SWOT analysis

AppleInc..docx

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Apple Inc.

Element	Description
Mission	Apple Inc.’s mission statement is to bring the best user experience to its customers through innovative hardware, software, and services. Apple has majored in the development of computer programs, and hardware. It is known to make reliable phones and computers. In meeting its mission, the company has employed the best developers and scientists. Consequentially, the company is one of the companies to reckon as far as computers are concerned. An assessment of the company reveals that it has met its mission.
Vision	Apple In.’s vision statement is to make the best products on earth and to leave the world better than we found it (Wilson, 2018). Apple is a world-known brand in the technology sector, more so in the computer world. The company believes that computers and computerization are the key to make the world better. through computerization, products and services can be delivered faster and much more accurately than before. As far as attaining its vision, the company is yet to meet its vision; Apple is yet to make the world significantly better than it found it.
Values	Apple Inc. is driven by four main values. The top value is simplicity. The giant computer manufacturer does not believe in the complex, rather it believes in simplicity. The second value is excellence. The company believes that it exists to make great products. Thirdly, the company believes in making a great contribution to the planet. Lastly, the company believes in transparency and emphasizes not controlling their technology but also controlling the technologies used in their products.
Structure	Apple operates using the hierarchical organizational structure. It can be noted that the company incorporates strong divisional characteristics and some weak form of a functional matrix. At the top of Apple, is the CEO. Under him is seven executive managers who report directly to him. Slightly below the seven executive managers are the company’s heads of operations and they report to the executive managers and also the CEO. The structure is simple to administer as instructions trickle from the top down.
Culture	Apple has an organizational culture that focuses on creative innovation. The company encourages all its employees to be as creative as possible. The company believes that innovation is one of the ways to revolutionize the world as well as make the world a better place. The company's cultural features focus on having high levels of innovation that challenge standards and conventions. For one to succeed in Apple, they must be liberal and must be creative.

Analysis

To carefully and accurately analyze Apple Inc., one has to look at the company’s mission, actions, operations, strengths, weaknesses, threats, and opportunities. One tool that helps in such an analysis is the SWOT analysis. As concerns the strengths of the company, Apple has three main strengths that make it excel in its industry. Top on the list is that the company is one of the strongest brands in the world. Apple inc has been in existence for a long time; it was founded in 1976 (Razak et al., 2020). Since its formation, the company has undergone several changes that have made it a world-renown brand. Consequentially, the company has many customers and through its customer base, the company has the muscle to influence policies all over the world.

Secondly, the company has huge profit margins and this can be attributed to its premium pricing. The company’s products are considered luxury items and for that reason are highly-priced. Despite the premium pricing, the company still has many customers. Due to its pricing model and loyal clientele, the company makes huge profits and consequentially can continue with product development as they wish. The last strength of the company is that it has effective rapid innovation processes. The processes are based on the long history of technological innovation that the company has been part of. Consequentially, the company has a lot of influence in the technological sector, more so in the computer development sector.

The company has two main weaknesses. The top weakness of the company can be found in its operations; the company has a limited distribution network for its goods. The company primarily uses its retail stores located globally to distribute its products. There is a need for the company to consider other ways it can distribute its products other than the use of its official retail stores. It can partner with other phone distributors to increase its reach. Secondly, the company’s products retail at significantly high prices compared to other companies’ devices (Borgenicht, 2020). As a result, the company limits its growth. The company needs to restructure its products to cater to the lower middle class and the lower class. By so doing the company will grow its customer base significantly.

The company faces three main threats. The top threat is competition. Apple faces competition from multinationals that operate in the same industry as it. Apple’s biggest competitors are Microsoft, Amazon, and Samsung. The second threat affects its structure. The company is finding it hard to administer the company globally using the hierarchical structure. The hierarchical structure is not ideal for an organization that has branches distributed globally. Thirdly, the company is under threat from companies that make imitations of their products and sell them at low prices.

As far as improvement is concerned, the company has three main ways it can improve its operations to increase its profitability. Apple can expand its distribution network to get more consumers (Hettiarachchi). Secondly, the company can change its organizational structure to ensure that its operations go as expected globally. Lastly, the company can develop new product lines to capture more consumers.

Citations

Borgenicht, N. (2020). Will Apple’s Lower iPhone Price Ease Dropping Sales?. SAGE Publications: SAGE Business Cases Originals.

Hettiarachchi, H. A. H. Apple’s Supply Chain Strategy.

Razak, M., Hidayat, M., Launtu, A., Putra, A. H. P. A. K., & Bahasoan, S. (2020). Antecedents and consequence of brand management: an empirical study of Apple’s brand product. Journal of Asia Business Studies.

Wilson, E. (2018). Apple's Key Success Factors in the UK that Could Be Learned and Applied by Other Companies from the Same Industry. Available at SSRN 3152328.