PESTEL Analysis for Apple
PEST Political, Economic, Social and Technological factor are the 4 major factors that play an important role in the decision making process of any company. Apple’s PEST analysis makes it possible to understand the external factors that affect the business and also makes it easy to understand its performance.
At least 52% of the sales made by Apple on 2005 were outside America. Because of America’s war on terrorism, Apple foes not hold any control over its relations with other countries. Most of the company’s products are produced out of the United States of America and this includes the Czech Republic, China Korea and Ireland.
Note though that most of the corporations operations are carried out across the globe. A 2009 financial report indicates that at least half of the sale made by Apple comes from other countries apart from America. There are issues that the company cannot control like geopolitical uncertainties, public health concerns, sanctions on varying countries and terrorism war.
After the recession, economic conditions across the world are getting better. In the last couple of years, oil prices rose causing inflation in the world economy and the purchasing power of consumers decreased as a result of this. Consumers were no longer willing to spend money in buying products such as the iPhone, iPad or laptops.
The employment rate in Europe and USA was also high leading to a sharp fall in sale of Apple products. Though the US dollar has lost its value though, the corporation is not under the risk of economic breakdown because it has already purchased foreign currency and as a matter of fact this has only led to increase in the revenue collected by the company.
In countries where Apple operates, environmental protection, safety and health have become major issues and there are regulations and laws imposed in these countries that affect the financial state of the company. Such laws require safe recycling or disposal of Apple products and some of the company’s products face major health issues because of design problems.
Apple’s technology has expanded over the last couple of years. Its computers, and phones have especially become products in high demand and the company is well known for delivering innovative products. Because of the company’s improved technology, its competitors are forced to improve their technology as well. The technology though gets harder because of changes and innovation that is rapidly changing. Apple therefore needs to outdo its competitors in order to ensure that it remains relevant in a market that is always changing.
Overall though, Apple has a solid grasp on its PEST analysis proving it is well established.
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