Dell pestle analysis term papers


1. Introduction

Besides, some other companies like Apple Inc and Google are playing the important role in the both sectors. In the technology industry, every large successful company has some similar strategies in quality, price, innovation, globalization, and consumer spending area [2].

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By the development of the science, an increasing number of companies invest in the technology industry. And the competition is becoming fiercer between the companies in the maturity markets and emerging markets. Most companies launch their new products with the most advanced technology or concepts in each year.

The leader in the technology industry will create the new standard or rules based on their products, and the followers always produce the products around popular standards [3]. Many median or small size companies are providing the products with low price and high performance to take the market share from the large companies.

By saturating in the western market, those technology companies are aiming to expand in emerging markets like China.

And those companies outsourced the assembling process to some Asian countries to lower the cost and earn more profit [4]. At the beginning, Apple Inc only produced easy-to-use computer to the PC market. Due to the special designing and revolutionary concepts, Apple Inc became the industry leader since Nowadays, Apple Inc is the most valuable company in the history of the world [6].

This company also brought some great applications and system, like iOS and Apple Pay to consumers as well.

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In the future, Apple Inc is going to challenge the unfamiliar industries such as car and cable. It aims to strengthen the ability of competition in the technology market. Firstly, introducing more innovations and expand its product lines. Apple Inc launches a new generation of product every year.

By improving the performance and using new technologies on the products to defeat the rivals in the mobile phone, tablets, and computer market. Secondly, Apple Inc creates more new products routinely to catch the market shares. The Apple Watch and Apple Pay become the star products and concepts in the whole market. Consumers are willing to buy the service and advanced technologies to improve their life. In the future, Apple Inc is going to compete in the traditional car and new energy car industry.

Thus, Apple Inc paid a lot attention on the customer experience to expand the unknown area in the technology industry. The Marketing strategy for Apple Inc is to build a global brand through all the markets [7]. It tried its best to keep expanding the customer base, attracting new customers, and strengthening the connection with loyal customers by launching new products and expanding on the emerging market. Apple Inc knows the importance of the emerging market like China in the world. The great number of potential consumers means huge profits to the company.

Thus, Apple Inc produced iPhone 5C to move down-market. The lower price and similar functions are good ways to increase the consumption in those kinds of markets. A PESTEL analysis is based on the macro environment of an industry and analysis how it could affect the whole technology industry. PESTEL focuses on six aspects: political factors, economic conditions, socio-cultural forces, technological factors, environmental forces, and legal factors.

The case did not describe political factors that influenced the technology industry, so the political factors are weak to technology companies, electronic devices manufacturers, and consumers. However, Apple Inc outsources its production and assembling to global sourcing, which was subject to strict producing control and must meet the requirements from foreign governments.

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Besides, the other foreign brands such as Xiaomi and Samsung may get the support, protection, and special treatments from their domestic countries, which could cause fiercer competition in the current market. The economic conditions have the strong effects on technology industry companies. Besides, the labor cost and materials cost are both affected by the general economic conditions.

Thus the price of electronic products has to change the pricing strategy in the different periods. Socio-cultural forces have the moderate effects. Consumers want to spend less money but have the similar or even better quality of products in consumption. Technological factors were also strongly affected the technology industry.

The advantages in technology are the core strengthens to a technology company in the market. Technological factors not only affect the hardware, but also decide the development of software and peripherals in the market. On the other hand, the innovation promotes the technology for the market and brings the most profits for the leader. Apple Inc is necessary to use Five Forces to access the current situation, market shares, and profitability in the current market and technology industry.

Dell pestle analysis term papers

It is helpful to evaluate the competition from new entrants, rivals, substitute, and bargaining power from customer and supplier. The force of competition from new entrants is weak to Apple Inc, because Apple Inc already built a strong brand awareness in worldwide and attracted a huge number of loyal customers in the past 40 years since Therefore, the new entrants are not easily to challenge Apple Inc at price prime market in the short time.

However, Apple Inc should not ignore some new entrants like Xiaomi with low cost in the market. In the long term, the new entrants are able to take the market share from Apple Inc in the emerging market such as China. The force of competition from substitutes is moderate to Apple Inc.

Apple Inc has a group of loyal customers due to its quality and value. However, other technology companies are able to provide the similar products to customers as well, such as phones, PC, tablets, and watch. For example, PS3 allowed customers to watch videos, surf the websites, and play the games. And Customers are willing to purchase the similar designing and quality goods at a relatively lower price in the technology market.

Therefore, Apple Inc has to introduce truly innovation new products to take market shares from substitutes. The force of competition from customer bargaining power is strong to Apple Inc, because Apple Inc is one of the large technology company in the world.

PEST Analysis

Customers have many options in the electronic products from various brands. In the software area, customers can also purchase the application from Microsoft or Google. Apple Inc has to co-work with Qualcomm to save the cost instead of studying this technology by itself.

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There are not many companies have the ability to do produce the most important part for phones and computers in the market. The force if competition from rival sellers is strong to Apple Inc in the market. Xiaomi, Samsung, and Lenovo compete with iPhone in mobile phone area. The rivals also produce the high quality products and service to consumers. However, innovation is the most valuable strengthens than its rivals. Thus Apple Inc still has the higher market share and sustainable growth in profits.

As the leader in technology industry, Apple Inc needs to find the more opportunities and creative ideas to keep the advantages in those areas. At the same time, the company has a high financial risk. Income continues to increase, indicating that the Apple Inc market continues to expand. Customers believe in the brand and have willing to buy the products from Apple Inc. Besides, the technology and innovation are the most important for Apple Inc to maintain the advantages in the market. However, we cannot ignore the price of all products from Apple Inc.

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