PESTLE ANALYSIS OF APPLE Inc.

&
MICROSOFT
POLITICAL

Apple Inc. Microsoft

• More than half of sales of their products come
from countries other than America.
• Political intervention in new
• Heavenly dependent on lower cost
deals.
manufacturing in china.
• Intellectual Property Rights (IPR)
• The cost of finding alternatives.
• Bad political relations between U.S. and other • Anti trust law
countries may have bad outcomes for the
company.
ECONOMICAL
Apple Inc.
• Customers spend less on products as they are
expensive as compared to their competitors.
• Europe's economic difficulties and fall in
Pound led to decrease in sales of Apple
products in Europe.
• Increased labor cost in China affected the
price of Apple products.
Microsoft
• Fluctuation and Unpredictable behavior of
foreign currency.
• Tax and Import/Export barriers.
• Changes in exchange rates between USD and
other currencies affects the Microsoft profit.
SOCIAL

Apple Inc. Microsoft

• Apple products have marked their presence • Accessibility of technology to different
on the international market. capable people
• Possessing Apple products is considered as a • Empowering youth
status symbol in many societies which has • Donating software to nonprofits worldwide.
increased the sales of Apple products.
• Realizing potential with new skills in students.
• The purchasing power of the common have
increased due to which people are shifting
towards more luxurious products.
TECHNOLOGICAL

Apple Inc. Microsoft

• Need to upgrade their product more often so • Fostering innovation
they will outdo their competitors easily. • Microsoft put 13-14% of their revenue in
• Its products are at the top of the new Research & development
innovative products ranking. • Infrastructure
• One of the most innovative and
technologically advanced product is the iPod.
LEGAL
Apple Inc.
• Participant in various lawsuits since it began
operation.
• In 2009, Nokia sued apple for infringement of
Nokia’s patent relating to wireless technology.
• Has been in number of patent cases with
competitors like HTC, Samsung.
Microsoft
• Intellectual property rights.
• Employee working hours, and employment
enrichment.
• Laws on business regulations.
Environmental
Apple Inc.
• Expense of disposing of nonworking
or used electronic devices.
• Climate change due to global warming
could disrupt Apple Supply Chain.
• Chinas effort to cut greenhouse gases
and limit fossil fuels.
Microsoft
• Saving energy and green IT.
• Carbon Neutral
• Cloud computing
• Requesting all Costumer to
recycle their product after using.
•Dockalikova, I..&.K. (2014) determining the significance of PESTEL
analysis. conference on management, leadership & governance, p.418.
• Dudovskiy, J. (2019) Business research methodology [Online].
[Accessed 3 februrary 2019].