SMBP_E5

External Factors

Weight

Rating

Weighted Score

Comments

Opportunities

Development of Artificial Intelligence

0.15

4.0

0.60

Technological developments are moving towards adopting better methods of enhancing competitiveness. Adopting artificial intelligence in Apple Inc. will improve the company’s competitiveness since the product offerings will improve user experience. Artificial intelligence makes the devices unique, thoughtful, and intelligent. Adopting artificial intelligence in Apple Inc. would ensure the production of devices that enable human capabilities such as understanding, reasoning, planning, perception, and communication (Ijemaru et al., 2022). It helps to increase the efficiency and effectiveness of devices for better performance.

Production of environmentally friendly products

0.01

2.0

0.02

Society is consistently becoming aware of the importance of environmental protection. The increase in climate change has affected people negatively. Apple Inc. needs to become more environmentally responsible by producing products with little environmental effects (Tiia, 2022). This will increase their corporate social responsibility, image, and market share.

Employment of virtual reality

0.05

3.0

0.15

Apple Inc. is a company that operates in a competitive industry. Adopting virtual reality would enhance the company's performance through various approaches. Through virtual reality, the company allows the customers to test the products before they can purchase them and prevent cases of dissatisfaction.

Globalization

0.02

3.5

0.07

Apple Inc. is headquartered in the United States. The company, however, needs to apply the principles of globalization and make its products available to every customer to increase market share.

Using green technology

0.05

4.5

0.225

Many companies are working towards increasing competitiveness by adopting green energy. The aim is to limit the effects of company activities on the environment (Hiremath & Gupta, 2022). At the same time, the use of green technology enhances the company’s corporate social responsibility.

Expanding distribution networks

0.01

3.0

0.03

Distribution networks determine the company’s efficiency in meeting customers’ needs. The expansion of the distribution networks will help to increase sales and profitability.

Threats

Russia-Ukraine war

0.02

4.0

0.08

Apple Inc. was negatively impacted by the Russia-Ukraine war. It resulted in the halting of product sales. Apple Inc. is the number three smartphone maker in Russia and sells 5 million smartphones in Russia. This is 16% of the market share. The war will influence the number of sales.

Increased competition

0.03

2.0

0.06

Many companies are engaging in the manufacturing of smartphones. The increase in smartphone companies in Asia has affected Apple’s market share.

Technological changes

0.02

3.5

0.07

Technological changes are constantly bringing new products into the market that are more attractive to customers (Datta, 2022). The constant changes are increasing the threats of new products that will replace the existing ones without innovation and creativity.

Tariffs on China

0.01

4.5

0.045

The China-US trade war resulted in an increase in tariffs, affecting the company’s profitability. The tariffs made Chinese products expensive in the US market (Lessambo, 2022). However, Apple production occurs in China, infecting the company’s profit margins.

Disrupted supply chain

0.02

5.0

0.10

The disruptions in the supply chain increase the problem of shortage of Apple Inc. products in different markets. It also results in price inflation and adverse effects on the economic well-being of the organization.

Counterfeits

0.04

4.0

0.16

Counterfeit products are a sign that affects the company’s profitability. These are products that the customers purchase under the guise of the original company products (Tan, 2022). Counterfeit products expose the company to reduced profits and a lack of reputational damage.

0.43

1.61