Pestle Analysis
Political
In the US, government regulations, taxation strategies, directives, and norms of leadership are highly flexible for business. The US is one of the most promising business places with remarkable expansion in the corporate world. The Apple Company has taken advantage of the favourable US economic condition to expand its market niche. The stable economy of the US has been a pull factor for the company’s products since the purchasing power of many of its potential customers is high, especially for its iPhone brand (Miller, Vandome, & McBrewster 2011).
Legal
The legal system in the US is very stable and functions on the pillars of serving the interest of everybody equally. The Apple Company is a registered business entity that is licensed to operate in the US. In this industry laws on commerce, certificate of compliance to taxes is issued to a business that remits their returns accurately form which taxes are deducted. This has created an easy environment for Apples’ business activities since it is tax compliant (Miller, Vandome, & McBrewster 2011).
Economic environment
Despite the global economic meltdown in 2009, the economy of the US has recovered from these effects and is currently one of the leading business environments. The recent economic boom in the US has resulted in the growth of many businesses due to increased demand for products and services. The US offers an economically sound environment that is good for business activity. Being one of the most strategically located businesses, the Apple Company is positioned to benefit from the economies of scale and improved revenues since it has several brands within the US and other parts of the globe (Miller, Vandome, & McBrewster 2011).
Social environment
Many social issues affect any business sector or industry. However, the Apple Company has aligned its services with the target market needs by actively participating in a series of corporate social responsibility initiatives. Besides, the PC products and services provided by the firm are aligned with the socio-cultural needs of customers in the US and other parts of the globe. For instance, the iPhone product has become a lifestyle statement among the customers (Miller, Vandome, & McBrewster 2011).
Technological environment
The Apple Company has successfully incorporated online activities within its operations. As one of the leading PC companies in the US, Apple has launched the iPhone, iTunes, and other applications which incorporate the latest technology. Besides, the company has an online shopping portal and live consumer support centre. All aspects of the firm, such as sales, purchases, marketing, management, and operations, have been aligned to appropriate and sustainable technology (Baltzan 2014; Miller, Vandome, & McBrewster 2011).
Ansoff Matrix
The Ansoff Matrix is an important tool for analyzing the potential for market growth and diversification by improving market penetration and product development. The target market consists of families and individuals who are in need of the various PC products offered to the company. On the other hand, the market segment consists of companies, colleges, hospitals, retailers, government agencies, and private ventures who use PC products on a daily basis is running their businesses, research, communication, and production (Cheverton 2004).
In order to improve the market growth, diversification, penetration, and product development, the Apple Company should adopt the product proliferation strategy to create opaque barriers for their competitors. Through this approach, the market share for the company will automatically have the discretion to reap maximum benefits ahead of its closest competitors. For instance, this strategy may be beneficial for the Apple Company when it modifies the online music services through its creative iPod and iTunes products to reach conservative markets such as China and Africa (Witcher & Chau 2010).
Product development entails the innovation process aimed at modelling the existing product to balance with the changing preferences of the customers. Apple is the leading company in the PC industry in terms of design and innovation (Johnson, Whittington, & Scholes 2011). The company is associated with new innovations and attractive designs that appeal to its customers across the world, such as the iPhone 5 brand and the broadened iTunes application. Through modification of the iPhone brand of the Apple Company products, the company has been declared “the fastest international roll out” (Kane & Rohwedder 2012, par. 11). Through this, the company’s revenues have grown by 32%. The 3GS iPhone introduced by the company became available in more than 64 countries within three months.
The product development variables at the Apple Inc Company are connected at the central point of strategic planning, which creates a smooth continuous operation tracking model. The company has developed highly structured marketing distribution channels that operate independently of the mother company. As a result, the company has been in a position to capture the fastest-growing markets such as France, the UK, China, and Japan where the innovative and stylistic design of Apple iPhone 4 has become a household name (Dalkir 2005).
Value Chain Analysis
The value chain comprises of four stages which are knowledge acquisition, storage, dissemination, and application. Reflectively, “knowledge acquisition is the first step towards knowledge management in any organization, irrespective of the size” (Wallace, 2007, p. 29). Apple Company may rely on data mining for the creation of knowledge. It can use data mining techniques and software to obtain customers information and use this data in modifying the products to suit the demands of the clients (Dalkir 2005).
Knowledge storage takes place in different ways. It can either be in soft or hard copies. Through storage of the knowledge in the company’s database, the Apple Company will have accurate market intelligence. This will ensure that it has the best sources for business decisions. Dissemination of information need should be properly managed, so that correct information is directed to the market about Apple’s products. As part of knowledge application, the Apple Company should have adequate information on market surveys and customer information. It will facilitate the growth of the company (Bodily & Allen, 2009).
Sustainable development is vital in a business environment. Reflectively, this concept defines the feasibility of a company and its solvency within a specified period of time. In contemporary society, the term sustainability refers to the ability to survive within a profitability model. In a business environment, sustainability is affected by forces such as decision science, corporate structure, and real financial management, in short, and long term. Apple Company has a very strong communication system (Bodily & Allen 2009).
The company has a relatively unstable functionality within a competitive advantage parameter. In order to reverse this, its existing forms of system monitoring should be periodically upgraded to introduce multiple operating system models, such as ratio analysis in operation management, which is compatible with tracking and analysis within and without the company. For the implementation of the strategy, the management should balance both the short term and long term strategic goals (Dalkir 2005).
Reference List
Baltzan, P 2014, Management information systems: Business driven MIS in Business Driven Information Systems. Web.
Bodily, E., & Allen, M 2009, “A dialogue process for choosing value-creating strategies”, Interfaces, vol. 29 no. 6, pp. 16-28. Web.
Cheverton, P 2004, Key Marketing skills: Strategies, tools, and techniques for marketing success, Kogan Page, London. Web.
Dalkir, K 2005, Knowledge management in theory and practice, Elsevier Publishers, New York. Web.
Johnson, G., Whittington, R., & Scholes, K 2011, Exploring strategy, 9th edn, Prentice Hall, Alabama. Web.
Kane, Y., & Rohwedder, R 2012, Apple Strives for Global Markets. Web.
Miller, F., Vandome, A., & McBrewster, J 2011, Pestle analysis, VDM Publishing, London. Web.
Wallace, D 2007, Knowledge management: Historical and cross-disciplinary themes, Greenwood publishing Group, New York. Web.
Witcher, B., & Chau, V 2010, Strategic Management: Principles and Practice, Cengage Learning, Alabama. Web.