environments

  t h e e v i r o n m e n t

There are six environments that affect businesses. Since environments cannot be changed, businesses have to react to these changes. In implementing the iConnect, it has to react to the six environments, since it will be inevitably affected by them. = c o m p e t i t i v e e n v i r o n m e n t =

The competitive environment is the most important environment. In regards to the technological marketing, competition is extremely intense and growth within this industry is rapid. The turnover of products within this industry is high, competitors are constantly in the race to duplicate designs, improve them and sell them at a competitive price. Therefore companies are forced to constantly innovate and create two steps ahead of the competition. Apple is a company that constantly experiences competitive behaviors from other similar companies. There are currently several smart phones similar to the iPhone. PC and Windows have rendered their products to function in similar ways that Apple computers function. This is evidence that Apple is situated in an extremely competitive market and regardless of the type of product they decide to launch, their competitors will follow with something similar.

Currently, there are no similar products such as the iConnect. Research performed through interviews and online blogs revealed that individuals are craving a product such as the iConnect. Though there are plug-ins available that allow such an application, they cannot be implemented due to the lack of development of hardware. Thus, there exists no similar product that would hinder the profitability of the iConnect. = e c o n o m i c e n v i r o n m e n t =

The global economy is in the midst of recovering from a recession, thus companies are able to hire workers and begin making profits. In regards to Canadian currency, Apple experiences an advantage in importing products to Canada, since the dollar is high. Inflation does not greatly affect the implementation of a new product such as iConnect. However, determining the price of the product needs to reflect the rate of inflation in order to set a unit price for the iConnect. = t e c h n o l o g i c a l e n v i r o n m e n t =

The technological environment is fast growing, extremely complex and contributes to the competitiveness of products and services. The technology is extremely competitive for Apple. They have to constantly innovate to create technology that is true to their Apple flair, while still being unique to the market.

The iConnect technology is attempting to combine Bluetooth, satellite technology and fiber optic cables. These technologies have never been put together for the purpose of creating communications between individual’s electronic devices. Since these technologies are expensive, Apple will have to incur initial costs to launch the iConnect. This type of infrastructure is expensive and government funding will have to be greatly inclusive in the implementation of the iConnect.

It is expected that the iConnect will have a long Product Life Cycle, since it will develop with the growth of other Apple Products. Additionally, the consumers growing need to have integration in all their devices will only amplify with the current societal obsession of retrieving more knowledge and information. Experts agree that the communication and technological life cycle can be measured by months, as opposed to years in other products, and the product life cycle continue to shorten (Utterback 1994). This is due to the fact that technology is advancing to a great degree and innovation is becoming increasingly possible. Though Apple has been able to easily combat the tough technological environment, competition changes and increases, thus the iConnect will add to their technological and competitive edge. = s o c i o c u l t u r a l e n v i r o n m e n t =

Apple sells consumer products and must therefore target their market accordingly to create an emotional relationship with its customers. Apple sells their products across the globe; therefore they do provide their products in different languages. For example, if one were to buy a MacBook Pro in Dubai, the keys would show letters in Arabic. In order to be true to their global market, the iConnect would have to support help in different languages as well.