Apple Strategic report Essay Example | Topics and Well Written Essays - 2750 words

Apple Strategic report - Essay Example When one examines the financial figures from the time Jobs returned, the results are truly staggering. Essentially, he brought an organization from the brink of bankruptcy to one annually generating $25 billion dollars in net income and a stock valuation exceeding $500 per share ("Apple," 2011). While Tim Cooke assumed the CEO position after Jobs death the organization has retained its prominence. Currently Apple competes in a variety of market sectors: mp3 players, smart phones, personal computers, tablets, and they are rumored to be entering into the television market (Elmer, 2011). I. Internal Strategic Audit PESTEL Analysis Apple, Inc. competitive position involves a complex array of elements. Within this context of investigation a PESTL analysis has been established as a means of examining Apple’s market position. Political Analysis: To a large degree the organization has avoided significant political restrictions. While the United States Department of Justice (DOJ) readi ly intervenes in large business mergers, the extensive amount of competition at Apple’s level of operations is such that government intervention is not necessary. Political considerations only indirectly affect Apple through DOJ intervention in large-scale telecommunications suppliers competing for spectrum (Velazco, 2011). For instance, the government recently blocked a merger between AT&T and T-Mobile; the impact on Apple is in terms of maintaining overarching low cost services when usage patterns are considered (Velazco, 2011). One also considers the potential of foreign political risks. Currently over 50% of Apple’s sales are international and one considers the potential of such profits being affected by future political shifts related to patent or licensing concerns ("Apple's international sales," 2011). Economic Analysis: There are a number of economic considerations. One notes the macroeconomic recession shifts in both the United States and Europe hold the poten tial for a negative impact on Apple’s continued success. In these regards, one considers that Apple’s success has largely come from sales of quality electronics that necessitate a corresponding high price tag. Recessionary headwinds could potentially create a public shift towards lower cost product design. Social Analysis: In terms of social elements one considers that one of Apple’s greatest assets has been its innovative brand and marketing approach. While quality and innovation has greatly driven net profits a close contributing factor has been Apple’s branding as a chic alternative to dominant culture. While such an approach was viable when Microsoft and IBM remained dominant in the market, Apple has since become the mainstream to which they once positioned themselves. With the death of Steve Jobs one questions if they will be able to continue to maintain this cutting-edge brand. Technological Analysis: Apple’s current position in smart phones as a leading provider is most attributable to cutting edge technological design. The iPhone 4 was accompanied by the iPhone 4S in October 2011 continuing Apple’s commitment to innovation (Brown, 2011). In addition, Apple has recently implemented Siri, a voice activated recognition service. Latest reports have indicated that service providers have experienced tremendous challenges meeting data demands (Browning, 2011). Environmental Analysis: To a large extent Apple has been successful in becoming embroiled in environmental controversy. Still, recent