Running Head: BUSINESS

Apple HK Environment and strategic analysis

[Name of Institute]
[Name of Writer]
Introduction

Apple Company is a firm that markets, manufactures and designs mobile communication

and digital portable music players, personal computers and media devices. Steve Jobs formed

Apple Company, which is a multinational American company launched in 1976. The products of

Apple brought revolution in consumer electronic industry and personal computer industry. Apple

is famous in market for its new and innovative products. Apple operates in more than 25 states

including Hong Kong, Nigeria, Germany, and Taiwan. Micro-environment assessment of Apple

HK would help in comprehending the direct micro environment factors impact on the firm, its

business performance and operations. Apple HK also sells several related software, third-party

applications and digital content, networking solutions, peripherals and services. The association

sells systems and products such as Apple TV, iPods, Macintoshs, iPads, iPhones, a variety of

software, controls and plug-ins, iCloud, the Macintosh X operating system and iOS workspaces,

and a suite of business and professional software applications customer. In addition, the

company also distributes and sells modern applications and content through online stores, the

Macintosh Application Store, iBookstore, the Application Store and the iTunes Store.

Worldwide, the association sells its products through direct offers, online shops and outlets

through reputable third-party affiliates, retailers, wholesalers and network operators. The

company also sells various third-party devices for the iPod, Macintosh, iPad, and iPhone. The

target market of the company is government customers, enterprise, mid-sized and small

businesses, and end user consumers (Khan, 2015). The main aim of this assignment is to analyse

the internal and external environment of Apple HK Company, examine its strategic approach and

then provide recommendations accordingly.

Market Environment Analysis

PEST Analysis

Political Factors

Apple get a main part if its sales outside the US like from HK. Apple sales contribution

from outside the United States is up to 113.8 billion dollars, whereas from the US the sales

income is 68.8 billion dollars. It is important in Apple HK case study to understand negative

impact amount of any revolution on company and political disturbance in its operating states.

Hong Kong being a state with low labor cost, manufacturing of Apple Company is dependent

enormously on Hong Kong. But HK’s troubled political scenario disrupts and affects its

manufacturing. The costs keeps on raising because of its manufacturing. Moreover, the HK

imports have imposed limitations to promote manufacturing inside the US. The fact of effect and

impact on Apple HK of political bonds of government of the US with government of HK is

considered also. The main issue of Apple HK is that if company tries to get production

alternative in Hong Kong, it would increase production cost, resulting in Apple product’s prices

increase (Khan, 2015).

Economic Factors

Circumstances such as an economic recession and other financial problems or an

emergency can negatively affect an organization's payroll. Compared to other companies, Apple

is likely to be hit hard by its top-notch products and high valuations.

Apple's contextual analysis states that the European economic adjustment directly affected

Apple. This resulted in a 16% drop in its revenue in the second quarter of 2012 compared to the

same period last year (Khan, 2015).

 Social Factors

Due to globalization, Apple HK is strongly influenced by various factors, such as the

rapid spread of fame and the use of the virtual world, modern lifestyle, etc. Some people may

find an organization that needs friendly knowledge and commitment as it completes its assembly

cycle in Hong Kong while normally performing tasks for the country of origin. In any case, he is

drawn to Hong Kong to achieve the lowest assembly cost. This variable can limit your

attractiveness to certain people (Khan, 2015).

Technological factors

When it comes to generating revenue, the stakes are higher in information technology

than in other business areas. Apple HK is one of those growing companies that has evolved over

time. It has been proven that any organization that wants to be successful must evolve from time

to time (Khan, 2015).

Porter’s Five Forces

New Entrants threat

Apple HK exceptionally fierce in the market it competes, and the new entrants threat is

also high. Moreover, this could be judged by new companies entering the HK market. Some

large company names include Xiaomi, Huawei, Lenovo. And such new entrants in the market

figured out how to get a fair share of the industry as a whole, even though their small size faced

stiff business competition (Masi, 2009).

Buyers power
 These are important strengths that could affect Apple's business. Apple's strong buying

power depends on low market costs, the small size of individual buyers, and higher levels of

buyer data. Given the wide variety of options available to buyers in both the PC and mobile

phone market and the iOS management market, buyers have many choices and therefore the

buying power is high. Although Apple and Samsung are actively building brand equity to ensure

customer loyalty, in any case, those buyers are few as contrast with larger market. Especially this

is true in developing business economies, in which buyers need a strong incentive to get cash.

They generally choose good quality electronics at a lower price. Thus, through product labeling

and segregation, organizations like Apple and Samsung seek to increase customer loyalty to their

brands (Masi, 2009).

Suppliers power

The business sectors in which Apple HK operates are extremely vast and far-reaching

and far-reaching. Although the supplier's capacity is moderately low, it is important to note that

the business is characterized by a short product cycle and sustainable development. Some

licensed providers have an advantage over more modest providers; however, vendors are often

divided, and organizations such as Apple and Samsung also have their own experience.

Apple Inc. faces Suppliers' Fragile Bargaining Power; depends on the number of suppliers,

which ranges from moderate to high, generally moderate to high inventory levels and a firm

fixation on a high supplier care ratio, all of which are weak forces. Porter's five-power model

reflects the influence of providers on impressive requests to associations and their competitors.

Therefore, the bartering power of suppliers is not a big concern when developing Apple HK

methodologies (Li, 2021).

 Substitute threat

Apple HK faces impotent substitutability, which is dependent on moderate to high

availability of substitutes, which is moderate power and low supply of substitutes, plus low buyer

propensity for substitutes. As we have already noted, the consumer device business is constantly

changing due to the development of mechanics. Innovative interrupts are a major feature in tech

giants. Thus the substitute threat is high because it is hard to state when any substitute might

appear and then become obsolete for present technology and product(Masi, 2009).

Rivalry threat

Disagreements between people in business are high. Apple HK has previously had the

ability to prevent violent tensions through licensing and scientific research, thanks to top-tier

creative technology capabilities and Apple's forward-thinking management under Steve

Occupations. In any case, the rise in serious tensions within the business has led to legal fights, a

tighter product launch cycle, more rallies to boost brand value, and more limited marketing

opportunities. Apple HK finds moderate strength in new member's threatening message; It

depends on high capital and high brand enhancement costs, which represent a weak strength, as

well as the expected capacity of new entrants, which represent strengths for Apple HK (Masi,

2009).
Resource and Capability Analysis

SWOT Analysis

Strength

Apple earns its reputation for its high image by offering creative products of exceptional

design and superior quality. According to Interbarnd's 2010 annual positioning report, Apple's

image is the fastest growing in the world. Apple ranks seventeenth on the list of the 100 best

brands. It was the twentieth opening in 2009.

Weakness

In today's cutthroat global market, Apple HK is forced to release new products to stay

ahead of its competitors. The company continues to offer creative items such as iPod, imac,

iTunes and iPhone. There are many serious competitors in the electronics market that can replace

Apple products. To support a highly competitive market, Apple HK is constantly improving new

products with great and wonderful plan (Ekinci, 2020).

Opportunities

Currently, Google is a well-known web index for mobile phones. Creating a portable web

search tool that offers search capabilities superior to Google's is one of the great opportunities for

Apple to engage its customers. As Apple quality expert Flautist Jaffray Munster noted, “Within

the next five years, there's a 70 percent chance that Apple will create a universal web crawler for

your iPhone”. By developing its own web search tool, Apple can improve the security of the

information it creates on iPhone and maintain its edge over the competition, as well as help

develop the market for its products (Ekinci, 2020).

 Threat

One of the big dangers for Apple HK is the availability of too many comparable or

substitute products. For example, Samsung offers the Samsung World S, which can replace the

Apple Iphone. It has several advantages over the Apple iPhone, such as having a 4-inch touch

screen for excellent viewing of images and videos. It has a huge limit and can be a worthy

replacement for the iPhone (de Oliveira, 2022).

Resources and Competences

The most important potential is the sufficiency of the association's assets and skills for its

support and success. In a partnership, assets and skills are vital to gaining an advantage. It is not

enough to have enough assets with no one else, but capacity – that is, how associations legally

and credibly transfer their assets – is a critical variable in helping associations achieve an

advantage (de Oliveira, 2022).

Pioneer and current Apple Chairman Steve Occupations is a key and significant resource

to the organization. His outstanding methodology and business vision put Apple at the forefront

of e-commerce.

Apple has exceptionally skilled developers, architects, and designers who can create

programs that have received industry grants, such as the desktop operating system X and

innovative products like the iPhone and iPod (Li, 2021).

A company develops its own framework of programming for hardware in which it

operates. For instance, Macintosh of Apple is designed along with professional programming,

iWork, iLife, and X-operating system. Notoriety it has gained throughout the industry of
computer and it is composed to compete with its big competitor like Microsoft brand in a same

level. Moreover, there are up to 3 lack apps in app store available, all specifically designed for

iPhone, almost giving unlimited utility. Also there is large number of distinct applications for

games, entertainment, and business, etc. Moreover, the Apple hardware is distinctive benefit,

which is easy to use and brings innovation (de Oliveira, 2022).

Tangible Resources Intangible Resources

Suppliers Powerful Brand image

Retail Stores Innovation Capability

Hardware Unique design capability

Software Competitive advantage capabilities

Employee Customer’s Database

CEO (Steve Job) Brand name

Skills/ knowledge of employee

Strategic Fit Analysis

Apple's traditional technology is combined with the organization's concentrated

development systems, especially in terms of making better use of the association's powers. In

particular, the concentrated product development approach is vital to complying with this

traditional methodology and supporting the development and continued advancement of an

organization's innovative workforce and products (Hasan, 2013).

The generic strategy if Apple HK is broad differentiation. Moreover, this strategy

emphasizes upon key features, which differentiate the firm and its IT products by rival
companies. Apple HK by the differentiation generic strategy stands out in industry. For instance,

user-friendliness and elegant design of products, mixed with high-end branding differentiate

effectively the technology business. And this strategy means that always the Apple HK aims to

set apart itself from rival companies not through price but through competitive benefits based on

design of product that attracts users. This type of design incorporates seamless connectivity in

cutting-edge aesthetics and devices. The company broadly reaches several market segments

though this strategy makes Apple Company different. For everyone the products of company are

designed thus supporting a broad reach of market. For instance, the firm targets business

companies and individuals by the product line of MacBook. The broad differentiation generic

strategy in this way supports the firm in maintaining position, leadership, and its competitive

advantage as high-value and high-end technology business (Hong, 2022).

The traditional wide partition system has huge implications for Apple's core goals. For

example, to apply this methodology, an organization must continue to highlight progress through

innovative work. Apple HK should continue to encourage creative development so that the

business can keep up. Challengers eventually find new achievements and new items, so the

traditional long division system forces the organization to constantly improve to generally stay

ahead of the enemy. Therefore, continuous development is one of Apple's most important goals

in light of the wide separation of serious non-proprietary methodologies. In addition, to keep

pace with business development, an organization must continue to expand its presence in

markets such as the global consumer equipment market. In its traditional approach to excellence,

Apple does not focus on any particular segment of the market. All things being equal, the

company strives to sell a diverse workforce and products that suit different parts of its hardware

and data technology buyers. So another important goal for Apple, in light of its traditional
methodology, is to enter markets that guarantee broad coverage. This expansion and

development of the business is achieved by serious development methods (Abdelfattah, 2021).

How Apple weaknesses and strengths fit the threats and opportunities in its market

environment

Apple is known for its achievements and premium products across the globe. Unlike

creative projects submitted to Apple, non-Apple products receive the same level of recognition.

For example, Apple Guides disappointed, where the app showed customers inconsistent routing

and the wrong location of famous tourist spots.

Also, one of the disadvantages of Apple HK products is that they are expensive and

prevent certain customers from getting them. Therefore, this product occupies a minority of the

world market. In fact, this expensive structure generates a large net benefit for the association.

This important internal variable should be seen as an undeniable advantage, since it increases

profits regardless of the fact that there are not enough offers, for example, for MacBook

computers. Similarly, to avoid the risk of relying heavily on China to source its products, Apple

could consider bringing in other non-modern countries at low cost and as part of its distribution

center organization (Abdelfattah, 2021).

Furthermore, the internal and external factors presented in this SWOT analysis show that

Apple HK has key features that can be used to successfully address shortcomings. Through its

image and innovation cycle, Apple is able to create and introduce new mechanical products.

Apple also faces the risk of unfair competition and redundancy affecting global market players

(Abdelfattah, 2021).
Conclusion and recommendations

Apple's extensive non-exclusive sharing system has the advantage of making the business

visible. The division of product possibilities and configurations is in line with the aim of the

association to stimulate the market through the development of mechanical engineering.

Development is the heart of Apple Inc. business. In any case, to work on using this inclusive

methodology to gain an advantage, an organization must enter markets decisively. This

proposition is especially relevant in developing countries, where the company has limited the

market for its workforce and information technology products.

Apple HK main method of concentrated development is article promotion. Entering the

market and improving it has less need for this technology company. These advanced

development systems are consistent with and support Apple's non-exclusive methodology. The

organization is strong in promoting products through development. Be that as it may, in order to

further develop Apple's performance, it is necessary to pay more attention to market penetration

and improvement. These two advanced development methodologies can increase an

organization's versatility against strong competitors like Samsung. In addition, in Apple

activities, executives can optimize the feasibility of these quintessential non-exclusive expansive

separation procedures and development methodologies.

Apple HK more attention should be paid to the separation system. Focusing on the

company's unique selling objectives and its IT products as common technology sets Apple apart

from other competitors in the mall. Position planning and ease of use are strong characteristics of

a technology company. To comply with traditional Apple practice, the company's products must

constantly differentiate themselves from the competition, not compete on price. You should also

take into account the modern style and improvements to provide a unified network of devices
(Nielsen, 2018). Be that as it may, the organization recognizes Apple's traditional methodology;

in any case, special attention should be paid to the huge market, since the company's products are

made for everyone. Individuals and organizations can benefit from the Apple MacBook offer.

The advantage is maintained, as well as the initiative and the position of the organization as a

respected and very high quality technology organization.

Apple HK must keep pace with the vigorous and rapid inventive advancement of its

products in the form of mechanical developments to reduce the risk of copying. You may also

consider having organizations with different wholesalers increase your overall reach in the global

marketplace.
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