sector. Dominance of
Microsoft is an important aspect, which regulates the competition. Specific mention can be
made of Windows Operating System, which has influenced the purchasing decisions of every
consumer. Desktop market projected 6% sales revenue in 2000. Dell and Gateway are the
examples of direct marketing, which Apple adopted for luring the customers (Apple.com,
2018). Emergence of software enabled Apple to overpower Microsoft in terms of
accumulating greater market share.
Mac OS software makes the industry highly attractive. This is in terms of the
increased demands among the youth. Here, mention needs to be made of the efficient and
effective research and development team. Their consistent efforts for producing innovative
software and technologies helps Apple in securing their position within the market
(Apple.com, 2018).

2
BUSINESS ANALYSIS PROJECT
SWOT analysis
Strengths  Brand value of Apple is top notch. This is helping them in pushing
their sales.
 Having presence in multiple countries is helping in catering to
larger target segments.
 Average profitability per units of their products is more.
Weaknesses  Limited only to a particular segment and thus sales volume is less.
 Only having higher end products and narrow product line.
 Technological incompatibility with other devices.
Opportunities  Entering in new markets will help Apple in developing their
market opportunities.
 Huge potentiality from the music business.
 Introduction of devices.
Threats  Introduction of more competing products by the rivals.
 Initiation of the economic recession.
 Rapid change in technology and innovation.
PESTLE analysis
Political  Different countries are having different political scenarios, which
is a challenge for Apple to cope up with.
 Negative relationships between United States and China.
 Tariff barriers in different countries.
Economical  Average global economy is growing and is increasing the
opportunities for Apple.
 However, risks of economic recession will pose challenge to
Apple.
 Competition is increasing in the electric gadget sector.
Social  Social trend is positive towards the smart devices.
 Apple products are perceived as status symbol.
 Apple is having added value propositions for the customers over
just being the technological brand.
Technological  Apple is leading the sector with innovation.
 Possess one of the kind technologies.
 Competitors are offering more cost-effective technologies.
Environmenta
l
 E-waste management is one of the major issues.
 Pollution issues in their manufacturing facilities.
Legal  Regulatory requirements in maintaining the radiation level.
 Lawsuits with the rival firms.
Apple might be recommended to implement proper innovations within the products
that it aims to extend towards the client. The company might also be advised to recruit a team

3
BUSINESS ANALYSIS PROJECT
that would help in the research and development within the given country. This would help
the company to gain a better competitive advantage within the given market.

4
BUSINESS ANALYSIS PROJECT
References
Apple.com (2018), Welcome to big screens, Retrieved 2nd Nov 2018 from
https://www.apple.com/
Jenkins, W., & Williamson, D. (2015). Strategic management and business analysis.
Routledge.