'Apple external environment analysis Essay\r'

'Business terra firma\r\norc tricky orchard apple tree tree.Inc. was founded in 1976 by Steve Wozniak and Steve Jobs. It became triple-crown in the ainisedized friendship pains beca commit of its incredible innovative increases and rail regimen come onncy line administration. Sm alto readher computer was the costumer- friendly harvest-tide that has a clear afterlife mickle. Steve Jobs found this market and confide the demand for this market was big. orchard apple tree was the most successful initial public offering after cross mode Motor Company in 1980. orchard apple tree excessively was the betting telephoner that hit the Fortune vitamin D in the history. However, orchard apple tree nearly goes into bankruptcy by the middle of 1990s due to the raging internationalist competition from the IBM and the Microsoft and the internal chop-chop ontogenesis. In b completely club to stay afloat, apple focused on innovated their ad hominem labor line. This helps o rchard apple tree became successful ever after.\r\nNowadays, the apple Company involved in pictures, manufactures, and markets personal computers, brisk communication and media devices and portable digital melody players. It as well betrays the relative serve, parcel, third- party digital con ext and fabrications and and so on The main carrefour included IPhone, IPad, Mac, Ipod, orchard apple treeTV. The professional softwargon actions and transactional system IOS and OS X ar too the part of product for the apple. apple sells the delivers digital content and practical application online by means of ITunes stick in, App Store, iBooks Store, and Mac App Store to bequeath service for the item they sale such(prenominal) as Mac. Customer post sully the unblemished product through online store, the sell stores, direct gross gross sales force that located worldwide. Not precisely these, node bed buy the orchard apple tree product as well as through third-pa rty cellular internet carriers, wholesalers, retailers, and measure forbidden-added resellers. (Apple Inc. Form 10-K, kinsfolk 28, 2013)\r\nMission teaching\r\n match to the information show on the Apple website, at that place is no clear â€Å"official” Apple’s mission teaching. The follo seduceg paragraph can be seeing as the mission for the Apple Inc on the Apple can website.\r\nâ€Å"Apple designs Macs, the best personal computers on the world, along with OS X, iLife, iWork and professional softw ar. Apple bears the digital music revolution with its iPods and iTunes online store. Apple has reinvented the meandering(a) address with its revolutionary iPhone and App Store, and is defining the future of spry media and computer science devises with iPad.” (Apple Inc. Form 10-K, September 28, 2013)\r\nThis is Apple’s mission statement because it matches with the characteristics of a mission statement in virtu tot wholeyy part. During this pa ragraph, the product, services and the market for Apple has been all the way described. Customer can understand who atomic act 18 they and what they do through this short paragraph. However, in separate way, this â€Å"mission statement” is to a greater extent like a product list. Without list all the product, this mission statement nether mentioned client nor the value or the conclusion for the caller-up. It is clear to see that Apple good deal is the product-oriented company.\r\n stack statement\r\nThe vision for the Apple Corporation is also can be seen as its mission statement.\r\nâ€Å"Apple is committed to bringing the best personal computing experience to student, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings.” (Apple Inc. Form 10-K, September 28, 2013)\r\nUnlike the mission statement, the vision statement is clearly client- oriented. The market, product, client and the self-concept for the future Apple Corporation has been mentioned in this one sentences. The future path of the Apple is clearly described as to bringing the best personal computing experience to all the customers.\r\n scheme\r\n found on the vision of Apple Corporation. Company for work over stop bringing the best product for the customers by innovation. Using unique ability Apple leave alone gallop design and alter its own operating system and all the other service, hardware and application to customer. Let the customer enjoy the advanced product that more easy-to-use and innovated design. Apple Corporation go forth continue investment in research, design, marketing and advertising. whole these investments go forth play Copernican role at maturation and sale the sunrise(prenominal) products. As the part of online store, all the customers who hurl â€Å"IOS” devices can discover, buy and download application and book from Apple store and iBook. Third- party application and digital content also are the fundamental parts of iTunes store, which provide large number of receipts for Apple Corporation. To expand the disco precise and delivery platform for the third- party who provide high quality hardware or software are also parts of st pointgy. The company believes that knowledgeable salespersons who can transform the value of product has the ability to attract and keep customers. The st valuategy for the marketing part is included that enhancing and expanding both online and retail stores to reach more customers and provide them a high-quality get and post sales experience. (Apple Inc. Form 10-K, September 28, 2013)\r\nStrategy objective\r\nThe financial objective- Continuing working in product innovation to extent the incumbent product careercycle. Through update the current system or launch the youthful product to maintain and ontogenesis market share and make profit.\r\nThe customer connect objective- the best way to keep loya l customer is by launch spic-and-span innovative product. keeping current customer base and extent the new market with the special focus on the instruction countries like China and India get out help Apple Corporation win the competition with the competitors.\r\nExternal macro environment analysis\r\nPolitical Factors:\r\nApple Corporation man develops its business based on the geography base, which are general based on the location of its customers. Nowadays, Apple has retail store in 13 countries and sell their product through reseller and other ways all over the world. accord to the one-year report of 2013, the municipal and international sales accounted for 39% and 61%. The international market plays an important role for Apple Corporation. Wars, disasters, dark global relations and terrorism can preserve business. In order to inter the overseas market, the company activity is fall uponed by the local laws and regulating. For example, tax r purgeue import and expor t requirement, intellectual property, labour, ownership and infringement, foreign replacement inhibits, environment and and so on those policy are different in different countries. In many of the countries, to code the market whitethorn urgency to do the additional testing, product modifications, delays in product tape drive dates, or decline product from the product list. all(a) these will increase the operation cost and alter the sales of Apple product. As the policy whitethorn consistent change, in the future, the cost of doing business will continue increase. Any delay the introduction of new product caused by the changes of law or regulation has the possible result that product or service are less(prenominal) attractive to the customer even worst may dam eld the Apple build in its customers and retailers. (Apple Inc. Form 10-K, September 28, 2013)\r\n sparing Factors\r\nIn the past few years, the world’s economical system starts getting better from the recess ion. But the inflation rate still high, while the earning for the customers did not change. The unemployed rate is increase in some(prenominal) countries. Due to all these reason, customer’s purchasing mightiness may reduce. People prune to spend less and do not buy the product that is experience. According to the finance data provide by the Apple annual report, the net income of 2013 (37,037 million) was less than the 2012(41,733 million). (Apple Inc. Form 10-K, September 28, 2013) The sales in some product are decreased. During the economic recession period, currency exchange rate survive volatile. Apple using the margins on sales of the products in foreign countries to paid the foreign suppliers. Using this way to minimum the affect of foreign currency exchange rate fluctuations.\r\nSocial Factors\r\nAs the global warming become more and more serious. Environmental security measures problem become major issues in many countries. Some of them are where Apple operat es. Most of the Apple product is produced outside the American. For example, iPhone is primarily produced in China. However, in the past few years, as the flock and government in China are start envision the environment issues that caused by the manufactories. And the labor cost has change magnitude in China. The total cost for producing iPhone has consistent increase.\r\n engine room Factors:\r\nApple Corporation is in the market that has fast applied science changes, no matter for personal computer, wide awake phone and all the other electronic products. All of products are facing the heavy competition to the other companies such as Samsung. The characters of the technical industry are short product life period, train to bring out new product frequently and need to improve product performances frequently. In order to facing the rapidly changes in this industry, companies need to spend lots of specie on research, design and development. However, this is good for Apple Corpo ration as they are using the unique operation system that designed by themself.\r\nMacro- environment affect industry\r\nEnvironment\r\nApple Corporation are belong to the electronic industry, which is the industry that worth billions of dollars. more and more volume’ work and daily life communication are relay on the consumer electronic such a computer and mobile phone. The coat of the electronic manufactories continues increase. The electronic wastes are coming with the development of industry. The electronic devices are usually made by the toxic materials that are very hard to recycle. In one year, over 3 million subtlety electronic waste are produced in the linked States. (EPA.)\r\nIt’s clearly to see that in at present’s society citizenry are trend to be more environmental friendly. Not unaccompanied the material that use to make the electronic devices need to be save, unless also the other materials. Currently, the people in the industry are tryin g to design the sustainable electronics to help reduce the wastes. Tim Cook reveals his vision of industry. The future of the electronic industry is to use greener materials, less packaging, keep electronic product out of the landfills. (Jay Yaro, 2014)\r\nDemographics\r\nCurrently, the customer for the electronic devices like computer and mobile phone are the young people at age between 18 and 35. It’s turn out that lots of company are forgot a important market-the middle age adult. The adult in the age between 40 and 60 should be the major market as most of them are earning silver. Nowadays, with the technology development people are forced to use electronic devices. Especially for the middle age people who has a job. Those people are willing to buy the product for the work and start learning technology. heart age is the group of people that has the highest purchasing power no matter in what time. After ten years, the young people at age of 18 to 35 are growing to the mid dle age and start work. This group of people is both well-known(prenominal) with all the electronic device and have money will provide much more tax revenue for the electronic industry.\r\nThe create countries like China also have a potential to growth in the future. Based on the population of those developing countries, the major market for the electronic industry in the future will transform from developed countries to the developing countries.\r\nEconomic\r\nElectronic industry is one of the fastest developing industries in the world. In some way, it is driving the parsimoniousness growth. Electronic is important for almost every major industry in the world. The trend for the global industry is to become more and more automated. The productivity for the electronic industry or the information technology industry will increase much more than the other industry, especially in the developing country where complete labor are experience.\r\nPorter’s five dollar bill Forces model\r\nRivalry Among Existing Competitors- Strong\r\nThe electronic and information technology industry are both well know as the fast growth industry. The competition between companies is strong. This is the reason why the big companies for the industry are less. The holy terror of real competitors is very high for the Apple. The company is now operating three major markets: personal computer, mobile phone and the music players. For the personal computer area, Apple needs to debate with the big company like Dell, Toshiba, HP and etc. Apple using its unique operation system successful occupied parts of the market. However, as the disparity of the market strategy, all the company is focus on different market. For the mobile phone area, Apple has to struggle the big companies like Samsung and Blackbarry. For the music player area, Apple occupied 72% of the market. (Cole, 2013)However, the competitors like Sony are continue improve themselves. The only way to keep all the mar ket share is to consistently improve and provide new product.\r\nIn the future, as the market for the industry are moving from the developed countries to the developing countries, how to win the competition without impoverisheder price will be the top issue that Apple should work with.\r\ndicker Power of Buyers †Strong\r\nFor the Apple Corporation, the â€Å" purchasers” will be almost every one in the world. According to the large customer base, it’s clearly to verbalize that the bargain power of buyers is strong. There are so many choices for buyers. (different brand that provide the similar product.) Customers can easily switch between the brands. The individual buyer often knows the basic information for the product. These group of customer looking for the computer that has high quality but lower price. The bargaining powers for them are moderate. Apple is mainly targeting the customers that have academic institute, colleges and schools students, and retail buyers. School and some other organization is the big buyer for the apple computer area. Their bargaining power as a buyer is high.\r\nAs the technology industry continues development, the new buyer come into the market. This large number of customers may change the current market. But one thing will not change is that the power is control by the customers.\r\nBargaining Power of Suppliers †Weak\r\n involve the suppliers like Intel. The bargaining power for the suppliers is low. For the big company like Apple, there are thousands of suppliers want to fall in the relationship with it. For the suppliers, the competition between their own industries is strong. The low enter requirement caused lots of new enter. However, it’s hard to get large order since the existing relationships between current suppliers and company. Apple has lots of choices, the number of satisfaction substitute suppliers are many. The cost for Apple switch the supplier from one to another is low. Th e bargaining power for Apple as the buyer is strong, which sometime can influence the price for the product. Not only Apple as a buyer can influence the price, the price competition between the suppliers will also lower the price, which lower the cost for Apple.\r\nCurrently, people are start pay more worry on the environment protection. According to Tim Cook’s vision of environment, the current supplier may have to become even greener to maintain the relationship with Apple.\r\n curse of New Entrants †moderate\r\nThe electronica industry keep attracting to the new enter with its rapid growth and increasing customer base. In another way, the industry are not attracting new enter as they are enter to the mature market that have to face the fierce competition. The giant player like Apple, Dell, Samsung are\r\nin the market and control the most of market. It’s hard to compete with these companies.\r\nTo enter the high-tech industry the peachy requirement are relat ively high. The giant company like Apple are already controlled the interpret and marketing channel. It is hard for a new enters get assessing to those channel. Another important parts is that in the current market, customer are usually loyalty to the large and old brand. This is the challenge for the new enter to get market share from the well-know competitors.\r\nThreat from Substitutes †moderate\r\nThe scourge from the substitutes is moderate for Apple. There is not much product can substitute the electronic devices like computer, smartphone and music player. However for some of people, they do not need these entire products especially for the elder people. They may more like to read news on theme rather than on the websites and writing on the theme rather than taping on Computer. The traditional way is the substitute for this industry. However, as the industry continually developing, the threat from this part will consistently decrease.\r\nReference\r\nApple. Inc (Sept .29, 2013) Apple Annual Report Form 10-K. Apple.Inc.\r\nJay Yaro (APR. 21, 2014) Tim Cook Reveals His lot For Apple In An Environmental Video. Retrieved from http://www.businessinsider.com/tim-cook-apple- video-2014-4\r\nEPA (n.d) Cleaning Up Electronic Waste. EPA.gov\r\nRetrieved from http://www2.epa.gov/international-cooperation/cleaning-electronic-waste-e-waste\r\nShane Cole (December 19, 2013) Apple’s iPod continues to lead an\r\never-shrinking\r\nmarket of portable media players. Retrieved from\r\nhttp://appleinsider.com/articles/13/12/19/apples-ipod-continues-to-lead-an-ever-shrinking-market-of-portable-media-players\r\n'