SWOT Analysis for Apple
Apple SWOT analysis or SWOT analysis for Apple reveals how one of the most successful companies used its competitive advantage to grow as one of the dominant players in the technology industry. Apple SWOT analysis or SWOT Analysis for Apple will determine the company’s success, which is attributed to the company’s ability to utilize its business strength and overcome the weaknesses and threats while exploiting the opportunities in the industry. Apple SWOT analysis or SWOT analysis of Apple provides an insight into the strategic actions undertaken by the company to optimize its growth based on the strength and opportunities.
Moreover, Apple SWOT analysis or SWOT analysis for Apple would provide an understanding of the Apple strategic situation. Through Apple SWOT analysis or SWOT analysis Apple, the company would not only get help in determining the business strategy, but it would also be used to understand the specific segments like production, marketing, and sales. Before getting into the intricacies of SWOT analysis of Apple or SWOT analysis Apple, it is important to have a background study of the company.
Apple is a US-based company and is one of the most renowned technological companies in the world. It is an American multinational company that is headquartered in Cupertino, California. The company was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in the year 1976. It has many world-recognized products that include tablets, computers, iPods, iPhones, portable media players, Apple smartwatch, Mac personal computer, Apple TV, digital media player, Air Pods, wireless ear buds, etc. Apple commenced its business with manufacturing and selling personal computers but gradually expanded into other sectors. Presently Apple is the second-largest phone manufacturer in the world after Samsung and is the largest IT Company in the world in terms of revenue. It operates nearly 500 stores worldwide, having a total strength of 120,000 employees.
In the year 2018, Apple became the first to reach the trillion-dollar market capitalization. Therefore, Apple designs, manufactures, and markets numerous electronic products. The main company’s product is the iPhone, which runs on the Apple IOS operating system and accounts for the majority of the total company revenue. Apart from consumer electronics and computer hardware products, the company offers many other services like digital content stores and other services like cloud licensing, Apple pay, Apple news, etc.
Apple SWOT Analysis or SWOT Analysis of Apple
Apple Inc’s success is based on the ability to use business strength, overcome weaknesses and threats, and exploit opportunities in the industry environment. Apple SWOT analysis or SWOT analysis of Apple gives an insight into the strategic actions undertaken by the organization, especially in maximizing the growth based on the strength and opportunity. Moreover, Apple SWOT analysis or SWOT analysis of Apple framework is a strategic management decision-making tool that helps in understanding and determining the most pressing issues which are being faced by the company based on the internal conditions as well as the external factors.
Apple SWOT analysis, SWOT analysis of Apple, or SWOT analysis for Apple scans the business for relevant strengths and weakness opportunities and threats based on the various industries and markets. Moreover, the reason for Apple SWOT analysis, SWOT analysis of Apple, or SWOT analysis for Apple is to develop a diverse set of strategies that would help the company competitiveness and business growth.
Therefore, this Apple SWOT analysis, SWOT analysis of Apple, or SWOT analysis Apple assists in presenting the strategic factors that result in business growth. Having diverse operations in various markets around the globe, Apple deals with a different set of SWOT analysis Apple factors, which are based on regional situations as well. Aplle Inc. is known for its unique value products. Therefore, there are a number of policies that Apple undertakes to create an advantage over other companies.
Apple SWOT Analysis: Strength
Apple SWOT analysis, SWOT analysis Apple or SWOT analysis for Apple is the internal resistance that lets the company overcome its weakness and take advantage of the opportunities related to the external environment. Following Apple SWOT analysis, SWOT analysis of Apple or SWOT analysis for Apple strengths are:
Loyal customer base: One of the major strengths as per Apple SWOT analysis, SWOT analysis Apple or SWOT analysis of Apple is its loyal customer base. The main reason for the customer being so loyal to the organization is the unique customer experience, simplicity, and innovation.
Brand identity: Another major strength based on Apple SWOT analysis, SWOT analysis Apple or SWOT analysis of Apple is the brand value and reputation. All the products of Apple are atheistically designed, having beautiful design, logos, simplicity, and creativity. Brand identity has been one of the biggest strengths as per Apple SWOT analysis, SWOT analysis Apple or SWOT analysis of Apple and has made it a renowned brand worldwide. Moreover, the brand identity of the company is such that loyal customers pre-order the products as soon as they are launched in the commercial marketplace. It is one of the marketing strategies that the company uses to market the products. Because of this, the profit margins are very high with every new device that the organization launches into the market. It has been one of the biggest strengths as per Apple SWOT analysis or SWOT analysis of Apple.
Innovative products: Another strength based on Apple SWOT analysis or SWOT analysis Apple is the innovative products. Apple has always focused on delivering high-grade products like iPods, iPhones, smartwatch, which covers almost all the aspects that a customer can desire.
Brand value and reputation: Another strength as per Apple SWOT analysis or SWOT analysis Apple is the brand value and reputation. Apple Inc. is the second most valuable brand in the world after Google. It has been one of the most successful companies in history and has made record earnings among the competitors.
Some other strengths, as per Apple SWOT analysis or SWOT analysis Apple, are the marketing and advertising campaigns that are created through buzz marketing about the upcoming updates and products. The company distribution chain is yet another major strength as per Apple SWOT analysis or SWOT analysis Apple.
Apple SWOT analysis: Weaknesses
Some of the most recognizable weakness as per Apple SWOT analysis or SWOT analysis for apple are as follows:
Incompatibility: One of the main issues, according to Apple SWOT analysis or SWOT analysis for Apple, is that most of the products are not compatible with third-party software and accessories. When entering into the Apple world, one has to remain there. Therefore, it becomes one of the major issues in consumer decision making.
Premium pricing: Another prominent weakness based on Apple SWOT analysis or SWOT analysis for Apple is the premium pricing strategy that is undertaken by the company. It has high-end products, and the company ignores the maximum customer segment to preserve its brand image.
Narrow product lines: Another weakness as per Apple SWOT analysis or SWOT analysis Apple is that the product line is very narrow. It has near about eight products in the portfolio as compared to its competitors. Therefore, the dependency on each product is very high.
Limited distribution network: Apple Inc. has a very limited distribution network due to the organizational strategy of exclusivity. It is one of the weaknesses as per Apple SWOT analysis or SWOT analysis Apple as the company very carefully selects the authorized sellers due to the exclusivity it has a limited market to reach.
Other weaknesses based on Apple SWOT analysis, SWOT analysis Apple include the dependency of sales on high-end market segment, lack of marketing and promotional campaigns, entering into areas of non-competency, and compatibility with other software.
Apple SWOT Analysis: Opportunities
Some of the Apple Inc. opportunities as per SWOT analysis of Apple or SWOT analysis for Apple are:
Steady customer growth: One of the many opportunities as per SWOT analysis of Apple or SWOT analysis for Apple is customer growth due to the organization’s dominance in the technological area. Apple Inc. has provided customers with high-end products and cutting edge customer experience. This is the reason why the organization has been able to maintain more than 90% of the customer retention rate.
Qualified professionals: Another opportunity as per SWOT analysis for Apple is the organization employing top researchers, developers, and product specialists with vast experience in the related products.
Lack of green technology: The company is yet to embrace more environmentally friendly technology, which can serve as an opportunity for the organization.
Use of artificial intelligence: Another opportunity as per SWOT analysis for Apple is utilizing artificial intelligence in a much better way. The organization has extended its artificial intelligence portfolio and has acquired an artificial intelligence startup to integrate all the applications to have a strong foothold in the near future.
Some other opportunities as per SWOT analysis for Apple is expanding distribution network, collaborating with partners, technological advancement, etc.
Apple SWOT analysis: Threats
Based on SWOT analysis for Apple, the organization has become a victim to developing countries that are illegally using the brand image to sell a copy of its products. Some of the threats that the company faces based on SWOT analysis for Apple are:
Increase competition: The Company faces cut-throat competition from companies like Samsung, Dell, and Google. With the dynamic technology advancement, the company has to continuously introduce new cutting edge technologies along with revising its pricing strategy.
Rising labor cost in the countries: Another threat based on SWOT analysis for Apple, is an ever-increasing cost of labor in foreign markets.
Coronavirus outbreak: With the outbreak of the virus, Apple Inc. is highly dependent on China for the manufacturing and supply chain. Moreover, a significant amount of revenue comes from China. Therefore, it has become one of the major threats to the company in the present scenario.