External and Internal Environmental Analysis - Apple Research Paper

External and Internal Environmental Analysis - Apple - Research Paper Example The current business environment is volatile and changing. In order to survive and thrive in this competitive environment, firms will have to monitor and analyze the internal and external environment conditions before taking any business decision. In the present research paper, an external and internal environment analysis of Apple has been done. EXTERNAL ENVIRONMENT External environment can be described as the factors, entities, conditions and events surrounding a firm, which influence its choices and activities. In a multinational organization, external environment analysis is essential. Apple is a global organization operating worldwide. Thus, external factors surrounding the parent company and the subsidiaries and branches will have an effect on the overall decision making process. An external environment is also known as an operating environment. Apple Corporation falls in the consumer electronics sector and is involved in designing and manufacturing of computer hardware, softwa re and other computer related operations. The major external factors which influence the decision making process and the computer industry are: 1. Rising price competition 2. Rapid changes in technology 3. Changing consumer preference Slow market growth and growing competition from local brands are the major reason for the rise in price wars (Knox, 2004). The majority of emerging countries have witnessed a host of local brands, selling brands and variants akin to iPhones and smart phones. They are sold at low prices, and there is an increasing pressure among bigger brands to decrease their price. In case of developed countries, price competition arises because of availability of a large number of variants from the same brand. Thus, competitors such as Samsung, IBM, HP, etc. launch more versions in developed counties, thereby intensifying competition. Rapid changes in technology have decreased the shelf life of electronic goods. More and more companies are now able to replicate the a vailable technologies. By adding a few features in those technologies, these brands gain a competitive advantage. Apple faces major competition in personal computers and mobile laptops. Apart from that, a slow market and product similarities among most of its product categories have also resulted in an increased competition. Changing consumer preferences is another external operating condition, which impacts the decision making process of Apple. Consumers have become more conscious as a result of the recent economic downturn. As a result, the sale of high-end smart phones and laptops has decreased, especially in emerging nations. Considering that emerging nations are the highest growth contributors for companies such as Apple, monitoring and establishing proper strategies will be crucial for a sustainable future growth. INTERNAL ENVIRONMENT Innovation and creativity have always been the internal strengths for Apple (Rufat-Latre, Muller, & Jones, 2010). Designing and developing most distinctive products and capturing a market share on the basis of innovation has made Apple one of the most renowned computer software companies of the world. However, with the advancement of technology and modern capabilities, it is not taking much time for other brands to imitate Apple’s design and launch in the market with added features. Apart from that, it is very difficult to patent each and every design which Apple produces. Technology and human resource can be described as the most important and crucial