Wednesday 11 April 2012

Environmental Scan: Threats and Opportunities

Opportunities:

·         Focused research and development innovation and considering its market position

·         Back to school treads-parents are purchasing more iPods and computer sakes are rising therefore apples income increased by 300%

·         Google’s Android’s operating software is a fast growing market for palm phones which were not able to compete before without Apple’s iPhone and RIM’s blackberry.

·         Develop its iTunes and music player technology into a mobile phone format. The Rokr mobile phone device was developed by Motorola. It has a colour screen, stereo speakers and a advance camera system. A version of Apple's iTunes music store has been developed for the phone so users can manage the tracks they store on it. New technologies and strategic alliances offer opportunities for Apple.

·         Apple has never lowered prices to boost sales, and customers have not come to expect special sale periods. However, they do see Apple products as better investments as Christmas gifts than many other products.

Threats:

·         Patent infringement lawsuit may affect financial constitution and operating results

·         Product recalls may harm Apple’s reputation and add significant warranty and other expenses.
·         Negative publicity was brought upon Apple when they sought legal action against “Glupod” online video games which would’ve helped with humanitarian efforts.

·         Biggest threat would be the high level of competition

·         There is also a high level of substitution with products such as mp3 player and computers.  Dell and HP are competitors for the computer market.

·         Many companies do not see apple products to be compatible with their products. 

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