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Presentation Agenda

Introduction
PEST Analysis
PESTLE Analysis
Dimensions of the model
Aim of the analysis
Apple Inc PESTLE Analysis
Conclusion
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Introduction
Apple was founded bySteve Jobs,Steve Wozniak, andRonald
Wayneon April 1, 1976 to develop and sellpersonal computers. It
was named Apple Inc. on January 9, 2007 to reflect its shifted
focus towardsconsumer electronics.

Its best-known hardware products are theMacline of computers,


theiPodmedia player, theiPhonesmartphone, and
theiPadtablet computer.

Apple has continuously come up with innovative products making


it the most valuable company in the world and leaving behind all
its competitors.

PEST Analysis

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

Dimensions of the model

Government
stability
Tax policy
Trade control
Import
restrictions
Competition
regulation
Tariffs
Regulation/deregulation
Bureaucracy

Growth rates
Inflation rate
Interest rates
Exchange
rates
Unemploymen
t trends
Labor costs
Stage of
business cycle
Credit
availability
Stock market
trends
Trade patterns

Health
consciousness
Education
level
Population
growth rate
Lifestyles
Buying habits
Religion and
beliefs
Age
distribution
Family size
Minorities
Life
expectancy
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Basic
infrastructur
e level
Rate of
technologica
l change
Spending on
research &
developmen
t
Legislation
regarding
technology

Anti-trust
law
Discriminati
on law
Copyright,
patents /
Intellectual
property law
Consumer
protection
Employment
law
Health &
safety law

Weather
Climate
change
Laws
regulating
environment
pollution
Air and
water
pollution
Recycling
Waste
managemen
t
Carbon
footprints
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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.
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Apple Inc PESTLE Analysis

P
E

S
T
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Political Factors
It is reported that more than a half of sales of
their products come from countries other than
America.
Apple Inc manufactures a number of its parts
and products from outside the US, like Czech
Republic, Ireland, China, Korea and Cork.
The bad political relations between US and the
other world have bad outcomes for the
company.

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Economic Factors
Inflation, recession and currency are three
important economic factors that Apple
noticed.
Since Apple Inc products were viewed as
luxury products, therefore customers started
spending less on them.
US dollar value keeps fluctuating, however
the company has purchased itself foreign
currencies and thus, the economic effects on
the company are minimized.
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Social Factors
As the world cannot be imagined without the gadgets,
thus Apple products have marked their presence on the
international market.

As the purchasing power of the common has risen in


various markets across the world the purchasing of
luxury products have gone up.

Possessing these items are considered as status


symbols in many societies which have also increased
the sales of Apple Inc products.
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Technological Factors
Technology has a short lifetime. That is why
Apple needs to upgrade their product more
often so they will outdo their competitors easily.
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.
Company provides a platform that launches the
most innovative and technologically advanced
products well ahead of the competitors

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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.
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Environmental Factors
From reporting the entire carbon footprint to
finding ways to reduce that footprint, Apple
takes a comprehensive approach to
environmental responsibility.
Apples 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.
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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.

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