External Environment
Micro environment and Macro environment together form the marketing environment. Micro environment of an organization consists of its suppliers, competitors, marketing intermediaries, customers and public which influence the ability to serve. This micro environment is influenced by macro environment which consists of economic, demographic, technological and political forces.
Markets
Australia market is considered as one of the largest mobile market in the world which generates revenue of $15,237.1 million in 2008 with growth rate of 6.1%. The mobile market consists of wide number of companies such as Nokia, Motorola, Samsung, Sony, Apple and others. All these companies mostly sell their products through the carriers Telstra, Optus, Vodafone and Three mobile. Since old Apple iPhone received good response in Australia providing better market for launching iPhone 4G.
Competitive Environment
Every business operates in a competitive environment where every firm tries to provide better customer value. Thus greater the customer value offered greater are the chances for an organization to be successful. It is important to understand the activities of the competitors.
Apple iPhone faces a huge competition from other mobile manufacturers such as Nokia, Motorola, and Samsung etc. Nokia dominates the world’s mobile market with 38.6% market share.
Economic environment
Economic conditions of a country play an important role in an organizations growth. If the economic conditions of a country are growing it helps company to grow to its potential. Australia’s trade and investment has less number of barriers. Australia’s economic growth is averaging 3.3% every year. Also the living standards in Australia are behind America but exceeded all the countries among group of eight. The growing economic conditions of Australia will be helpful for Apple iPhone 3Gs to grow to its potential.
Demographic environment
ü Australia’s population is around 21.4 million by June 2008. The average growth rate of population is 1.5% but it increased to 1.7% during 2007 to 2008
ü The percentage of Australians completing education has increased in the recent years.
ü Australia attracts large number of migrants from every part of world accounting for 60% population growth. One quarter of population is immigrants. During 2007/08, the numbers of migrants were around 213000.
All these factors will be helpful for Apple iPhone 3Gs to grow to its full potential.
Pest Analysis
The political and legal environment of Australia is very stable. Every organization has to follow the rules of Trade Practices Act 1974. It has special laws to prevent unfair and illegal practices of competition. Several federal and state regulatory agencies are established which have impact on marketing performance of an organizations. Australia has consumer rights which provide protection to the consumers. Organizations and its products are protected by trademarks and copyright. Thus Australia provides safety to both consumers and organizations.
Ø Economical environment.
Australia’s economic growth rate is higher than many other developed countries such as UK and US. GDP of Australia is higher than that of many European countries such as UK, France and Germany. The degree of risk is very much low in the Australian economy as it boasts consistently strong GDP growth, stable interest rates, increasing exchange rates higher level of employment and relatively lower rate of inflation. The unemployment rate of Australia particularly in main cities is basically very low, the national figure stands at around 5%.
Ø Social and Cultural environment
The social and cultural environment is a healthy mix of values and cultures derived across the world. Also the society of Australia is considered to be multicultural and multiracial with people from all over the world. So this provides an environment which is widely suitable for innovative company Apple to launch its new iPhone.
Ø Technological environment
Technological environment also plays an important role in organizations success. The Australia’s technological environment is suitable for Apple to develop as it is very adaptive to technology change. Also Australia has good scope for R&D as its government offers R&D tax credit which provides 45% refundable tax credit for organizations whose turnover is less than 20 million per annum and 40% refundable tax credit for organizations whose turnover is greater than 20 million per annum.
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