Report

External Analysis part 2

Third, consumer bargaining power is a medium threat. Each customer’s purchase is small
compared to Apple’s total revenue. This condition makes clients weak at the individual level. But
because the transition costs are too low, buyers still have strong power. Fourth, the bargaining
power of suppliers is a low threat. Apple has over 200 suppliers of parts for its products; this
means that it cannot impose their own conditions (Meier and Manzerolle, 2019; Young, 2021).
Fifth, the level of competition can be considered a high threat (Lee et al., 2019). There is fierce
competition between the leading manufacturers in the industry in which the company is involved.
When it comes to Apple’s macro environment, within the scope of the PEST analysis, the
following is worth mentioning. First, these are economic forces; The company actively monitors
changes in this sector but cannot influence it. The only possible response from the corporation is to
adjust the pricing policy depending on the region. Second, it is the scientific and technical factor –
new developments and technologies are constantly emerging (Boxall, 2020). The latest of them
are useful for the company: bendable displays, batteries with long autonomy, lighter alloys, etc.,
which must be closely monitored and applied in their products.
Then, political and legal factors also play a large role for both the consumer and the producer. Timely
monitoring of such changes is a chance to react faster than competitors, incur fewer losses and get more
profit against the background of all these changes. Socio-cultural factors, as a rule, include the mentality of
citizens and their behavior in various situations, traditions, styles and standards of living, etc. Apple was
able to form its consumer base around itself, taking into account all the mentioned aspects.