Macro and Micro Environment

2410 words 10 pages
Macro environment of apple company.
Macro environment is a far environment which comprise of several forces that raise strategic issue to Apple. These forces are social force, economic force, politic force, and technology force which well known as PEST (figure 3). Figure 3 Macro Environment

Technology forces
The first force that influences computer industry structure is rapid and sustained technical progress. Each year, integrated circuits and other electronic components become better, faster, and cheaper, providing opportunities for improving existing computers as well as designing a new kind. As computer comprises of hardware and software, Apple is really affected by technology innovation forces around it. Rapid innovation on
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* Status. This segment needs computer with great brand and brand new design.
Dynamic change of demands
Market demand is continuously changing. Data from 1995 to 2003 (figure 8) shows that there is trend of decreasing PC demand on developing countries such as US, Japan, Singapore whereas the trend of increasing demand moves to emerging countries such as China, Malaysia and Korea. This moving of demand has to be responded by Apple in order to better manage its resources and manage its marketing strategy. Denying this dynamics will produce resource inefficiency, cost competitive disadvantage and infectivity of marketing strategy. Figure 8 Hardware production and share of total global production
Environmental issues force Apple to be friendlier with nature.
Apple has been criticized by some environmental organizations for not being a leader in removing toxic chemicals from its new products, and for not aggressively or properly recycling its old products. Due to social pressure in environmental issues Apple has to adapt its process to be friendlier with nature.

Micro Environment of apple company.

Micro environment is near environment. This environment is actually the direct surrounding of the firm that determines firm position in competition. This environment can be explained using Porter five forces (figure 9). Based on Porter, firm position is characterized


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