Swot Analysis Apple Inc.

Case Scenario

The swot analysis for Apple helps portray Apple’s resources and capabilities to the competitive environment it operates in. S -Key player in the personal computers, portable digital music players, and mobile devices market. The SWOT or strategic analysis of Apple showed that the major key strengths of Apple Inc. That comes from the quality and uniqueness of the Apple iPhone. The major key weaknesses include lack of distribution channels in the countries and high price which can be overcome.

Apple Inc. has been experiencing a few problems due to media coverage on various aspects of its company. One of the problems that the organization is experiencing is with its music marketing strategies. Several reports have emerged accusing iPhone of threatening to withdrawal their support on specific music labels.

As a result, Apple Inc. has been under investigations due to the allegations that they had discouraged music labels from participating in the Amazon promotion. Reports had it that Apple Inc. had threatened to withdraw their marketing support on songs that were included in Amazon’s promotion and were sold by iTunes.

The company was also facing another problem. The launch of iPhone 4 was waited with a lot of anxiety. However, shortly after the phone was launched, it was reported, by the media that it had antennae problems. These problems caused calls to be dropped if users touched the lower edges of the phone.

Swot Analysis Case Study Of Apple Inc

Steve Jobs was called to personally intervene on the case. However, the company had received fewer return inwards on iPhone 4 than the previous version, iPhone 3GS on its launch. To calm the media frenzy, Steve Jobs called a press conference and announced that company would be providing free bumper cases to customers who were affected by the antennae problem.

SWOT analysis

Apple Inc. has various strengths despite the aforementioned problems. One of Apple Incs major advantage is the large market share that it has in comparison with its rivals. The company has a large consumer base by establishing a strong brand name. Apple Inc. is associated with quality and all of their brands.

This is because they are user friendly and meet the needs of its customers. Even before its release in June 15^th 2010, iPhone 4 had received over 600,000 pre-orders within the first 24 hours. This was considered as the largest number of pre orders Apple Inc. had received in a single day compared to any other devices sold.

By 8.30 pm, all the iPhone 4 pre-orders had been sold. Apple has a CEO who ensures that the operations of the organization specifically meet the needs and requirements of its customers. This creates brand loyalty, consumer retention and earning of new consumers. As a result, Apple Inc. always stands at a competitive edge over other rival companies such as Nokia and Samsung.

For instance, Steve Jobs announced that customers with problems would be given bumper cases to solve their antennae problem. This announcement provided Apple Inc. customers with an assurance about the phones they were using. Jobs therefore built customer confidence in the brand.

Apple Inc. iPhone 4 had some weakness that reduced the sales of its products, especially iPhone 4. This included problems associated with the antennae and the reports that Apple Inc. was limiting the ability of some labels to sell their music elsewhere. With competitors in the market providing better gadgets without any technological glitches, the sales of iPhone 4 were threatened. Music labels are also bound to withdraw their music from iTune stores and find marketers with fewer limitations. This may affect Apple Inc. as a brand and reduce their market share.

Through the modification of organizational politics, Apple Inc. can still claim a huge market share. The organization can loosen some of their policies that prevent music labels from selling their records with other label companies. By fixing such problems, iPhone would take advantage of opportunities available in the market to expand their market and build a better brand name for them.

Apple Inc. is also faced by various threats in the market. Samsung for instance, sold more gadgets in December 2011 festive season than Apple Inc. did. With advancement in technology, cheaper smart phones are being offered in the market. Some of these smart phones have better performances than the iPhone. For instance, Samsung galaxy outsold iPhone in 2011.

This was as a result of its superior operating system platform; android. Android phones have become a major competitor of iPhone operating system and thus posing a threat to iPhone’s future success. Thus, for Apple Inc. to be successful, it has to take advantage of its strengths and opportunities and improve on its weaknesses and threats.

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IvyPanda. (2019, March 27). Apple Inc. SWOT Analysis. Retrieved from https://ivypanda.com/essays/apple-inc-swot-analysis/

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'Apple Inc. SWOT Analysis.' IvyPanda, 27 Mar. 2019, ivypanda.com/essays/apple-inc-swot-analysis/.

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References

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• Length: 6 pages
• Sources: 5
• Subject: Education - Computers
• Type: SWOT
• Paper: #5495092
• Related Topics: Intel Corporation, Swot Analysis, Target Corporation, Corporation

Excerpt from SWOT :

Swot Analysis Of Apple Inc 2019

Apple Corporation SWOT analysis
Apple Inc. is one of the well-known and recognized enterprises by not only the business community but populace from all over the world are cognizant about this corporation. It started off its business from the decade of 1970 that has been involved in the designing, manufacturing and offering its consumers with a wide range of innovative and technologically refined products like computers, software, music players and its related accessories, peripherals, and networking solutions. Macintosh computers, iPod, iPhone, iPad, iMac are few of the popular and admired range of product lines that is offered by Apple Inc. (O'GRADY, 2008).
Apple Inc. did not intend to cater a small target audience but aimed at a larger population with target audience in multiple segments. In this regard, Apple targeted vast group of consumers incorporating home users, small and medium sized business users, education sector and young generation population. Apple Inc. has employed more than fourteen thousand people in its corporation across U.S., Europe, UK, Japan and many others so that they can meet the customers' expectations (O'GRADY, 2008).
Apple Inc. In these few decades has recorded increasing revenues such that it has now reached the top rankings for its outstanding sales and revenues. As an outcome of the prevailing performance in its sales and operations, Apple Inc. has not only strengthened its position in the marketplace, but also captured a huge market share in the U.S. Besides, this has also resulted in escalated confidence of the investors and shareholders (O'GRADY, 2008).
While on the other hand, the SWOT analysis is a strategic planning apparatus that provides an overview of the company's internal and external environment. This is one of the vital aspects that must be gravely considered so that measures can be taken to overcome the weaknesses and threats by maximally utilizing the strengths and focusing on the opportunities. In a very similar manner, the SWOT analysis of Apple Inc. is as follows:
STRENGTHS
The strengths of Apple Inc. cannot be debated or argued, as the high level of brand awareness and brand recognition amongst a significant proportion of the global population is one of the noteworthy strengths that Apple leverages, which provides them an edge over its rival companies. Consequently, the brand mane is well-admired and popular amongst the consumers. However, the primary reason behind the brand name that classify Apple from others present in the market is leading and opening a new way to the innovative and modern technologies, such as iPhone, iPad and so forth, which has become its one of its core strengths. This is particularly because the products designed are easy to use, stylish in its design and have technical elegance (Newlands & Hooper, 2009).
Loyal customers and that too in a large fragment from every corner of the world is one of the benefits that is enjoyed by Apple makes it different from its rivalry companies. This loyalty from the customers is the result of high quality products regardless of the price that are designed by Apple in order to live up to the customers' satisfaction level (Newlands & Hooper, 2009).
The millions of dollar spending on advertising and promotional campaigns that included catchy slogans and inimitable ads are one of its marketing strategies used as strength of Apple that can differentiate its products from other computer brands. Unique and exclusive promotional strategies have been adopted and applied by Apple so that it can not only make its distinct image in front of its consumers but also distinguish itself from the intensely competitive marketplace of the industry (Newlands & Hooper, 2009).
The effective, dynamic and powerful department Research and Development is again one of the strong aspects of Apple Inc. In fact, active and continuous efforts put by the employees with huge investments on the target='_blank' href='https://www.paperdue.com/topic/research-essays'>research and development for producing and creating innovative and technologically advanced products also add to the benefits of Apple (Newlands & Hooper, 2009).
WEAKNESSES
Considering the strengths of Apple, reviewing the weaknesses is equally important. High price of the products and services in comparison to many of the competitive companies such as Microsoft has served as one of the weaknesses of Apple Inc. This moderately leads to lower market share in several underdeveloped counties where the consumers are more price conscious and opt for lower prices for such types of products and services (Newlands & Hooper, 2009).
From the perspective of revenues and turnover of Apple Inc., it has come to notice that it is very much reliant on global economy. This means that the economic depression and collapse on a global basis creates an immense harmful and unconstructive impact on to the corporation, which is one of the strongest weaknesses faced by Apple Inc. (Newlands & Hooper, 2009).
Failure of two prominent and remarkable products that are Mac Mini and Apple TV has led Apple Inc. experience huge loss, hardship and economic failure for its product lifecycle (Newlands & Hooper, 2009).
Maintaining and ensuring the quality and consistency within the product lines (that is the technological errors and flaws in various products) has been one of the challenging and complicated jobs experienced by Apple Inc. This is due to the reason that their primary focus has been on providing the consumers with the most advanced and innovated technological products and services (Newlands & Hooper, 2009).
Product recalls is one of the weaknesses that has been witnessed by Apple Inc. For quite a few of its products such as iPhone. This recall of the products elevates the probability of harming and spoiling the overall image and reputation of the brand to a greater extent. The damaged brand reputation amongst the consumers would have a mammoth impact on to the overall sales of the Apple products and services. In fact, the product recall may also lead Apple Inc. To encounter increased expenses of repairing the products, warranties and so forth (Newlands & Hooper, 2009).
OPPORTUNITIES
In this technologically advanced world, the use and demand of computers and mobile phones and other related accessories have been growing at an unprecedented rate. This continuous expansion and intensification within the industry is one of the leading opportunities for Apple Inc., as they endeavor to offer their consumers with technologically sophisticated products and services (McDonald & Keegan, 2002).
Expansion on a global stage in many other parts of the world such as Asian countries are another prime opportunity for Apple Inc. To take advantage of, because of the increased awareness and growing demands of the younger population in such nations. This would also facilitate them in mounting and sustaining its power and dominance amongst the rivalry giant corporations within the competitive marketplace on an international platform (McDonald & Keegan, 2002).
Joint ventures with giant corporations such as Microsoft, Intel, IBM and many others would provide a great opportunity for Apple Inc. To reinforce and fortify its relationships with these corporations, and hence, would result in more technologically classy and ground-breaking products and services (McDonald & Keegan, 2002).
The expansion, growth and increased demands of the mobile technology, tablet market and MP3 player market in the current time make iPhone, iPad and MP3 player one of the foremost and most powerful opportunities for Apple Inc. that has accelerated the revenues and sales of the company (McDonald & Keegan, 2002).
Since the key emphasis in today's time is on offering green products that are energy efficient products that can lead to protection of the environment, thus it is one of the growing opportunities for Apple Inc., as they bring the fact into limelight that their produced and manufactured products are the greenest (McDonald & Keegan, 2002).
THREATS
Despite the opportunities that Apple can take advantage from due to its strengths, it also faces a number of threats. Immense and intense competition within the technology market…