MKT600 Marketing Assessment 1: Apple Inc. Situation Analysis Report

This report provides a comprehensive marketing analysis of Apple Inc., examining its performance within the Australian market. It begins with a background of the company, followed by an in-depth analysis of the micro and macro environments, including factors such as competition, political, economic, social, technological, and environmental influences. A SWOT analysis is conducted to assess the company's strengths, weaknesses, opportunities, and threats. The report then outlines strategic recommendations for Apple, focusing on leveraging its strengths and opportunities while mitigating weaknesses and threats. The conclusion summarizes the key findings, emphasizing the importance of adapting to consumer needs and the competitive landscape. The report utilizes various academic sources to support its findings, offering a well-researched and insightful perspective on Apple Inc.'s marketing strategies and challenges.

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Table of Contents
Background of the company............................................................................................................2
Micro Environment Analysis...........................................................................................................2
Analysis of Competitors..................................................................................................................3
Macro Environment Analysis..........................................................................................................3
SWOT Analysis...............................................................................................................................4
Strategies..........................................................................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

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Background of the company
Apple Inc. is one of the foremost brands in the international market the company is the
wholly-owned subsidiary that intricate in the project, manufacturing as well as the promotion of
mobile communiqué devices, CPUs and convenient digital devices that also include software
solution and peripherals. The company was introduced in the year 1976 by Steve Jobs as well as
Steve Wozniak and it was incorporated in January 1977 in Cupertino, California (Piao &
Kleiner, 2015). The company has prolonged its business in the global market in an effective
manner that made them lead worldwide. The company has carried numerous strategies and tactic
on innovation that is being amongst the marketplace frontrunner in the viable market (Payne,
2017). Apple has earned the product value in the international market with the significance of the
commercial position as well as brilliant data-access executive. Apple is well-known for their
smartphones while it requires being beware of the viable competition that is rising out of
technical development. The company has already expanded its business in Australia as well. Due
to increasing high competition in the market, the revenue of Apple highly affected that create a
great impact on the performance of the company (Espino, 2017).
In the subsequent part, there will be a comprehensive examination of the micro and
macro environment that created an influence on the recital of the business to the certain extent
and the strategies that the company can adapt to cope from the threat and weakness that the
company is facing in the recent scenario.
Micro Environment Analysis
The threat of the New Entrance
The threat of new entrants in such industry is low due to the main reason, the requirement
of investment in such an industry is high that resist the small entrepreneur to enter in which
market. The market is covered by big giants such as Samsung, HTC, Huawei, Oppo, Sony and
many more that resist new companies to enter in such a competitive market (Golev, Werner, Zhu
& Matsubae, 2016).
Bargaining Power of Suppliers

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The negotiating influence of suppliers in such business is medium. Apple exerts a
massive influence on the revenue of its suppliers that are being accountable for 30 to 50 percent
of the revenues of most of its suppliers. Apple ongoing to exercise is negotiating power in its
relations with the dealers to a superior range that starts in 2012 by leading the dealer's audit as
part of its corporate social restraint approach.
Bargaining power of Buyers
The bargaining power of customers in such industry is high due to the main reason for
low switching cost to the other brand that made the consumers feel free to switch to other brands.
The consumers are seeking for innovative features that enhance the level of pressure among the
big giants to enter with a new approach to satisfy the consumers (Lovell, 2017).
Threat of Substitute
The threat of substitute in such industry is low. The possible substitute for the company
can be landline telephone which is not a direct substitute for the company. Therefore, the
company enjoys such an environment that makes them competitive in the market.
Rivalry
The competition in the Australian market is high. The main competitors for Apple are
Samsung, HTC, Oppo, LG, and Google. They provide its services at a low price while
comparing with iPhones. Most of the company copied the feature and structure of Apple and
provide them at low prices that affected the overall revenue of the company to a certain extent
(Given, 2018).
Analysis of Competitors
There are major competitors available in the market that affected the overall performance
or revenue of the company to a certain extent. In order to analyze the Australian Market, phones
running the Google Android operating system makeup approximately 57% of Australian sales in
the quarter. The company Samsung achieved 40% of the whole Australian smartphones market
that create big competition to the iPhone to a certain extent (Liu & Huang, 2016).

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Therefore, Samsung has an important segment of the Smartphone marker. The
smartphones of Samsung have transformed as well as provoked followers in the industry of
mobile computing. Galaxy series, as well as Note series, are both premium services that give
great competition to the iPhone. The target audience of the company is the young generation.
Google Pixel also gives great competition to Apple. IT is one of the popular brands of
consumer electronics device that is owned by Google such phone can run both Android OS as
well as Chrome OS. It is the first generation Chrome book Pixel. The product that is delivering
by Google is tablets, smartphones, laptops as well as many other accessories. They majorly
target all range of consumer’s, especially the middle and high-class generations (Khan, Alam &
Alam, 2015).
Microsoft has also a significant contribution to the IT industry. The company majorly
develops and manufactures the computer’s hardware as well as software products as well as
smartphones. It covers maximum consumers by providing effective services to them. The
company majorly target all range of consumers especially the young generation for the products
(Pun & Ghamat, 2016).
Macro Environment Analysis
Political and Legal Factors
The business in Australia has a high level of certainty. It is a safe destination for venture.
The political, as well as controlling situation of Australia is steady that provides an opportunity
for Apple to expand its business in such a country. Australia is an open, efficient as well as a
transparent legal framework. The level of corruption is lower than US, U, Canada that give a
transparent platform to the company to run its business more smoothly (Nechaev & Antipina,
2016).
Economic Factors
The rate of economic growth in Australia is higher than in most of IECD countries that
also include the UK and US. In order to analyze the current scenario, the GDP of Australia is
higher than UK, Germany as well as France with a stable interest rate, rising exchange rates and

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low level of inflation that provide a healthy environment for the company to target its consumers
more efficiently. The cost of living in Australia is low than that of the world’s most expensive
cities that enhance the spending power of consumers efficiently and effectively. Such people
would able to buy Apple product more easily (Marks, 2016)
Social and Cultural Factors
The People of Australia are highly educated as well as developed that are seeking
innovative products due to the reason their spending power is high that made them possible to
purchase high-quality product in an effective manner. The upper class can be signified by the
expensive clothes, mobile as well as homes that enhance the demand for Apple products in such
country more efficiently and effectively (Prout Quicke & Biddle, 2017).
Technological Factors
New technologies create a new product as well as new processes. Technology can also
reduce the costs, enhance the quality as well as lead to innovation. Therefore, Australia is a
highly developed country where people are updated and seeking for an innovative product. The
government also supports some of the organization to make innovation and satisfy the consumers
more efficiently and effectively. The government provides funds about 5% of all the research as
well as growth that make the business possible to develop in such market more efficiently and
effectively (Power & Gruner, 2017).
Factors of Environment
The emergent concern to defend the situation is taking a great influence on any
businesses such as mobile and conveyance businesses. Australia has enacted different laws to
protect the environment such as Environment Protection Act 1974, Environment Protection
(Nuclear Codes) Act 1978 that mandate the development of uniform safety standards of mining
and milling for the transport of radioactive material. Such create boundations for the company to
work beyond the limit of the act that is been introduced by the company (Chen, Shen &
Childress, 2018).

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SWOT Analysis
Strengths
 The company is considered as the foremost reformer among the electronic brands. It has
determinedly been tiered at the top-position in the BDG’s list of 50 businesses due to its
individuality in the electronic strategies
 The company has remarkable sales growth. The total capital of the company in the year
2016 was $416.62 billion.
 Apple has high brand recognition in the global market.
Weaknesses
 The product Apple is high at a price that represents that is it not affordable for every
person that enhances the level of dissatisfaction among the consumers and also limit the
consumer segment of the company
 The CEO of the company has the wrong prediction that ‘No One’ will prefer to use big
phones. Such forecast was improper that made them face big loss as Samsung took the
market by launching the Samsung Galaxy Note with a big screen.
Opportunities
 As per the analysis, the product of Apple is attaining high-demand majorly for the latest
launch PowerBook and Power Mac product laterally with novel upgraded phones.
 There will be rapid growth in the market for a communication device that provides an
opportunity for the company to target the consumers more efficiently.
Threats
 The world of electric communiqué, as well as its devices, is reliably revolutionizing in a
multifaceted edifice. Therefore, Apple is required to uphold the stride else its rivals will
leave it behind
 The involvement if Apple in tax scandal case created the damage to its reputation that
may affect overall revenue of the company to a certain extent.

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 In recent, the possibility of growth of Android phones is high that will create a threat for
the company to attract the consumers (Sammut‐Bonnici & Galea, 2015).
Strategies
Strength Opportunities
 The company is required to emphasis on mobile devices, their industrial as well as
advertising to revenue from their enhancing mandate.
 The company can use is financial clout as well as the forte of the brand-image to expand
its business into novel product and make sales with revenue.
Weaknesses Opportunities
 The company can launch a product with a low price to attract middle-class consumers.
 The company can create a larger product range as well as can enter into the novel product
parts and also can assist new consumers
Strength Threats
 Apple can develop a large variety of consumers as well as also reduces the competitive
pressure
 It is required for the company to control the manufacturing cost by concentrating on
suppliers associations and develop new plants with inferior labor costs
Weakness Threats
 Release a variety of competitively valued products to entice conformist consumers as
well as reduces the pressure from rivals
 Widen the variety of product and exploit the prevailing supply-chain to control over the
cost (SHTAL et al., 2018).
Conclusion
It can be concluded from the above analysis that attracting and satisfying consumers play
a vital role in the growth and attainment of any business. Apple is one of the leading brands that

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have expanded its trade in the global market. The business has also expanded its business in the
Australian market. The range of competition in Australia is high due to the reason of leading
giants available in the market that give tough competition to the company. Moreover, the
barraging power of the consumers is high due to the low switching cost that affected the overall
profit margin of the company to a certain extent. Australia is one of the developed countries that
provide a great opportunity for the company Apple to enlarge its commercial in such a market.
The growth of the economy of the country is high as well as the political environment of the
country is stable that provides a prospect for the firm to grow in such a market. Furthermore,
while analyzing the strength, opportunity, weakness and the threat of the business grow
effectively however, there are certain flawless that the company faces therefore, it is required for
the company to cope up from the challenges by focusing over its strategies to lead in the market
efficiently and effectively.

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References
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influences on bicyclist route preferences. International journal of sustainable
transportation, 12(3), 218-231.
Espino, M. M. (2017). A Tale of Two Phones: A Discussion of Law Enforcement's Use of the
All Writs Act to Enforce Apple to Open Private iPhones. Rutgers Computer & Tech.
LJ, 43, 97.
Given, J. (2018). Did it work? An update on the costs and benefits of the transition to digital TV
in Australia. International Journal of Digital Television, 9(1), 43-52.
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statistics and consumer survey data: a case study of mobile phones in Australia. Journal
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environment of Apple Inc. International Journal of Economics, Commerce and
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Liu, K., & Huang, S. (2016). An Analysis Of Patent Comprehensive Of Competitors On
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Nechaev, A., & Antipina, O. (2016). Analysis of the Impact of Taxation of Business Entities on
the Innovative Development of the Country. European Research Studies, 19(1), 71.

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Payne, B. (2017). Brand Positioning and its Usefulness for Brand Management: the Case of
Apple Inc. Newcastle business school student journal, 1(1), 51-57.
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& TOIBOLDINOVA, Z. G. (2018). Methods of analysis of the external environment of
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