External Environmental Scan on Apple

Yorkdale Apple Store

Environmental Scan

Competition

* Many competitors in the market

* Although there are many competitors, there are only a select few that would truly pose a threat to Apple

* Causes Apple to constantly strive to improve their products

* Other competition also located in the same Mall

* Microsoft Store, Mobile Booths selling other phones, etc.

Technology

* Electronics market changes very quickly

* Technology is always being improved

* A brand new product, maybe irrelevant in 6-months time, as technology moves so quickly

* Apple is forced to constantly invest into improving their products in an attempt to give them an edge over other companies

* Apple also uses a lot of the same technology in many of their products, which is a true testament to how well they have their technology under wraps

Political/Legal

* In today’s society, businesses no longer compete on the product level, they also compete on the legal level

* Constant patent/legal battles with other businesses

* Apple vs Samsung

* http://en.wikipedia.org/wiki/Apple_Inc._v._Samsung_Electronics_Co.,_Ltd.

* Apple vs Motorola

* http://en.wikipedia.org/wiki/Motorola_Mobility_v._Apple_Inc.

* Apple’s constant allegations of producing their products in sweatshops

* http://www.dailymail.co.uk/news/article-2103798/Revealed-Inside-Apples-Chinese-sweatshop-factory-workers-paid-just-1-12-hour.html

* Always under the scope for pricing their products so high, when their cost is relatively low ($700 MSRP, can be built for $250 or less)

* http://www.isuppli.com/Teardowns/News/Pages/iPhone5-Carries-$199-BOM-Virtual-Teardown-Reveals.aspx

Social/Cultural

* Apple markets themselves as a life-style

* http://www.kingfishmedia.com/ThinkTank/bid/97423/The-Apple-Lifestyle-vs-The-Samsung-Device-Tale-of-the-Tape

* Their advertisements cause consumers to want to buy into...