SWOT Analysis of Apple Case Study
SWOT Analysis of Apple Case Study
Macro-external and Micro-external
The main macro-external and micro-external factors that determine Apple Inc. Company’s performance are the actors and forces especially on the marketing needs and its ability to maintain the successful relationships wit the customers. The company has a forged an intensive relationship with the retailers across the globe especially on distribution networks according to regions. The suppliers of the production and manufacturing requirements have a balanced rapport within, which the company is able to synchronize its operations for successful day-to-day functioning (Strategic Management Insight, 2013). However, the differential basis on agreement terms according to market capitalization is felt within the intermediaries and major competitors in the market. Improved measures in streamlining the operations have enhanced the company’s reputation.
Apple Inc. Company has a decentralized organizational structure, which enables its operational basis and streamlined capabilities. For example, the company is divided into various departments like finance, operations, marketing, human resource, purchasing among others. They are all integrated with a single approach in delivering the company’s products to the customers with the highest quality and expedience. All measures are truncated to the organization’s mission, objectives, policies and governed broad strategies. There is a clear protocol on the availability of organizational culture and working environment for all the employees and it is universal across all its offices in the world. Issues regarding conflict resolutions and internal discrepancies are al solved with managerial expedience, where the overall heads deliver the verdicts.
Apple Inc. Company bases its strength on the customer loyalty combined with the closed ecosystem in its expansion. The company has a successful brand image renowned all over the world and therefore is more appealing to the customer base. In return, the entrants of new customers are easily available due to the expanding ecosystem of its provisions. Apple Inc. Company is a leading innovator and creator within the mobile device technology as well as electronics. In the industry, the company’ value is added to the mentioned phase and status of the innovative ideas presented and detailed product development. It is evidenced by the amount of annual funding set aside for all the innovative and research requirements by the management into effect. Regular updates and utilization of new scheme and technology are treated as benchmarks for other opposing competitors within the consumer markets.
Apple Inc. Company is buoyed by its overall financial performance amongst the industrial heavyweights. For example, the annual turnovers from revenues and sales have propelled it to one of the leading organizations in the world on management and success according to survey and polling. The company is backed by the reputable management of its operations and dealings with customers. Apple Inc. Company has a strong, immense, and developed network of distribution as well as retail store in the world all over (The Telegraph, 2014). The distribution network is advantageous as it enables delivery and reach of potential customers with relative ease and thereby cutting down on costs. The company is also well represented and respected in the marketing availability of its products from one region to another. The effect is used in globalization outreach at relative speed with notable figures used in its endorsements, advertisements, and promotions.
One of the major weaknesses of Apple Inc. Company is the quality of product pricing it delivers. The company is marked by high pricing of its products epically the mobile telephony gadgets. It therefore discriminates on the lower-end consumers, as they cannot manage. The products from the company are also incompatible with different operating systems. The particular domains are only associated with particular compatibility. The company also suffers from a decreasing market share especially in the countries where divisions from the production nation sever the economic ties. Defects of new products after their subsequent launch also minimize the potential of the company’s growth to newer consumers. The company has also suffered from the changes realized in managerial positions and personnel. Different strategies hamper the improvement of established protocols and operations. In addition, the long-term gross margin of the organization continues to decline at a steady rate.
Apple Inc. Company should seize the opportunity presented by the increasing demand of its products in newer markets apart from those established at global level. For example, the increased hype and trends of different gadgets should be a pointer to increased efforts of reaching the target consumers. There is an emergent provider of application processors for the company’s reach as well as the growth in embrace of Smartphone and tablets, which the company specializes in production. One of the key opportunities within the information technology age and delivery of mobile telephony is the obtaining of patents. Apple can bridge the gap through acquisitions for the new entrants. There is also the issue on damages realized from patent infringements, which promises record turnovers into the firm’s outreach strategies. In addition, the advertisement demand of mobile market can provide the organization with required revenue on a continuous basis.
Due to the growth in mobile telephony, rapid changes are witnessed in the technology in use and that innovated. Apple Inc. Company is therefore represented with an ongoing threat towards the level pf technological availability it uses in production of its gadgets and everyday updates. During the turn of year 2013, the company faced increase in the level of taxation across all its global operational destinations. Due to the shifts in economic dynamics and increased input, output and production costs, the levels of taxes increased accordingly (The Telegraph, 2014). The above threatens the marginal profitability and acquisition of cutoff gains on an annual basis for the company. It is further affected by the differential exchange rates from one country or region to another. In addition, the threat of breached internet protocol rights has derailed the company’s flagship of a universal domain to it operating systems.
main threat facing Apple Inc. Company is the entrant of new competitors and
rivals in the mobile telephony as well as electronics development. On the
mobile telephony platform, the main rivals include Samsung, Nokia, Sony
Ericsson, Google, Blackberry, and Huawei. With cross-referential bridging of
the operating systems and universality ensured through the language coding, the
company faces stiff competition maintaining its consumers to its products, as
they are able to step up on preferential availabilities. With the growth in
android usage across board, the company faces the growing threat of relevance
to other consumer targets. Apart from the specialization core roles, Apple Inc.
Company is threatened by the entrance of competitors in online music
environment. In addition, with the strengthening of the dollar, operational costs
in other nations are threatening to minimize the gains realized with the
cut-off margins in exchange rates. Consumers bare the burden and this
discourages others from purchasing the products.
Strategic Management Insight (2013). SWOT Analysis of Apple. SMI Retrieved from http://www.strategicmanagementinsight.com/swot-analyses/apple-swot-analysis.html
The Telegraph (2014). Apple’s Supply Chain in Trouble? Telegraph Retrieved from http://www.telegraph.co.uk/technology/apple/10714935/Apples-supply-chain-in-trouble.html