Introduction of the topic
Apple is an American worldwide association and was formed and recognized on the 1st April 1976 in Cupertino, California. Apple inc. produced the first ever extremely successful personal computers. It has been always on the forefront of the innovating new products. Apple inc. has transformed its image from an inventive computer manufacturer to a fully fledged consumer’s electronic company. Other than developing personal computers they are manufacturing other related software products and manufacturing electronic products such as Mp3 players, iPod, iPhone and the latest iPad.
Formulating and applying SWOT analysis on apple.
SWOT analysis is a useful technique for understanding our strengths and weaknesses, and for identifying both the opportunities open to us and the threats that we may face.
Apple SWOT analysis 2013
1.Apple is a leading innovator in mobile device technology with the slick looks with new and amazing technology and millions of applications 2.Powerful Brand image and reputation associated with best quality and best design 3.Many retail stores world wide and has direct contact with its consumers and it stores. 4.Strong marketing and advertising teams that promotes the company and its products with full trust in its products and their services. 5.Many loyal users around the world always ready and waiting for their latest and the newest products with latest technology.
1.With the latest technology their products comes with high price as compared to competitors with similar functions with a much lower price.
2.One big problem that many consumers face it that apple products are only compatible with the Mac operation system, and does not work on any other OS.
3.Apple forces its users to switch to its latest products by reducing its services for its older products there for making the older product market
value drop dramatically.
1.At the moment there is a very high public demand for latest gadgets especially portable hand held devices like tablets and smart phones like iPad, iPad mini and iPhone 5
2.Emergence of the new provider of application processors
3.Growth of tablet and smartphone markets
4.Strong growth of mobile advertising market
5.Increasing demand for cloud based services
1.Rapid technological change
2.2013 tax increases
3.Price pressure from Samsung over key components
4.Android OS growth
External environment determines the present situation of Apple Inc, and also helps find out the possible influences of the political, economical, and social and the technological factors on the organization.
Apple Inc has reportedly obtained 52% of its business from outside US in 2007. Due to the bad international relations, wars and terrorism might influence Apple Inc in a huge way, and also the organization has no control over these factors. Apple Inc manufactures a number of its parts and products from outside the US, like Czech Republic, Ireland, China, Korea and Cork. The bad political relations between US and the other world have bad outcomes for the Apple Inc (CNetnews 2012). Economic Factors
The global economic crisis had huge impact on Apple Inc. The inflation rate went high and so did the unemployment rate in the country, and since Apple Inc products were viewed as luxury products, the customers started pending
less on them. US dollar value keeps fluctuating, and thus again which have a bad impact on Apple Inc products, however the company has purchased itself foreign currencies and thus, the economic effects on the company are minimized. Thus, Apple Inc revenue has increased in the global market (Apple Inc 2012). Social Factors
Throughout the history of Apple Inc, two factors have been on the forefront of Apple Inc products, the quality and the design of the product. Thus, globalization plays a very important role in Apple’s products. As the world cannot be imagined without the gadgets, thus Apple products have marked their presence on the international market. Also, as the purchasing power of the common has risen in various markets across the world the purchasing of luxury products have gone up, for e.g. the iPhone, iPods and the latest technology iPad. Possessing these items are considered as status symbols in many societies which have also increased the sales of Apple Inc products. Another big social influence to Apple Inc products is the rapid growth of the music industry, which have increased markets over the cyber space as well. The main virtual music store is the iTunes. Thus, in all Apple products have benefitted from the social factors as it has began defining a modern individual lifestyle. Technological Factors
Apple Inc has invested largely in its product research and development field and thus, Apple products are at the top of the new innovative products ranking. The technology has been fast changing in the world and the market for it has become gigantic, which has added to more and more competition and thus, as soon as technological change are concerned the product life cycle has been shortened drastically, which the Apple Inc takes the advantage of by introducing newer products in the market, which ultimately lead the market. Legal Factors
Nokia has filed various lawsuits against Apple Inc, claiming the violation of 13 additional patents by iPhone, iPad and iPod touch, this apart from US complains covering 24 Nokia patents. Also, in China Apple Inc has been fighting the battle for its right to the iPad trademark.
Scope of External Analysis Potters 5 Forces
Intensity and rivalry of existing competitors
•Windows OS and media players for playing music and videos competing with the apple iTunes •Competition to Mac OS from Linux and windows operating systems •Alternate sources of computer hardware like Dell. Hp, and Lenovo •Small and stylish MP3 Player like creative Samsung and Sony. •Online music stores similar to iTunes
The treat of new entrants.
Streaming audio and video with youtube.
On demand online services similar to iTunes.
Thus it can be concluded that Apple Inc, continue to launch its innovative products in the market, and has been a luxury brand for its existing customers, and its best competitive advantage is its brand image, the quality of the product and the design, however with various analysis, like Porter five force model, VRIO framework, SWOT analysis and PESTLE analysis, helps us in analyzing the work environment of the company and what strategies can be adopted like lowering down the price of its products a bit, increasing the number of retail stores, advertising more can all be adopted to increase the sales even more in the future. IPhone has been a major revolution in the case of smart phones; however company has developed iPad, which is another revolutionizing technological breakthrough. Thus, a lot many strategies could be adopted to make even more and better products in the future (Bright Hand 2010).