AppleCompany designs, develops, manufactures, markets, and sells computersoftware, electronics, mobile phones, as well as offer onlineservices and networking solutions. Headquartered in Cupertino,California, Apple Inc is the largest technology company that ishighly valued for its hardware, software, and online services. AppleInc is well known for hardware products such as ipod portable player,ipad tablet computer, iPhone smartphone, Mac personal computers,Powerbook, Apple Watch smartwatch, and Mancintosh computers. Apple’ssoftware products include the iOS operating systems, OS X operatingsystem, Safari web browser, and iTunes media player. Additionally,Apple Inc offers online services that include iCloud, iOS App Store,iTunes Store, and Mac App Store. This essay gives description andanalysis of the external and internal environment of .
Today,competition among organisation is becoming vibrant day by day.Therefore, for a company to get a competitive advantage for itself,it needs appropriate strategies and solutions to fit in thecompetitive environment. Each company adopt its own way to facilitatesuccess, one of them being knowledge management (Dalkir,2013).Similarly, Apple Inc. uses knowledge management to overcomedifficulties in the current market. It focuses on innovation,research, and development.
Accordingto Yuan(2013),external environment are the uncontrollable factors of a business.They are beyond the control of the company. Porter’s five forces,PESTEL analysis, or SWOT analysis can analyze these factors. However,PESTEL is the most effective strategic tool to analysis marketdevelopment and decline, business positions, growth, and direction ofoperations. These factors include political factors, economicfactors, social factors, and technological factors.
Thereare many political factors that cannot control such asthe war against terrorism, political instability, geopoliticaluncertainties, health issues, and authority to work. Unfortunately,these factors affect the sale of its products worldwide. To deal withthese issues, the company has outsourced in countries like CzechRepublic, China, Korea, and Ireland. Any political instability leavesthe company in danger. For instance, in 2010, there was an explosionin one of the company’s supplier premises that left two people deadand over sixteen people with injuries. Besides, Apple Inc. is facinglegal stress. In the recent years, the US government banned someparts used in iPhone. In addition, some environmental laws make itdifficult for the company to compete comfortably in highlycompetitive market.
Baines,Fill, and Page (2013) point out that the power of purchasing dependson the economic condition. For the last few years, the rate ofunemployment has been high worldwide causing the sale of Appleproducts to decrease. Accordingly, the price of Apple productsdramatically rises hence, most people cannot afford. Fortunately,the world’s economic condition is now improving hence, the companyrevenue is likely to increase.
AppleInc. has been making changes in design and quality of its productsthroughout its history. They work hard to satisfy and fulfill theircustomers’ need. As a result, the power of purchasing hasremarkably risen in the different market worldwide. Today, mostpeople prefer to purchase Apple products such as iPhones, iPods, andiPads due to their high quality. Due to its unique modern lifestyle,Apple has benefited from social factors.
Applehas greatly invested in the research and development of informationtechnologies. It is always determined to produce unique and advancedtechnology devices. According to Forbes report, rankstop due to its unique and innovative products (Duhiggand Kocieniewski, 2012).
Asthe name suggest, internal environment refers to the internal factorsthat a business can control, alter, adapt, and change from time totime. SWOT and Porter’s value chain analysis are some of thestrategies to analysis these factors. For the purpose of this essay,SWOT model is used.
Apple has maintained its strong brand name, which make it stand among its competitors (Jacques, 2013)
Throughout its history, has been innovative. It always comes up with new and unique products.
Due to its high-quality product, has maintained strong customer loyalty.
Apple Company has a strong financial performance
Decreasing market share
The company faces technological complications with its software and hardware
The prices of most Apple products are high.
Apple Company has a weak relationship with Intel and Microsoft companies.
Apple Company is a fast growing company. It is advancing day in day out.
The company has an online store that is growing rapidly.
Currently, the company is offering antivirus solution.
Due to its loyal customers, the company is able to achieve high sales.
The company has opened new retail stores worldwide.
The company faces fierce competition from its competitors within the same industry such as Sony Dell, HP, and Toshiba.
Economic crisis negatively affects the sale of Apple products
Apple products are incompatible with other computer software. This makes customers to prefer products that are compatible with other software.
Rapid technological change
Knowledgemanagement is one of the Apple’s company essential corecompetencies. In fact, it has played a significant role toward thesuccess of the company. Apple’s innovation would be irrelevantwithout knowledge management because all the useful information wouldbe lost long before new products are invented. The company plays acritical role in upholding the company culture, which has kept theemployees loyal, and correspondingly translated into brand loyalty.
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Dalkir,K. (2013). Knowledgemanagement in theory and practice.Routledge.
Duhigg,C., & Kocieniewski, D. (2012). How Apple sidesteps billions intaxes.TheNew York Times, 28,1-5.
Jacques,M. W. L. (2013). The effect of brand equity on price premium of appleiPhone. JurnalRiset Ekonomi, Manajemen, Bisnis Dan Akuntansi, 1(4).
Yuan,H. (2013). A SWOT analysis of successful construction wastemanagement. Journalof cleaner production, 39,1-8.