PESTLE Analysis Mark Fielding-Pritchard 1

Introduction  Introduction  PEST Analysis  PESTLE Analysis  Dimensions of the model  Aim of the analysis  Apple Inc – PESTLE Analysis  Conclusion 2

Introduction Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1, 1976 to develop and sell personal computers. It was named Apple Inc. on January 9, 2007 to reflect its shifted focus towards consumer electronics. Its best-known hardware products are the Mac line of computers, the iPod media player, the iPhone smartphone, and the iPad tablet computer. Apple has continuously come up with innovative products making it the most valuable company in the world and leaving behind all its competitors. 3

PEST Analysis 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. 4

PESTLE Analysis PESTLE PESTLE 5 Incorporating the Legal and Environmental dimensions in the model makes it more comprehensive and gives better results.

Dimensions of the model Political Government stability Tax policy Trade control Import restrictions Competition regulation Tariffs Regulation/de- regulation Bureaucracy Economic Growth rates Inflation rate Interest rates Exchange rates Unemployment trends Labor costs Stage of business cycle Credit availability Stock market trends Trade patterns Social Health consciousness Education level Population growth rate Lifestyles Buying habits Religion and beliefs Age distribution Family size Minorities Life expectancy 6

Technology Basic infrastructure level Rate of technological change Spending on research & development Legislation regarding technology Legal Anti-trust law Discrimination law Copyright, patents / Intellectual property law Consumer protection Employment law Health & safety law Environmental Weather Climate change Laws regulating environment pollution Air and water pollution Recycling Waste management Carbon footprints 7

Aim of the Analysis Find out the current external factors affecting an organization. Identify the external factors that may change in the future. Exploit the changes (opportunities) or defend against them (threats) better than competitors would do. 8

Apple Inc – PESTLE Analysis PESTLE 9

Political Factors 1 It is reported that more than a half of sales of their products come from countries other than America. 2 Apple Inc manufactures a number of its parts and products from outside the US, like Czech Republic, Ireland, China and Korea 3 The bad political relations between US and the rest of the world have had implicationsfor the company. 10

Economic Factors 11 Inflation, recession and currency are three important economic factors that have affected Apple. Since Apple Inc products were viewed as luxury products, therefore customers started pending less on them. US dollar value keeps fluctuating, however the company has purchased foreign currencies and thus, the economic effects on the company are minimized.

Social Factors Possessing these items are considered as status symbols in many societies which have also increased the sales of Apple Inc products. As the purchasing power of the common has risen in various markets across the world the purchasing of luxury products have gone up. As the world cannot be imagined without gadgets, thus Apple products have marked their presence on the international market. 12

Technological Factors 1 Technology has a short lifetime. That is why Apple needs to upgrade their product more often so they will outdo their competitors easily. 2 Apple Inc has invested largely in its product research and development field and thus its products are at the top of the new innovative products ranking. 3 One of the most innovative and technologically advanced products is the iPod which marked the demise of walkman. 13

Legal Factors Apple Inc has been a participant in various legal proceedings and claims since it began operation. In October 2009, Nokia Corporation sued Apple for Apple's infringement of Nokia's patents relating to wireless technology Apple has been in a number of patent cases with players like HTC and Samsung. 14

Environmental Factors From reporting the entire carbon footprint to finding ways to reduce that footprint, Apple takes a comprehensive approach to environmental responsibility. Apple’s commitment to the environment includes properly disposing of electronic equipment at the end of its useful life. It responsibly recycle your computers and displays. On track towards achieving an ambitious goal: to power every Apple facility entirely with energy from renewable sources — solar, wind, hydro and geothermal. 15

Conclusion PESTLE Analysis is one of the most comprehensive models to study the effect of various forces present in the environment and subsequently prepare oneself to exploit the opportunities and defend against the threats. 16