Macro and Micro Environment
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 hardware by component producers (e.g. Intel, AMD) and software by competitors (e.g. Microsoft) as well as complementary products from partner gives no choice for Apple except responsively catching the new hardware technology and also continuously innovating to sustain differentiation. Starting from 1976, Apple created personal computer as a proprietary system. Apple created the hardware by assembling components, create operating system (e.g. MacOS) and develop applications. That time, as Apple controls both hardware and software, Apple can create personal computer that deliver great personal experience compare to its competitors. That time, Apple computer main competitor is IBM personal computer. Previously IBM followed proprietary system as well. In 1981, IBM changed into open structure. This move changed the environment of competition. This move brought many new entrants such as Compaq and HP to produce IBM PC Compatible. This also brought in Intel as new entrant as producer of processor and Microsoft as producer of operating system. Rapid innovation both from Intel created strong technological forces for Apple. As Intel released faster processor every quarter (figure 4), Apple, which that time sourced its
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 hardware by component producers (e.g. Intel, AMD) and software by competitors (e.g. Microsoft) as well as complementary products from partner gives no choice for Apple except responsively catching the new hardware technology and also continuously innovating to sustain differentiation. Starting from 1976, Apple created personal computer as a proprietary system. Apple created the hardware by assembling components, create operating system (e.g. MacOS) and develop applications. That time, as Apple controls both hardware and software, Apple can create personal computer that deliver great personal experience compare to its competitors. That time, Apple computer main competitor is IBM personal computer. Previously IBM followed proprietary system as well. In 1981, IBM changed into open structure. This move changed the environment of competition. This move brought many new entrants such as Compaq and HP to produce IBM PC Compatible. This also brought in Intel as new entrant as producer of processor and Microsoft as producer of operating system. Rapid innovation both from Intel created strong technological forces for Apple. As Intel released faster processor every quarter (figure 4), Apple, which that time sourced its