Apple Computer Inc.

INTRODUCTION

Apple Computer Inc., founded by Steven Paul Jobs, Steve Wozniak and Ronald Gerald Wayne on 01st April 1976 started by developing the Apple I, which was mainly sold to hobbyists. The income generated led to the production of the Apple II - the first personal computer with color graphics and a keyboard, which was a success.

It was then renamed Apple Inc. on 09th January 2007, to reflect it’s shifted focus towards mobile electronic devices where he also launched the 1st Generation iPhone.

Today, Apple Inc. is an American multinational organization located and it is a market leader in designing, manufacturing and marketing an extensive range of revolutionary hardware products, which includes mobile communication devices, portable digital music players and personal computers.

Best known for their line of Mac products, Apple Inc. has continuously improved itself by coming up with innovative products making it one of the most valuable companies in the industry.

The purpose of this essay is to use PESTEL analysis to elaborate the macro-environment within which Apple Inc. operates, which will ascertain for managers to identify and evaluate the objectives and strategy for the company.

Thenceforth, Porter’s Five Forces model will be used to assess potential opportunities and understand the dynamics of competitors within the same industry.

THE PESTEL ANALYSIS

Using the PESTEL analysis, we will be able to identify how each factor will affect the company, it will also allow us to understand and forecast the company’s directions as well as the situations that Apple Inc. may encounter in future. (Yüksel, 2012)

Political Factor

In 2007, it has been reported that 52% of Apple’s businesses were earned outside the US. (Cnetnews, 2012) Political situations which are not within the control of Apple include war, geopolitical uncertainties and terrorism. It may cause damage to the world’s economy, leading to a strong negative impact on the company which may affect the sales of the company’s products around the world.

Apple Inc. manufactures and produces their products in countries such as Korea, Ireland, Czech Republic and China so as to lower operational costs. Any political conflicts between US and these countries may affect and delay the productivity of products which may lead to Apple losing its support and trust from consumers.

Economic Factor

As an internationally recognized company, the world’s economic condition is also one of the factors that may affect Apple Inc.’s business process.

Recession, inflation, consumer’s disposable income and living standards are one of the few factors that will affect the company at present and in the long run.