Recently, I have perused Angel Guo’s blog post analyzing Apple delaying its launch of iPhone6 in China due to the Chinese regulatory laws. Apple Inc., as a company who seeks global expansion to create more profit is definitely facing a dilemma in China. Angel’s use of SWOT certainly helps me to realize political issues Apple faces when expanding globally. However, by applying another useful tool PEST Analysis, I do believe that more factors contribute towards Apple’s stagnant movement in foreign countries.

A PEST analysis on Apple I encountered complements Angel’s post on political issues Apple is facing in China. It is undeniable that there are many political problems, which cannot be controllable by the company. In such condition, Apple should appeal to foreign countries’ governments stating that it does not have an inclination to threat national security, which is the prior issue a government worries about. I also take a look at economic factors because purchasing power depends on the World’s economic conditions. According to past few years, purchasing power in countries like China is declining, which negatively affects the sale of Apple product because its high price. In such condition, Apple may need to readjust its high price to increase its revenue in the global market. For social and technology factors, Apple is actually gaining a lot because of its groundbreaking technologies and its trend-leading designs.

As a result, Apple needs to continuously make best use of the advantages in social and technology factors, and bypass the disadvantages in political and economic area. In such way, Apple will achieve a comprehensive and successful expansion in global market.

Reference:

Image: <http://24gadget.ru/uploads/posts/2010-11/1290741107_apple-expansion.jpg>

Jeynes, Roger. “The Complete (External and Internal) Analysis of Apple.Inc and Its SWOT Analysis.” Academia.edu. Academia, 2013. Web. 09 Oct. 2014. <http://www.academia.edu/7103572/The_Complete_External_and_Internal_Analysis_of_Apple.Inc_and_its_SWOT_Analysis>.

Wang, Shanshan, and Neil Gough. “Release of IPhone 6 Delayed in China.” The New York Times. The New York Times, 10 Sept. 2014. Web. 12 Oct. 2014. <http://www.nytimes.com/2014/09/11/business/international/release-of-iphone-6-delayed-in-china.html?_r=0>