Essay Sample on Apple Inc. - PASTEL Analysis

Strengths

Apple Inc., for the longest time, has enjoyed growth in sales since it diversified from its leading brand, private computers. The strength appraisal confirmation that Apple is fronted by a big trademark. Additionally, the organization enjoys a strong acknowledgement because of its belligerent landscape towards innovations and creativity (Schmeiser 2008). The company’s inventive approach saw an increase in investment in R&D. In sales, it increased because it used both skilled and practising sales representatives. For instance, Apple has placed most of the sales outlets branches in areas with high traffic; hence that strengthens the revenue base of the company. According to Gansky (2017), Apple’s trade name gives it cutting the hedge, and its clients can struggle themselves to get the product at all costs. Finally, the company’s products are rated easy to use and understand, which gives it a plus.

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Weaknesses

Apple, as one of the biggest IT firm, it comes with its fair share of challenges and responsibilities. Based on its internal evaluation, apple came out as having an elaborate strategy for enhancing its sales; there were some of the aspects which brought the organization’s efforts back (Porter et al. 2006). First, the organization had its sales outlets in thirteen countries globally (Torres et al. 2012). Generally, the company has dependent highly on iPod and iPhone as the ultimate products, which boosts its sales (Biddle 2014). Another bottleneck is that all the business’s hardware units are limited to iOS, which creates it to be hard for it to integrate with other software (Ren 2015). Compared to its competitors, who use commonly known operating systems like android face no such challenges. It has been in the public domain that Apples’ are more of luxury products because they are premium priced. Nair (2014) believe that an ordinary consumer would opt to use their resources on more productive products than going for the expensive apple’s products. With the change of management resulting from the demise of Jobs, a lot has changed. The changes have affected the company (Jeffrey and William 2005. Currently, the growth of sales is recording a downward trend, hence shrinking overall market share.

External Environment-PASTEL Analysis

The firm is always subjected to several political challenges, because of the many contracts more precisely in Asia (Farber 2013). Besides, the cost of the sales that Apple enjoys is not from within the US but rather from other countries. Thus, any political uprising across the globe may leave the company at a disadvantage. Recently, Apple Inc. has experienced some political bruises, being accused of negligence of works (Team 2013, Perera 2017). With a long working hour and suicidal cases of it, the staff has been a big blow to the company. According to Torres et al. (2012), an explosion in one of the company’s outlets leads to injuries and fatalities to some of its staff. Political challenges facing the company are not narrowed to an abroad insurgence. Domestically, the company is dealing with legal issues (SHTAL et al. 2018). Last year, Apple had to reinstate imports of its additional shares used in the iPhone, which had been barred earlier by the American administration. US stringent environmental and labour laws also make it hard for the business to remain competitive in the industry.

Social analysisApple has been making tailor-made products, which are well suited to the demands and needs of its clients (Policy 2016). For the company to achieve the above, it has been involved in several coalitions and acquisitions. In 2013, the escalated trend in sales of apple’s products saw the company make more investments across India through the commissioning of franchises (OGrady 2009).

Analysis of Technology

For innovative entities, information technology for the last decade has been the highest earner across all industries. Apple has been the phase setter in the business of electronic products, occasioned by its constant innovations. According to Cohan, P. (2012), leveraging on innovation and tailor-made products, the company has retained approximately half of its client base. In early 2013, the firm signed a contract with China mobile, which saw several subscribers from the China Mobile migrate to Apple. Collectively, the move saw the client base of Apple Inc. increase and also gave the company a milestone in the Chines growing economy. Besides the perceived gains that Apple has been able to achieve, it has not been without some drawbacks. Apple, therefore, will have to spend much in R&D for it to remain competitive. The strategies of Apple’s products are distinctive, but clients need a customized screen size. Commonly, the company also uses a third party shared software, which poses some challenges in case the contract does not last.