Strategic Management Report: Comprehensive Apple PESTLE Analysis

This report presents a PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) analysis of Apple Inc. It begins with a brief introduction to Apple's business, including its focus on hardware, software, and services, and its global presence. The core of the report is a detailed examination of each PESTLE factor as it relates to Apple. The political section discusses issues like income disparity and the need for export diversification. Economic factors cover labor enhancements, competition, and recession impacts. Social factors highlight lifestyle and consumer preferences. Technological aspects address cloud-friendly devices and competition from Google and Samsung. Legal factors involve regulatory services, intellectual property, and patent challenges. Finally, the environmental section addresses issues related to electronic waste and global warming's impact on supply chains. Each section provides specific examples and analysis, concluding with a discussion of the implications of these factors on Apple's strategy and future prospects.

Running head: Strategic Management
Strategic Management

Strategic Management
PESTLE ANALYSIS OF APPLE
Introduction
Apple emphasizes on designing, manufacturing and sells personal computers. Also the main
focus of the company is on offering mobile communication services and the digital players.
Hardware, software networks solution are provided by the company to its users. Products of the
company are sold on the global platform like through retail stores, online stores and also to the
third party wholesalers. There are many models of the company like iPhone, iPod. Apple is
founded in California in 1977. The company has the ability to design and manufacture the
operating system.
PESTLE ANALYSIS OF APPLE
Political factor
Apple is considered one of the largest companies in the technology sector. The company has
faced many issues due to changes that take place in political policies. In Australia, there are
issues which are faced like income disparity. It has negatively affected the growth of the
company in the market. In context to import and export it has been evaluated that Australia
needs to focus on diversification in its export and import destination so that growth can be
achieved easily (Kushida, 2015).
Economic factor
In the context of the economic factor, it has been analyzed that if labor enhances in Australia
then the company have to invest in manufacturing products. Apple has also faced problem issue
due to high competition level and market share of the company has been reduced. The recession
is one of the reasons which have affected the profits of the company in a negative manner.
Social factors
In this emphasis is mainly on the lifestyle of the society which is related mainly with sales of the
premium products. The factor of lifestyle also affected the people choice of smartphones. There
are many features of Apple products which does not suit the buyers of Australia. The buyers of
1

Strategic Management
apple are mostly rich and young. It is important for the company to focus on the taste and
preference of the customers.
Technological factors
The company has the opportunity to offer cloud-friendly devices and apps. The competitors of
the company in the Australian market are Google and Samsung which have substituted the
services of the products. The company tries to offer innovative products to the customers so that
growth can be achieved in the market. It also gives a positive impact on the overall profitability
level of the company (Khan, Alam & Alam, 2015).
Legal factor
In the present situation, the company has considered high regulatory services which are given
through Apple Pay. The company also offers financial services which have enhanced legal
actions.
Intellectual property and patent concerned with regulations can be a challenge for many players.
The company has also faced a design-related patent challenge from a small startup in 2016.
Apple has also invested 6.04 billion in Research and development and pressure is faced by the
company to give back the money to shareholders (Lockamy III, 2017).
Environmental factor
The company is facing an issue if discarding the electronic junk that is taken into consideration
in non-working position. The issue related with discarding of lithium batteries is also analyzed. It
has cost the company a huge expense in relation to discarding the batteries. Due to enhancement
in the global warming rate the company has faced the issue of transoceanic shipping in context to
Apple chain supply.
2

Strategic Management
References
Khan, U. A., Alam, M. N., & Alam, S. (2015). A critical analysis of internal and external
environment of Apple Inc. International Journal of Economics, Commerce and
Management, 3(6), 955-961.
Kushida, K. E. (2015). The politics of commoditization in global ICT industries: a political
economy explanation of the rise of Apple, Google, and industry disruptors. Journal of
Industry, Competition and Trade, 15(1), 49-67.
Lockamy III, A. (2017, July). An examination of external risk factors in Apple Inc.’s supply
chain. In Supply Chain Forum: An International Journal (Vol. 18, No. 3, pp. 177-188).
Taylor & Francis.
3

Strategic Management
4

Strategic Management
5

Strategic Management
6