Running head: EXTERNAL AND INTERNAL ENVIRONMENTS 1

External and Internal Environment of Apple Inc.

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Internal and External Environments

The environment in which a business operates is established with factors (internal and external) that

impact the organization's activities. Internal and external elements affecting the business operations have gone

up with the nature of the business environment and with the changes in the operations of the business. The

article will analyze the impact of environmental variables on the business operations of Apple Incorporation in

the scope of their corporate activities, the SWOT analysis, future improvements strategy implementation,

planning, decisions, resources, capabilities and core competencies and the forces of competition.

General Environment

Environmental variables impacting company activities may be classified into six categories: political,

economic, sociological, technical, legislative, and ecological. According to Khan et al (2015), in terms of Apple

Incorporation's current activities in the global industry, the two most influential variables for Apple are

technology-based and legal considerations.

Technology based considerations

As an informational and technological company, Apple is committed to constant invention and

inventiveness in its operational procedures to improve the usability of its items and services. Advances in the

digital landscape have raised the demand for businesses to improve their efficiency and output. Expanding the

number of services provided in the global industry and diversifying other technical powerhouses in the phones

and computers sections has narrowed the range of Apple's operations.  Notably, Apple is working to broaden its

items and service providers to increase market potential in foreign industries (Aljafari, 2016).

Legal based considerations

Apple has continuously been in and out of legal wrangling with its rivals and critical stockholders in

terms of legal impact. The famous struggle between iPhones and Samsung Galaxy phone features significantly

influenced the businesses' brand images of both companies. Both businesses alleged that the other firm had
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copied their design. Aside from that, Apple has had significant issues with its labor organizational systems in

China in the recent past. Aside from that, the partnerships amongst the company's senior administration have

occasionally questioned the company's legal regulations.

Forces of competition

The new entrant’s risks

The obstacles to entry into the telecommunications field have been decreased during the last decade

because of the extraordinary reductions in capital investment and government initiatives. New companies have

had a significant influence on Apple's global sales in the mobile phone business, particularly in Asian regions.

Rivalry in the marketplace

Apple is among the best-known corporations in the global market. Apple products have been popular

for decades, thanks to their beautiful designs and user-friendly interfaces. Despite this, the company has a good

number of competitors. Apple competes with a broad array of opponents in personal computers, smartphones,

and even the performing arts industries. PC manufacturers are a large part of Apple's main competitors in the

market. Among Apple's biggest competitors is Dell Technologies, which makes desktop and mobile computers.

Dell and Apple had had a long-standing competition, with Dell even trying to take a piece of Apple's share of

the phone streaming server market with the Dell DJ, which was billed as an early competitor to the iPod when it

launched. Even though Dell does not retail cellphones, it has been involved in several purchases and other

partnerships in recent years. Lenovo Group is another computer manufacturer that competes with Apple. This

Chinese business sells computers and other electrical equipment. Lenovo competes with Apple in a broad range

of product areas using this strategy.

Given the current state of the business, competitive competition in the technology industry is quite

intense. Companies like Microsoft and Google are attempting to expand their marketplace presence by
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purchasing other companies. According to the above explanations, the two identified factors that have the most

significant influence on Apple's operations are the prices of alternative items and consumer negotiating power.

Future advancements

Apple's strategic alternatives should revolve mostly around improving the merchandise framework and

expanding its presence in the world's growing markets. Apple's items and service framework are still following

in the footsteps of late CEO Steve Jobs' innovative path. Since the introduction of iPhones, iPads, and iPods, the

modifications in their subsequent generations have been minimal. This demonstrates that Apple has been unable

to maintain its dominant position in the world market. In terms of buyer negotiating power, Apple's trademark

equity should be able at all times to keep its client base from migrating to other companies. I predict that as the

number of alternative businesses and new startups grow, consumer loyalty should vary soon. Due to this, Apple

should strive to provide consumer offers that are rare and discover unique selling factors that will assist them in

connecting people with their trademark. Apple's principal goal in dealing with these challenges should be to

improve the resilience of its processes in terms of client relationships and functional performance.

External opportunities and threats

The engagement of technology tools in the social realm has risen quickly and has, in return, increased

the need for new corporate equipment. The market for mobile phones and tablets is relatively high, encouraging

new companies to enter the industry. Apple's rising product sales have enabled them to preserve the integrated

uniqueness of its devices. Nonetheless, the former potential of a free market framework willing to test out new

goods is the final aspect that can expand Apple's area of operations. Regarding risks, the most significant aspect

is the rising contest in the mobile industry, where the emergence of cheaper substitutes has decreased customers'

brand switching costs and harmed Apple product sales. Aside from that, customization features in Apple goods

are restricted in contrast to other comparable items in the market, which is a drawback to Apple items. Apple's

merchandise innovations have also slowed after Steve Jobs retired from the business. Other concerns include
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the global market's unstable economic environment, which might negatively affect highly-priced goods and

services sales.

Strength and Weaknesses of the company

Apple's predominant advantage is its strong brand recognition and ownership in the global marketplace.

Apple's marketing procedures are one of the essential functional divisions of their business, and they involve

creative techniques for releasing new goods and services. Apple has always attempted to include its

fundamental principles into its advertising methods to involve customers in the company growth process and

build brand allegiance. Apple's supply chain method is another critical vital aspect for the firm. They have

always concentrated on simplifying the business's activities to decrease operational expenditures and provide

more control. Apple's major drawback is its inflexible product chain, which is highly expensive compared to

other options in the market and the products' incapacity to sync with other gadgets running various operating

systems. This limited product selection may also entice customers with specific demands to switch to other, less

expensive brands, reducing Apple's overall revenue-generating and market activity.

Strategy

Apple can acquire smaller companies that can create newer goods and services to increase the firm's

competitive edge in the marketplace. When it comes to consumer negotiating power, Apple's brand has been

able to keep its customers from migrating to rival brands. Brand loyalty may change in the long haul as the

number of alternative businesses and new participants in the market increases. As a result, Apple should strive

to create consumer offers that are rare and find the unique selling factors that will assist them in engaging the

clients with their identity. Apple's primary goal for both concerns should be to ensure the efficacy of its

processes concerning both client interaction and operational performance.

Core Competencies, Resources, and Capabilities

The fundamental strengths of Apple Inc. are comprised of about six resources or skills. For example, its

internationally famous product is a central competence because it is precious, uncommon, also tough to

replicate, and the corporation is designed to capitalize on this brand as a competence based differentiator.

Processes of Apple are made for invention, since it is a crucial success element. Van De Vliert (2021) explains

that the supply helps the firm withstand a significant degree of invention, predominantly perceptible in physical

goods such as the iPhone. Additional of Apple's core experiences is the environment of related goods. This skill

entails items that complement one another. If customers have a product of Apple like a MacBook, they are

prone to make a purchase of Buyers are more likely to buy an iPhone and also other online products. From this

environment of connected things, competitors have a tough time attracting clients who own Apple devices.

The Apple Incorporation also has lengthy competitiveness in terms of exposure to consumer data, which

comprise device type and version, geographical area, web applications, and many more, based on the security

settings of specific customers. Notwithstanding privacy restrictions, the firm's substantial international customer

network help in the gaining of vital data to back invention and fresh item innovation, advertising strategies,

corporate finance, and strategy implementation.

Moreover, Apple's advanced analytics abilities offer the company a competitive advantage in providing

easy and quick services. For instance, the firm creates artificial intelligence for services such as Siri and other

similar tasks. The firm's global supply chain continues to be emphasized as a vital strength. The company keeps

a durable competence gain in portion given the international networks of positioned licensed suppliers and

merchants. This link make things easier for the firm’s planned goals and attempts to achieve potential

consumers all around the world. Furthermore, competent employee’s remuneration program are a feature that

assists the firm in retaining an extremely qualified staff that promotes speedy improvement. Nevertheless, in

Apple's scenario, this capacity is a non-core talent because other technological firms, like Amazon, Google,

Microsoft, and Intel, also provide the same program for the staff. In this regard, Apple Incorporation’s
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workforce development skills to enable improvement are shared by companies in the computer technologies,

consumer devices, and online services areas. The rising diversification of the company's product mix reflects

deliberate attempts to decrease the business's market risk.

Conclusion

According to the paper, Apple's business approach has been focused on leveraging trademark identity in

the worldwide marketplace. The firm has already distinguished itself as a forerunner in the technological field,

but it must secure its long-term viability. Apple has a solid capital base, and its flawlessly regulated operational

activities must help them maintain its position at the top of the global market. The paper has adequately

discussed the firm’s SWOT analysis, the future performance and also the forces of the competition.
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References

Aljafari, A. (2016). Apple Inc. industry analysis business policy and strategy. International Journal of Scientific

& Engineering Research, 7(3), 406-441.

Khan, U. A., Alam, M. N., & Alam, S. (2015). A critical analysis of internal and external environment of Apple

Inc. International Journal of Economics, Commerce and Management, 3(6), 955-961.

Van De Vliert, D. (2021). Apple iPhone: A Market Case Study. MacEwan University Student eJournal, 5(1).