Prepare a report on pest analysis for apple. look at how various micro and macro factors are affecting your chosen company

PEST Analysis for Apple Political, Economic, Social, and Technological factors (PEST) play a great role in the decision-making of any organisation. An analysis of all these factors will help an organisation like Apple Inc. to adapt itself to the changing conditions.
The social factors affecting Apple
Social factors seem significantly in favour of Apple Inc. Firstly, globalisation has a positive impact on the performance of the company. Apple Inc., being the king of technology in the U. S, also reaches different parts of the world as the icon of latest technology. The term globalisation mainly represents economic globalisation, which involves the integration of economies into the international economy through capital flows, foreign direct investment, and trade. This, in turn, results in the spread of cultures and technology and improvement in lifestyle and affluence.
Apple is able to make use of the cheap labour and growing markets in the newly developing nations like India, which were once considered poor. In the opinion of Schifferes (2007), Apple has become a virtual firm by shifting its production units to countries like China in Asia through outsourcing. In an effort to reduce its operating costs, the company has spread its product manufacturing to states like Korea, Ireland, China, and Czech Republic. In addition, there are suppliers from Canada, Germany, France, Taiwan, Japan, Mexico, and Brazil (Apple Inc. 2014).
In addition, there is a thirty-fold increase in the world trade since 1950s as a result of this globalisation (WTO, 2007). According to reports, Apple depends on countries other than America for about 58% of its total sales (Kane & Rohwedder 2010). Thus, globalisation has a positive effect on the company’s performance.
Apple benefits from the modern life style because the company has managed to present itself as a lifestyle brand (Saviolo & Marazza 2012). As Roumeliotis (2014) identifies, a lifestyle brand touches a number of emotional factors, ranging from social status, self-esteem and desires. By creating such an image, Apple is now able to reap profit from the increasing number of tech-savvy youth who consider the possession of an Apple iPod and headphone as an important element of modern lifestyle. As Apple has a significant role in online music market and cyberspace, the modern lifestyle is well-suited for the company’s growth. (Apple’s branding strategy 2012).
Technological factors
Technological factors are the biggest challenge for the company. Firstly, though the company leads the hardware sector by introducing new ideas every time, like mouse, 3. 5 inch floppy disks, touch pads and trackballs, the company is a failure in introducing a software innovation which is as popular as that of Microsoft (Garfinkel 2001). Thus, the company needs to improve in the area of developing cutting edge software to beat rivals like Microsoft.
Secondly, there are competitors like Samsung who cannot be underestimated. Jones (2013) points out that Apple exhibits its weakness by not having a mid-priced smart-phone. Probably because of this, the company could upgrade only 26% of its customers from non-feature phones to iPhones (Jones 2013). Because of competition, technology only has a very short lifetime, and any failure to introduce new technology ahead of competitors will result in significant damage in reputation (Bajarin, 2011). In fact, the main reason behind the company’s existing superior position is its ability to outperform its competitors in introducing new technology. Therefore, the company has to invest a lot in research and development.
Thus, in total, a PEST analysis of Apple Inc. proves that Political, Economic, Social, and Technological factors all influence the way the company performs. In order to retain its position as the leader in technology, the company needs to invest significantly in research and development.
Bibliography
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Garfinkel, S 2001, “ Apple’s X Factor”, MIT Technology Review, Available from: . [02 April 2014].
Jones, C 2013, “ Apple vs. Samsung: who could win the smartphone war?” Forbes 20 August, Available from: . [02 April 2014].
Kane, YI & Rohwedder 2010, “ Apple strives for global markets”, The Wall Street Journal 8 June. Available from: . [02 April 2014].
Roumeliotis, JD 2014, Lifestyle branding: engagement and the total experience. Available from: < http://savvychicksmedia. com/topic/business/lifestyle-branding-engagement-and-the-total-experience/>. [02 April 2014].
Saviolo, S & Marazza, A 2012, Lifestyle brands- a guide to aspirational marketing, Palgrave Macmillan, London.
Schifferes, S. 2007, “ Globalisation shakes the world”, BBC News 21 January, Available from: < http://news. bbc. co. uk/2/hi/business/6279679. stm>. [02 April 2014].
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