Friday, May 24, 2019
Apple Tows Matrix Essay
Pestel AnalysisPolitical Factors * War, terrorism, geo policy-making uncertainties issues beyond companys ability to control.* 52% of the companys net sales in 2007 coming from countries outside America. * Manufacturing or logistics might be interrupted by political flushts in the manufacturing countries.Economic Factors * Overall global economy outlook is not good.* Inflation reduced consumers expenditure on luxuries.* Economic crisis influencing apples retails business.Social Factors * A variety of regulations & law for health and Safety may adversely affect companys financial condition.* It is account that the improper use of iPod may lead to hearing loss for users.* Technological Factors * Fast technological changes.* Frequent introduction of new harvests and the continual improvement in harvest-tide performance.Legal Factors* Employments laws nationally and internationally* Tax laws in the U.S. and other countries* Foreign trade laws* Environmental Factors* Apple products a rgon made from a steep grade titanium which is to reduce pollution during the making and be recyclable as well* Products atomic number 18 also energy star qualified so they do not burn as much energy as traditional laptops doPorter Five ForcesThreat of New Entrants-Low* As the Apple leads the market with the different products like Pc, iPhone, iPad and iPod which are full of the features.* As the Apples customer are loyal and they are ready to pay even the premium price to the company.* Apple has no debts. New entrants will not affect them initially. * The leaders of the market already capture the major distributors like* AT&T and Verizon in U.S which gain the 60% of themarket. Same thing with Hp, Toshiba, etc.Threat of Suppliers see to it* The supplier of the products like, memory, chips, disks and drive are not the same.* The products that are provided by the companies are standardized and had no substitute.* The companies are going to use the standardize products to reduce the cost hence the suppliers products essential for the industry.* As they are many suppliers in number, so the switching cost is low.* The products that are provided by the companies are standardized and had no substitute.* The industry is the growing industry and for the suppliers it is very profitable.Bargaining Power of Buyers Moderate* The buyers are few and the customers are now moving towards the big stores like superstores, electronic retailers and web based retailers.* The buyers are seemed more concern about the product features and availability.* The products like PCs and the mobiles phones are very individual and the brand is definitely critical for the success.* As there are many suppliers of the products like the* Apple, HP, dell etc in the market and they all struggle for the distribution. The switching cost for buyers is low.Competitive Rivalry High* The industry is fastest growing industry as the product lifecycle is not long.* The business has a high cost as in the ca se the all the players fight for the market share by cutting their cost.* The products are highly differentiated, because all are branded. ** The brand is definitely is critical for the success that is why the* Apple has a larger profit margins.* The competitors in the industry are using the different strategies.* The companies in the industry are in the market with the different strategiesThreat of Substitutes Low* There are many substitute of the technologies* duty period brands sometimes is costly but sometimes is easy. It may depends on the how much the product is standardized with the demanded features.