CASES STUDY

PESTEL analysis
Ecological/Environme
Political Economic Social Technological Legal
ntal

• Regional integration • High growth of • Growing coffee • Rising mobile • Business • Product safety
of markets developing countries culture (opportunity) purchases sustainability trend regulations
(opportunity) (opportunity) • Increasing health (opportunity) (opportunity) (opportunity)
• Improving • Declining consciousness • Technology transfers • Growing popular • GMO regulations
governmental unemployment rates (opportunity) to coffee farmers support for outside the United
support for (opportunity) • Growing middle class (opportunity) responsible sourcing States (opportunity)
infrastructure • Rising labor cost in (opportunity) • Rising availability of (opportunity) • Increasing
(opportunity) suppliers’ countries specialty coffee • Growing popular employment
• Bureaucratic red (threat) machines for home support for regulation (threat)
tape in developing use (threat) environmentally
countries (threat) friendly products
(opportunity)
FIVE FORCES analysis Moderate Force
• Moderate cost of doing business
(moderate force)
Threat of • Moderate supply chain cost
• Moderate size of individual (moderate force)
new
suppliers (moderate force) • High cost of brand development
entrants or
• High variety of suppliers (weak new entry (weak force)
force)
• Large overall supply (weak
force)
• Low switching costs (strong
force)
Bargaining • High substitute availability
Bargaining Competitive
Weak Force power of rivalry or
power of (strong force)
suppliers competition
buyers or • Small size of individual buyers
customers (weak force)
Strong Force Strong Force

• High substitute availability (strong Threat of • Large number of firms (strong

force) substitutes force)
• Low switching costs (strong force) or • Moderate variety of firms
• High affordability of substitute substitution (moderate force)
products (strong force) • Low switching costs (strong force)
Strong Force
SWOT analysis
• Strong brand image • High price points
• Extensive global supply chain • Generalized standards for
• Moderate diversification through subsidiaries most products
• Imitability of products

STRENGTHS WEAKNESSES

OPPORTUNITIES THREATS

• Expansion in developing markets • Competition involving low-

• Business diversification cost coffee sellers
• Partnerships or alliances with other firms • Imitation
• Independent coffeehouse
movements
PESTEL analysis
Ecological/
Political Economic Social Technological Legal
Environmental

• President Trump • A brighter outlook for • full screen displays, • Artificial intelligence is • Apple now runs • EU pushes for digital
signed the Tax Cuts the UK economy. The and larger screens are one of the trends completely on turnover tax plan
reduction of the UK economy held up the major trends revolutionizing the renewable energy with targeting tech giants
corporate tax rate fairly well in 2018 driving prices for technology industry all its shops, data • Apple fined €14bn for
from 35% to 21% despite persistent smartphones • Smartphones centers, and offices violating EU law
• the China-US trade concerns over Brexit. • the increasing demand companies are across 43 countries
war greatly threatens Unemployment rate for phablets and incorporating running on 100%
Apple’s performance in standing at a record extended battery life advanced AI green energy
China as China low of 4% by August being a priority to functionality • In China, Apple has
accounted for over 2018. consumers • Apples Siri makes the constructed solar and
25% of Apples profits • The pound recover operating system wind projects to
in 2017 -Apples UK consumers faster and highly restrain carbon
are no longer personalized emissions produced
subjected to higher during the
prices manufacturing process
FIVE FORCES analysis
Weak Force
• Extremely high cost of establishing a
company (low force)
Threat of • High cost of brand development
new (weak force)
entrants or
• high number of potential new entry
suppliers (weak force)
• The switching cost low (weak
• Low switching costs (strong
force)
force)
• the collective marketplace of
Bargaining customers, the possibility of
Bargaining Competitive
Weak Force power of rivalry or
power of mass customer defections to a
suppliers competition
buyers or competitor(strong force)
customers • individual buyers (weak force)
Strong Force Strong Force

Threat of • Large number of competitors

• Most potential substitute products
substitutes (strong force)
have limited capabilities compared
or • Low switching costs (strong force)
to Apple's products substitution

Low Force
SWOT analysis
• Innovative products
• Matching Customer
• Leadership position
• Brand equity expectations
• Design & Technology • Incompatibility
• Distribution
• Steve jobs • Dependency on few products
• Margins
• Consumer focus
STRENGTHS WEAKNESSES

OPPORTUNIT THREATS
IES

• Apple cars • Market penetration in

• Technological advancement Smartphones
• The growing market • Laptop competition

• Iwatch and Apple TV