Swot Analysis: SWOT Analysis Of Apple '

With Apple the Growth has been substantial and it can be stated that the Products have reached a maturity stage and hence there is a chance of decline. This has also been evidenced to certain extent as Samsung has taken over as the market leader in the mobile phone segment. The emergence of cheaper brands like Lenovo etc has also been a challenge for IT products of Apple. However it is also true that Apple has always focussed on consumer trends and demands and thus has been capable of avoiding the decline stages. Further market development and diversification strategies have been suitably implemented

Most of Apple’s competitors are in low growth and low margin industries, for example Samsung is present in displays, semiconductors, etc.

Apple was established as an IT company dealing in exclusively in computers. However, competition in the technology sector forced the firm to focus on other consumer products. The diversification strategy has seen Apple’s sales grow tremendously in the last decade, earning the firm the No. 1 brand position at Forbes. The Apple brand is recognized on an international scale and enjoys a strong recognition thanks to its aggressiveness when it comes to creativity and innovation (Tar, 2013). It has a large number of loyal customers who would purchase the new products regardless of the market price, which guarantees profits from the new division.

There are various threats in the external environment that influences Apple. Rapid technological development and change is a problem, the company might be set aside by a competitor who invents a newer technology. Tax increases have also influenced Apple. Apple’s profits went down due to new taxes. Patent breaches pose a huge threat, competitors might imitate their technology and make profit on these features. Appreciation of the dollar, Apple’s profits in foreign countries are reduced due to strengthening the dollar. The growing popularity of Android, widespread use of this operating system makes Apple’s infrastructure less attractive for customers. Increasing labor costs in Asia, the protests of workers in Asia, especially Foxconn

Apple Inc. has been dedicated to innovation ever since the company was first formed. Apple's recent breakthroughs were a result of a new technologies convergence upon the "digital hub" strategy (Mortensen, 2010). This strategy has served Apple well; especially during the last few years. The iPad, iPod, and iPhone were all born from this strategy. Furthermore, producing these innovative, user friendly, and design oriented products has earned them a considerable amount of customer loyalty.

Apple (NASDAQ:AAPL) is one of the world leaders in the research, development, marketing, sales and service of personal digital music & video devices, in addition to personal computers globally. Its' innovative music and digital content delivery service, iTunes, has sold over 1 billion songs to date. As of the close of their latest fiscal year the company generated $156B in Sales and generated a Gross Profit of $68B earning a Net Income of $41B (Apple Investor Relations, 2013). The intent of this analysis is to evaluate Apple's strengths, weaknesses, opportunities and threats (SWOT) and provide an analysis of each. The cause, impact and recommendations for each specific strength, weakness, opportunity and threat are provided along with an action plan of how to maximize strengths and opportunities and mitigate the effects of weaknesses and threats. The Apple brand is among the most valuable in the world and its ability to innovate with successive product generations unmatched, yet this has led to a high dependence on its iPhone and iPad platforms, to the exclusion of entirely new businesses. The Apple iTunes platform and ecosystem delivers 30% of all profits and a significant portion of overall revenue, making this single business a stabilizing force in their strategic product and services roadmap (Apple Investor Relations, 2013). Despite these challenges however Apple continues to attain

However, they may face the limitation on the firms’ development. Apple is based on a hybrid hierarchical structure (mixed with other organizational structures (Meyer, 2015). Meyer (2015) depicts that companies’ main framework is based on innovation and the leadership of Steve Jobs but for that type of leadership only works if the structure allows it to do so. Due to leadership change to Tim Cook, there are some changes made in the organizational structure in order to suit the market and its demands (Meyer, 2015). Despite the leadership change in Apple Inc. it may well enhance Apple’s capabilities will grow rapidly in creative and design (Meyer, 2015).

It is clear that a strong brand image is very important for Apple Inc. because a strong brand image is one that consumers trust and feel is a sound investment representing value for their money. The company's financial performance is robust and this certainly is a positive attribute and predictor for survival of the company in the present economic crisis because Apple Inc. is well established and financially sound. Apple Inc. focuses on research and development which means that the company will stay abreast

In 1997, Steve Jobs returned to Apple as an advisory and with the purposes of reshaping the product line. The changes made by Jobs resulted in increased sales and $309 million in profits. Job changed the mindset of Apples management and development team. He encourage them to have the “think different” management style that promotes the development of products that are ahead of the technology and design curve, and a creative retail strategy. It is this strategy that would eventually make Apple the best-selling company in the PC industry.

SWOT analysis helps you decide your position against your competitors, identifies best future opportunities, and highlight current and future threats. SWOT analysis is an acronym for Strength, Weakness, Opportunity and Threat. Strengths and weaknesses are internal factors that you have within your business on which you have full control whereas opportunities and threats are external factors on which you have no control.

With Apple being so far ahead of their competition, the only problem one can foresee in Apple’s future is how long they can sustain such innovation before they plateau. Apple does a phenomenal job at releasing their innovative products before their competition, but if their innovation cannot hold steady, this may lead to changes in demand for their products considerably. This can be seen with their release of the iPhone, the first successful touch screen cellular phone. Although people swarmed to the iPhone when it was first released because of its advanced technology, as the years have passed, other similar designs, including those with android and windows based operating systems, have drawn a considerable portion of the market. A clear representation of Apple’s attempt to regain some of this market can be seen when the iPhone was released to Verizon Wireless’ customers in

In 2007, Jobs invented the iPhone, a user friendly smart phone, which launched the smart phone market as we know it today. Until the emergences of other companies in the smart phone industry Apple monopolized the smart phone market. Although, other competitors are producing smart phones, Apple still continues to be successful when it comes to sales. For instance, Apple’s new iPhone 5S models sold more than 9 million units in their first weekend, and the company has earned praise for

Apple also has a reputation of overpricing their products, and so this may be a major weakness, but at the same time is just a part of their marketing. Apple offers a small range of high quality products for a higher price. Apples main competition tends to have very competitive prices, which Apple seems to be

Apple operates with fierce competition in the consumer electronics segment which comes in many different forms. There are a large number of competitors in the different market niches who offer many similar products. Furthermore, many of these competitors' products are priced much less than an Apple branded products. Just as soon as Apple releases a new product, major companies begin imitating it immediately. In the personal computer industry, market pressure is continuously being exerted from such companies such as IBM, Dell, HP, and Toshiba (Wildstrom, 2009). Furthermore, with its flagship product the IPhone, Apple competes with companies like HTC, Palm, Blackberry, and Motorola (Wortham, 2011). Apple has had significant success despite the competitive environment because Apple commands a brand loyalty and dedication to innovation that few companies have ever achieved.

Also, as the purchasing power of the common has risen in various markets across the global, the purchasing of luxury products have gone up. For examples, the iPhone, iPod, iPad and the most latest technology, iWatch. Having these products are considered as statues symbols in many societies which have also increased the sales of Apple Inc. products. Another big social influence to the Apple Inc products is the rapid growth of the music industry, which have improved markets over the cyber space as well. The main exclusive music store is the iTunes and it is ahead of any of their competitors. Thus, in all Apple products benefitted from the social aspects as it has started defining a modern individual lifestyle.