SWOT analysis of Apple – Apple SWOT analysis

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What is SWOT analysis?

Strategic planners use a number of tools to audit their organisations.  SWOT analysis is one of the tools which many of them find extremely useful. SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors. Opportunities and threats are external factors (Needham et al, 1995). The use of SWOT analysis may play a very important role in the strategic planning of any organisations.

SWOT analysis of Apple – Apple SWOT analysis

We have carried out a concise SWOT analysis of Apple for you. It addresses 4Ps of Apple Inc.

Strengths of Apple

Apple has an invaluable market experience. The company has been in operation since 1976. It was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne.

Apple is also famous for aesthetic designs of its products. iPhone, iPad, iPod and some other products of the company have often been appreciated for their designs.

Apple is a highly specialist company and focuses on a limited number of products. This was the strategy adopted by Steve Jobs when he returned to Apple after a break.

Apple is the most valuable brand in the world. The company came top of the list of most valuable companies in world in 2016 published by Forbes. The brand value of the company is $154.1 billion (as of 2016).

Weaknesses of Apple

Apple products are usually expensive. It is sometimes difficult for many people in many parts of the world to buy Apple products.

Apple has over dependence on iPhone sales. This may put the company at disadvantage should there be any dramatic change of customer taste concerning Smart phones.

Apple has a limited distribution network as the company follows a very selective distribution strategy. This choice of strategy supports control over the distribution of products; however, it also limits the market reach of the company.

Opportunities for Apple

iPhone market is ever growing. This is a huge opportunity for the company. It will certainly help the company grow further.

The use of the Internet and e-commerce are highly likely to grow significantly over the next decade. Apple can produce new products and services to make use of the opportunity.

Threats to Apple

Major competitors such as SAMSUNG, Microsoft and others are usually the threats. In fact, these competitors put an enormous pressure on Apple’s market share, revenue and profits.

Bad press is a threat for a company like Apple as customers are now-a-days very concerned about the impact of organisations’ actions on society and environment. Apple’s supplier Foxconn has been accused of paying its employees $2 a day in China.

Rising labor cost in countries where Apple plants are located is also an issue of concern. This will impact on Apple’s profit and many even force the company increase the selling prices further.

 

We hope the article on the ‘SWOT analysis of Apple – Apple SWOT analysis’ has been helpful. You may also like reading Marketing mix of Apple. Other relevant articles you may be interested in are:

How to do a SWOT analysis

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The article publication date: 15 February 2017

Further reading/references

Needham et al. (1995) Business for Higher Awards, 1st  edition, Heineman Educational

www.apple.com

Photo credit: Pixabay

Author: Jo David

Jo David has years of experience both in the UK and abroad. He writes regularly online on a variety of topics. He has a keen interest in business, hospitality and tourism management.