APA format essay of the attached paper. 800 words with at least 2 references.
Internal and external environment of the company
Apple is a global leading technology company that specializes in the manufacture of electronics such as computers and mobile phones. Apple Company has been in operation for many years and therefore, has developed progress in the business environment. However, several factors influence the business growth and development of Apple Company. Understanding of the environmental analysis is achieved through analysis of the internal and the external factors affecting the company.
Strengths and weakness define the internal environment of the company. Apple company has a capital of more than $ 400 billion which is accounted for by the huge sales of the company’s’ products across the globe (Khan et al., 2015). This is among the central strength of the company. The core objective of a company is to make a profit which is being achieved by the apple company.
Moreover, the company has strong brand recognition across the world (Khan et al., 2015). Through investment in distinct innovative features on its products, the company has managed to gain a strong brand. Also, through research and development, the company manufactures high-quality products which boost the company brand which is among the strengths of the company. Apple products have gained customers loyalty because they have been proven to be user-friendly and easy to use.
On the other hand, Apples faces some setbacks, which defines the internal environment. Among the weakness of the company are the low direct sales channels across the world. The company has only ten direct sales channels in the world which rank it lower than other companies (Khan et al., 2015). Another challenge faced by the company is the production of products that use iOS, in comparison with android companies use of iOS devices by customers has proven to bring difficulties which undervalues the Apples iPhones and iPods (Khan et al., 2015). Due to the nature and quality of products produced by the Apple company, the price tag of the products tend to be high compared to products from other companies which affects the sales of the company.
The external environment of the company is outlined through the analysis of the opportunities and threats faced by the company. PESTEL gives the external business environment explanation of the company. The political environment of Apple is affected by its global existence and the political atmosphere of the various locations of Apple across the world (Khan et al., 2015). Apple largest share of sales originated from outside the US which poses political pressure on Apple. Also, Apple largest supplier of its manufacturing material comes from outside the US. Unfavourable working condition among the workers of the supplier companies affects the political stability of Apple Company.
Furthermore, economic stability across different countries in the world defines the external environment of the Apple company. The global recession and collapse of several economies around the globe affect the sales volume and growth of Apple products across the world leading to a decline in profit margin (Khan et al., 2015). For example, the rising unemployment rates in the US and China affect the sales volume of Apple products. Also, the Euro crisis and US fiscal policies lead to economic burden to Apple company.
Moreover, social analysis shows that Apple company improved the designed of products. Also, the company has increased franchise outlets and acquisition together with a merger with other companies to boost its sales.
Competitive advantage and strategy used
Apple company gains its competitive advantage from the unique quality of its products as well as a developed brand (Purkayastha & Sharma, 2016). The advanced technology and use of iOS technology place Apple at a competitive edge of the market. Also, the merge with China mobiles has increased the competitive advantage of Apple across the world.
The strategy that is used by Apple company to remain competitive is the continuous innovation in their products which is facilitated by hiring and retaining of highly talented human resource in the company (Purkayastha & Sharma, 2016). High-end products are created using the most sophisticated technology of both hardware and software on the products. Apple products share similar iOS, applications and software that reduces the threats, budget and period of the products development (Purkayastha & Sharma, 2016). Among the other strategies that are used by the company include premium pricing, product segregated strategy, low cost, less but integrated products, global cheaper marketing and low focus on market share (Purkayastha & Sharma, 2016).
Measurement guidelines used to verify strategic effectiveness
Apple company has been able to measure its strategic effectiveness which is evident through the high customers turn out for the purchase of new products when the company launches a new product in the market (Jinjin, 2013). Apples have achieved customers loyalty through the roll-out of products that are of high quality and meeting the needs of customers.
Effectiveness of the measurement used by the company
Apple products are targeted towards a specific group of people which has enabled it to be effective in the strategy used. Apple tough decision on the target customers and products allows it to be effective in the market. The limited focus on specific products such as iPhones has enabled Apple company to be efficient in its business across the world.
Jinjin, T. A. N. (2013). Strategic Analysis of Apple Computer Inc. & Recommendations for the Future Direction. Management Science and Engineering, 7(2), 94.
Khan, U. A., Alam, M. N., & Alam, S. (2015). A critical analysis of the internal and external environment of Apple Inc. International Journal of Economics, Commerce and Management, 3(6), 955-961.
Purkayastha, A., & Sharma, S. (2016). Gaining competitive advantage through the right business model: an analysis based on case studies. Journal of Strategy and Management, 9(2), 138-155.