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Sample Essay on Apple- Apple SWOT, PESTLE ANALYSIS
This essays on Apple aims to analyze the trends and forces affecting Apple, the external environment it operates in, its strengths and weaknesses and internal structure. This is then extended to assess the key opportunities and threats facing Apple, and what strategies must it adopt to capitalize on the opportunities and counter the threats. A set of strategic objectives are then proposed to be used as a measure of the effectiveness of the proposed strategies.
Apple Inc.’s lines of business include computers, with products like Mac and iPad, the entertainment and media business with products such as iPod, iTunes, communication devices, I.e. iPhone and networking solutions, peripherals and related services. The channels employed by the Company to sell its products across the glove are its online and retail stores, its direct sales force, and third-party wholesalers, resellers, and value-added resellers (Apple, 2009).
Forces and Trends affecting Apple:
Going Green: Consumers are increasingly being aware of the externalities, such as greenhouse effects, created by producers and their own consumption. They are thus seeking products that minimize these effects are more environment friendly. Apple Inc. has taken steps towards going green by removing toxic chemicals from their new products, recycling their old products by incentivizing consumers to return their old Apple products and receive 10% discount on new iPods, which are then recycled in Apple labs and the components are used in new Apple products. Apple uses components that require less power when in use, use less material in the product and in its manufacturing, removing toxic substances in its products or removing such product from its offering completely such as CRTs which use lead, and removing use of arsenic in its LCD displays.
Rivalry: Competition in IT and media industry is becoming increasingly cut throat. Online music stores, offering both legal and illegal downloads, offer fierce competition to Apple’s iTunes store, which provides legal downloads of music for which Apple pays significant amounts of money to the content providers. New models and players have entered the smart phone market to compete with Apple’s iPhone, its highest growing product (266% in 2009) (Apple, 2009), such as Nexus One by Google and Motorola Droid. Similarly Lenovo, HP, Dell provide fierce competition in the laptop category and Linux and Windows in the operating Systems market. Many mushroom players also exist in portable music player categories which compete with Apple’s iPod. There isn’t a single market that Apple operates in which is not characterized by aggressive rivalry, and hence Apple must constantly be on its feet to introduce the most stylish, user-friendly and innovative products…..
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