5C analysis of Apple (5C’s of Apple)
This detailed 5C analysis of Apple examines how five important environmental factors i.e. company, competitor, customer, collaborator, and climate impact on the operations of Apple Inc. Apple is one of the largest and most valuable companies in the world. It is headquartered in California, the USA.
As the name suggests, the 5c analysis focuses on five ‘C’s. It helps Apple analyse the environment in which it operates. It is in fact, a very popular and useful framework to understand the internal and the external environments due to the abundance of information it can provide.
When focusing on the company, it is important to address issues such as the products, competitive advantages, technology, culture, and goals of Apple Inc. It is also important to explore its strengths and weaknesses. Apple’s main products are Mac, iPad, iPhone, Watch, TV, and Music. These are the products that have made the company one of the most successful ones ever in history. In fact, Apple’s $2tn-plus value has overtaken the combined market value of the entire FTSE 100 index of the UK’s biggest publicly listed companies (Sweney, 2020). However, it is worth noting that Apple has been criticised for some of its business practices. The article SWOT analysis of Apple provides more information on Apple Inc. as a whole.
The list Apple’s collaborators is quite big. It works with a number of suppliers from different countries. Some of the notable suppliers are Broadcom Inc., Skywork Solutions Inc., Qorvo in the USA; NXP Semiconductors in the Netherlands; Foxconn in Taiwan; Goertek and Luxshare in China; and Murata in Japan. Apple had built a global reputation for maintaining one of the best-managed supply-chains in the world. However, there are some controversies that impact on Apple’s brand image. For instance, Apple and Foxconn violated a Chinese labour rule by using too many temporary staff to manufacture latest iPhones (Gurman, 2019).
Understanding customers’ needs, wants, and buying patterns is an important part of situation analysis. Apple has approximately 1 billion customers and 1.4 billion active devices around the world. This demonstrates how massive the market is for the company. Many customers are so loyal that every time Apple introduces a new device, they buy it without paying any heed to prices. According to Kunst (2019) half of Apple’s customers in the USA are very satisfied with the company’s customer service, while 38% are satisfied. Only 3% expressed their dissatisfaction with the customer service.
Apple’s main competitors in the smart phone market are Samsung, Huawei, and Xiaomi. Its main competitors in the personal computer market are Lenovo, HP Inc, Dell, Acer, and Asus. These competitors put a lot pressure on Apple in its global markets. The article Competitors of Apple (Competitor analysis of Apple) provides more information and detailed analysis of Apple’s competitors.
The last factor to address in the 5C analysis of Apple is the climate (also called context). Apple like any other organisations, is affected by multiple macro-environmental factors. For instance, the trade war between the USA and China may affect its operations in China. Likewise, as weak economic conditions impact on consumer spending power, a lot of customers decide not to go for new version of devices. On the contrary, the economic stability of many developed countries can create growth opportunities for Apple. It is worth noting that a company’s climate is aften analysed with the use of PESTEL analysis.
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Last update: 08 September 2020
Gurman, M. (2019) Apple, Foxconn Broke a Chinese Labor Law to Build Latest iPhones, available at: https://www.bloomberg.com/news/articles/2019-09-09/apple-foxconn-broke-a-chinese-labor-law-for-iphone-production (accessed 01 September 2020)
Kunst, A. (2019) How satisfied are you with the customer service of Apple?, available at: https://www.statista.com/statistics/703823/satisfaction-with-the-customer-service-of-apple/ (accessed 06 September 2020)
Sweney, M. (2020) Apple’s $2tn-plus value overtakes the entire FTSE 100, available at: https://www.theguardian.com/technology/2020/sep/01/apple-value-ftse-100-iphone-coronavirus (accessed 06 September 2020)
Author: M Rahman
M Rahman writes extensively online with an emphasis on business management, marketing, and tourism. He is a lecturer in Management and Marketing. He is a graduate of Leeds Metropolitan University and London South Bank University.