Introduction
Apple Inc. is a leading public company that was established in 1977 which is involved in the business of designing, manufacturing mobile communications devices, including portable digital music players and personal computers. It sells a wide variety of accessories, third party digital content, software, services and networking solutions. Its operations are distributed all over the world including the Americas, Europe, Japan, China, and the Asia Pacific regions. This worldwide reach requires that the company develop appropriate strategies to maintain competitive advantage by using its business strength to overcome its weaknesses and threats and taking advantage of its opportunities (Brand Keys, 2017).
Apple Inc.’s. Strengths (Internal Factors)
Apple is among the leading brands the world with a strong image. In the context of a SWOT analysis, the company has the capacity to introduce new products due to its strong brand image. Additionally, its marketing mix entails a premium pricing strategy that gives it high profit margins. That company is also able to effect rapid innovation that helps it to keep abreast of latest technologies in the industry. This makes it a difficult company to compete with ensuring its continued leadership in the industry (Haan, 2017).
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Weaknesses (Internal Factors)
The company’s distribution network is not very expansive in relation to its size due to its exclusivity policy. This strategy limits its market reach which can be exploited by competitors. Moreover, the company has a premium pricing strategy which makes it to be dependent on high-end market segments sales. This is a weakness for the reason that high end market segments are a minority in the global market and this limits its profitability (Forbes, 2018).
Opportunities (External Factors)
The company has the opportunity of expanding its distribution networks by doing away with its exclusivity policy. This strategy will help it reach more clientele in the world market. It has the opportunity of increasing its sales through aggressive and purposeful marketing of mobile products due to an increased demand for the products (Valentin, 2001). Furthermore it also has the opportunity of diversifying and innovating its product lines and introduces new products in the market. The company also has the opportunity forging alliances and partnerships with other companies to expand its networks. Finally, there is the opportunity of making its products compatible with others in the market to increase its market reach (Singh and Vakulenko, 2013).
Threats (External Factors)
The industry is experiencing tough competition because of aggressive marketing by rival firms such as Samsung. This situation has a limiting effect on the company. There is also the threat of imitation by several companies copying its products designs and features. Furthermore, there is also the threat of rising labor costs which reduce profit margins and push product prices high. The company is facing the threat of having infringed intellectual property rights which could land it into legal problems apart from denting its public image. There is also the threat that the company can damage its good reputation due to allegations of tax evasion scandals that have rocked it recently (Smithson, 2018).
References
Brand Keys (2017). 2017 Brand Keys Customer Loyalty Engagement Index. Available at: http://brandkeys.com/wp-content/uploads/2017/09/2017-CLEI-table-of-category-winnersFINALfeb1.pdf Accessed Feb. 04, 2019
Forbes (2018). The World’s Most Valuable Brands. Available at: http://www.forbes.com/powerful-brands/list/ Accessed Feb 04, 2019
Haan, C. (2017). The World’s Most Innovative Companies. Forbes . Available at: https://www.forbes.com/innovative-companies/#153fecad1d65 Accessed Feb. 04, 2019
Singh, S. and Vakulenko, M. (2013). The Evolution of Handset Business Models: from Source of Profits to Distribution Channel. Vision Mobile. Available at: https://www.visionmobile.com/blog/2013/08/evolution-of-the-handset-business-from-source-of-profits-to-distribution-channel Accessed Feb. 04, 2019
Smithson, N. (2018). Apple Inc. SWOT Analysis & Recommendations. Panmore . Available at: http://panmore.com/apple-inc-swot-analysis-recommendations
Valentin, E. K. (2001). SWOT analysis from a resource-based view. Journal of Marketing Theory and Practice, 9(2), 54-69.
