Apple company

Marta Diana Bilogan Mvfu-09Jolanta Kostecka Fvfu-09

Business risk

Introduction

• Company activity in brief

• PESTLE analysis

• Risks and opportunities in company activity

• Risk map

• Conclusions

Company activity• Apple is an American multinational corporation that designs and

sells consumer electronics, computer software, and personal computers. The company's best-known hardware products are the Macintosh line of computers, the iPod, the iPhone and the iPad.

PESTLE analysis

• Political analysis:

Apple design, develop and market numerous product and service lines. They sell their products to education, consumer creative professional, business and government customers.

• Economical analysis:

Through January 2005, Apple has opened 102 retail stores.

Apple is holding a lot of cash

• Social analysis: • A lot of fans

• Technological analysis: • Research And

Development• Internet availability• New technologies in

related sectors

• Legal analysis: • All laws related to work

conditions, age discrimination and minimum wage

• All laws related to environment protection and requirements for recycling

• All laws related to copyrights, property

• All laws related to competition.

• Environmental analysis:• weather, climate, and climate

chance

Opportunities and risks in company

activity

Opportunities:Opportunities are external factors that influence the company’s current and future position; they are presented as offers, trends, needs that promise beneficial outcomes for the company. The production of computer anti-viruses, which are increasing on PC’s

Political-Increasing bonds and partnerships with other companies-Getting free market entries

Economical-Selling products in international markets( such as the case of iPhone in China) -Open more stores in different places in order to increase sales

Social-Focus on customer needs -Large and increasing population resulting in more potential customers of tomorrow -Use other forms of advertising apart from product placement advertising

• Political Analysis :

-Apple Inc. produces many of its parts and products outside the U.S., like Ireland, Czech Republic, Korea, China, and Cork. Political Conflicts between the U.S. and any of these states may have awful outcomes for Apple Inc.

-While apple seems to display numerous products and

conduct business on different segments, it is

legitimate to wonder what the company is really good

at? Too much diversity is exactly what can crush

Apple

-Bad international relations, wars and terrorism might influence Apple in a huge manner

• Economical Analysis :

-The global economic depression might have immense impact on Apple Inc

-Having too much cash in reserve might either mean that the company does not know yet how to allocate it

or that they may have some risk concerns about future

potential investment.

-Company is facing the risk of cannibalization and

might deeply suffer

-The U.S. dollar has lost value

-Its product expensiveness threatens Apple being undercut by low-cost imports.

-Very little market share compared to main competitor Microsoft

• Social Analysis : -Apple’s image also portrays

the modern individual’s lifestyle, combining functionality with design, leading to brand identification and loyalty.

-Apple is the globally seen as the King of technology, not because of most usage, but quality and design.

-Another big social influence is the music industry. Apple having developed the biggest virtual media store, iTunes, is well ahead any other competition of this direction.

-Media piracy: iPod users illegally downloading

music for free instead buying at iTunes

-Low presence in advertising other than products placement in publishing and educational areas

• Risk

• R&D investment will

not come through.

Apple high

investment for R&D

• Packaging new

technology inside

old design will not

come through

• Changes of

customer

preferences related

to technologies.

SMS decreasing.

• Technological Analysis :

• Opportunity

• New products. New

technologies always give

for Apple opportunities to

create successful

products.

• Risk

• Reduced output and

productivity. Case of

factories where Apple

products are

manufactured.

• Oppurtunity for competitors

copy Apple products. Case

of Samsung.

Legal Analysis

• Opportunity

• Increased protection

of products. Piracy

problems. ACTA.

• Environmental Analysis:

• Risk

• Fees

• Damage to brand

or image

• Opportunity

1.New products to meet

new regulations. More

environment friendly

products of Apple.

2. Improved or

differentiated brand.

A. political conflictsB. too much diversityC. bad international

relationsD. global economic

depressionE. lost currency valueF. CannibalizationG. expensiveness H. little market shareI. Low presence in

advertisingJ. R&D investment will not

come throughK. Packaging new

technology inside old design will not come through

L. Changes of customer preferences

M. FeesN. Damage to brand or

image.O. Reduced output and

productivityP. Oppurtunity for

competitors copy Apple products.

• Risk Map :

1 2 3 4 5

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2

3

4

5

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BC

D

E

F

G

H

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Likelihood

J

Impact

KL

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Conclusion

Apple company is impacted by several internal and external

factors for which identification helps PESTLE analysis. Such

factors put Apple in risky position as well as gives for it

opportunities.

Thank you for your attention!

Besitos:*