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This text is an individual essay on international business strategy, focusing on the company Apple Inc. The essay provides a profile of the company, including its background, mission, vision, values, and target market. It also includes an analysis of the company's environment, SWOT analysis, and Porter's Five Force Analysis. Apple's general competitive strategy is pursuing a broad differentiation strategy, setting itself apart from competitors through its innovative products and services. Is there anything else you would like to know?

INDIVIDUAL ESSAY 1
INTERNATIONAL BUSINESS STRATEGY
Lecture: Bui Thuy Duong
IB1705_Group 6
Name ID Student Mission
Nguyễn Việt Yên HE161504
Opportunities of SWOT
Porter’s 5 forces: new entry, Buyers
Conclusion
Mai Thị Bảo Ngọc HS163324 Environment Analysis
Nguyễn Thị Xuân Mai HS163337 Strength Weak of SWOT
Nguyễn Thị Mỹ Linh HS163466 Company profile
Đào Minh Sơn HS176140
Threats of SWOT
Porter’s 5 forces: Sellers, substitutes, rivalry
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TABLE OF CONTENTS
I. COMPANY PROFILE.......................................................................................................4
1. Background.........................................................................................4
2. Mission, Visions & Values....................................................................4
3. Scope of Apple analysis......................................................................5
II. ANALYSIS.....................................................................................................................6
1. Environment Analysis.........................................................................6
1.1. Demographic Trends................................................................................................6
1.2. Social-culture influences..........................................................................................6
1.3. Political-legal pressure.............................................................................................7
1.4. Global trade issue.....................................................................................................7
1.5. Macro Economics Impacts.......................................................................................7
1.6. Technological Development....................................................................................8
2. SWOT Analysis....................................................................................9
2.1. Strengths..................................................................................................................9
2.2. Weaknesses............................................................................................................12
2.3. Opportunities...........................................................................................................14
2.4. Threats....................................................................................................................15
3. Porter's Five Force Analysis..............................................................15
3.1.Threat of Entry...........................................................................................................16
3.2. Bargaining Power of Buyers.....................................................................................16
3.3. Bargaining Power of Sellers......................................................................................17
3.4. Threat of Substitutes.................................................................................................17
3.5. Intensity of Rivalry...................................................................................................18
IV. CONCLUSION.............................................................................................................19
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V. REFERENCES..............................................................................................................19
VI. GRADES ON GROUPMATES....................................................................................21
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I. COMPANY PROFILE
1. Background
Company's name: Apple Inc.
Establishment year: Apple Inc. was founded on April 1, 1976.
Headquarters: Apple Inc.'s headquarters is in Cupertino, California, United States.
Industry: Apple operates in the technology industry, primarily focusing on consumer
electronics, software, and online services.
Main products and services:
Apple offers a wide range of products and services, including iPhones, iPads, Mac computers,
Apple Watches, Apple TVs, Air Pods, Home Pods, iCloud services, iTunes, the App Store,
Apple Music, and various software applications.
Target market: Apple targets a broad consumer market with its products and services. It caters to
customers across different age groups and demographics, including individuals, professionals,
and businesses. [1]
Operating country: Apple operates globally, with its products and services available in
numerous countries around the world. It has a significant presence in the United States, Europe,
China, and other major markets.
2. Mission, visions, and values
Vision: Apple's vision is to create innovative products that enrich people's lives.
Mission: Apple's mission is to bring the best user experience to its customers through its
Innovative hardware, software, and services.
Message: Apple's message is about simplicity, elegance, and ease of use. The company strives to
make technology accessible to everyone.
Core Values:
 Customer focus: Apple puts the needs of its customers first and works hard to exceed
their expectations.
 Innovation: Apple believes in constantly pushing the boundaries of what's possible and
creating products that change the world.
 Quality: Apple is committed to delivering products that are of the highest quality, from
design to manufacturing to customer support.
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 Design: Apple believes that great design is not just about aesthetics, but also about
making products that are intuitive and easy to use.
 Sustainability: Apple is committed to operating in an environmentally sustainable way
and reducing its impact on the planet.
 Inclusion and diversity: Apple values diversity and inclusivity, both in its workforce and
in the products it creates.
3. Scope of Apple analysis
In this analysis, the scope will focus on the global market of Apple Inc. This means looking at a
company's activities, products, and services on a global scale. By analyzing Apple's global
presence, we can better understand the overall position in the industry, the competitive
landscape, and the opportunities and challenges in the market.
Figure 1: Global smartphone market share (Q2 2021 – Q1 2023) [2]
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General competitive strategy
Apple is pursuing a broad differentiation strategy. Apple sets itself apart by providing high-
quality, exceptional design, and personalized service. The scope of their strategy is to target a
wide range of customers ranging from uncomplicated beginner users to users with special needs.
Create value
Apple outsourcing manufacturing basics to third-party original equipment manufacturers
(OEMs) can achieve cost savings through vast economies of scale while in-house design
elements for revenue collection attract and retain users. Apple excels in the areas of industrial
design and user interface and focuses on these areas to deliver a product that is both stylish and
ergonomically natural. Apple's people-friendly devices and highly personalized face-to-face
customer service create a one-of-a-kind value proposition that demands above-average prices. [1]
II. ANALYSIS
1. Environment Analysis
1.1. Demographic Trends
Founded in 1976, Apple Inc. quickly became one of the biggest companies in the world.
Throughout the years, Apple has been a part of the technology market where there has been an
exponential number of opportunities and threats. They identified the target market, how they
have chosen to segment, and the demographics and geographics within the largest target
segments [3]. Apple customer demographics include people aged 18 to 45. They are either
single, married with no kids, or married with young children or teens. Apple's target audience
skews strongly female, with around 66% female to 34% male customers. As a result of
successfully identifying trends in the past, Apple continues to impress with its globally known
brand name and customer base/market. However, Apple must continue to identify future
opportunities to stay relevant in the ever-advancing technological market. [4]
1.2. Social- culture influence
Apple’s business is subject to the effects of social or sociocultural trends. This social external
factor relates to the increasing demand for devices like smartphones and tablets. This analysis
also points to the increasing dependence on digital systems, which is another sociocultural trend
that creates opportunities for Apple to sell more of its products based on higher demand.
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Socio-cultural factors include consumers’ lifestyles, buying habits, education, religion, beliefs,
values, demographics, social classes, and attitudes. These factors determine the suitability of an
organization’s products and services for its customers’ needs. Apple Inc has succeeded in using
environmental factors flexibly.
For example, Chinese New Year is on January 22nd. In the year 2023- The Year of the Rabbit in
China there is a legend that tells the story of a young man, his love for opera, and his enduring
spirit. What's more special is that this entire video was shot entirely with Shot on iPhone 14 Pro.
The nearly 18-minute video was shot on an iPhone 14Pro for Apple to highlight all the new
camera features available on this phone. This ad has brought Apple great success in the Chinese
market- Public Technology Environment. [5]
1.3. Political- legal pressure
The instability and rapid political change will create a risky environment for business because
each country has different laws and regulations. For example, the Chinese decided to raise tariffs
on some U.S. goods after President Donald Trump threatened to further raise tariffs on Chinese
imports. The political war is affecting a lot of different stocks, but Apple seems to be hit harder
than most because the Chinese market is Apple's 3rd largest consumption market after the
Americas and Europe, and assembles its iPhones primarily in China. This tax imposition could
reduce iPhone sales by 6 - 8 million in the US in 2020. This means that Apple's income could
drop by up to 4%. [6]
1.4. Global trade issue
Apple's value drops as interest rates, supply woes, and recession fears batter the tech industry.
Tech companies face strong headwinds from higher interest rates, production problems and
global economic concerns, and investors selling off shares. Apple stock has lost $1trn (£829bn)
from its market value, meaning there are no longer any tech companies worth more than $2trn
(£1.65trn). Apple too struggled with production in China, and in November said it experienced
"significant" disruptions with iPhone assembly after a COVID-19 outbreak. [7]
1.5 Macroeconomics impacts
Most of the economic external factors in Apple’s remote or macroenvironment create
opportunities. In this external analysis case of Apple Inc., the following economic external
factors are the most significant:
1. Stable economies of developed countries (opportunity)
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2. Rapid growth of developing countries (opportunity)
3. Increasing disposable incomes among target customers (opportunity)
The economic stability of developed countries creates opportunities for Apple’s expansion. For
example, the high economic growth rates of Asian countries are opportunities for Apple to
increase its revenues through sales in these foreign markets. In relation, higher disposable
incomes create more opportunities to sell the company’s relatively high-priced technology
products. In exploiting these economic opportunities, it is essential to consider competitive
forces in the international market, as described in Porter’s Five Forces analysis of Apple Inc.
These external strategic factors indicate growth potential for the corporation and its competitors,
substantial multinational firms like Samsung. Based on this analysis framework, speed, and
effectiveness are critical in Apple Inc.’s growth and expansion efforts because competitors also
target these same economic opportunities. [8]
Figure 2: Critical Macroeconomic Outputs. [9]
1.6. Technological development
In Apple’s external analysis case, the following technological external factors are the most
significant:
1. Growing cloud computing demand (opportunity)
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2. Increasing technological integration in businesses (opportunity)
3. Growing mobile market (opportunity)
4. Growing technological capabilities of other firms (threat)
This analysis of Apple Inc. identifies the growing demand for cloud computing as an opportunity
to grow the business. The company now offers cloud services, although to a limited extent. In
exploiting this opportunity, together with support from Apple Inc.’s corporate structure,
developing an expanded cloud infrastructure could maximize the profitability of the business in
offering cloud-computing services. In relation, the external strategic factor of increasing
technological integration presents the opportunity to enhance the company’s services and grow
the business by offering its technological goods and services to more customers, including
organizations. Furthermore, this analysis includes the growth of the mobile market as an
opportunity for Apple Inc. to gain higher revenues, including revenues through the App Store
and related digital content distribution platforms. However, the technological advancement of
other firms threatens the company, as more new players could enter the market. [10]
2. SWOT analysis
2.1. Strengths
Strong Brand Recognition
Apple is one of the best-known brands in the world. The company always holds the first position
on the rankings of the largest technology companies in the world, the data to rank for is sales and
market value. [11]
Figure 3: The world’s largest tech companies in 2021 [11]
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Loyal Customers
It has a loyal customer base that continues to grow due to its innovative products, design quality,
and user experience. According to a report from research group CIRP, Apple maintained a
loyalty rate of more than 90% for the past three years. The calculation was based on the
percentage of new iPhone customers who upgraded from a previous iPhone model [12]. Apple’s
brand recognition extends to its App Store, making it easy for new users to find the apps they
need quickly. This can be seen by the sheer number of downloads that app developers receive for
their apps on the App Store- many developers report a huge increase in sales when releasing an
app on Apple’s platform compared to other platforms. This is partly due to iPhone being more
popular in regions with high income, such as Japan and the United States, which also tend to
spend more on apps. [13,14]
Innovative Products and Services
In 2021, Apple Inc ranked first among the 50 most innovative companies in the world selected
by Boston Consulting [15]. Apple Inc can maintain a high growth rate for a long time because of
its unique innovation ability, including product innovation and process innovation. For example,
Apple Inc reformed the design and production of all-in-one machines, using hard disks instead of
memory to make MP3s and so on. As Apple Inc's core competitiveness, these innovative reforms
assisted Apple Inc in quickly occupying and maintaining its leading position in the industry. This
has brought huge profit margins and market influence on Apple Inc and provided a substantial
basis for Apple Inc's future market expansion and strategic transformation plan. Also, when it
comes to mobile devices, iPhones were one of the first mobile phones that allowed access to
internet streaming services like Spotify, thereby allowing users unprecedented access to content
anytime, anywhere, through their phones themselves.
Leading Technology Edge
When considering Apple’s strengths, it would be remiss not to mention the company’s leading
technological edge. As one of the most innovative tech giants of the modern era, along with
Amazon and Google/Alphabet Inc., Apple continually sets new trends when it comes to
technology development. From introducing groundbreaking features like facial recognition
through Face ID (iPhone X) or augmented reality apps through AR Kit (iPhone 8), Apple pushes
boundaries by bringing state-of-the-art solutions into consumer markets faster than any other
competitor can keep up.
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The impressive speed at which they do this can largely be attributed to the company’s recent
move into developing custom chipsets specifically designed for their devices — known
colloquially as “system on a chip” designs — which allow them to build hardware better suited
for each task instead of being forced to use off-the-shelf components available from other
manufacturers. This gives them a much quicker path from the concept stage to the finished
product compared to almost anyone else operating outside Silicon Valley.
High-Quality Products with Unique Features
Since its inception in 1976, Apple has become synonymous with high-quality products that are
unique yet easy to use for customers across all demographics and segments of society
worldwide. The company’s commitment to providing excellent customer service and quality
devices has earned its loyal fans, as well as a massive following on social media platforms such
as Twitter and YouTube.
From iPhones to iPads, MacBooks, and much more, their product range is extensive enough for
everyone, from kids, just starting out using computing devices up to more experienced
professionals looking for the latest technological advancements found only within Apple
products. The features included both on a software and hardware level within these devices make
them stand out against competitors.
Proficient Research & Development
Apple puts dedication into its product designs. Careful study and extensive research are
performed to help understand customer needs and market trends. Apple continues to invest a
substantial amount of money in research and development for future growth and a competitive
edge. For example, Apple spends $19 Billion (about 7%) of its revenue on R&D. [16]
Expansion in services
Apple has been expanding its services portfolio for many years. For example, about 20% of
Apple’s annual revenue ($77.2 B out of $387.5 B in 2022) came from its services, which is the
second biggest contributor to its revenue after the iPhone (52% of its revenue). [17]
Apple’s services include digital content stores, streaming services, iCloud, AppleCare, payment
services, etc. Recently, Apple has introduced many new services, such as Apple TV+, Apple
News+, Apple Card (credit card services), Apple Arcade (game subscription), Apple Fitness+,
etc. [18]
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Figure 4: Latest earning report of Apple [17]
2.2. Weaknesses
Expensive products and services
Apple Inc. is known for high-quality products, but they come at a cost that is more expensive
than most competitors. iPhone, Macs, iPads, and other hardware items like Air Pods and the
Apple Watch are especially pricey compared to other options similar in features. Similarly, their
services, such as iCloud storage and iTunes, also have higher prices than competitor versions.
The more significant financial commitment needed to purchase these products and services puts
them out of the reach of many consumers. [19]
Limited advertisement & promotions
Apple has solidified its grounds by establishing loyal customers, even with limited advertising
resources. Apple's marketing relies heavily on its iconic and flagship retail stores. We can also
see that Apple rarely has promotions, or discount vouchers to attract customers. Because of its
success, Apple does not feel the need to have excessively spending towards advertisements in
comparison to other big brands.
Incompatibility with other software
When a customer buys an Apple product, they enter the Apple universe. Apple’s products do not
support other software or technologies making them incompatible with other devices. Customers
must exclusively purchase Apple apps or accessories to continue using their Apple products.
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Lack of new innovative products in recent years
In recent years, Apple has not been as successful in introducing new and innovative products as
it had been in the past. Rather than developing revolutionary pieces of technology like their
iconic iPod, iPhone, and iPad, their more recent releases have tended to have features already
found on earlier models, which makes it difficult for them to stand out and garner a new
customer base. We can easily see this in some of the iPhone products that Apple has launched
recently. Although the iPhone 12, iPhone 13, and iPhone 14 lines were born a period apart, their
external design has not changed. Meanwhile, Samsung has launched many generations of
folding-screen smartphones.
The high degree of litigation
The highly competitive environment in which Apple operates often leads them into legal battles
with other tech giants or patent holders over intellectual property rights or trademark disputes.
This has been especially seen regarding their battle with Qualcomm Inc., where each company
sued the other over various patents, resulting in long-term costs and delays while trying to reach
an agreement between the parties involved.
Recently, in October 2022, Apple was fined $19 million by the São Paulo State Court because it
decided to remove chargers from iPhone packages. These are just a couple of some litigation
over the past few years. [20]
Allegations of Tracking
Tracking users undermines trust. Apple has been accused of using tracking apps on its phones,
which revealed the precise location of users. Even though the latest version of Apple’s phones
gives users the right to decline the tracking, trust is difficult to regain once it is lost. [22]
Complacency in the face of growing competition
In recent years, Apple has seen its market share reduce as other competitors emerge. The most
significant challenge has come from Google, Samsung, and even Xiaomi, all of which offer a
range of Android-based smartphones and other mobile devices that compete directly with
Apple’s products.
As fierce competition continues to grow, Apple has resorted to relying on its brand recognition
rather than investing in research and development or innovation initiatives to remain ahead of the
curve. While this strategy may have served them well in the past, it is becoming increasingly
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evident that relying exclusively on brand recognition will not be enough going forward to keep
abreast of rivals’ rapidly developing products and services.
If Apple wishes to continue dominating the industry, it must actively innovate and invest more
deeply in research and development; failure to do so risks further losses in its market share as it
falls behind its challengers.
Dependence on iPhone
Apple is highly dependent on the success of its flagship product, the iPhone. Over two-thirds of
Apple’s revenue in Q4 2020 was generated by sales of iPhones alone, indicating that if the
product fails to sustain strong sales, Apple’s financial health could suffer significantly. On top of
this, competition from other smartphone manufacturers is intensifying, and consumers are
holding onto their phones for longer, further denting growth potential.
2.3. Opportunities
Augmented and Virtual Reality (AR/VR) Markets: The AR and VR markets are projected to
be worth around US$104 billion by 2023. With the saturation of smartphone and tablet markets,
Apple can explore growth opportunities in these emerging technologies. Apple's recent
acquisitions and advancements in 3D technologies and face recognition indicate their intention to
enter the AR market. By launching AR headsets and glasses, Apple can establish itself in this
market and tap into its growth potential. While the VR market may not be as significant, it is still
expected to be worth over US$30 billion, presenting an opportunity for Apple to expand its
presence.
Voice-Controlled Virtual Assistants: Apple was an early adopter of Siri, its voice-activated
virtual assistant. However, competitors have caught up, offering virtual assistants like Google
Assistant, Amazon Alexa, and Microsoft Cortana. There is increasing demand for voice-
controlled virtual assistants’ in-home devices. Apple can focus on improving Siri's capabilities,
expanding its availability across devices and third-party hardware. Strengthening Siri's
development and integration can enhance Apple's ecosystem and provide a better user
experience.
Wearable Medical Devices: The wearable market is growing rapidly, with wearables becoming
more accurate in monitoring health conditions. The wearable medical device market is expected
to be worth US$62.82 billion by 2025. Apple's successful Apple Watch devices can be further
enhanced to capture a significant market share in this growing sector. Research from
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Markets&Markets reveals that the market for intelligent virtual assistants will be worth over
US$25.63 billion by 2025. By improving the watch's capabilities for health monitoring and data
storage, Apple can tap into the demand for health-related wearables and generate additional
revenue.
Green Technology
Apple has not yet introduced products that are made completely from green technology. It has
not yet applied completely sustainable and eco-friendly technology to its production process.
Overall, by venturing into AR/VR, enhancing virtual assistants, expanding wearable medical
devices, and Green Technology. Apple can seize these opportunities for growth and innovation.
[23,24]
2.3. Threats
Increasing Competition: The brand Apple has solidified itself. It is continuously facing threats
from its competition. Brands like Samsung, Google, and Dell are creating competition with
Apple.
Penetration in the market: A very significant change in the market penetration by another
brand in the mobile market. Many companies like Samsung, HTC, and Lenovo are using
Android software and creating new smartphones. Currently android has captured 72.23% of the
market. While Apple has only 24.55% of the market share globally.
Risk of a significant trade war: Apple is producing its products in Asia and Apple’s main
market is North America. This can create a trade war between Apple and the other brands and
Apple would be at a loss. This trade war can make Apple less purchasing brand than other
brands.
Impact of the Pandemic: This is the time of the pandemic. Apple is one of the leading
companies in the consumer goods department. Even though this pandemic has failed to make any
big impact on the sales figure, that does not mean that the magnitude of the situation is any less.
This pandemic has affected the manufacturing, distribution, and purchasing of Apple products.
This has fueled major changes in Apple’s business strategies. The experts are thinking this may
affect the post-pandemic sales rate. [24]
3. Porter's Five Force Analysis
Apple Inc. is one of the most successful and valuable companies globally. Its five forces analysis
provides insights related to the external factors that influence the success of the company. The
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Five Forces model is the strategic management application to evaluate how these five forces
affect the organization: suppliers, customers, competition, new entrants, and substitutes. Apple's
five forces shed light on the company's strategies for ensuring leadership in the industry
regardless of the external factors' negative effects in the competitive landscape of software and
hardware, digital content, and computer electronics market that involves firms such as Google,
Microsoft, Walmart, Amazon, Lenovo, Dell, Sony, and Samsung (Ferguson, 2019). It is founded
in 1976 and has become the dominant competitor in the industry. Because of the five forces
analysis, the company addresses the bargaining power of buyers and competition that plays a
significant role in business. The five forces analysis also determines the fact that Apple Inc
should focus on these external factors to be a market leader. Here is Porter's five-force analysis
of Apple. [25]
Competitive rivalry or competition: Strong force
Bargaining power of buyers or customers: Strong force
Bargaining power of suppliers: Weak force
The threat of substitutes or substitution: Weak force
The threat of new entrants or new entry: Weak force
Considering the five forces, Apple must focus its attention on competitive rivalry and the
bargaining power of buyers. This external analysis supports the company’s current position of
continuous innovation. [26]
3.1. The threat of new entrants in Apple Porter’s Five Forces Analysis
The threat of a new entrant to the marketplace that could seriously threaten Apple's market share
is relatively low. This is primarily due to two factors:
 The extremely high cost of establishing a company within the industry
 The additional high cost of establishing brand name recognition.
Any new entrant to the marketplace of personal computing or smartphones needs to have a
massive amount of capital just to spend on R&D and manufacturing to develop and produce its
product portfolio before ever bringing its products to market and beginning to generate revenue.
Such an entrant faces the already identified strong competition within the industry that exists
between Apple and its major competitors, all of which are large, well-established firms.
The secondary challenge is establishing brand name recognition within an industry that already
has several companies, such as Apple, Google, and Amazon, with very strong brand recognition.
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Although it is possible some new company (perhaps a Chinese firm with financial backing from
the government), might eventually challenge Apple's position within the industry, in the
immediate future, the likelihood of such a challenger arising is remote.
Nonetheless, Apple needs to continue strengthening its competitive position through new product
development and building brand loyalty to place any potential new entrants to the industry at a
larger competitive disadvantage. [27]
3.2. Bargaining Power of Buyers in Apple Porter’s Five Forces Analysis
The analysis provided accurately assesses the strong bargaining power of Apple's
customers/buyers. Here's a breakdown of the factors contributing to this strong force:
 Low switching cost: Customers have a low cost of switching from Apple products to
those of competitors. This means that if customers are dissatisfied or find a better
alternative, they can easily switch brands without significant financial or technological
barriers. This puts pressure on Apple to ensure customer satisfaction and maintain a
competitive edge.
 The small size of individual buyers: While each customer's purchase may not have a
substantial impact on Apple's total revenues, the cumulative effect of a large customer
base can significantly influence the company's overall performance. This suggests that
customers, as a collective force, hold considerable power over Apple's business.
 High buyer information: Customers have access to extensive information about
competing products and their features. They can easily compare Apple's offerings with
those of other brands. This availability of detailed comparative information empowers
customers to make informed decisions and switch to alternative providers if they perceive
a better value proposition elsewhere. Consequently, Apple must continually innovate and
meet customer expectations to retain their loyalty.
Considering these factors, it becomes evident that Apple needs to carefully consider and address
the bargaining power of its customers. By prioritizing customer satisfaction, providing superior
value, and maintaining a competitive edge, Apple can mitigate the strong force imposed by its
buyers and retain their loyalty in an increasingly competitive market. [26]
3.3 Bargaining Power of Sellers in Apple Porter’s Five Forces Analysis
In Porter's five forces for Apple, the bargaining power of suppliers is a weak force. Apple has
many potential suppliers with adequate supply, and these suppliers can provide parts, processors,
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packaging, and virtually everything related to Apple products. Also, Apple enjoys economies of
scale, and suppliers do not want to lose the business.
Factors contributing to the weak force of bargaining power of suppliers are.
 Many suppliers are a weak force.
 The weak force of large order size by Apple.
 Firm concentration to supplier concentration ratio is another weak force. [28]
3.4. The threat of substitute products or services
In Porter's five forces for Apple, we see a weak threat of substitute products. This is a weak force
because currently, we do not see any products that can surpass the facilities provided by Apple's
products.
The breakdown of contributing factors to the threat of substitute products is as follows.
 Moderate to high availability of substitutes is a moderate force.
When there is a moderate to high availability of substitutes, it means that customers have
alternative options to choose from, which reduces their dependence on a particular supplier. This
puts pressure on the supplier to offer competitive pricing and better quality products or services
to retain their customers. As a result, the bargaining power of suppliers is reduced since
customers have more bargaining power to negotiate favorable terms and prices that meet their
needs. However, if the availability of substitutes is low, then the supplier's bargaining power is
strong as customers have limited options and are more likely to accept the supplier's terms and
pricing.
 Inadequate substitutes are a weak force.
When there are inadequate substitutes available in the market, customers may have no other
choice but to continue purchasing from the supplier, even if they are dissatisfied with the quality
or pricing of the products or services. This gives the supplier a stronger bargaining position as
they can dictate the terms and prices without fear of losing customers to competitors. However, it
is important to note that the supplier's bargaining power can still be influenced by other factors
such as the size of the customer base, the cost of switching to alternative suppliers, and the
availability of complementary products or services. For instance, if a supplier has a large
customer base, they may have more leverage to negotiate favorable terms and prices since losing
such customers can significantly impact their profitability. Similarly, if the cost of switching to
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an alternative supplier is high, customers may be less likely to leave even if there are inadequate
substitutes available. [28]
3.5. Competition in the industry
Apple competitors' analysis shows that many companies directly compete with Apple, including
Google, HP, Samsung, etc. Every company conducts massive research and development to
introduce the most innovative products to gain market share. We know that switching devices
and OS is usually a low to moderate-cost action, and consumers do not need substantial
investment to switch from Android to iPhone or vice versa. Hence Apple's competitors' analysis
also shows the strong force of competition in the industry. Various factors contributing to this
force are;
 The high aggressiveness of competitors in R&D and innovation is a strong force.
 Low differentiation of products is another strong force.
 Consumers can buy a new product without substantial investment, so the low switching
cost is another strong force. [28]
IV. CONCLUSION
Based on the analysis of Apple Inc using SWOT, environmental analysis, and Porter's Five
Forces, the following conclusions can be drawn:
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Apple is known for its innovation and high-quality products around the world. In contrast to the
innovative products launched by Apple, not all its products receive the same level of recognition.
For instance, Apple Maps was a failure, as the app showed users unreliable navigation and
incorrect placement of popular landmarks.
In addition, one of the weaknesses of Apple's products is that they are expensive and exclude
certain customer segments from buying them. Hence, the product is targeted at a minority of the
world market. In contrast, it is this high-pricing strategy that generates high-profit margins for
the company. This internal strategic factor can be considered as a key strength as it maximizes
profits, even when sales are inadequate, for instance in the case of MacBook laptops. Moreover,
to overcome the threat of high dependency on China for manufacturing its products, Apple may
consider other low-cost developing countries for production and part of its supply chain.
Furthermore, the internal and external factors described in this SWOT analysis show that Apple
Inc. has key strengths that can be used to address its weaknesses effectively. With the help of its
brand image and innovative processes, Apple can successfully create and introduce new
technological products. Apple also faces the threat of intense competition and replication which
affect players in the global market.
Nonetheless, a recommendation is that Apple should maintain the aggressive and swift
innovative development of its products as technological innovations to lower the risk of
replication. It may also consider partnerships with different distributors to enhance the overall
reach of its products in the global market.
V. REFERENCE
1. www.patentlyapple.com
2. https://www.counterpointresearch.com/global-smartphone-share/?fbclid=IwAR31xv--
c5ACnVFnK1YYoqxLgAOkZL9af5b1BNDSKlqWsSWehme6drxBkBc
3. https://journals.macewan.ca/muse/article/view/2010
4. https://www.start.io/blog/apple-target-market-analysis-apple-demographics-marketing-
strategy-competitors/
5. https://bgr.com/tech/apple-celebrates-chinese-new-year-with-shot-on-iphone-14-pro-
campaign/
20

6. https://www.yaktrinews.com/news/money/trade-war-will-cut-iphone-sales-by-8-million-
analyst-says/article_e7c0cf46-7c13-5ef6-984e-475a6f683273.html
7. https://news.sky.com/story/apples-value-drops-as-interest-rates-supply-woes-and-
recession-fears-batter-tech-industry-12779558
8. https://edition.cnn.com/2023/05/19/tech/apple-southeast-asia-india-opportunity-intl-hnk/
index.html
9. https://studycorgi.com/economic-environment-in-apple-inc/
10. https://www.apple.com/newsroom/2021/11/apple-introduces-apple-business-essentials/
11. https://www.forbes.com/sites/jonathanponciano/2021/05/13/worlds-largest-tech-
companies-2021/?sh=7bf4b4b369bc
12. https://www.gsmarena.com/
cirp_over_90_of_apple_users_in_the_us_remain_loyal_to_the_company-news-
51637.php
13. https://www.businessofapps.com/data/app-revenues/
14. https://www.businessofapps.com/data/report-app-data/?
utm_source=app+data&utm_medium=click&utm_campaign=featured-ad
15. https://web-assets.bcg.com/eb/93/cfbea005442482b0adc64b9f499f/bcg-most-innovative-
companies-2021-apr-2021-r.pdf
16. https://www.reuters.com/breakingviews/apple-has-most-growth-fuel-hand-2021-10-28/
17. https://www.statista.com/chart/9218/apples-services-revenue/
18. https://techcrunch.com/2022/04/28/apples-services-revenue-hits-a-record-19-8b-in-q2-
reaches-825m-paid-subscriptions/
19. https://www.makeuseof.com/why-apple-products-are-so-expensive/
20. https://www.reuters.com/legal/brazil-court-fines-apple-orders-sell-iphone-with-charger-
2022-10-13/
21. https://www.reuters.com/article/us-apple-iphones-settlement-idUSKBN20P2E7
https://www.reuters.com/article/us-apple-google-settlement-idUKBREA4F0S020140516
22. https://gizmodo.com/apple-iphone-privacy-dsid-analytics-personal-data-test-1849807619
23. https://strategicmanagementinsight.com/swot-analyses/apple-swot-analysis/
24. https://swothub.com/apple-swot-analysis/
25. https://www.porteranalysis.com/porter-five-force-analysis-of-apple/
21

26. https://panmore.com/apple-inc-five-forces-analysis-porters-model-case-study
27. https://www.investopedia.com/articles/investing/111015/analyzing-porters-five-forces-
apple.asp
28. https://www.edrawmax.com/article/apple-porters-five-forces-analysis.html
29. https://www.forbes.com/companies/apple/
30. https://www.investing.com/academy/statistics/apple-facts/
VI. GRADES ON GROUPMATES
ĐƯỢC CHẤM
CHẤM
YÊN SƠN MAI NGỌC LINH
YÊN 101 100 100 100
SƠN 101 100 100 100
MAI 101 101 100 100
NGỌC 101 101 100 100
LINH 101 101 100 100
Average 101% 101% 100% 100% 100%
22