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Apple's Expansion

In: Other Topics

Submitted By sakshi921
Words 331
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PEST Analysis
To gain an understanding of Apple’s business potential, direction of operation and to know situation of future market, we will use PEST analysis.

Political Factors
There are many problems which cannot be controllable by the company such as; geopoliticaluncertainties, war against terrorism, authority to work and health issues which can affect the sale of
Apple’s product worldwide. As to reduce operating cost Apple has outsourced in different countries like Ireland, China, Korea, Czech Republic and Cork. If these countries face any political instability or any problem which causes to delay in manufacturing operations, will led to spoil the Apple likeness in theeye of consumers and its dealers (CNetnews 2012).
Economic Factors
Purchasing power depends on the World’s economic conditions. According to past few years,unemployment rate is very high in many countries which cause to decrease the sale of Apple products.Another reason was increase in oil prices which causes inflation in world’s economy. As a result of theseeconomic factors, purchasing power of people reduced which negatively affected the sale of Apple products due to its higher price. But now world’s economic condition s are getting better and companyhas purchased itself foreign currencies, so Apple revenue has increased in the global market (Apple Inc2012).
Social Factors
Two factors always have been on forefront of Apple product throughout the history, the design and thequality. The purchasing of luxury products have gone up because the purchasing power of consumers hasrisen in different market across the world and people prefer to buy iPod, iPhones and latest technologyiPad. As music industry growth has increased which is the biggest social influence on Apple because themain essential music store is iTunes. Therefore, Apple has gained so much from social factors because it’s defining a

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