SWOT Analysis of Apple Inc.

SWOT analysis

SWOT analysis gives a summary of essential issues from strategic capability and business environment, which have impacts on organizational development. Hence, strengths and weaknesses form part of the internal environment of a business whereas external environment is made up of opportunities and threats (Babatunde & Adebisi, 2012).

Apple’s Strengths

Apple enjoys growth in sales since its expansion beyond personal computers. The company has prudently managed the cash flow that came from its number one brand having about $417 billion as the total capital. Apple is likewise recognized for its significant name. It has a robust acknowledgment due to the founders’ aggressiveness towards innovation. Apple Inc. has raised sales from skilled and knowledgeable ads. Apple positioned its branches for direct sales in locations with high traffics. It thus strengthens its revenue base. Further, the supply chain of Apple is significantly controlled. A report on the code of conducts of suppliers is published yearly, which additionally promotes brand recognition. The company likewise has fantastic tradename, that is trustworthiness and produces friendly products to users. Apple merchandises easier to use. However, being the largest IT firm comes with higher responsibilities too. Apple just as other entities faces problems in its operation course. The company has a robust strategy on channels for direct sales promotion but it still lags behind. Apple Inc. has only 13 countries for direct sales locations. Besides, the company depends on iPod and iPhone as a substantial contributor to its dominant sales. The iOS is a single supporter of hardware products hence making it difficult to use. The competitors’ products, on the other hand, are android that do not have such complexities.

External environment

The company is exposed to multiple political predicaments. The political insurgency, of course, puts Apple Inc. into jeopardy. Recently, the company was under political pressure as the issues of suppliers, workers alongside suicide cases were leveled against Foxconn, which is one of the company’s biggest supplier. Also, Apple as well faces legal constraints domestically. For instance, in the previous year, the company reinstated the imports of its iPhones that were formerly outlawed by the US government. The stringent environmental and labour laws in America make it tough for Apple to compete favorably with its rivals.

Further, the company felt the heat during the global recession which hit Europe, America, and Japan. The unemployment rate in USA, China, and Japan causes a downturn in the growth of sales leading to a severe economic situation. Apple has been making the sequence of transformations in its products with the intention of satisfying and fulfilling the demand of customers. To do so, the company has been initiating plethora acquisitions like Prime Sense, Embark, Topsy among others.

Technological analysis

On technological analysis, Apple indeed is the trendsetter when it comes to the business of electronics. It has a philosophy of aggressive innovation. Through offering advanced technology, the company has managed to retain 50 percent of its clients as well as covert 10 percent to IOS. The designs for Apple are unique though customers are likewise giving them preferences due to screen sizes.

Competitive advantage

The competitive strategy of Apple includes innovation, brand strength, premium pricing and supply chain management. Brand strength provides Apple more excellent visibility in the market and assists in building consumer loyalty. Products such as iPad, iPhone, and Mac are sharing similar applications and software. They equally operate in the same manner enabling Apple products to be naturally favorite whenever its customers consider using other devices.

Also, the company make innovative products which share similar applications, software, and operating system. It, therefore, reduces timescale, risks, and product development cost. The company would be able to introduce a stream of new products thus staying ahead of its rivals. Likewise, Apple Inc. has a robustly integrated supply chain, which makes it easier to control the development of the products, manufacturing, and marketing. Lastly, the company fixes premium prices for its products alongside minimizing discounts given to wholesalers. Premium pricing keeps consistency in the values of the company’s commodities across the marketplace.

Value Creating Strategy

Apple Inc. puts more focus on few areas to enable workers deliver best products. Excellence is attained from few things alongside doing them exceptionally well. Apple management utilizes this strategy for its value creation. Essentially, concentrating on few things permits a company to be a first-class producer of such items (Lee & Soon, 2017). Apple has learned that having people saying no thanks necessarily is part of the company’s success. Besides, designers are running the shows as they tell what is going to happen. The firm puts designers in making decisions of more significant things which are likely to occur in an organization. By nature, designers are dreamers. They often think about what is expected to happen in the future within a perfect market. Apple is similarly retaining workers who are super in their jobs. The company management is assured that such tendency permits their customers to continue getting the best about what makes them unique (Kuratko, McMullen, Hornsby & Jackson 2017).

Measurement Guidelines for Strategic Effectiveness

Automatic analytic Tools-Apple Inc. uses analytic tools to automate the process of the reporting process. The devices are configured to track the chosen metrics recurrently periodically. They produce graphs or reports that can be consumed by stakeholders. Usually, the method for response capture disparate elements of the data collected. Rules are applied as results are measured to establish considerate findings. Due to the sheer information volume from all segments, automation forms essential means through which all necessary scales for strategic effectiveness get measured (Lee & Soon, 2017).

Apple similarly employs continuous performance assessment as a guideline for measuring the effectiveness of strategies used. Specific targets composed of measurable variables permit the management to project results incessantly to validate procedures to perform satisfactorily. When the actual outcomes indicate lagging performance, the administration has the opportunity to add resources, amend operations otherwise appropriate corrective actions. Continuous appraisal lets the management opt to implement strategies on the brink of transformations or develop an approach which is useful.

Effectiveness of the Measurement Guidelines

Apple Inc. uses efficient measurement guidelines. The standards employed link the company’s objectives to ways they are planned to be achieved alongside means designed for executing the strategy. Effective measurement utilizes resources allocated in line with plans of an organization and delivers results expected. Continual evaluation uses resources as well as performance towards checking if the guideline is hitting strategic targets of an organization, thus it is useful. Also, automation simplifies work within a company hence its effectivity (Kuratko, McMullen, Hornsby & Jackson, 2017).

References

Babatunde, B. O., & Adebisi, A. O. (2012). Strategic Environmental Scanning and Organization Performance in a Competitive Business Environment. Economic Insights-Trends & Challenges, 64(1).

Kuratko, D. F., McMullen, J. S., Hornsby, J. S., & Jackson, C. (2017). Is your organization conducive to the continuous creation of social value? Toward a social corporate entrepreneurship scale. Business Horizons, 60(3), 271-283.

Lee, M. S., & Soon, I. (2017). Taking a bite out of Apple: jailbreaking and the confluence of brand loyalty, consumer resistance and the co-creation of value. Journal of Product & Brand Management, 76(3), 234-291.