The purpose of SWOT analysis is to enhance the organization’s strengths,excludes its weaknesses, pursue opportunities and avoid potential threatsStrengths:· Strong revenue andprofitability growth enabling new innovations.· Apple is the second largestand most profitable company in the world which gives it financial ability to doanything it wants.· Apple’s retail stores areimpressive and continue to play an important role in terms of showcasing theproducts and providing after-sales care and advice· It is very innovative oftenat the leading edge of new technology as evidence by launch of the Apple watch.Also, also regarded as the pioneer of introducing the most innovative productsin the market such as iTunes Media Player, iLife (for organizing editing,publishing photos, music and movies) and iWork (a presentation program).Additionally, in recent years, Apple has expanded its reach to entertainmentand information services and is now one of the largest online retailers forstreaming music and video and software solutions.
· Advertising capabilities,which increase brand awareness and create stronger demand for the company’sproducts· Strong and effectivemarketing team: reaching out to the consumer through catering the rightinformation to the customer as to what exactly they needed.· building up customerrelations in order to sell more products. The customer service of Apple followsfew steps to win over the trust of the consumers:Approach the consumer in a more personalized manner Politely understand the need of the consumers Present a solution that consumers will acceptListen and resolve to their issues or concerns o End the customer’s currentvisit with an invitation to return. · Apple also enjoys a uniqueand exclusive positioning, giving it brand loyalty.
· Vertical integration: Appleis a vertically integrated company that manages four separate businesses asone. The company has a hardware business, a software business and it is also aservice-provider and a retailer as well – all integrated into one entity. Applecontrols almost the entire supply chain for its devices. No other competitormanages, or is capable of managing, all four areas of the supply chainWeaknesses:· High price: is themajor weakness of Apple, because there is a strong competition in the market,and the consumer of Apple products can easily obtain the similar functionproducts by its competitors in a lower price.
Customers from the lower class, which represents the majority of buyersin the global market, are unable to purchase Apple products because of therelatively high prices.· Limited distributionnetwork: Apple has a limited distribution network because of the company’spolicy of exclusivity. For instance, the company carefully selects authorizedsellers of its products.Opportunities· High demand of products:due to high demand of iPad, and iPad mini in tablet market and this will helpcompany to use as competitive advantages.· Emerging markets such asIndia still provide areas to grow revenue· The recent signing of amulti-year agreement with China Mobile to bring iPhone to China Mobile network,the largest network in the world (over 760 million) is providing to belucrative for Apple.
· Increased Cloud-basedservices: the upcoming iCoud innovation will bring future revenues to thecompany. To meet the high-rising demands of the iCould services, Apple canexpand its services or can adapt new strategies to involve more consumers inthese services.Threats· Difficult and challengingeconomic conditions in key markets continue to depress discretionary spending.· Market saturation of thesmartphone market as many rivals have been entered.Rising labor cost in countries where Apple plants are located.
