In 2018, Apple Inc. recorded quarterly revenues of about $61 billion which was an increase of about 16% from the previous quarter. International sales of the iPhone and MacBook accounted for about 65% of the company’s revenue. Also, the company had improved revenues in all its segments while markets such as Japan and greater China experienced growth rates of over 20% the earnings per share increased by about 30% while the operating cash flow grew to $15 billion. Due to the cash flow stability, Apple can easily invest in US operations and focus on a better capital structure. Due to the improved performance, the board approved a 16% increase in Apple’s quarterly dividend and a $100 billion share repurchase plan (Giachetti, 2018). The paper will provide a strategy evaluation report from Apple Inc.
The company's main competitor is Samsung. Samsung is one of the main tech organizations globally. Samsung grew its company from copying their competitors' technologies. After copying some of Apple's technologies, they often sell them at a lower price than Apple. Samsung is a major competitor, especially in the smartphone industry. While Apple focuses on premium pricing and high income earning individuals, Samsung designs products for different target markets (Giachetti, 2018). They have products for medium, low, and high income earning individuals. Although Samsung’s products have lower standard prices and quality than Apple, they have managed to acquire a significant market share. Furthermore, Samsung has invested in different industries and owns different companies in different industries unlike Apple which focuses on the technology industry.
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Some of the strengths in the industry include a focus on consumers, innovative products, high-profit margins of the main companies, Apple's leadership positions, effective supply chain, brand equity, and quality designs and technology. However, the industry has various weaknesses such as high dependency on a few products, matching consumer expectations, and incompatibility of some software programs. Some of the new opportunities in the industry are the development of electric cars, the growing demand for premium products, and technological advancements. One of the key threats in the industry is the fierce competition in the smartphone industry that has many players (Giachetti, 2018). The emergence of cheaper smartphones from China is threatening the dominance of Samsung and Apple.
The success of Apple Inc. is attributed to its effective strategies. The company ensures that all the new products are desired by the developers. Before releasing the technology into the market, the company must first be convinced that it will be successful. Also, the company focuses on user experiences and ensures the software and hardware products are simple to use. Furthermore, the company provides great in-store experiences and customer service (Giachetti, 2018). Additionally, Apple ensures that they always improve their products annually. Apple ensures that they are about two years ahead of their competitors. As Apple’s competitors focus on addressing the current competition, Apple is already developing new innovations two years out of the current competition.
Apple’s SWOT analysis shows that the organization has key strengths that may be used to address some of the problems facing the company. Apple should use its strengths to improve their distribution network to rival Samsung. Furthermore, Apple has a strong reputation and brand image that can enhance their marketing strategy. Also, their rapid innovation processes may be used effectively to effectively develop and launch innovative products. One of the key threats facing Apple is the aggressive imitation and competition. The company should ensure they have a stronger patent portfolio and continuous innovation that will allow the company to maintain their competitive advantages (Giachetti, 2018). All in all, Apple has powerful ecosystems of services, content, apps, and industrial designs that are part of the company’s success.
References
Giachetti, C. (2018). Introduction: Aim of the Book and Methodology. Smartphone Start-ups (pp. 1-6). Palgrave Macmillan, Cham.
