Internal Resources and Capabilities of Apple Inc.

APPLE

TABLE OF CONTENTS
Task A - INTRODUCTION............................................................................................................3
Task B..............................................................................................................................................3
Internal resources and capabilities of Apple Inc..........................................................................3
Task C..............................................................................................................................................5
External environmental factors....................................................................................................5
Task D..............................................................................................................................................6
Competitive force........................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

Task A - INTRODUCTION
Apple Inc. is an American multinational company based on technology whose headquarters
are located in Cupertino, California, US. It deals in designing, developing and selling the
computer software, consumer electronics and online services. It is the Biggest Tech Technology
among all other companies like Amazon, Microsoft, Google and Facebook (Levy, 2020). It is a
part of various industries like computer hardware, software, media, cloud computing, Artificial
Intelligence, Digital Distribution and many more. It is performing its operations in almost 510
retail stores across the world. It deals in wide range of products in many industries such as
iPhone smartphone, iPad, iPod etc.in hardware, macOS, iOS, watches etc. in software. Apple
also provides online services like iTunes Stores, iCloud etc. The main reason behind its rapid
success was selling of computers from January, 1977 (Apple Inc., 2020).
The report will mainly highlight the internal capabilities and resources through SWOT
analysis. Furthermore, it will also analyse the impact of external environmental factors on the
firm’s entrepreneurial activities by using a framework known as PESTEL analysis. This will be
followed by evaluating the impact of the competitive forces on the entrepreneurial activities of
the firm within the industry it works. Lastly, all the points will be summarized systematically.
Task B
Internal resources and capabilities of Apple Inc.
Apple Inc., being one of the most successful companies in the world has been providing
the robust technology software services and products. In order to examine its internal resources
and capabilities, the SWOT analysis of Apple Inc. is done as described below:
Strengths
Apple Inc. is considered as the most valuable brand as it is ranked on the first position
with a brand value of $234 billion. It was the first who introduced the most innovative products
like iPhones and IPads which were able to change the world which became Apple the most
demanded brand in the corporate offices. With full dedication and determination, it focuses on its
new product designs (Sathappan, 2017). Also the major product of Apple i.e., iPhone which
contributed the most towards the companies’ success, its most of the parts can be reused. The
company has been expanding its services like streaming services, AppleCare, stores of digital
content etc. as its services contributes greatly towards its revenue after the iPhone. Apple also
3

specific business page which provides technology solutions of top quality for every need of
corporation. It is the most reliable company in terms of personalized advanced computers which
made millions of loyal customers satisfied with its products and services.
Weaknesses
The major weakness which decreases its customer base is the premium price of its
products that is the reason behind considering it a luxury. This does not make its products
affordable to the low-income consumers, only the middle and high-income people can afford its
products. The company is expanding itself into the areas of non-competency including the game
streaming, video content streaming etc. with the dominant players like Disney, Netflix etc.
Also, the weakness of Apple Inc. is that it is under investigation for various unfair practices of
business. Furthermore, the company also use tracking apps in the phones which reveals the
location of the users for which it is accused many times. Although it is reduced now but the trust
lost cannot be regained (Shtal and et.al., 2018). Also, the products of this company do not
4
support the other technologies or software which makes it incompatible with other devices. In
order to use these products, the customers are forced to purchase the Apple apps or accessories.
Opportunities
Apple can be depended upon the internet’s power for the various upcoming opportunities
in order to gain the new customers to from new alliances as it is always dominating the
technology sector for many years. The researchers, product specialists and the developers of the
company are highly qualified professionals having years of many years in branding the products.
with this, the company can have many opportunities like expanding its distribution network
which is very limited now (Cho, 2017). Also, the company can launch the green technology
products which can help the company to participate in the sustainable or eco-friendly products.
The smart wearable technology is also a major opportunity through the implementation of which
it can double its sales by 2022.
Threats
Due to the outbreak of coronavirus, the company has lost much of its sales as it was
highly dependent on China for its supply and manufacturing chain. The brand image of Apple is
also illegally utilized by the third world countries as the deals there sell the counterfeit products
4