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How to do a pestle analysis of Apple - PEST Marketing Guide 101

 

What is PESTLE Analysis?

It is an acronym for Political, Economic, Social, Technological, Legal and Economic external factors affecting any organization. According to the preference of certain organizations, it can be reduced to PEST, or some other factors can be added such as international.

The Essay Writing Service UK has defined this as an important concept in marketing principles which helps companies analyze their working environment and take actions according to what could be beneficial, keeping in mind all relevant factors.

PESTLE Analysis and its Importance for Businesses

Before the application of any marketing tactic in a business, one must conduct a situational analysis. This is a really important step and can result in great loss for the company if skipped. PESTLE is a huge part of this and makes up a good chunk of it. Here are some reasons it is incredibly important, and why you should know how to do a PESTLE analysis:

  • It helps a company that is not too developed and experienced understand the environment it is in, so that it can take steps to flourish and fit into its surroundings better.
  • It will strengthen a company’s place in the market, thus bringing more and better opportunities towards it.
  • Customized strategies can be established to help any company function to its full potential.

In order for us to understand PESTLE more, we will have to understand what each factor in the acronym represents. They function together as well as independently, and understanding that function is incredibly important for any business.

  1. Political: These factors represent how much the government is involved in the economy of any company. This includes labor laws, tax policies, consumer protection laws, employment laws, environmental regulations and the laws associated with them according to company guidelines. The trade is affected by foreign policies and there are also certain regulations that the government imposes on an industry based on certain specifications according to it.
  2. Economic: This one includes inflation rate, exchange rate, interest rate, employment/ unemployment rate and other factors that may influence the economical sector of any company, business or organization. The future of a business depends highly on this factor, for example, exchange rates impacting the cost of imported and exported goods. This also includes interest rates.
  3. Social: A business is very much affected by the culture and society that it is a part of. These factors encompass the demographic and cultural aspects of an organization, which includes career attributes, age distribution, population and its growth rate, health consciousness and safety awareness. Understanding these will help the company understand what potential uses their business could have in the future, and work towards a set goal.
  4. Technological: We all know that the rate at which technology is evolving and developing in the present time means that it gets outdated and obsolete pretty easily. This includes dealing with factors such as the company’s technological changes, R&D activity, obsolescence rate, automation and innovation. This will negatively affect how a company stands out in the industry due to the competition being really tough.
  5. Legal: Taking care of legal matter associated with a business is one of the most important aspects of running it. You simply cannot run a company without taking legal matters under consideration, it may be the most fundamental part of it due to everything you own being at stake. This includes factors such as employment, quotas, taxation, resources, imports and exports.
  6. Environmental: This one makes sure that everything related to the environment is compatible with your business. This includes temperature, monsoons, natural calamities, access by rail, air, and road, ground conditions, ground contamination, nearby water sources, basically anything that could affect your business due to its location or set working hours. It will greatly prevent loss.

Pest Analysis of Apple - The Secret to its Success

As we all know, Apple is one of the leading electronic brands in the world today. It was found in 1976 by Steve Jobs, and grew fast with great return on investments no matter who the investor was. In the pestle analysis of apple, we will discuss all the above-mentioned factors and how they’ve affected Apple and the bottom line and long-term growth prospects of this organization. And of course, being as big as it is right now, the entire company is running on very specific settings and analysis done by the best people available in the industry. It is important to take all factors under consideration and figure out what it takes to successfully run a business this huge and successful, especially on a global scale. Let’s dive into it.

Political factors have a lot to do with this!

We’ll start with something about which a lot of buzz has been observed lately, and move on from there. These are some political factors impacting the function of Apple as a brand in some areas of the world.

This is a huge political issue that has potential to negatively impact Apple, along with its performance and market share in the Chinese market. It’s a give or take situation, so if taxes keep increasing on the Chinese products coming into the US, the Chinese government will do the same with Apple products that are going into Chine. This might seriously affect the overall business.

  • Apple in Ireland

They too had a similar dispute over taxes, but it was pretty much resolved when Apple paid more than £15 billion. Apple being a leading tax payer, issues like this can affect its financial performance and that might lead to the downfall of one of the greatest companies in the world today. What would you do without your iPhone, I ask you?

  • India

Being the third largest smartphone market in the world due to its immense population, India and Apple are all buddy-buddy due to mutual benefits that they provide for each other. Indian government approving Apple premium would further strengthen this relationship, causing even more benefits for both parties.

How do we deal with the money aspect of it?

Economic factors include both positive and negative aspects that could affect the company’s performance. Some examples of these factors include economic growth, inflation, deflation, unemployment rate and wage policies.

  • There are a lot of economically stable companies in the world currently, companies that Apple could seriously benefit from if they invested in it. The stakes are high for them and the competition is high for Apple, which means they need to jump at any opportunity and then further exploit it to get every possible benefit out of it. It would help Apple expand their business and get even more opportunities started by this chain reaction.
  • Labor cost is an important part of running an organization this big. Obviously, the people working for the company are trained professionals who require a lot of pay due to the quality of work they produce and all that they invest into the company. This needs to be kept in mind when trying to make one’s company economically stable.
  • Affordability matters. Apple has so far only been targeting high-end markets, but it is now creating premium products which allow it to get into the competition with companies like Samsung and Huawei by making its way into the Asian market, where it can be slightly more accepted now. This strategy may prove to be very effective.

Can it be seen as a status symbol?

How many people use iPhones for their amazing, user-friendly interface? We’re guessing not a lot. A lot of people get themselves used to the slight inconveniences that they would not have in Android phones (which Apple has been working to eliminate and is succeeding to a certain extent), just so they can feel the pride from owning an iPhone. We don’t know how it happened, but somewhere along the way, Apple just became more than a tech brand.

  • Smartphone devices are becoming more and more popular, so much so that their affordability has now spread to even lower classes. This is a great opportunity for Apple to expand their horizon and put out phones in the market that are affordable as well as easy to use for anyone.
  • Apple needs to maintain good relations with all countries so that business in different places is not affected. North America might not love the idea of Apple having good relations with China, business in China brings Apple a lot of benefits so they cannot give up that relationship. In this situation, all that can be hoped for is that US-China relationships improve so that Apple can make customers from all regions equally happy without offending anyone due to its relationship with others.
  • Urbanization can seriously help Apple get more popular. For example, a lot of areas in Africa still are not developed enough for Apple to be popular there. Urbanization would mean more awareness for the people, more opportunities for Apple to promote themselves and reach an audience that they can appeal to, due to them not having too much access to such technology. It would be a truly great opportunity.

Technological aspects matter!

We know that Apple isn’t exactly the cheapest option for people. Other brands create innovative technology and keep up with everything along with offering their products at affordable prices. This seriously affects Apple as a company.

  • Companies like Lenovo are doing much better when it comes to selling PCs as compared to Apple due to the fact that their products are simply more affordable for people. Maintaining their position in a specific type of market can be really difficult for Apple if this keeps up.
  • To improve its brand image, Apple can use newly emerging technologies to promote its usage. For example, cloud computing is something that is quickly gaining popularity and Apple can easily use it by offering cloud related devices and apps. This would not only help it keep up with the technologies of the world, it will get an opportunity to expand the Appstore, which is a requirement if they do not want to be left behind by other companies. Appstore has a comparatively limited selection, which needs to change because it is a cause of frustration for a lot of Apple users. A lot of basic apps need to be made available.
  • Integrating different devices is also not something Apple is mostly known for. They need to make their devices more compatible to others so interaction increases and inconveniences for customers lessen.

We can’t ever forget the law

This is a very delicate matter. These are external environmental factors that need to be closely observed and taken care of in order to maintain the good image Apple has worked so hard over the years to achieve. Let’s see what we need to protect.

  • For companies that operate on such a big scale, it is fairly easy to have people against you, like competitors trying to bring down your business. Law suits and such can seriously damage brand image, so extra care needs to be taken to prevent anything like this from happening.
  • Privacy issues are one of the most important aspects of running any business, especially one like Apple. Protecting their own privacy and their user’s identity is something Apple needs to be really careful with in order to prevent a huge blow to their business. These matters are so delicate that the slightest mistake on Apple’s part could cost them a lot of money, customers and sales. This would negatively impact the entire business to a point where they might fall out of the competition when it comes to being one of the greatest companies in the world.
  • Another future project that Apple is working on that is sure to increase the law’s watch on what they are doing is its work in the automobile industry. Apple has been trying to make its way into that industry and they have been working on it for quite a while. Apart from their telecommunication regulation that is an alarming threat to Apple, they are facing immense pressure from investors to launch their car and return the money. Litigation costs will also increase through this.

Does the environment have anything to do with this?

I’m sure you’re wondering how the environment is affecting the working of one of the biggest brands in the world. Well, it plays a huge role in it. Manufacturing costs and regulations are mostly impacted by pollution and environmental side effects. Most of Apple’s products are made in China, it has been working on providing environmentally friendly, energy efficient products like batteries with less heat emission, for example. They are also working towards decreasing electricity cost and consumption. But let’s discuss a few factors negatively impacting the company, as far as the environment goes.

  • One of the greatest issues with this is the disposal of bad or damaged devices that for one reason or another, weren’t good to use or export. The expense of disposing them could be really high.
  • Manufacturing products on this high a scale, pollution is becoming a problem in China. It is obvious that at some point, they will have to speak out about it and Apple will have to deal with this growing concern. More regulations will come forth and rules will be implemented. This may also lead to significantly higher manufacturing costs, think of it as paying rent, but as a multibillion-dollar company.
  • Apple has developed a much-needed ability to adapt to any environment it may need to. However, its high vulnerability to the increase in costs of electricity could prove to be very harmful to the overall business. It has a great dependence on data centers and other Internet infrastructure, which means constant connection with the whole world on a scale so large that it probably consumes most of the world’s power. Exaggeration for effect, but it might get to that point eventually.

Final Point

In conclusion, Apple has secured its place as one of the leading brands in the world. A remarkable feat indeed, but there are certain factors that they need to tend to and take care of at once if they wish to maintain that place in the charts. Even the slightest of negligence might result in them losing a lot that they’ve worked really hard to get over the past several decades. The problems are at a very large scale but things are very manageable right now, considering they are tended to properly and without wasting much time.

What is PESTLE Analysis?

It is an acronym for Political, Economic, Social, Technological, Legal and Economic external factors affecting any organization. According to the preference of certain organizations, it can be reduced to PEST, or some other factors can be added such as international.

The Essay Writing Service UK has defined this as an important concept in marketing principles which helps companies analyze their working environment and take actions according to what could be beneficial, keeping in mind all relevant factors.

PESTLE Analysis and its Importance for Businesses

Before the application of any marketing tactic in a business, one must conduct a situational analysis. This is a really important step and can result in great loss for the company if skipped. PESTLE is a huge part of this and makes up a good chunk of it. Here are some reasons it is incredibly important, and why you should know how to do a PESTLE analysis:

  • It helps a company that is not too developed and experienced understand the environment it is in, so that it can take steps to flourish and fit into its surroundings better.
  • It will strengthen a company’s place in the market, thus bringing more and better opportunities towards it.
  • Customized strategies can be established to help any company function to its full potential.

In order for us to understand PESTLE more, we will have to understand what each factor in the acronym represents. They function together as well as independently, and understanding that function is incredibly important for any business.

  1. Political: These factors represent how much the government is involved in the economy of any company. This includes labor laws, tax policies, consumer protection laws, employment laws, environmental regulations and the laws associated with them according to company guidelines. The trade is affected by foreign policies and there are also certain regulations that the government imposes on an industry based on certain specifications according to it.
  2. Economic: This one includes inflation rate, exchange rate, interest rate, employment/ unemployment rate and other factors that may influence the economical sector of any company, business or organization. The future of a business depends highly on this factor, for example, exchange rates impacting the cost of imported and exported goods. This also includes interest rates.
  3. Social: A business is very much affected by the culture and society that it is a part of. These factors encompass the demographic and cultural aspects of an organization, which includes career attributes, age distribution, population and its growth rate, health consciousness and safety awareness. Understanding these will help the company understand what potential uses their business could have in the future, and work towards a set goal.
  4. Technological: We all know that the rate at which technology is evolving and developing in the present time means that it gets outdated and obsolete pretty easily. This includes dealing with factors such as the company’s technological changes, R&D activity, obsolescence rate, automation and innovation. This will negatively affect how a company stands out in the industry due to the competition being really tough.
  5. Legal: Taking care of legal matter associated with a business is one of the most important aspects of running it. You simply cannot run a company without taking legal matters under consideration, it may be the most fundamental part of it due to everything you own being at stake. This includes factors such as employment, quotas, taxation, resources, imports and exports.
  6. Environmental: This one makes sure that everything related to the environment is compatible with your business. This includes temperature, monsoons, natural calamities, access by rail, air, and road, ground conditions, ground contamination, nearby water sources, basically anything that could affect your business due to its location or set working hours. It will greatly prevent loss.

Pest Analysis of Apple - The Secret to its Success

As we all know, Apple is one of the leading electronic brands in the world today. It was found in 1976 by Steve Jobs, and grew fast with great return on investments no matter who the investor was. In the pestle analysis of apple, we will discuss all the above-mentioned factors and how they’ve affected Apple and the bottom line and long-term growth prospects of this organization. And of course, being as big as it is right now, the entire company is running on very specific settings and analysis done by the best people available in the industry. It is important to take all factors under consideration and figure out what it takes to successfully run a business this huge and successful, especially on a global scale. Let’s dive into it.

Political factors have a lot to do with this!

We’ll start with something about which a lot of buzz has been observed lately, and move on from there. These are some political factors impacting the function of Apple as a brand in some areas of the world.

This is a huge political issue that has potential to negatively impact Apple, along with its performance and market share in the Chinese market. It’s a give or take situation, so if taxes keep increasing on the Chinese products coming into the US, the Chinese government will do the same with Apple products that are going into Chine. This might seriously affect the overall business.

  • Apple in Ireland

They too had a similar dispute over taxes, but it was pretty much resolved when Apple paid more than £15 billion. Apple being a leading tax payer, issues like this can affect its financial performance and that might lead to the downfall of one of the greatest companies in the world today. What would you do without your iPhone, I ask you?

  • India

Being the third largest smartphone market in the world due to its immense population, India and Apple are all buddy-buddy due to mutual benefits that they provide for each other. Indian government approving Apple premium would further strengthen this relationship, causing even more benefits for both parties.

How do we deal with the money aspect of it?

Economic factors include both positive and negative aspects that could affect the company’s performance. Some examples of these factors include economic growth, inflation, deflation, unemployment rate and wage policies.

  • There are a lot of economically stable companies in the world currently, companies that Apple could seriously benefit from if they invested in it. The stakes are high for them and the competition is high for Apple, which means they need to jump at any opportunity and then further exploit it to get every possible benefit out of it. It would help Apple expand their business and get even more opportunities started by this chain reaction.
  • Labor cost is an important part of running an organization this big. Obviously, the people working for the company are trained professionals who require a lot of pay due to the quality of work they produce and all that they invest into the company. This needs to be kept in mind when trying to make one’s company economically stable.
  • Affordability matters. Apple has so far only been targeting high-end markets, but it is now creating premium products which allow it to get into the competition with companies like Samsung and Huawei by making its way into the Asian market, where it can be slightly more accepted now. This strategy may prove to be very effective.

Can it be seen as a status symbol?

How many people use iPhones for their amazing, user-friendly interface? We’re guessing not a lot. A lot of people get themselves used to the slight inconveniences that they would not have in Android phones (which Apple has been working to eliminate and is succeeding to a certain extent), just so they can feel the pride from owning an iPhone. We don’t know how it happened, but somewhere along the way, Apple just became more than a tech brand.

  • Smartphone devices are becoming more and more popular, so much so that their affordability has now spread to even lower classes. This is a great opportunity for Apple to expand their horizon and put out phones in the market that are affordable as well as easy to use for anyone.
  • Apple needs to maintain good relations with all countries so that business in different places is not affected. North America might not love the idea of Apple having good relations with China, business in China brings Apple a lot of benefits so they cannot give up that relationship. In this situation, all that can be hoped for is that US-China relationships improve so that Apple can make customers from all regions equally happy without offending anyone due to its relationship with others.
  • Urbanization can seriously help Apple get more popular. For example, a lot of areas in Africa still are not developed enough for Apple to be popular there. Urbanization would mean more awareness for the people, more opportunities for Apple to promote themselves and reach an audience that they can appeal to, due to them not having too much access to such technology. It would be a truly great opportunity.

Technological aspects matter!

We know that Apple isn’t exactly the cheapest option for people. Other brands create innovative technology and keep up with everything along with offering their products at affordable prices. This seriously affects Apple as a company.

  • Companies like Lenovo are doing much better when it comes to selling PCs as compared to Apple due to the fact that their products are simply more affordable for people. Maintaining their position in a specific type of market can be really difficult for Apple if this keeps up.
  • To improve its brand image, Apple can use newly emerging technologies to promote its usage. For example, cloud computing is something that is quickly gaining popularity and Apple can easily use it by offering cloud related devices and apps. This would not only help it keep up with the technologies of the world, it will get an opportunity to expand the Appstore, which is a requirement if they do not want to be left behind by other companies. Appstore has a comparatively limited selection, which needs to change because it is a cause of frustration for a lot of Apple users. A lot of basic apps need to be made available.
  • Integrating different devices is also not something Apple is mostly known for. They need to make their devices more compatible to others so interaction increases and inconveniences for customers lessen.

We can’t ever forget the law

This is a very delicate matter. These are external environmental factors that need to be closely observed and taken care of in order to maintain the good image Apple has worked so hard over the years to achieve. Let’s see what we need to protect.

  • For companies that operate on such a big scale, it is fairly easy to have people against you, like competitors trying to bring down your business. Law suits and such can seriously damage brand image, so extra care needs to be taken to prevent anything like this from happening.
  • Privacy issues are one of the most important aspects of running any business, especially one like Apple. Protecting their own privacy and their user’s identity is something Apple needs to be really careful with in order to prevent a huge blow to their business. These matters are so delicate that the slightest mistake on Apple’s part could cost them a lot of money, customers and sales. This would negatively impact the entire business to a point where they might fall out of the competition when it comes to being one of the greatest companies in the world.
  • Another future project that Apple is working on that is sure to increase the law’s watch on what they are doing is its work in the automobile industry. Apple has been trying to make its way into that industry and they have been working on it for quite a while. Apart from their telecommunication regulation that is an alarming threat to Apple, they are facing immense pressure from investors to launch their car and return the money. Litigation costs will also increase through this.

Does the environment have anything to do with this?

I’m sure you’re wondering how the environment is affecting the working of one of the biggest brands in the world. Well, it plays a huge role in it. Manufacturing costs and regulations are mostly impacted by pollution and environmental side effects. Most of Apple’s products are made in China, it has been working on providing environmentally friendly, energy efficient products like batteries with less heat emission, for example. They are also working towards decreasing electricity cost and consumption. But let’s discuss a few factors negatively impacting the company, as far as the environment goes.

  • One of the greatest issues with this is the disposal of bad or damaged devices that for one reason or another, weren’t good to use or export. The expense of disposing them could be really high.
  • Manufacturing products on this high a scale, pollution is becoming a problem in China. It is obvious that at some point, they will have to speak out about it and Apple will have to deal with this growing concern. More regulations will come forth and rules will be implemented. This may also lead to significantly higher manufacturing costs, think of it as paying rent, but as a multibillion-dollar company.
  • Apple has developed a much-needed ability to adapt to any environment it may need to. However, its high vulnerability to the increase in costs of electricity could prove to be very harmful to the overall business. It has a great dependence on data centers and other Internet infrastructure, which means constant connection with the whole world on a scale so large that it probably consumes most of the world’s power. Exaggeration for effect, but it might get to that point eventually.

Final Point

In conclusion, Apple has secured its place as one of the leading brands in the world. A remarkable feat indeed, but there are certain factors that they need to tend to and take care of at once if they wish to maintain that place in the charts. Even the slightest of negligence might result in them losing a lot that they’ve worked really hard to get over the past several decades. The problems are at a very large scale but things are very manageable right now, considering they are tended to properly and without wasting much time.


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