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Strategic Analysis of Apple - Essay Example
Apple Computer, Inc., commonly known as Apple Inc., is a US based multinational company involved in manufacturing and marketing of several consumer electronic products. …
The company is also the second largest publicly traded company in terms of market capitalization. As of 2012, the company had 394 retail stores spread throughout the world (Apple Store, 2012). The total revenue of the company for the financial year 2011-12 is $156.508 billion and the net income was $ 41.733 billion. The current employee strength of the company is around 72,800 people and has presence in many parts of the world (Golson, 2012). Some of the competitors of the company are Samsung, Nokia, LG, and Motorola among the others (NASDAQ, 2012; Gallo, 2012).
This report will analyse the issues Apple is currently facing and also how the company is dealing with it. It will be divided into 5 sections; the first and second section will cover the external and internal analysis of the company. The third and fourth section will shed light on the challenges faced by the company and how they are dealing with it. Finally, the last section will conclude the project.
Part I – External analysis
The external analysis of a company is about analysing the external business environment of a company (Monczka, 2000). In order analyse the same, the report will use PEST analysis and Porter’s five forces analysis.
Political factors: - The technology businesses remain highly dependent upon the political scenario of a country. Moreover, it also needs to depend on the rules and regulations of the operating country. However, the government of USA has always encouraged products which are innovative and trendy. Moreover, the political scenario of the country is highly stable which provides an opportunity for the company to further develop its R&D infrastructure and come up with innovative products.