4. PestAnalysis
It is a simple and effective tool used in situation
analysis to identify the key external (macro
environment level) forces that might affect an
organization.
P - Political
E - Economical
S - Social
T - Technological
PEST LE PESTLE
L - Legal
T - Technological
8. ➔ Dependence on China for manufacturing.
➔ More than half of the sales of their products come from countries other
than America.
➔ Apple can become a target of growing anti-Americanism in China
➔ Large amount of cash of Apple Inc.
Political
9. ➔ Increased labor costs in China could take away the cost advantage of
some Apple products.
➔ Stagnating middle-class incomes could shrink the potential market for
higher-end consumer goods.
➔ A strong U.S. dollar could increase exchange rates.
Economical
10. ➔ Purchasing power of the common has risen in various markets across
the world.
➔ Apple products are considered as status symbols.
➔ Ethical concerns about Apple manufacturing in China.
➔ Consumers lack strong emotional attachment to Apple products.
Social
11. ➔ Competitors have shown a strong ability to duplicate Apple’s product.
➔ Growing use of other gadgets can affect the demand for Apple PCs.
➔ iOS can limit the variety of applications available to the users.
Technological
12. ➔ Level of Regulation and Government oversight can be increased by the
entrance of Apple in the financial services sector via Apple Pay.
➔ Apple is planning to enter in automobile sector. Regulatory, Insurance
and litigation costs increases.
➔ Apple could face increased level of litigation by entering in new
sectors.
➔ Apple depends on variety of products covered by intellectual property
right laws.
Legal
13. ➔ Disposal of used or non working electronic devices.
➔ Pollution and other environmental side effect from manufacturing
facilities in China.
➔ China’s efforts to cut greenhouse gases and limit fossil fuels.
➔ Concerns about energy use or other side effects from data centres.
➔ Global warming could disrupt the transoceanic shipping and Apple’s
supply chain.
Ecological