Swot Analysis Of Apple Company | Paper

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Swot Analysis of Apple Company1SWOT ANALYSIS OF APPLE COMPANYName:Institution:Course:Tutor:Date:
Swot Analysis of Apple Company2IntroductionApple is an American leading IT corporation that forms one the most existing profitableand social influencing companies around the globe (Zich 2014). In the year 1976, Steve Jobscame 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 startingfrom homes and business to entertainments sectors (Hands 2013). Due to its constant productionof high-tech items, the company has gained consumers satisfaction and loyalty in the wholeworld. In this study, the paper reflects on the nature of the global technology business with afocus on the critical threats and opportunities as well as the perceived strengths and weaknessesthat directly or indirectly affect the performance of the company. The paper as well reflects onthe competitive strategies adopted by the company with a focus on innovation because there aremany other global organizations such as Google Inc that offer stiff competition in the worldmarket. 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, itfaces 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). Manybusinesses tend to copy the Apple products and launch them in the market, an imitation trendthat has made the company to have some numerous court cases. Such of the imitations are likethe replica case of Samsung, producing a similar Apple device caused both companies to end upin a court tussle that has taken many years and caused billions of shillings. Such imitations have
Swot Analysis of Apple Company3tried to create a bad image to Apple since many customers get disappointed when they buy andlater find out that it is a counterfeit. Such disappointments always reduce the customersatisfaction hence reducing the client's loyalty to the company.Rivalry among Companies such as Samsung and LG creates a stiff competition in themarket by producing cheaper products than the Apple’s products (Linick 2014). The low cost ofthe substitute products such as LG and Motorola tends to offer stiff competition to the Apple’sproducts hence reducing the sales of the company. The competition makes the Apple Companystruggle to keep the pace and being the most market commander in future. Such competitionalways drops the sales of a company, hence may alter the market share percentage if not welladdressed.Apple has launched its plants in other countries such as China that laid many policiesknown as Foreign Enterprises Income Tax Law to protect domestic companies, provided lesspreferential policies for the foreign enterprises (Schulte 2011, p. 8). The Chinese system offereda platform for piracy; this made Apple face more risks on Apple products in China. China didalso charge a high rate of license on the foreign enterprises. These high fees propagated theincrease of running cost of Apple firms to be greater than the income making them unstable inthe local markets. Both the high degree of government charge and reduced sales tends to reducethe profit level and increase the Apple’s dominance in the market may not last long form suchstiff competition from Samsung since the market command gap is small
Swot Analysis of Apple Company4OpportunitiesApple Company has potential opportunities that determine its future. They are also known toinvolve various external factors such as the expansion of distribution network, increasingdemand 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 abetter opportunity to develop new affordable products and expand its distribution network toreach the lower class. The company can achieve this through making more simplified productssuch as Apple watch, which is profitable to the lower class people. The move will not onlyexpand its innovativeness but will also increase its market command with other competitivecompanies such as Samsung.In a systematic review, Lynch (2011) points out that this Taiwan semiconductormanufacturer a renowned Taiwan company that leads in fables semiconductors producer isbelievable to be the only supplier of the A1 Fusion chips used in powering the series of thesmartphone on Apple’s current iPhone 7. The same study denotes that it is the sole manufacturerof A10XFshion chips created within the Apple’s newly released 12.9-inch and 10.5-inch iPadPro models. However, it is as well expected to be the only manufacturer of the A11 Fusionprocessors 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 moreinvestors 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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