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Company Analysis-Apple
Inc.
Apple
Inc. Is an American multinational corporation which makes and sells computer
softwares, personal computers and consumer electronics. It is well know for its
hardware products like iPad, iPhone, iPod and the Mancintosh line of computers.
It is one of the largest companies globally and also the most valued technology
company in the whole world.
Strengths
The firms strengths
include its capabilities and resources which it can use to obtain a competitive
advantage (Bohm, 15). The following are the strengths of Apple Inc.
·
Apple Inc. Is one of the oldest
manufacturers of hardware and it has control over the product since it
manufactures both the operating system and the computers. The company is also
well known for its high quality product and this makes Apple Inc different from
its competitors
·
Its products are well designed like the
iPod which has consumer friendly characteristics. For example, the iPod is slim
in shape which fits easily into the consumers pockets and its light weight
enhances portability
·
The company has also designed many
products which suits the demands of its consumers on daily basis. For example,
the iPhone enables the comapny consumers to enjoy music, surf the web, make
phone calls and watch videos. All this is done using one device. This has
created a strong brand name and brand loyalty making Apple Inc. To obtain a competitive
advantage over its competitors (McDaniel et.al, 46).
·
Apple has been developing its products
into new and easy to use products. It has also diversified from computers to
iPods and slimmer notebooks which are are up to date with the latest technology
. This has resulted into a good reputation among its customers making the
existing customers to come back for more as well as attracting new ones (Bohm,
15).
·
The company enjoys a global presence. It
derives over 50% of its revenue from the regions outside US. This strong
operating performance has strengthened the company’s market position as well as
increasing its investor confidence.
Weaknesses
·
Product life cycle of Apple products is
very short which discourages consumers
·
The company’s operating system does not
work with outsiders hardware. While this is done to keep design control inside
as well as to keep them up to standards, wide adaptation of its hardware to
other computers has been badly hurt and thsi has made to have a relatively
small market share (McDaniel et.al, 46).
·
The company has recorded weak returns on
investmenst and assest in the past years. For example, it recorded a return on
assets of 4.7% which was lower the industry average of 5.8% during 2001-2005. It also recorded an average return on
investment of 6.7% which was lower than the industry average of 13.8%. This
highly can erode investors confidnce as well as the company’s growth plans
(Bohm, 15).
·
The company has a high dependency on key
components which are supplied by IBM. In case IBM experiences manufacturing
problems or a delay in shipment, then Apple Inc would be at a risk of loosing
its customers. Over dependency on key components may lead to competitive
disadvantage
Opportunities
·
The company has had a very loyal
customer base in both iPhone and iPod which makes the company to achieve high
sales of its products
·
It has acquired high reputation for its
high quality products and this is an opportunity for the company to diversify
and develop its products more. It is also an opportunity for the company to
continue growing by starting new branches in other countries
·
It has a large population of people who
are brand conscious which is an opportunity for growth and profits
·
There has been an increase in worms and
viruses on personal computers, developing antivirus solution would be a great
opportunity for Apple Inc.
·
MP3 players and downloadable music are
highly marketable in the world today. Apple’s iPad and iPhone have this
characteristics and this is a good opportunity for Apple Inc. To expand and
grow while making substantial amounts of profits
Threats
·
The fact that Apple is not compatible
with other computer software is a threat to the company. Many of the customer
will go for those products which are compatible with other softwares
·
Apple is also facing a stiff competition
from Dell, Sony, Toshiba and HP in the laptop sector
·
Apple’s software, hardware and
cellphones are very expensive compared to the ones sold by its competitors
·
High substitution for fast moving IT
products in the market.
Marketing
mix- 4Ps
These include product,
promotion, place and price
Product
Apple Inc. Manufactures
the following products:
·
iPhone which includes iPhone 3G, iPad
and iPhone 3GS
·
iPod which includes iPod Nano, iPod
Classic, and iPod Shuffle
·
Portable computers including iMac,
Xserve, Mac Pro and MacBook
·
iTunes which includes TV Shows, gaes,
audio books and movie
·
other include peripheral products,
servers, accessories, Wi-fi Based stations and developers
To better compete and
raise its market share, Apple Inc should continue to develop products of high
quality. That is, its products quality should exceed those of its competitors
Price
Apple Inc. Has reduced
the prices for its products after some initial product launches. The company
uses premium and skimming pricing strategies (Barch, 3). As a premium brand
computer, apple does not compete on price terms but on quality of products.
·
The Apple iPod Nano goes for $149
·
Apple iPhone costs $99
·
Apple iPod Classic costs $249
·
Apple Mac Book costs $999
·
Apple Ipad costs a minimum of $499
·
Apple MacBokk Pro costs $1199
·
Apple Quicktime Pro cost $29.99
The company’s pricing
strategy is very flexible in such a way that lower prices can be charged to a
consumer upon his or her request (Lowe and Doole, 6). Price of the company’s
products should be fair and it should be based on the quality off the product.
Fair prices for quality products will make Apple Inc. to have many consumers
which in turn leads to high market share and a competitive advantage.
Place
·
Apple Inc. Headquarters is located at
California
·
The company is also located in the
Middle East Europe, Latin America, Africa and Asia/Pacific
·
It has over 200 retail stores in the
world which include US, UK, Shanghai China and Canada
·
The company has a network of consultants
who include independent professional service providers as well as technology
consulting firms who have specialized in Apple and third party solutions. They
deliver on-site technology services and they also support business and home
users
Apple Inc. is
distributed around the globe which means that it has many customers. The
company should open more branches across the globe as this will increase its
market share globally as well as gain competitive advantage (McDaniel et.al,
46).
Promotion
·
Special discounts are offered by Apple
on Macintosh, 8GB iPod and iPod Nanos as well as a one year warranty
·
Apple online e offer free gifts like
gift cards and free shopping for orders over $50
·
The company provides customers with a
$100 rebate when a Mac or Specific printers are purchased online
·
The network of consultants provides
visitors with a search tool which allows them to locate the nearby Mac product
consultant in Canada, US and some international locations
The company has
authorized Training Centers which are all over US with each providing
instruction in Mac system, Apple’s professional applications and Mac OSX (Barch,
3). There is a wide range of certification courses and exams by Apple Inc.
Which offer innovative learning opportunities for creative professional,
service technicians, IT and educators
Promotion creates brand
awareness to the consumers which then leads to the increase in sales of the
promoted brands due to increase in the number of consumers (Lowe and Doole, 6).
Apple Inc. should its promotion methods are well implemented as this will
attract more customers leading to high market share hence a competitive
advantage.
Work Cited
Work Cited
Benjamin Bach, (2007).
Implications of Enabling Technologies for Apple Inc.: Cybermarketing &
Enabling Technologies. GRIN Verlag. Pg. 3
Anja Bohm, (2009). The
SWOT Analysis. GRIN Verlag. Pg 15
Lawrence G. Fine,
(2009). The SWOT Analysis: Using Your Strength to Overcome Weaknesses, Using
Opportunities to Overcome Threats. CreateSpace. Pg 60
Isobel Doole, Robin Lowe,
(2008). International marketing strategy: analysis, development and
implementation. Cengage Learning EMEA. Pg 6
Charles W. Lamb, Joseph
F. Hair, Jr, Carl McDaniel, (2008). Essentials of Marketing. Cengage Learning.
Pg 46
O.C. Ferrell, Michael
D. Hartline, (2008). Marketing Strategy. Cengage Learning. Pg 207
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