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Environmental Scan Paper

1889 words - 8 pages

Environmental Scan Paper
MGT 498

Environmental Scan
All businesses regardless of their particular industry will be faced with the challenges of dealing with different environments. A couple of companies that will be discussed throughout this paper are Apple, Inc. (Apple) and Dell, Inc. (Dell). Both are successful technological companies. Operating in the technology field they pay a great deal of attention to technological factors and trends in the industry. Their internal and external environments can be scanned and evaluated using the PESTEL tool and Porter’s value chain. Using the PESTEL tool will help them identify opportunities and threats that they might encounter. Using the ...view middle of the document...

Dell develops, manufactures, sells, and provides support for its desktop and laptop computers, printers and other related products and services.
External Environmental Analysis – Apple, Inc.
Apple created its reputation by making itself into and maintaining itself as an innovative multinational company. Apple has always created and brought to the marketplace trendy not to mention stylish products that were of high quality and continually improving upon the previous version. A recent example of this is when Apple introduced the Mac-Mini to the iPhone 4g. Other examples include the multiple and ever growing number of applications or apps as they are know the iPhones and the iPad. The iPod and the iTunes store are two products that contribute to Apple’s control of the music player market. Apple also has the iLife collection that consists of software for music and video sonata that is very user friendly. Podcasts are also a product that Apple helped create and improve upon. Downloads of TV shows, movies, and other clips can be downloaded to iPods and iPads by customers at the iTunes store. In this environment Apple attracts customers that are more technology savvy and into technologies next innovation. Whenever there is newer version of the iPhone or iPad released loyal Apple customers camp outside of Apple stores all around the country in order to be the first to have it. They also preorder the latest versions of these products. Because of this environment and the tech savvy customers it attracts Apple was one of the first tech companies to capture this market and become a leader of it. Many of Apple’s competitors have not been as successful in this market.
Dangerous toxics are found in many electronic products. Apple along with Dell and IBM and other tech companies are trying to reduce the environmentally harmful effects of these toxics. Apple was a leader again in dealing with this challenge and problem. Around mid-2006, Apple was the first tech company to eliminate Cathode-ray tubes (CRTs). Apples results here have been impressive. In the CRT-based iMac it contained 484 grams of lead. The third generation iMac amazingly contains less than one gram of lead. Competitors such as Dell, Gateway, Hewlett Packard, and Lenovo still have CRTs in their products. (Claburn, 2007).
Apple has become one of the bigger and most successful companies. With this success Apple is still susceptible to threats in their environment. Some of the threats that Apple has faced historically and continues to are:
* The worldwide economic slowdown due to the 2008 and continuing Global financial crisis. This has contributed heavily to reducing consumer’s purchasing power.
* The MP3 market is rapidly shrinking.
* The iPod market is saturated and consumer demand has become low.
* The Smart Phone market is becoming saturated by competitor’s products.
* The notebook/smart pad market is becoming saturated by competitor’s products.

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