You are a senior manager of a computer company that competes with Apple, Inc. (Apple). You read a case study about Apple and determined that doing a SWOT analysis of Apple may help you with your own strategies. Perform a SWOT analysis by identifying at least five factors each for Apple’s strengths, weaknesses, opportunities, and threats. For each strategic factor that you include, make sure that you also include an explanation of why that factor is important and why you selected and positioned that factor in that category. For example, if you include a factor as Strength, make sure you explain why you think it is strength.
One of the main purpose of the SWOT analysis is that, to classify the most important factors that shake a company and its market both from internal and external. Every company should do a “Strengths, Weakness, Opportunities, and Threats” (SWOT) analysis so that they can realize the strengths, weaknesses, and identify the opportunities that are available to them and recognize the threats that they might face. By doing this sort of analysis Apple will be able to create a strategy that will differentiate them from their opponents so that they can be superior in the market place.
This analysis provides the Apple with quick, policymaking keys by viewing at the strength and weaknesses alongside the opportunities and threats. It is designed to support the company’s strategy formulation. The company will be able to look at which the strengths should be developed and best positioned, which weakness will be the most defenseless to market change and opponent action and which related future strategy for building new strengths will be most profitable in the market. Strengths The Apple has durable products such as the iPod, iPad, iPhone and Mac computers. * The strong financial position. * The Apple develops and has its own hardware and software.
* The strong research and development areas. * A strong customer base. Apple is a company, which manufactures a range of products which includes the mobile phones, operational software, computer and laptops, portable digital music and related accessories. The brand is well recognized for its high quality products, which help distinguish them from opponents. The company ossesses one of the topmost brand names in technology worldwide with approximate 54% of their profits coming from foreign markets (Apple Annual Report, 2006). The biggest strength of Apple is its power of innovation. Apple introduced such innovated products that consumers go to them in such a way that despite of high price. They also gave their PC’s and laptops a gorgeous look which makes the consumer touch that they are using a luxury product. Strength of Apple is that they can know the market better than the others. They know that what they are supposed to do to grasp the considerations of the consumers.
The one important thing is that they are not competing based on price but instead they are competing based on value added product which has given them an advantage in the market and a specific consumer segment who always looks for diversified products, they are completely captured by Apple. Weaknesses * It is tough to upgrade hardware on the Apple notebooks. * The Apple products have a very narrow warranty. Apple needs to extend their warranty a little longer. * The Apple’s operating system has limited software support.
* The Apple has veto power over Apps sold. It has hurt wide revision of its hardware, especially computers. It has been predictable that Apple has had some problems with its product quality control; for example, at the beginning of its iPod era, there were problems with the defective battery, after that there has been reported screen problems and defect with the iPod Nano. The company has increased high replacement costs because of the necessity to replace faulty items. With its most recent and highly progressive product: The iPhone, there are still disadvantages such as the device not being 3G friendly.
The phone is also unreachable in countries such as Japan and Korea. The several product features of the iPhone are also not mainly remarkable when compared to market alternatives. They only depend on their innovation. Till now, they are doing the business successfully because they have announced new and varied product which attracted the consumers. Their strength can be upheld as their weakness if everything not goes according to their believed scenario. They haven’t yet tried to be the market leader in their area.
They are doing their business based on diversified and first-class price product. Opportunities * The large faithful customer base. * Being very customer pleasant and creating new products. Customers like new technology. * The green products. * The global expansion. * Increase in the online sales. Apple is well known for its advanced thinking, they have developing such a product line that offers good functionality and charm. The Apple is looking forward to more electronic products. The chance of being effective is high because of their brand image and status.
As the people know them as a steadfast brand, so whatever they introduce for use, people will have a little more extra interest towards those products. Their strength is their biggest opportunity as people know that Apple safeguards quality and they can trust on them. Threats * The Apple prices are very high compared to competitors. * The strong competition with companies such as Dell, HP, and Microsoft. * The downloading free music from other online source without paying cost is common it may impact the iTunes sales. * The Recession
In the market of desktop computer, the Apple faces a great huge threat from its major competitors which include companies such as Dell and Hewlett Packard (HP). By offering low cost personal computers to the customers, Dell has protected themselves as a company with the largest and huge market share. If a recession takes place in market, then Apple might fall in suffering because in that time the economy will be miserable. The people will not keenly and gladly buy products which has comparatively high price. The value will be given less troubled that time and price will be given the highest priority.
So in such type of situations, they might lose a large part of their profit. Another thing is that people always look for the something enormous from Apple. They are doing it at fixed interval. But if they fails to create something for a long time, that can be negative for their brand image which spoil their name and market share. After reviewing the SWOT analysis of Apple, propose strategies to take advantage of their vulnerabilities to help increase your company’s market share. Remember, a strategy is not just an idea of “what” to do; it is a plan of “how” to do it.
A strategy must describe “how” you are going to implement the idea, what potential ramifications (pros and cons) may result from your strategic implementation and what feedback mechanisms you will use to evaluate the success or failure of your strategic implementation. To be a successful in business, the proper strategic planning must occur. The businesses do not survive long in the competitive market without the ability to successfully manage its overall departments. The companies must monitor processes against the plans and make adjustments as necessary.
It is necessary to review all the requirements of each and department and try to resolve their issues. The Apple main focus is on the luxury and expensive products and their market share is high due to their high prices of products. So take this as a vulnerability of Apple and try to make the substitute product in the area of digital music devices and with phones that have large memory units for storage of music and online music stores where consumers can purchase songs on their phone. Since, consumer want quality they prefer to buy products that are low in price and higher in quality.
So try to making such products that are high in quality, standardized and low in price as compare to Apple product. The competition in the consumer Industry is very high that all the competing companies are targeting for a larger market share as much as possible, low price and product variation. The Apple is known for its varied work in the technology sector. The apple is not just limited to the personal computers industry but it also makes system software’s and many other application programs. Due to this variety the Apple has difficult to compete but still when there is a will there is way. So I try my best to give tough time to Apple by producing low price high quality product with standard also.
Blythe, Jim. Marketing strategy / London : McGraw-Hill Education, 2003 www. Appleinsider. com/articles/08/02/06/report_Apple_cuts_iPod_iPhone_and_macbook_orders_again Peter White, (2009),”Building a sustainability strategy into the business”, Corporate Governance, Vol. 9 http://www. freeswotanalysis. com/information-technology-swot/80-apple-swot-analysis. html The Economist: Network Innovation Lessons from Apple – 07/06/2007