P)olitical factors affecting Apple

Political factors are all to do with politics in each country and the world and relation to
the country. For example, the type of government leadership affects the decisions made
by a country, also the tax laws, policies and tariffs a government levies over a trade.

In Apple’s macro-environment, the most significant political factors present a lot of

opportunities. The most important political external factors for Apple are improving
trade policies and too stable politics in developed countries, these are both
opportunities for Apple. Especially with developing countries, over time more free trade
policies are created. Apple’s opportunities are increased because they can distribute
more of their various different products around the world due to additional free trade
policies.

Moreover, opportunities are presented to Apple because of the stability of the political
landscape in developed countries. This is because Apple can expect very little if any
political issues affecting its business in these countries. Overall in the political part of the
PESTEL analysis by taking advantage of the different political opportunities in its marco-
enviornment Apple can improve its performance.

According to Abhijeet Pratap, October 2015‘’ it is a lower cost to manufacture products

in China and Apple are dependent on this. Manufacturing can be disrupted in china due
to political and social unrest and increase manufacturing costs’’.

(E)conomic factors that are important to Apple

Economic factors is to do with all the factors affecting the economy and the condition
its in. For example, interest rates, the inflation rates, fiscal policies and imports and
exports that are affected by foreign exchange rates. All the above things will determine
the direction the economy will move, therefore Businesses like Apple analyse economic
factors based on their environment so that they are able to build different strategies
that will fall in line if any changed in the economy occur. According to February 2017
‘’There will be higher purchasing power for customers so therefore more sales for Apple
due to better economic performance of the global economy’’.

For Apple opportunities are created by nearly all of the external economic factors in
their remote macro-environment. The most significant external economic factors for
Apple are rapid growth in developing countries and stable economies in developed
countries. Apple are able to extend their business due to the economic stability of
developing countries. This is very important for Apple to be able to expand because it
will make them a bigger business and will create more revenue. although, the rapid
growth of developing countries is more significant. For example, in Asian countries the
high economic growth are massive opportunities for Apple to increase sales in these
foreign markets. To become more successful Apple must ensure that they can effectively
exploit these huge economic opportunities. Speed is very important because Apple’s
competitors like Samsung will be looking to target these high growth economies.

(S)ocial/Sociocultural factors influencing Apple’s

business environment
No country is the same and every country has a unique mindset. Sales of businesses
products and services can be impacted by these different mindsets. To understand the
market and consume better businesses like Apple study the cultural implications, the
social lifestyles, the gender and connected demographics and the domestic structures.

Social and sociocultural factors are effects that subject Apple’s business. The most
significant social or sociocultural factors to Apple are rising the use of mobile access and
rising the use of social media, these are two opportunities for Apple. If Apple continue
to provide easy to use mobile devices, the trend of increasing mobile popularity of
mobile access ins an opportunity. Apple have already pounced on the opportunity by
creating the iPhone, iPad and Apple Watch.

Moreover, in today’s world social media is becoming more and more populate so
therefore the rising use of social media is also an opportunity for Apple as it will
increase the demand for their digital products such as the iPhone or iPad where users
are able to download lots of popular social media apps. Therefore, Apple have major
opportunities in the social/sociocultural environment they need to stay one step ahead
of their competitors.

According to Mintel (2016), there is a behavioural shift in the way customers are using
smartphones that is progressively causing tablets to lose their Unique Selling Point
(USP)