Apple's Choice of Strategy

A. Apple's choice of strategy can be affected by different forces in the general and industry environments, and there are 5 key forces, economic and global, demographic, sociocultural, technological and political/legal. And fig1 will show the porter five forces model.

Economic and Global - The computer, mobile phone and tablet demand are increasing around the world. Since the function and value of those devices have changed, like mobile phone, it no longer only have call function, it can take photo, play game, watch video and books etc. Users are willing to pay more to get a better device. However, at the same time, user's requirements have increased. To sustain the revenue, Apple need to continue develop its products features to meet public requirements.

Demographic - In recent years, the demographics had changed sharply, baby-boomers were getting older. The younger generation is more wired into the world than the older generation. It means they will grow up used to being connected to those of differing views. According to The Wall Street Journal, the Mac owners tend to be younger. And similar results also can be found on iPhone and iPad. One of the mission of Apple is that provide better user experience, so the demographic changed and the users become younger will certainly affect Apple strategy.

Sociocultural - Sociocultural refer to social customs, beliefs, values, and language etc. which affect the thoughts, feelings and behaviors of individuals within particular cultures and societies. Many international companies also face sociocultural problem, like Chinese people having trouble to accept credit card payment. In such increasing globalization, Apple's products reach nearly all the places on the world, however Apple also face all the competitors come all around from different countries, like Samsung in Korea, Huawei in China. Apple needs to design the product that is suitable for different people from different culture background.

Technological - Technology is one of the main factors that affect the product values. When the time Apple's iPhone 3G came out, it has touch screen that far more sensitive that other touch screen phone. And now, Apple is facing different technology challenge from different company. Like Samsung, which have technology advantage in producing screen. And Google, which introduce Android systems that are mostly being used in mobile phone. In order to sustain the sales and profit, Apple must keep invent and add product values.

Political/Legal - Political/legal factors refer to

issues like copyrights, digital rights management,

environmental problem etc. Apple faces domestic

and overseas political/legal issues. For example,

the Federal and State