Swot Analysis on Apple Inc

Topics: Apple Inc., IPod, ITunes Store Pages: 8 (2686 words) Published: September 17, 2011
Businesses are set up to provide services or products for profit. We find people with very good business ideas but no source of funding. Ironically, there are people with funds but no viable business ideas. Matching these two set of people involves much considerations. Investors want to invest in ventures where returns are high and businesses need funding that will not eat into their profits. The decision to invest in a company goes beyond just the financial statement or report of a business. It includes careful analysis of a business’s ownership structure, customers, products, reputation, competitors, and stakeholders. This essay will look at the Strengths, Weaknesses, Threats, and Opportunities (SWOT analysis) of Apple Incorporated from the perceptive of an investor. This piece will further look at the parts of the SWOT analysis relevant in investment decisions regarding Apple or otherwise. Apple is engaged in design, development and marketing, of personal computers, media devices, and portable digital music players. The company also sells a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. The Apple brand is well recognized among most consumers. The company's strong brand enables it to command a premium pricing and create significant demand for its products such as iMac, iPod, iPhone, and iPad. Strong brand image gives the company an edge over regional and global competitors. However, rising popularity of Android may affect the attractiveness of Apple's iOS affecting the market share of Apple (Research and Markets (http://www.researchandmarkets.com/research/b8db5c/apple).

It is difficult to predict what will happen to this company. But a SWOT analysis (which measures the strengths, weaknesses, opportunities, and threats to a business) can help to understand the company's current position and where it may go in the future. Research and Markets (http://www.researchandmarkets.com/research/b8db5c/apple).

The strengths of a company are the company’s competitive advantages. These are the internal attributes and processes of the organization that keeps the company in business. Apple is a leader in product innovation that is ahead of the trends in coming out with products that fit the lifestyle of people. Apple has invested significantly in research and development, having invested $80 million in the quarter ending in June 2010. This promotes Apple’s strong brand image that gives the company a competitive edge.

Apple has tight controls over every phase and component of their production. Apple manufactures and designs its hardware and software in their entire products, which is quite rare in the industry (Apple, 2009). Apple’s branding is easily recognizable among consumers. Consumers know that an “I’ represents an apple product. Brand positioning is vital in a competitive environment. The company has a very loyal base to whom the brand equals quality. Brand is all-important. Apple is one of the most established and healthy IT brands in the World, and has a very loyal set of enthusiastic customers who advocate the brand. Such a powerful loyalty means that Ample not only recruits new customers, it retains them. This means they come back for more products and services from Apple, and the company also has the opportunity to extend new products to them, for example the iPod.

Channels of distribution are essential to the success of every business. Products or services are designed for the consumption and use of consumers. Consumers prefer less number of complimentary products or services to fully use a product. Apple has attractive user interface on all its electronics including the Mac, which has currently incorporated Intel technology. Their ITunes store is a very popular source for digital downloads and is compatible with windows- platform. ITunes is easily accessible to younger...
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