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Swot Analysis Of Apple Company | Paper
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Added on 2020-02-24
Swot Analysis Of Apple Company | Paper
Added on 2020-02-24
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Swot Analysis of Apple Company 1SWOT ANALYSIS OF APPLE COMPANY Name:Institution:Course:Tutor:Date:
Swot Analysis of Apple Company 2IntroductionApple is an American leading IT corporation that forms one the most existing profitable and social influencing companies around the globe (Zich 2014). In the year 1976, Steve Jobs came up with a computer oriented organization that later assumed the name Apple Company. The company deals with the manufacture, production, and supply of varied products starting from homes and business to entertainments sectors (Hands 2013). Due to its constant production of high-tech items, the company has gained consumers satisfaction and loyalty in the whole world. In this study, the paper reflects on the nature of the global technology business with a focus on the critical threats and opportunities as well as the perceived strengths and weaknesses that directly or indirectly affect the performance of the company. The paper as well reflects on the competitive strategies adopted by the company with a focus on innovation because there are many other global organizations such as Google Inc that offer stiff competition in the world market. The paper concludes by evaluating the possible direction the company is likely to take toremain sustainable and competitive in the next ten years of its operation. Key opportunities and threats in the current environment of the Apple IncAlthough Apple Company has made it to the market share against other competitors, it faces major threats such as; aggressive potential companies, threats of substitute products, imitations and rising labor cost in other countries that host the Apple plants (Linick 2014). Many businesses tend to copy the Apple products and launch them in the market, an imitation trend that has made the company to have some numerous court cases. Such of the imitations are like the replica case of Samsung, producing a similar Apple device caused both companies to end up in a court tussle that has taken many years and caused billions of shillings. Such imitations have
Swot Analysis of Apple Company 3tried to create a bad image to Apple since many customers get disappointed when they buy and later find out that it is a counterfeit. Such disappointments always reduce the customer satisfaction hence reducing the client's loyalty to the company. Rivalry among Companies such as Samsung and LG creates a stiff competition in the market by producing cheaper products than the Apple’s products (Linick 2014). The low cost of the substitute products such as LG and Motorola tends to offer stiff competition to the Apple’s products hence reducing the sales of the company. The competition makes the Apple Company struggle to keep the pace and being the most market commander in future. Such competition always drops the sales of a company, hence may alter the market share percentage if not well addressed. Apple has launched its plants in other countries such as China that laid many policies known as Foreign Enterprises Income Tax Law to protect domestic companies, provided less preferential policies for the foreign enterprises (Schulte 2011, p. 8). The Chinese system offered a platform for piracy; this made Apple face more risks on Apple products in China. China did also charge a high rate of license on the foreign enterprises. These high fees propagated the increase of running cost of Apple firms to be greater than the income making them unstable in the local markets. Both the high degree of government charge and reduced sales tends to reduce the profit level and increase the Apple’s dominance in the market may not last long form such stiff competition from Samsung since the market command gap is small
Swot Analysis of Apple Company 4OpportunitiesApple Company has potential opportunities that determine its future. They are also known to involve various external factors such as the expansion of distribution network, increasing demand for the tablets and Smartphones, and the creation of new products (Korkeamaki & Takalo 2012).The unavailability of Apple’s products to lower class people gives the company a better opportunity to develop new affordable products and expand its distribution network to reach the lower class. The company can achieve this through making more simplified products such as Apple watch, which is profitable to the lower class people. The move will not only expand its innovativeness but will also increase its market command with other competitive companies such as Samsung.In a systematic review, Lynch (2011) points out that this Taiwan semiconductor manufacturer a renowned Taiwan company that leads in fables semiconductors producer is believable to be the only supplier of the A1 Fusion chips used in powering the series of the smartphone on Apple’s current iPhone 7. The same study denotes that it is the sole manufacturer of A10XFshion chips created within the Apple’s newly released 12.9-inch and 10.5-inch iPad Pro models. However, it is as well expected to be the only manufacturer of the A11 Fusion processors used in powering iPhone 7s, 7+, as well as the premium OLED iPhone. With all thesechances and market opportunities in the iPhone products, the company has attracted more investors who view that the company has much more opportunities to improve in the productionsand distribution in the entire market making it more and stronger. In another study, Korkeamaki and Takalo (2012) denote that the company has a record ofhigh-performance computers. Starting with its 7-nanometer generation of technology, the market
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