Individual Assignment Wk 3 STR 581

Topics: Strategic management, Steve Jobs, Apple Inc. Pages: 5 (1060 words) Published: April 2, 2015

Apple Inc., External and Internal Environmental Analysis
Mandakini Nidathavolu
March 29, 2015
Professor Edward Dempsey

Apple Inc., External and Internal Environmental Analysis
Environmental analysis is required for strategic planning and strategic implementation for an organization. The two great minds of Steve Jobs and Steve Wozniak pioneered Apple Inc. into the market in 1976 and since then technology market changed forever. Their mission reached global markets with products and innovations that could only have been dreamed off before. They design and market computer software and consumer electronics in the world markets. The company has gone through varied changes in the external environment and internal as well. The external environment of the company has an impact on the various decisions that the firm makes and the management assess its environment and identifies the various domains that affect operations of the company. External Environment and Internal Environment

Globalization has played a very specific and important role in recent times for businesses across the world. Global market for Apple is a priority and of high importance because there is a huge competition and Apple’s management understand that key personnel need to be deployed to keep the edge and competitive advantage of their firm running. Many U.S. companies have lost out on tapping into the key global competition and suffered losses; Apple is carefully strategizing in order to avoid that. The key challenge would be to capitalize on their digital technology which Apple is strategically placing its bets on, which would help it to expand the company revenues. The operational success of Apple in niche markets such as Japan, India, China, and Europe gives a good idea of their visibility and profitability in those markets. The world markets are aware of Apple’s technological advances as well as their achievement of being the largest publicly traded company by market capitalization, revenue and profit, as of September 2011. Apple will receive positive responses with the right kind of marketing team that can advertise their prowess further into the global market. High level of competencies by employing highly skilled marketers and professionals will lead to competitive advantage for Apple. “Apple has a reputation of highly innovative, well designed, and well-functioning products and sound business performance. Apple brand is valued at $76.5 billion and was the second most valuable brand in the world in 2012.”

The computer industry is affected by economic forces in determining the overall global economic circumstances that include global sales and demand. These factors play an important role in the daily dealings of the PC industry and the challenges from its rivals such as IBM and Microsoft who try to beat Apple in technological innovation, product performance, and quality of products are major factors that Apple faces. Apple needs to continue with producing enhanced products and/or updating its current ones. This will intrigue the consumers who will continue to want and demand more. At the same time the company must be aware that its competitors will try to substitute with their own product line just like MP3 players for iPods. Blackberry and Samsung duplicating iPhone. Therefore, they need to stay ahead by continually improving their products. The second factor to be considered is the regulations and restrictions from governments which can be categorized as political and legal forces of the external environment. The legal factors affect selling and production of personal computers and restrict sales and revenue. Demographic and social forces create a deviance from focusing on business.

Apple aims to satisfy its consumers from all walks of life whether they are students, educators or professionals, the firm aims to satisfy their needs around the globe through its innovations in hardware,...

References: Apple. (2012). Retrieved from - Apple and the Environment. Retrieved August 25, 2012, from
Apple Reports Third Quarter Results. (2012). Retrieved from
All About Strategic Planning. (2012). Retrieved August 25, 2012 from
Barney, J.B. (2007). Gaining and sustaining competitive advantage (3rd ed.). Upper Saddle
River, NJ: Pearson Prentice Hall.
History of Apple Inc. (2012). Retrieved from ttp://
Pearce II, J. A., & Robinson, J. R. (2011). Strategic management: Formulation, Implementation, and Control (12 'th ed.). New York: McGraw-Hill I.
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