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Apple Internal Environment Analysis Paper

Words: 842, Paragraphs: 9, Pages: 3

Paper type: Analysis, Subject: News

Apple has been very successful in the utilization of innovation to manufacture differentiated products which have created a competitive advantage to other companies in the market. The company has acquired more benefits from the sale of its products, for example, iPod Music player has been favored by many customers in the market. In June 2005 the company reported profits of $320 in the second quarter of that year. The brands of the company have been very competitive in the market. The Macintosh computers increased the sales of the company due to the acceptance by a large number of people.

The notebooks have captured a great portion of the global markets. The income of the company has increased after the adoption of product differentiation strategies. The company has a strong team of researchers who conduct continuous research about the products and market behavior. The company has been identified to promote high customer loyalty in the global market and this has created a lot of threat to the existing companies in the market. The management of the company has encouraged the use of leadership within the workplace.

This strategy has influenced the employees to contribute willingly to the goals and objectives of the company (Marketing Teacher Ltd 2010). Steve Jobs has been very good in developing strategies which relate to the current market issues. The company has well developed structures which provide the employees with all resources to manufacture excellent products. The resources of the company are adequate enough to produce competitive products. However, apple has encountered stiff competition from the competitors such as Microsoft which has a wealth of resources compared to Apple.

Internal Factors Of Apple

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There is increasing threat for the break of copyrights laws and Apple may suffer a lot from the criminal activities which promote the misuse of other people’s products for their own benefits. The culture of the company has been very strong in the maintenance of a strong market position in the global markets. A culture of risk taking, leadership, team work and others has been inculcated by the top management. The company has experienced very low employee turnover due to the proper human resource management strategies which have been developed.

The goals of the company are very clear and all the stakeholders are aware of the direction in which the company is headed for (Adam 2009). External analysis The leadership of Steve Jobs has been very good; however, he has failed when establishing some strategies. For example, the creation of retail stores was done abruptly without consultation of all the stakeholders in the company. This resulted in failure of some retail stores after some employees felt that the strategies were not owned by the junior employees but the top management.

Steve Jobs has been very ill and the management of the company has been delegated to Tim Cook. Steve has a long history of the company and understands the management of all the resources since he has been working with the company since it was founded. The election of Tim Cook has created a great threat to the efficient management of the company and the good performance that was being experienced there before might not be registered after a short time (Marketing Teacher Ltd 2010). The globalization of the markets has created more opportunities for Apple Inc. The company can market its products in many countries.

The management has maintained a good relationship with the governments in the countries where it operates. The economic turbulence in the global markets has affected the activities of the company. The global meltdown experienced by economies in the recent past affected the performance of the company. The company experienced a decline in the sales made by all its subsidiaries worldwide. The changing lifestyles have encouraged the use of computers. Many people have adopted the use of computers in their homes or at work. This provides more opportunities to the company.

Social cultural factors have always favored the company since people are shifting their demand towards the use of the electronic products; both in developed and developing countries (Adam 2009). The forces and trends that must be taken into consideration while developing a strategic plan Strategic plans are the policies that a company develops to achieve specific objectives. The management must consider the influence of politics, social cultural factors, and legal, economic and other external environment factors. The policies must align with the prevailing conditions in the market.

Internal factors to the organization must be assessed to ensure all stakeholders are satisfied and they agree with the strategies. All the stakeholders must be involved in the decision making process to ensure the decisions are accepted by all people. Strategic plans are developed for the welfare of all stakeholders and they should be used to add value. The management of the company should collect ideas from all the internal and external partners when making decisions of the company. Analysis of the company’s plans should be done by a team of experts who have a good understanding of all the processes of the company.

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