Apple SWOT Analysis and Strategy

This assignment presents a detailed SWOT analysis of Apple Inc., examining its internal strengths and weaknesses alongside external opportunities and threats. It analyzes Apple's market leadership, brand recognition, financial stability, and innovative product development. The report also considers challenges like economic uncertainty, competition from other tech giants, and evolving consumer preferences. Ultimately, the analysis concludes that Apple possesses the adaptability and resources to navigate a challenging environment and maintain its competitive advantage.

INTRODUCTION TO MANAGEMENT
22 JUNE 2020
MANAGEMENT REPORT FOR
APPLE INC.
LECTURER: Debra Marie Francis
CHEN HAIBIN
CT0248426

TABLE OF CONTENT
1. Introduction
2. The SWOT analysis
2.1 Strengths
2.2 Weaknesses
2.3 Opportunities
2.4 Threats
3. Ethics approach
4. CSR approach
5. Elements to a plan
5.1 Objectives
5.2 Actions
5.3 Resources
5.4 Implementation
6. Culture
7. Organization Structure
7.1 Unity of command
7.2 Centralization
7.3 Span of control
7.4 Formalization
7.5 Divisional structure
8. Leadership and Motivation
8.1 Leadership (Trait theory)
8.2 Motivation (QWL)
9. Recommendations
10. Conclusion

1. Introduction
Apple Inc. is an American multinational technology company headquartered in
Cupertino California, that designs, develops and sells consumer electronics. The
company's well-known hardware products are the Macbook computers, iPod, iPhone
and the iPad. Apple founded by Steve Jobs, Steve Wozniak and Ronald Wayne, the
company was named Apple Computer Inc. The “Computer” was removed from its name
since January 9, 2007, as its main focus on personal computers shifted towards to
consumer electronics. As of May 2020, Apple has 500+ retail stores worldwide as well
as the online Apple Store and iTunes Store, and using nearly 137000+ employees.
(Apple Inc. 2020)
2. The SWOT analysis
2.1 Strengths
A companies strength can be described as its positive attributes, it could be tangible or
intangible, with these strengths offer the company overcome the challenge from its
competitors, take advantage of new opportunities, and fight against threats in its
business environment. Apple is being ranked #1 as the most valuable brand in the world
for 7 consecutive years by Interbrand, its total market capital value is US$1.3 trillion.
Apple also has very strong profitability, 2019 year ended revenue is US$260.2 billion.
Apple’s products user is one of the most loyal customers compare to its competitors and
its continue expanding. ( Jurevicius, O. 2020 )
2.2 Weaknesses
weakness to a firm means the negative aspects which obstruct the companies from
growing or the disadvantage factor in business competition. Apple’s high price of its
products made Apple’s too much depend on the high-end market and less
competitive in the emerging economic market. Companies revenue too much rely on
iPhone, in 2019 there’s more than half of it revenue coming from iPhone sells.
Moreover, incompatibility with other software, Apple’s operating system only supports
its own products, in another way making them less competitive with other non-
limitations devices.( Smithson.N. 2019 )
2.3 Opportunities
Opportunities are the external factor that will benefit the organization which are
available in the customer base, work processes or the industry environment. Apple Inc.
has one ongoing opportunity; Adapt to local conditions expand the distribution network
In Africa, with this strategy Apple has the opportunity to increase its sales and gain
market share from the rising Africa countries, especially the smartphone. Apple has one
window opportunity, which is developing more smart wearable technology products,
now wearable smart devices market are still have the plenty unexploited market, if
Apple takes this opportunity in advance, it will seize the initiative in the future
competition. (Bhasin.H. 2020)

2.4 Threats
Threats are factors that could potentially put the company business at risk, the force of the
threat that coming from internal or external. Internally it can be companies policy, strategy
or ethics externally can be competitors, market demand or environments. Apple’s most
significant threat are the aggressive competition in the smartphone industry, previously
Apple’s biggest challenger only Samsung, now have much more competitors in the
smartphone business, especially the rising Chinese technology companies. Moreover, The
trade war between China and the US also is an unpredictable threat to business since
Apple production line highly relies on china manufacture companies, and rising tariffs
could reduce products profitability.
3. Ethics approach
According to the right approach, its the organization make decision focuses on
protecting individual libraries and privileges, it includes that people hold the right of
freedom expression, privacy, and right of choice.( Kahney, L. 2019 ) Apple may consider
choosing a higher reputable manufacturing company to produce its products for them,
which would help them increase public recognition as a company that cares about human
rights. Moreover, Apple can improve its products' security, prevent its customer personal
information being leak or steal, this will increase customer sense of trust in Apple’s
product.
4. CSR approach
when an organization decides to go beyond stakeholder expectations it is using a
proactive strategy. under the strategy, the organization forms a partnership with
stakeholders that allow the organization to predict and control the stakeholder
environment. (Dudovskiy, J. 2019 )Adopting a proactive approach in important for
Apple’s competition with others companies because by sponsoring CSR activities such as
culture, education, and art globally, it builds better brand recognition compared to those
companies was not involve in CSR. Apple also can proactively focus on improving Africa
children’s malnutrition issues, others like poverty alleviation, environmental project,
networking with other business can benefit all stakeholders.
5. Elements to a plan
5.1 Objectives
Apple’s priority goal is to seize the Chine smartphone market share to 50% in the next
2 years. Apple has to continue to deliver excellent products to Chinese peoples with a
lower cost to ensure it attracts potential buyers. By achieving this goal Apple needs to
increase advertising and collaboration with telecom companies boost the sells. China
market is Apple’s biggest consumer market it has the highest purchasing power.

Apple needs to accomplish this goal during the next two years and measure its
performance and make an adjustment for business strategy.
5.2 Action
For achieving this goal, Apple’s taking Tactical action plan. Firstly, division of
manpower, assigned a marketing manager to in charge formulate a market expending
strategies, Approach to the local telecom company for business collaboration, and HR
have to recruit more talented salesman join the operations team; finance department
have to increase the wage to enhance employee’s working enthusiasm and do online
survey collect customers feedback and shared with development teams, development
based on customer preferences and develop an exclusive phone that special for china
market. In terms of budgeting controlling, Apple can reduce those low profitability
products funds shift to phone developing departments.
5.3 Resources
Apple management financially has to support marketing expenses, because by
expanding marketing share have promo its products increase its sales, therefore it
need monies in advertising, store rental, customers services and public relations
costs. Apple needs to continuously hire talented people to work at Apple and continue
its technology innovation to products excellent products. since the objectives are to
increase sales occupy more market share company will need more sell network, the
simplest way is to open more store in china.
5.4 Implementation
To ensure that company sales constantly growth, each individual employee has to
accomplish its task, Apple can implement authority power, such as encourage its
employees to work overtime, request its employees to complete the individual task as
formal order. It also can persuade them to accomplish its task own time, recognize
employees contributions. the company also can use policy approaches, which define
what is good or bad behaviour to the company. Lastly, with the feedback approach,
the manager can monitor the current states in its team, which allows the manager to
determine which plan has been accomplished as expected and made a decision for
the next step.
6. Culture
Core values are a firm’s principles that are widely shared, that operate unconsciously,
its a firm’s fundamental value that reflects firms identity, culture and beliefs.(Meyer, P
2019) Apple can set its core value as excellence. and implants this aspect to all level
of employees in this organization. Moreover management level has to set a high
standard of innovation, encourage its employees that never satisfies anything less
than excellence, create a strong organizational culture that represents excellence to
its customers. Externally, promo its core value to the public by advertising, let the
public has an idea that Apple is an excellent company.

7. Organization structure
7.1 Unity of command
Unity of command is that subordinate has only one direct supervisor, This would offer its
workers have a clear goal and avoids instructions confusion. Apple can implement
regulations that subordinate only report to its department head, and supervisor also
can not give orders to other department’s workers, therefore avoided conflicting
instructions achieved unity of command.
7.2 Centralization
Centralization to a firm means the top management exclusively has authority or power of
planning and decision making. Apple has a centralized structure in its hierarchical
system, Apple’s CEO Tim Cook has highest authority in planning and decision-making
following by 15 SVPs. The managers and employees in the lower chain of command
are limited in decision-making even those decisions regrading everyday operations it
generally decided by upper level management.
7.3 Span of control
The span of control to an organization shows the number of employees who report to a
manager, the number of manager, and the layers of management within the
organization. Apple can be classified as having a wide span of control. According to
Apple Incorporated, there are 15 executives directly report to CEO Tim Cook.( Riley, J.
2015 ) Because of Apple size of scale, a wide span of control is the best solution.
7.4 Formalization
The formalization is the extent of documentation that used to direct and control
employees, this document includes rules, policies, laws, SOPs est. Apple has 137000+
employees worldwide, a high formalization ensures the employees know what is the
right thing to do and followed rules and regulations, It will guide the employees working
in the right direction.
7.5 Divisional structure
Product-based divisions structure is the most appropriate organizational structure for
Apple. The product-Based divisions allow an organization to focus on specialized
products in term of defining roles and responsibilities very clearly for employees. Apple
is a consumer electronics design and developer company, the priority should design
good products to its customers, and Apple has multiple categories of products.
Therefore this division allows the difference products managers to focus on the
specialized product development, it has given the managers power that can effectively

allocate resources and manpower within its department, It also allows management to
have a better vision conducted operation within the organization which allow managers
easier to formulate and implement business strategies. By using this division Apple will
benefit the design and development of its product, it create a better environment to
employees for product innovation.
8. Leadership and Motivation
8.1 Leadership ( Trait theory )
Trait theories believe that leader is born to be a leader rather than learn or train
posteriorly, discover personal characteristics and methods that distinguish leaders
from non-leaders. There are certain traits increase the chances of becoming a leader
including self-confidence, intelligence, integrity, flexibility, and the motivation or desire
to lead. This theory emphasis individual’s personality, intellectual qualities, and
physical characteristics as a great leader.( Singh, N. 2017 ) Therefore Apple can use
its strong capital power to attract the best leaders in the world and hire them to
manage the company, use their charm and talent to inspire and motivate its
employees to work harder. Internally, Apple also can launch a leadership
development program which exploits and discover those have leadership traits
employees, such as the need for achievement, people who need to succeed and help
the team achieve goals. They genuinely care about the team's success and are
committed to helping the team reach those milestones. Or courage and resolution, a
great leader is brave and committed to the goals of the team, they do not hide from
the challenge and mistake, they stand by their success and take on responsibility.
Promote potential leaders and emphasize its trait will lead Apple to success.
8.2 Motivation ( QWL )
Quality of work-life program is a concept which focuses on the overall quality of an
individual’s working life rather than a working machine. QWL concentrate on the
employee holistic welfare instead of just forces on work-related aspects which
motivate its employee to perform high-quality work. Apple can provide job security to
its employees, managers can tolerate its employees mistake putting confidence to an
employee of its job, create an easiness working environment for its employees which
more relaxed allows them to perform better. Apple also can establish a reward and
recognition program for those good performance employees, such as pay rise,
bonuses, and promotion, by recognized employees contribution helps them to
perform better influence others performance as well. Moreover, Apple can make a
career growth plan for its employee, discuss employees future role in the company
putting confidence in their career development which reduce turnover rate and
increase work enthusiasm. Apple also can offer flexible work timing for its employees,
the diverse workforce of today does not like to work for fixed hours or days, especially
working mother, therefore Apple can allow them to work from home or schedule their
work timing by themselves which is gonna be appreciated by employees. ( Muldrew,
E. 2019 )
9. Recommendations

Based on this SWOT analysis, recommendation for Apple next 5 years progression
strategy should focuses on maintain its leadership in electronics device industry.
Apple core strength is innovation and product quality which helped it maintain its
leader position, hence Apple should be more innovative and invest on R&D to launch
another revolutionary products which change people’s life, just like iPod, and iPhone.
Moreover Apple should focus more on India and other fast growing emerging
markets. Despite Apple has low market share but take bulk of profit from it, Apple
should increase market share and further increase its profit.
10. Conclusion
After discovering Apple business strategy and all the factors in SWOT analysis in this
report, the conclusion drawn is Apple has the ability to adapt the challenging
environment, it states Apple’s strengths and opportunities overcome its weaknesses
and threats. Considering its leadership and strong brand recognition, Apple has a great
competitive advantage in future competitions. Apple has been rapid growth in the past
two decades. But the external economic environment is not very ideal, because of the
COVID-19 pandemic global economy has entered a recession, Apple has a very strong
financial statement, and they have the ability to weather the storm.

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