Economic factor denotes the foundation or basis of a buying decision . In most cases, customers cannot purchase what is beyond their purchasing power regardless their need for the service or good. Nevertheless, affordability is always an issue of perspective, which elucidates why most customers employ “creative” budgeting to acquire commodities they need. Therefore, good economic condition implies the ability of consumers to purchase what they require without constraints of money.
Global economic condition is a factor that affects the business process of Apple Inc since the firm or corporation is internationally recognized . Recession, currency, and inflation are the main economic factors faced by Apple. For instance, the inflation period within the United States resulted in a reduction within the purchasing power of the consumers as well as a decrease in Apple’s product sales. AS U.S $ lost its value during the economic recession, to reduce the effects or consequences of inflation Apple Company purchased foreign currency . This resulted in the increase of their products’ revenue within the global market.
Since Apple Corporation has gone international, the worsening economic conditions within the United States, which takes time to recover as compared to other countries, is not a challenge or threat to the company.
Informed by the above issues, Apple Company became flawless within their execution in rolling out the novel iTouch and iPhone as they understood what makes customers or consumers act. The company management understood the emotional or exciting hot buttons. The company knew how to develop excitement concerning the novel line of entertainment device that, for the majority, a simple ‘want’ changed into an individual-justified, immediate need
List of References
Arthur, C 2012, Digital wars: Apple, Google, Microsoft and the battle for the Internet, Kogan Page, London.
Datapro Research Corporation & McGraw-Hill, inc, 2013, Datapro/McGraw-Hill guide to Apple software, Datapro Research Corp, Delran, N.J.
Dess, G, G 2012, Strategic management: Text and cases, McGraw-Hill/Irwin, New York.
Noe, R, A 2012, Human resource management: Gaining a competitive advantage, McGraw-Hill Irwin, New York.
