Apple is an international technology company based in California, United States. The company specializes in design, development as well as sale of a variety of electrical appliances, online services and computer software. Apple Inc., just like any other company, has its own areas of strengths, weaknesses, opportunities and faces a diverse amount of threats in the competitive technology industry.
Strengths and Implications of Strengths of Apple Inc.
| Strengths | Implications of Strengths |
| Apple boasts of robust marketing and advertisement proficiencies (Khan, Alam & Alam, 2015). | Apple’s strong marketing and advertisement competencies has enabled the company achieve enormous success in the electronics market (Khan, Alam & Alam, 2015). Through well drilled advertisement and marketing strategies, the firm has been able to develop into a strong brand that is recognized and trusted by many in the electronics market. |
| Innovation (Johnson, Li, Phan, Singer & Trinh, 2012). Apple Inc. possesses an inimitable capacity to design as well as develop electronic hardware, software and applications that are unique and limited to the brand. The company is also known for its inventive products array. | Innovation has been the main reason behind the sustained business success and an unremitting relevance of Apple Inc. (Johnson, Li, Singer & Trinh, 2012). The miscellany of Apple’s products has enabled the firm address the changing exigencies of its customers (Johnson, Li, Singer & Trinh, 2012). |
| Apple has a working distribution channel, hence; ensuring its products reach majority of their clients (Amit & Zott, 2012). The company has set up its own stores in different countries globally. Besides, apple also sells through authorized partners and dealers as well through the online channel. | This business model novelty has led to the company selling more units of their products as compared to other competitors with the technology industry. Access to the firm’s accessories has also led to development of a loyal client base (Amit & Zott, 2012). More business success has been realized by the company as a result of the effective distribution channel. |
| Apple is a leading brand in the technology industry that designs its products in relevance to consumer needs (Khan, Alam & Alam, 2015). | The company’s position as a leading electronics manufacturer has led to conception of trust among the consumers (Khan, Alam & Alam, 2015). Consumers identify the company’s products as genuine, hence; they are willing to buy the products regardless of the price tags they bear. |
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Weaknesses and Effects of Weaknesses of Apple Inc.
| Weaknesses | Implications of weaknesses |
| Apple products are not compatible with majority of third party software and accessories (Khan, Alam & Alam, 2015). | Incompatibility of apple products with third party accessories and software has negatively influenced consumer decisions at times (Khan, Alam & Alam, 2015). In most cases, chances are that when one buys an Apple product, they have to install and buy Apple software and accessories only. This is limiting compared to Apple’s rivals like Google and Microsoft that allow for usage of third party products |
| Apple has struggled meeting consumer expectations at times (Montgomerie & Roscoe, 2013). | Apple’s perceived strength as a leading manufacturer of electronics has led to the revelation of one of the company’s weaknesses: failure to match consumer expectations (Montgomerie & Roscoe, 2013). The company has therefore, has at times witnessed some of its products flop in the market as consumers resort into purchasing alternative products that match their expectations. |
| Apple products are known to be relatively expensive (South China Morning Post, 2013). | Apple products sell for comparatively more than other products produced by rival companies like Xiaomi and Sony (South China Morning Post, 2013). As a result, Apple does not do so well in third world countries where cheaper alternative products are preferred. |
| Apple produces a narrow range of products, thereby increasing dependency on the market performance of a few products (Khan, Alam & Alam, 2015). | The company has a narrow range of products within its portfolio. Therefore, in case a product fails in the market, the company incurs huge losses as compared to its closest competitors such as Google and Microsoft that boast of a wide range of products within their stores. |
Opportunities and their Impacts on the Business Performance of Apple, Inc.
| Opportunities | Effects |
| Technological advancements (Khan, Alam & Alam, 2015). | Technological advancement is an opportunity that exists in nearly all fields. With Apple venturing into this field, its consumers can expect more radical iPhones, MacBook’s and iPads in future. This evolution could help improve the company’s profits. |
| The company can target consumers in developing economies by coming up with cheaper and smaller products (South China Morning Post, 2013). | By producing more affordable products, apple will be able to exploit a niche in the market that it has not been able to fully exploit since its formation. Production of cheaper products, in addition to the already existing products will bring forth more success to Apple. |
| Venturing into production of a wider range of products, for example, the ongoing project of launching of an Apple Car (Higgins, 2015). | Creation of a wider variety of products will not only increase the profit margins realized by Apple, but will also help the company spread and limit risks and uncertainties. |
| Employment and retention of talented human resource (Khan, Alam & Alam, 2015). | Apple should seek to retain its human resource since the success the company has achieved over the years is down to their hard work and expertise. Additionally, the company should carry out searches for fresh talent since this will enable it come up with new ideas and products. |
Threats and their Implications on Apple
| Threats | Implications |
| Entrance of cheaper smartphones into the market (Khan, Alam & Alam, 2015). | Cheaper smartphones that can perform the same tasks are now available in the market. The introduction of these variety of phones has led to reduction in the volume sale of iPhones especially in developing countries |
| Competition from other firms producing laptops (Khan, Alam & Alam, 2015). | Companies like Dell, hp and Lenovo produced laptops as well. Some of these companies have come up with spectacular laptop models recently and this has led to stiff competition with what Apple produces: MacBook. |
| Cost of production of Apple products (Khan, Alam & Alam, 2015). | Apple, unlike most its competitors, produces every single bit of its products. This includes software and hardware components of the devices. This has led to increased costs of production. |
| Extant animosity between United States and certain nations (Linshi, 2014). | Enmity between United States and certain nations, for example, Iraq, has seen the United States impose trade sanctions onto these nations (Linshi, 2014). As a result, these nations are not recipients of US products like Apple products. These sanctions have led to reduction in volume of sale of Apple products, thereby, negatively impacting profitability. |
Importance of SWOT Analysis to Marketing and Management Teams within Apple
The first benefit that the management and marketing teams at Apple draw from SWOT analysis is that, it assists them in strategic marketing, thereby by capitalizing on opportunities (Ayub, Razzaq, Aslam & Iftekhar, 2013). Through the analysis of strengths, weaknesses, opportunities and threats, the management and marketing boards at Apple know when and where to sell their products. The teams are also provided with the knowledge of what products are highly demanded by consumers at any given time through SWOT analysis (Ayub, Razzaq, Aslam & Iftekhar, 2013). Strategic marketing is one of the contributing factors to business success and profitability at Apple.
In addition, SWOT analysis has enabled the management and marketing boards at Apple apprehend the firm’s areas of weaknesses and therefore, address these areas accordingly (Barney, 1995). The company, for example, has opened up more branches and service centers in many countries when these services were lacking before. Another weakness, highlighted before as the company’s products being too costly, is being addressed by the firm (South China Morning Post, 2013). Apple in on course to producing cheaper gadgets. The company’s profitability will be enhanced as a result.
Recommendations
My recommendations to the Apple management team are that, first, the company should seek to design their products in such a way that they are harmonious with third party products, just like their competitors have. Secondly, I think Apple should also strive to manufacture not only affordable iPhones, but also cheaper laptops and accessories. This way, the company will be able to sell in weaker economies. Thirdly, the management board of the firm should invest in more research and embrace advancements in technology. Lastly, the management should strive to expand the range of products Apple manufacturers.
References
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management review, 53(3), 41-49.
Ayub, A., Razzaq, A., Aslam, M.S., & Iftekhar, H. (2013). A conceptual framework on
evaluating SWOT analysis as the mediator in strategic marketing planning through
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Barney, J.B. (1995). Looking inside for competitive advantage. Academy of management
perspectives, 9(4), 6-10.
Higgins, T. (2015). Apple wants to start producing cars as soon as 2020. Retrieved August 27,
2018 from
https://www.bloomberg.com/news/articles/2015-02-19/apple-said-to-be-targeting-car-
production-as-soon-as-2020
Johnson, K., Li, Y., Phan, H., & Trinh, H. (2012). The innovation that is Apple, Inc. (2012).
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https://mds.marshall.edu/etd/418/
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Linshi, J. (2014). Why US sanctions mean some countries don’t get any iPhones. Retrieved
August 27, 2018 from
http://time.com/3502453/apple-iphone-sanction-tech/
Montgomerie, J., & Roscoe, S. (2013). Owning the consumer-Getting to the core of Apple
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DOI: https://doi.org/10.1016/j.accfor.2013.06.003
South China Morning Post (2013). Apple plans smaller, cheaper iPhone for customers in developing nations. Retrieved August 27, 2018 from
https://www.scmp.com/business/companies/article/1123993/apple-plans-smaller-cheaper-
iphone-customers-developing-nations
