SWOT ANALYSIS 1

Apple Inc. SWOT Analysis

The Apple Inc. is the largest American multinational technology company specializing in computer software, consumer electronic goods, and online services. In the years 2020, Apple Inc. recorded an approximately $274.5billion in terms of revenue and it is ranked as the 4th largest PC vendor in regards to sales. The fact that Apple Inc. has managed to become among the five leading brands means that the company has a series of strengths that have been perfectly utilized. More so, the company has been able to make effective exploitation of available opportunities leading to advanced growth and development. Sadly, the company has faced a series of challenges due to some internal weaknesses and external threats that remains unhandled. It is only through effective understanding of these weaknesses and threats that resolutions can be designed and applied with the help of available strengths and opportunities.

SWOT Analysis

Strengths

· Apple Inc. products are of very high quality and this makes the company most valuable brand. According to Trivedi, (2019) across the world, Apple us ranked as number one for 8 years consecutive by interbrand and a brand value to $322 billion. This is a major strength that makes Apple Inc. products competitive in the market.

· Since the establishment of the company, Apple has managed to become one of the most reliable companies in terms of personalizing advanced computers as well as smart technology devices. For this reason, Apple has managed to build and maintain millions of loyal customers that are consistently increasing.

· Apple has a strong technology and innovative brand name that has changed the world’s attitude and perception of innovative products. Many companies rely on Apple Inc. for innovative ideas to sustain the industry something that makes the company an icon.

· From manufacturing and conveniently supplying quality products Apple Inc. has managed to target a reliable market with ability to meet all corporation needs and generate profits (Lee, & Jung, 2020).

· The company has heavily invested in research and development that helps the company to remain innovative and productive in all areas of specialization.

· The management is comprised of highly skilled individuals promoting quality leadership, effective decision making, and proper management of available resources.

· According to Amin, & Munsi, (2020) Apple Inc. has invested in diverse products and services something that helps in targeting a wide range of clients a strength that has helped in maintaining economic stability of the company in all seasons and economic challenges.

Weaknesses

· Apple Inc. designs and manufactures products that end up being highly priced in the market. This is a major weakness because the industry is flooded with much cheaper products and this means clients have other options to choose from whenever the feel that Apple products are too costly for them. Moreover, the situation only makes Apple to target the middle to high income earners.

· The Apple Company does not invest in advertisements and promotions (Liu, 2021). The company focuses on building loyal clients and this makes many people not to fully be aware of different Apple products leading to lower selling rate. The management seems to feel that Apple Inc. is a big brand which is a major area of weakness.

· In the recent past, Apple Inc. management decided to venture into a new area for instance video content streaming, credit card, and game streaming. The new area of investment is a major challenge since Apple does not have the necessary competency while expecting to compete with major companies in the new industry like Netflix, Chase, Paypal, and Disney among others. The lack of competence in the area might affect even other areas the company might be thriving in.

· According to Liu, (2021) the industry of operation that Apple is in is vast and highly competitive. However Apple has ensured that it creates and makes use of incompatible software and this means once a client buys an Apple product, he/she cannot use other software apart from one from Apple. This is a major weakness that makes clients to fear Apple products as they feel locked out from using other software.

Opportunities

· The world is increasingly understanding and valuing technological products and this is a great opportunity Apple can exploit to acquire and sustain a wider market. moreover, the power of internet has created an opportunity for Apple to supply its products across the globe

· Apple requires professionals to be in a position to design and supply the market with quality products. The education section has been focusing more on advanced technology course and this has created an opportunity for Apple to accessed qualified professionals (Trivedi, 2019). Hence, Apple is able to control employees’ power while attaining best professional services at manageable cost. Moreover, the company has a chance to building skills and talents were a way of building a good employment name.

· Currently, Apple does not have an expansive distribution network which hinders revenue generation. However, the manner in which the supply and logistics industries are progressing clearly creates a platform that Apple can exploit and reach out to clients across the globe.

· The world as a way of conserving the environment is embracing the green technology concept that Apple is yet to embrace. For this reason, Apple can hence take advantage of the opportunity and come up with products that make use of green technology a move that would create a better brand image while attracting a large clientele.

Threats

· Competition in the industry has been on the rise with competitors attacking Apple using major weaknesses like high commodity prices. As a result, Apple remains threatened by competitors through having clients taken away (Liu, 2021).

· The world economic challenges brought about by pandemics like the recent coronavirus outbreaks highly affect the market leading to a decrease in overall sales. The more reason is that lockdowns lead to locking up of some selling outlets attracting losses for the business.

· In the third worlds where Apple has not been able to supply the products consistently, Apple bullied counterfeits floods the market tarnishing the brand image of the company.

· Describe the specific areas that indicate a need for change

From the SWOT Analysis conducted, the main areas that indicate a need for change are; production for the purpose of reviewing the cost of production that would eventually reduce the selling prices. This is important because whenever the cost of production is high, the company is compelled to sell its products at a high rate to make profits. The second area is in innovation to ensure that Apple has products under the green technology. This would help the consumer to feel that Apple is concerned with the well-being of the public attracting higher levels of loyalty. Lastly Apple requires changing the manner in which advertising and marketing is done. More aggressive strategies should be embraced to ensure that advertisements and marketing done aligns with the size and publicity of the company.

· Determine what changed objectives, or newly implemented interventions, are required to improve the company’s position within its market.

According to Nadeem, et al., (2021); Apple Inc. recently implemented a new technology in Apple iPhone known as the Magsafe. It is a technology that has the magnetic ability to interfere and detect possible cardiac arrest on Apple iPhone user. Hence, users are saved from unexpected cardiac arrest. This is an important intervention as it has granted consumers a reason not to consider prices of the product but rather the safety of the users. This is important as it has helped consumers to perceive Apple Products not only from the social use but also health use making the products

· Assess the trending performance of the company and provide recommendations for improvement.

It is a commendable thing for the Apple Inc. since it has been making tremendous change in the technology world and its innovations. However, one important recommendation is that Apple Inc. should embrace green technology in its innovations to save the world and users indiscriminatively. By so doing, the company would lead world’s technological innovations in a safe and healthy way thereby bringing the global climate change to a good position than it has ever been.

References

Amin, M. R., & Munsi, M. (2020). Motivational Techniques for Business Organization–A Case Study of Apple Inc.

Lee, J., Lee, S. J., & Jung, K. (2020). Balanced SWOT: Revisiting SWOT Analysis through Failure Management and Success Management. Available at SSRN 3612519.

Liu, Z. (2021, January). Analysis of Apple Inc.’s Innovation Dilemma From the Perspective of Leadership. In 6th Annual International Conference on Social Science and Contemporary Humanity Development (SSCHD 2020) (pp. 551-554). Atlantis Press.

Nadeem, F., Nunez Garcia, A., Thach Tran, C., & Wu, M. (2021). Magnetic Interference on Cardiac Implantable Electronic Devices From Apple iPhone MagSafe Technology. Journal of the American Heart Association, 10, e020818.

Trivedi, S. (2019). A Study on Development of Personal and Management Skills in Apple Inc. International Journal of Human Resource Development and Management, 9(1), 1-9.