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External environment ( APPLE )

Apple Inc. is an American multinational technology company headquartered


in Cupertino, California, that designs, develops, and sells consumer electronics, computer
software, and online services. It is considered one of the Big Four of technology along
with Amazon, Google and Facebook.
For the section we want to discuss about the external environment on Apple.The
general environment is composed of segments that are external to the firm which is
demographic, economic, suitanable physical, sociocultural, global, technology, and
political/legal. Environmental segments affect all industries and the firms competing in them.
So the firm need to recognize and evaluate the threats and opportunities to hang in market.
1. Technology
Pervasive and diversified in scope, technological changes affect many parts of
socie- ties. As we know nowadays the techology is really fast to grow up. the rapid rate of
change in internet’s speed technology. For this reason, each company must be able to identify
threats and opportunities that can be obtained from the current situation.
As we know, today Apple is the most valuable company in the world because the
management of this company is very good. But they still need continue to identify threats and
opportunities because there are many new competitors that have sprung up. It is undeniable
that in the future there will be new competitors who can defeat it.

a. Threat
Every company that is well-known or still developing need to analyze the threats
they will face. Because of the rapid development of technology and the internet, many
companies compete to create the best products. Likewise with Apple, they have to think
about how to survive in the market.
For now, there’s so many product like handphone on the market such as handphone
products from Korea (Samsung and LG), from China (Vivo, Oppo, Xiomi, Huawei, etc), and
Japan (Sony Panasonic Eluga, etc). Some of these products are products that many interested
in the market. With increasingly rapid technological developments they can create the best
products and many interested ones. And as we know Apple has a short product life cycle, so
other companies can pursue their success and in other words will be a big threat to Apple.

a. Opportunities
As previously explained, Apple is the most valuable company in the world. In other
words, this company has truly talented employees. With the rapid development of technology
and the internet as it is today, Apple can take advantage of these two aspects to innovate well
and be the best. Therefore Apple is a determinant of trends in the consumer electronics
business.
With the advantages gained today and with existing technology, better
technological changes going forward, and competent apple employees can have the
opportunity to create other superior product products or other plans going forward.
In this aspect of the PESTEL/PESTLE analysis model, current technologies and
technological changes affect business conditions. In Apple’s case, the following
technological external factors are the most significant:

1. Cloud computing trend


2. Technological integration
3. Growing apps market

Cloud computing is becoming popular among individuals and organizations. Apple


can exploit this opportunity by offering cloud-friendly devices and apps. On the other hand,
technological integration of devices is a major trend. Apple can take advantage of this
opportunity by continuing its strategy of providing products that can be seamlessly connected
to each other. In addition, the apps market is growing. Apple has the opportunity to grow its
App Store. Based on this part of the PESTEL/PESTLE analysis model, Apple is in a positive
position to exploit such major opportunities in the technological dimension of its business
environment.

2. The Global Segment


When studying the global segment, firms should recognize that globalization of busi-
ness markets may create opportunities to enter new markets as well as threats that new
competitors from other economies may also enter their market.
Current conditions are conditions where all products can easily enter other countries
and so many competitors. And as is known other smartphone products have a lower price
than apple products. So apple must be able to analyze carefully what the desires and needs of
potential customers so that threats from other companies can be overcome.

In terms of opportunities for Apple, there is a lot that will be obtained by Apple in
terms of global, that is, it will be so easy to go abroad in the distribution of products. Because
Apple is the best product that has products other than smartphones, namely personal
computers and others. Personal computers are usually used by many agencies. That way
Apple can easily reach potential customers quickly.