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SWOT Analysis Sample Essay

SWOT Sample Essay - A case of Apple Inc
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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
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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