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Week 6: External and Internal Environments Assignment
External and Internal Environments Assignment
Apple Inc. is a known manufacturer of electronic devices and smartphones. Apple Inc. also contributes significantly to the computer market and has continued to deliver quality-computing devices to its clients. In addition, Apple has started diversifying its product offering to other areas such as mobile payment terminals, AR and VR technology, healthcare, video streaming, and mobile device management (MDM) (3). As a result, the Apple corporation has expanded to become one of the global leaders in the computer market. The services offered by the company have the basis of its strong strategy that has contributed significantly to its profitability. 
General Environment
A successful business strategy necessitates a thorough examination of internal and external environments (2). Segments of the general climate determine a business’s trajectory. Apple Inc’s two most dominant groups that rank highest in influencing the company are technology and the social components. They have the most influence on the company’s strategic plans, thus determining its competitive advantage.

Segment 1

Technology Segment
External technical advances lay the groundwork for the company’s development. To create a brand that can beat the market in the rising machine and high competition level, Apple Inc. assesses the underlying prospects based on current demands and integrates innovativeness while taking advantage of the existing holes. As part of its long-term approach, the organization has used a vigilant technology adoption to create a framework that would have a long-term growth effect on the company in favor of its long-term development goals (6). The organization maintains a close watch on new technology trends and strategies on its integration to create devices that meet user needs while capitalizing on emerging markets to expand its customer base. 

Segment 2

Social Segment 
This segment has been instrumental in developing a strategy to reach out to more customers through increased accessibility and quality products that rule out the competitors. The company has made it easier for customers to access its products more conveniently while providing consistency in the quality of its offering. As a result, profitability has increased on products such as smartphones and tablets. The company has focused on the rapidly growing demand for smartphones on the social segment and, more importantly, focused on brand recognition by offering superior quality products that are already popular. Close customer interactions have been instrumental to hedging against social risks that would otherwise face its business (6).
Five Forces of Competition
The five forces s help a company in identifying the extent of competition within the industry. By evaluating the five forces under Porter’s model, the company can determine the level of its competitive advantage in the market (1). For example, Apple Inc. is on the strategic response to forces within its external business environment. The company’s details include competition from business rivals and new entrants in the industry.

Force 1

Competition from Rivals
Apple Inc. has faced several obstacles, including market competitiveness. The rivals’ forces against themselves are calculated by assessing how they would affect the company’s activities. Apple Inc. can think of factors like reliance on other companies, a lack of diversification, and low process costs. In addition, companies that are direct rivals, such as LG, are direct competitors to Apple Inc. Such organizations are significant factors that disrupt the company’s operating climate. As a result, Apple Inc. devise a plan for dealing with certain groups, as they pose a direct threat to its activities.

Force 2

New Entrants in the Market
New competitors pose similar risks to Apple Inc.’s viability. As a result, the organization is ready to adapt to potential business entrants. However, since it would harm the company’s performance, the management considers its effect and correctly plans to handle such consequences. New companies present fair competition, but as they combine with dominant powers such as rivals, the enterprise faces serious competition, which necessitates high operating costs to tackle (1). However, Apple Inc.’s capacities in terms of financial spending and technical sophistication are enormous.

Future Improvements

Based on the level of competition and emerging firms in the industry, Apple Inc. remains vigilant. Additionally, retain its performance by adopting changes in social and technological models to stay adept with market dynamics to remain relevant in the future as new forces emerge. Additionally, the company focuses on its management model by implementing operation structures that will improve overall operations and stay current in terms of technology.

Greatest External Threat

The most crucial external challenge to Apple Inc. is growing competition from competing firms such as Samsung. Such enterprise is reliant on new technologies. When competition emerges, Apple Inc. enforced traditional reputation management through consistency adherence. Additionally, copyright concerns pose a potential threat to the business when it comes to competing competitors in the industry that mimic its name.
Greatest Opportunity
Apple, Inc. has various opportunities to take advantage of while implementing its strategy to be competitive. First, based on SWOT analysis, the organization can improve its distribution channels. Second, the company should actualize an integrative distribution system that will enable the company to reach out to more customers in the existing markets and the new ones. These opportunities will create new market opportunities that will increase overall market coverage and increase its revenue base. 
Strengths and Weaknesses
Apple Inc. is one of the well-known brands in the computing and electronic market. One of the greatest strengths of the company is its ability to introduce new products. The company has also been able to engage with the external environment regarding technological advancements and come up with updated, high-quality products that serve the merging needs of the consumers. Another greatest strength of the company is that it has moved with weak business points and grabbing those opportunities to quality and trusted brands that sell at a high cost. As a result, the company is enjoying the trust of its customers (4).
One of the most significant weaknesses of the company is its control over its products. The company that chooses who should sell their products and thus the movement of their products are for specific locations only. The company is restricted only to certain standards, meaning it is the most significant weakness of the company.

Strategy or Tactic

The company quickly sort the problems associated with the hierarchy. The company can increase its transport framework to solve issues. Besides, the company can address some development problems based on its reputation when launching new products in the market. The company can develop some of its product development strategies by localizing them to reduce operations costs (4). There is also the strategy of increasing its market coverage by growing relationships with sellers. 
Resources, Capabilities, and Core Competencies
The enterprise’s capabilities and capacities are determined by several considerations, including value, individuality, and organization. When a company has these capabilities, it has a competitive advantage. Apple Inc., for example, has the expertise and capabilities to implement rapid innovations of high-quality, trustworthy products, market access, a highly trained workforce, and a well-planned global delivery policy (7).
One of the core competencies is the reputable brand that makes it hard for rivals to imitate. Therefore, these abilities have made Apple Inc. continue offering high-quality products unmatched by competitors. Besides, the company has a strategy where different brands depend on each other. Therefore, the competitors find it difficult to learn about the market structure covered by Apple Inc. Besides, the company has been able to promote the connection between its product and details. For example, customers can choose their security setting to incorporate their location, the application they want to use, and other features that customers want to include in their devices.

Sources

1. Edward Ferguson. February 22, 2019. Apple Inc. Five Forces Analysis (Porter’s Model). http://panmore.com/apple-inc-five-forces-analysis-porters-model-case-study

2. Hitt, Ireland, & Hoskisson. 2020. Strategic management: Concepts and Cases: Competitiveness and globalization (13th ed.). Mason, OH: South-Western Cengage Learning
3. Karam, Mark Anthony. August 22, 2020. Five (5) ways Apple is diversifying its business. https://www.ameinfo.com/industry/tech-and-mobility/5-ways-apple-is-diversifying-its-business

4. Mabkhot, H. A., Shaari, H., & Salleh, S. M. (2017). The influence of brand image and brand personality on brand loyalty, mediating by brand trust: An empirical study. Journal Pengurusan (UKM Journal of Management), 50.
5. Osman, A. & Subhani, M. January 30, 2012. A Journey from Brand Awareness to Consumer/Brand Loyalty: A key for marketers.
6. Parker, Emily. April 9, 2016. Apple’s iPhone Launch: A Case Study in Effective Marketing. https://www.linkedin.com/pulse/apples-iphone-launch-case-study-effective-marketing-emily-parker

7. Veselovsky, M. Y., Pogodina, T. V., Yunusov, L. A., & Andrianova, D. A. (2020, February). Management of Companies’ Competitive Ability on the Basis of Intellectual and Technological Leadership. In 1st International Conference on Emerging Trends and Challenges in the Management Theory and Practice (ETCMTP 2019) (pp. 65-70). Atlantis Press.