Introduction
A SWOT analysis involves examining internal and external factors, current and potential future outcomes. According to this framework, Apple has a variety of attributes, including strengths, weaknesses, opportunities, and dangers. Apple is one of the most well-known corporations due to its unique products as the ones shown above to meet needs of its clients. On the other hand, it is up against fierce competition from companies like Samsung, among others. This presentation offers some suggestions for how Apple could be improved after conducting a scenario analysis of the company.
Apple’s SWOT Analysis
SWOT is an important model used to determine an organization’s strengths, weaknesses, opportunities, and threats. Some of the strengths of Apple include strong brand identity and superior pricing strategy that depend on product differentiation. It majors on making the products unique and attract its customers. The other strength is its effective innovation and creativity approach (Benzaghta et al., 2021). Some of the weaknesses of Apple are limited product logistic chain and exorbitant prices that seems to target wealthy individuals. Opportunities are growing supply chain and extensive advertising to enhance sales. Threats are high competition, rising labor cost and possibility of imitation.
Apple’s strengths gives it the ability to with its weaknesses and threats, take advantage of opportunities. Apple is one of the most powerful and well-known brands in the world as shown in the figure above (Dogra, 2022). In addition, Apple’s promotion mix includes charging a high price. This aspect of the company’s internal strategy is an advantage because it helps maximize profits even when trading units are small, like MacBook laptops (Li, 2021). Lastly, Apple Inc.’s general competitive strategy and aggressive growth strategies include effective rapid invention. This helps the company keep up with the latest technology so it can stay ahead of the competition.
One of the weaknesses of Apple is that its products are very expensive. As shown in the figure above, the price of iPhone 13 Pro Max in the market can go up to $1,099 compared to Samsung galaxy S12 which can reach $800 (Winkelman, 2021). Apple’s revenue is highly dependent on the high-end market segments because of the company’s high pricing strategy. This means that consumer goods sold by Apple may be out of reach for customers that fall into lower income groups. This internal technique component may cause a serious problem to the organization because high-end sector is a small part of the worldwide market. As a result, the organization may fail to get adequate market for its products due to disruptions in the world reducing consumers purchasing power.
Apart from high prices of products, there are other weaknesses of Apple. Firstly, the products of the company are not compatible with any other software, which inconveniences the users. People have problem switching to iOS-based devices because their Apple’s products are incompatible with other devices (Li, 2021). Secondly, the company’s market may decline due to its overreliance on iPhones and iPod series. Thirdly, although Apple adds new features to each new model of the iPhone, many iPhone users do not like that there is less variety in the appearance of the iPhone. Finally, having limited distributors in the market reduces its ability to penetrate the market.
Apple’s SWOT analysis identify the most important prospects available to the organization. One of the opportunities that the company should take advantage of is the growth of advertisement market. The iAd advertising program developed by Apple allows ads run on the iPhone, iPad, and iPod touch. Apple could benefit from the growth of the digital advertising market. As shown in the figure, the other opportunity that the company should consider is the high demand for communication devices especially smartphones (Statista, 2022). This will allow Apple to discover new markets that were previously not explored by the organization. Additionally, with a bloated supply chain, Apple can reach more clients in the global market
Apple is concerned about the intense competition, particularly from firms like Huawei, and Samsung, which gives it a tough time with their impending technologically superior devices. Additionally, Apple is concerned with the fact that there is a likelihood that its products, such as the iPhone, may be replicated by competitors. The company’s products are susceptible to imitation from competitors both domestically and internationally due to their design and technical features. Finally, the rising labor costs for contract producers, such as those in China, reduce profitability or drive up market price (Li, 2021).
Strategies Adopted by Apple
Drawing from SWOT analysis, Apple has incorporated different strategies to achieve its goals in the market. The company is using brand development strategy by focusing on enhancing its image via creation of unique features. For example, Apple products are not compatible with other OS systems of other android smartphones. The other strategy being used for Apple is research and development. Using this approach, the organization wants to ensure that its products are unique. The premium pricing strategies adopted by the organization to enhance its brand value. Apple is making use of an exceptional marketing approaches to distinguish itself from competitors and increase sales.
Recommendations
Apple should lower the price of their products, while ensuring quality and innovation is maintained. Additionally, they should increase the variety of products to meet different price points, as well as offer discounts and promotions to attract customers. Apple should produce more communication devices to meet the increasing demand, such as smartphones, tablets, and laptops. They should focus on developing innovative features and technologies to make their products more appealing. Apple should increase their distribution networks and improve supply chain operations to reduce costs, improve efficiency, and ensure timely delivery of products.
Conclusion
Apple has sufficient strengths to successfully handle the deficiencies of the institution. The company may also harness opportunities by utilizing these strengths, such as increasing its supply chain for household devices. It is able to obtain a competitive advantage over its rivals by leveraging the strong image that it has established for itself. By investing heavily in research and development, a company can diversify its product line and reduce its reliance on Apple’s iPhone. They should develop goods that are able to satisfy the requirements of customers with lower incomes.
References
Apple (2022). Company overview and news. Forbes. Web.
Benzaghta, M. A., Elwalda, A., Mousa, M. M., Erkan, I., & Rahman, M. (2021). SWOT analysis applications: An integrative literature review. Journal of Global Business Insights, 6(1), 55-73. Web.
Dogra, S. (2022). Apple is the most valued brand of 2022, followed by Amazon, Google, Microsoft and more tech firms. India Today. Web.
Li, Y. (2021). Apple Inc. analysis and forecast evaluation. Proceedings of Business and Economic Studies, 4(4), 71-78. Web.
Statista. (2022). Smartphone subscriptions worldwide 2016-2021, with forecasts from 2022 to 2027. Web.
Winkelman, S. (2021). Apple iPhone 13 vs. Samsung Galaxy S21: Which Flagship Should You Buy? PCMAG. Web.