Internal and Environmental Factors
Whether a business is large or small, it is affected by both internal and environmental factors. The external factors constitute less to the idea of starting or running a business. Environmental factors ought to be included in a business decision to portray the standing of the company and create a precise picture of the market. If ignored, these outside factors could result to failed marketing and hence adversely affect the brand of the company.
Economy
Economies are the utmost environmental factors that have an impact to any business. The sales of products may be reliable and self-sustaining in business at some times. In other times, the business model may be subject to losses due low sales which call for improved marketing strategies and promotion methods (Koku, 2014). Usually, local and national laws can stage-manage the marketing decision of a company by dictating on the amount of dispensable income to be used by the company. Apple took a keen look at the economy and the market at large before implementing the business idea.
Supply Chain
Cost of fuel, natural disasters and weather are examples of factors affecting supply lines. If the supply of a product is having hitches, so will be the way a company markets its products. Apple Inc. has advanced the methods of supplying its products to more cost effective methods to ensure the final products are sold at an affordable price.
Laws and Government
Laws keep on changing and this affects all business and marketing aspects. Purchases restrictions can have a negative effect to the customer’s willingness to buy your brand. Taxations on businesses can affect its bottom line resulting to reduction of the company’s brand. Other government restrictions that affect the running of the business include, implementation of new laws the limit the ages of the consumers, licensing requirements or other factors that limit the consumer’s ability to buy and hence negatively affecting the selling opportunities. In some situations, the authorities may implement laws that are directed at countering the marketing strategies of the company directly. An example of such a situation is when privacy laws are implemented to eliminate important right to access potential customers hence causing the company to adopt a new marketing strategy in general. However, implementation of laws that are favoring a business like the Apple can help its growth.
There have been changes in purchasing patterns at the Apple Inc. In case of abroad political issues, the supply costs of the company suddenly rise hence resulting to fewer sales. This has forced the company to adopt new marketing strategies from the price-focused approach. These changing patterns have in some situations led to Apple Inc holding on its products until a time the supply becomes more reliable. In other cases, the supply costs might drop due factors such as weak job market and cheap labor leading to the company shifting its focus to doing great deals.
PESTEL
Social, technological, political, and economic aspects are the main external factors that might affect the decision-making process of any company. At Apple Inc, an external factor analysis is done to enable the company adapt to any trend resulting from changes in external conditions. This analysis will indeed help the company to understand its business performance and hence enable it to be more effective, developed and efficient.
Social Factor Analysis
Apple Inc is hugely impacted by virtual world, lifestyle and globalization. The advancements in technology have has taken globalization to a whole new world while the virtual world by Apple Inc as a strategy to develop the virtual; media. People are mostly influenced by both the cyberspace and the music market into the virtual world. Many people around the globe are using Apple because of its advancements in virtual media development and designs advancements. Apple has become a lifestyle to many people and therefore the social factor will only influence the company positively even in future.
Economic Factor Analysis
As a renown company operating throughout the globe, Apple Inc has a strategic role to fulfill economically while delivering investments and sustaining the business models across different economic boundaries as products move between countries. For this reason, any world economic conditions ought to affect the running if the Apple Inc. The most significant economic factors affecting the company are recession, currency and inflation. In case of inflation in the US for example, there will be a decrease in the total sales by Apple. As a regulation measure, Apple Inc purchases foreign currencies to reduce the impact of loss in value of the US dollar which is caused by the inflation. Such a measure will assure the company an increase in total revenues from international market (Nwogugu, )
Technological Factor Analysis
Nowadays, there are advancements in the levels of technology. Technology changes rapidly and new inventions develop at an alarming rate. In a bid to cope with the rising competition from other companies, Apple Inc has to upgrade its products every now and then. Apple Inc is expected to benefit much from technology advancements as it will have new objectives that will help them compete with other competing companies.
Competitive Factor Analysis
Apple faces aggressive competition from rival companies. This competition is apparent in the swift innovations, imitations and antagonistic advertising. Low switching costs between the companies will affect the customer’s choice on the type of company to buy from. Competitive rivalry is set to adversely affect Apple.
Regulatory Factor Analysis
Some government measures and regulations possibly might compel Apple Inc to stop its lucrative business practices; these measures will potentially reduce the company’s sales hence effectively limiting the total revenues.
In order to encourage people to buy from them, Apple should use a different corporate philosophy. They should design products that enriches and makes life easier. They should adopt the use of class hardware design and software that are preferred by the users. This will help the company broaden its market compared with the competitors.
Whenever a company extends its functions to a new country, it is likely to experience both external and internal factors. Examples of these factors include; labor regulations, competition, government regulations and technology related issues. It is therefore the obligation of the specific company to put in place good strategies in order to cope with challenges. The company ought to have proper staffing, right equipments, proper planning and good organization to tackle these obstacles and to make the operations of the company an accomplishment. The Geek Squad case study teaches the importance of respecting the local traditions and the customs of the host country (Kenwright, 2015). Through this, it would be simple to make a better transition into the host country.
References
Koku, P. (2014). Decision Making in Marketing and Finance: An Interdisciplinary Approach to Solving Complex Organizational Problems. Retrieved from http://www.palgrave.com/br/book/9781137379474
Kenwright, J. (2015). Case Study: The Success Squad. SecEd, 6: 10. Retrieved from http://www.sec-ed.co.uk/best-practice/case-study-the-success-squad/.
Nwogugu, M. C. (2015). The Case of Apple Computers, Inc.: Failed Strategic Alliances, Corporate Governance and Risk Management. Corporate Governance and Risk Management (June 1, 2015).
