- Business-Level and Corporate-Level Strategies

1

External and Internal Environments

Tyrell Wilson

BUS499 Business Administration Capstone

Dr. Brian C. Grizzell

February 13,2023

External and Internal Environments

The discussion in this paper will majorly focus on Apple company. Factors that influence the company from within. As well as the aspects that impact the company from the outside. These factors can impact the company's performance. The most significant forces of competition for Apple will be evaluated, as well as providing predictions on how the company could improve its potential in addressing the forces. To comprehend the company attributes that influence daily operations and productivity, the most significant threats and opportunities, and the best approach to maximize Apple’s strengths and minimize its weaknesses.

General Environment

The general environment is also termed the macro-environment; it refers to the aspects that impact the performance and productivity of the company; these factors are beyond the company’s capacity to control. This section is going to discuss two segments that influence Apple company. The most significant segments are technology and social factors. These factors dictate whether the company encounters opportunities or limitations in the market.

Technology factors

External technological factors in Apple's macro-environment provide opportunities for the company overall. Among the most important technical aspects to consider when evaluating various technological factors based on their impact on business conditions are: Adoption of cloud-based computing is increasing. Rising mobile market and advancing technological incorporation in enterprises. Other companies' technological abilities are expanding.

The mobile market expansion offers Apple a chance to increase earnings.

However, the technological advancement of other businesses poses a risk to the organization since more fresh competitors could enter the market (Qiu, 2023). To achieve Apple Inc.'s aims and goals, it is essential to enhance business competencies so that the company may seize chances and protect itself from risks from rivals. Expanding the cloud platform can optimize the company's revenue by providing cloud-computing services utilizing this potential and Apple's support. Therefore, the chance to grow the firm by offering its technological products and solutions accessible to more consumers, particularly organizations, is presented by the external policy component of extending technology integration.

Social factors

This element draws attention to the socio-cultural and environmental aspects that affect customer anticipations and habits. In the case of Apple, several socio-cultural tendencies are essential in the global or macroenvironment: escalating use of mobile devices. Rising reliance on digital technologies.

The increased prevalence of mobile access presents a potential business opportunity for Apple Inc. This outside factor is tied to the growing desire for smartphones and tablets. The increasing reliance on digital technologies is a further sociocultural development that presents Apple with the potential to enhance sales of its products due to rising demand (Zeng, 2021). The company must deal with social criticism of its commercial methods in addition to these opportunities. These opinions can harm the company's technology products' reputation and customer confidence. These sociocultural aspects emphasize the significance of Apple Inc.'s CSR strategy. Clients, authorities, and other parties are satisfied with such an approach.

Five Forces of Competition

Forces in the competition refer to various factors that hinder a company’s profitability, which corresponds to slow growth and expansion of the companies in the industry. These factors are majorly categorized into two diverse classes. This section is going to analyze two forces among the five forces that are most significant to Apple company.

Competitive rivalry

Competitive rivalry determines the power of competing businesses and how they will ultimately affect one another. Companies like Google and Dell are Apple's key competitors. As a result, the technology sector is subject to intense rivalry. The fierce rivalry among these companies is the cause of the industry's intense competition. Since the items these companies offer are comparable, affordable shifting expenses make it easy for consumers to shift to other companies. Therefore, these outside variables combined make Apple's competitive rivalry fierce. For Apple, it is crucial to innovate and consistently provide distinctive goods for its devoted consumers.

Apple also has a competitive edge thanks to how its products are made. The business has always prioritized giving customers experiences rather than just products. Each Apple product is designed to offer a better user experience than its rivals.

Bargaining power of buyers

This force illustrates how customers' purchasing choices may affect the company. Owing to Apple's situation, where there are limited individual customers, minimal shifting expenses, easy access to information, and excellent consumer devotion, consumers have a medium to a substantial degree of bargaining power. Apple offers its merchandise to many clients, which weakens the buyers individually (Chen et al., 2021). Consequently, buyers as a whole have significant bargaining power. Consumers can swap brands more easily thanks to lower shifting expenses, which gives consumers the power to pressure Apple and other rival firms. Data availability has made it simple for consumers to compare the products of competing businesses, making switching brands simple.

Future improvements

Enhancing the generic approach in broad differentiation can help Apple overcome its rivals' competitive battle. This overarching strategy emphasizes crucial traits that distinguish the company's modern tech offerings from those of competitors. Apple's primary strategy of broad differentiation helps them stand out from the competition in the market.

Apple invests many resources in Research and development to produce exceptional, cutting-edge products to solve these problems and encourage customer loyalty. 

Greatest External Threat

Increasing competition

Competitor threats for Apple range from supply chain disruptions to new companies being formed. Given that the competitors provide products similar to Apple’s product or offer.

Even though its brand is more well-known, Apple always faces risks from competitors. Firms like Samsung and Dell are competing with Apple in the technological sector. As a consequence, the technology sector is subject to intense rivalry. These big businesses, like Apple, have a ton of investing money. The best option for Apple to stay ahead of its rivals as competition heats up is to develop unique and efficient technologies and revise the prices to accommodate consumers across social classes.

Greatest Opportunity

Constant customer growth

Apple has controlled the technology sector for many years. They provide first-rate solutions and innovative technologies to enhance customer satisfaction. Their consumer retention rate of 92 percent is astounding. There will constantly be opportunities for Apple to find new customers and establish new business relationships because of the influence of the internet. Due to its significant client expansion, the company currently has the opportunity to increase sales volumes through vigorous marketing, especially for mobile products. 

Strengths and Weaknesses

Apple's internal elements, unique to the conditions within the business structure and its technical capacity, allow it to combat shortcomings, seize advantages, and endure challenges in its corporate technological environment (Van De Vliert, 2021). In this instance, Apple Inc.'s most prominent advantages were its excellent brand recognition as one of the most valuable in the world, its large profit margins due to expensive charging, and its efficient, swift creative procedures relying on a long record of technological advancement. Apple needs to improve technology, product growth, and marketing. The three most significant limitations of the Apple corporation are its reliance on sales in high-end market sectors, its restricted delivery channel, and its premium selling costs.

Strategy

By employing these abilities, the company can benefit from opportunities like expanding its customer products supply chain. The company may also successfully develop and launch new and distinctive tech solutions by leveraging its strong brand reputation and speedy, creative processes. Maintain the company's quick-thinking, competitive approach to product development. Technological advancement has lessened the negative impacts of copying (Podolny & Hansen, 2020). It is also suggested that Apple boost production procedure automation and support contract manufacturers' automation to counter rising labor costs. More stores should be associated to expand the market presence for the firm's consumer electronics products.

Resources, Capabilities, and Core Competencies

As an international technology behemoth, Apple has access to resources such as patents, staff, a leadership staff, a well-known brand name, a devoted consumer base, and a solid economic and technical basis. The capacity of a company to adapt to the quickly changing business environment through the integration, development, and reconfiguration of internal and external competencies is one of Apple's capabilities. Apple's main fundamental competency is innovation. A few examples of the innovative and unique products they have produced in the past include the iPhone, iPad, Apple TV, and Apple Watch.

Sources

Chen, X., Liu, Y., & Gong, H. (2021). Apple Inc. Strategic Marketing Analysis and Evaluation. In  2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021) (pp. 3053–3061). Atlantis Press. 10.2991/assehr.k.211209.499

Podolny, J. M., & Hansen, M. T. (2020). How Apple is organized for innovation.  Harvard Business Review,  98(6), 86-95. Retrieved from: https://empowerment.ee/wp-content/uploads/2021/03/How-Apple-Is-Organized-for-Innovation.pdf

Qiu, H. (2023). Analysis of Apple Inc's Business Model Based on the SWOT Model and Financial Ratios. doi.org/10.2991/978-94-6463-098-5

Van De Vliert, D. (2021). Apple iPhone: a market case study.  MacEwan University Student eJournal,  5(1). https://doi.org/10.31542/muse.v5i1.2010

Zeng, L. (2021). An Analysis of Apple’s Internationalization Strategy.  International Journal of Frontiers in Sociology,  3(17). DOI: 10.25236/IJFS.2021.031716