External factor analysis

APPLE COMPANY 1

APPLE COMPANY 7

The Apple Company

Jermaine Griffin

Columbia Southern University

The Apple is as an American international company with its headquarters at Cupertino, California. It designs, develops and also sells consumer electronics and online services. It also deals in computer software. The hardware products for the company includes the smart phone by the name iPhone, the iPad tablet computer and a mobile media player by the name of iPod. There are also other products such as watches television sets and other devices. The focus of this paper is to come up with the SWOT analysis for the company. (Yee 2015)

STRENGTHS

The approach of the strengths for this company is based on the way the company is able to thrive in this market. The strengths could either be internal or external with much emphasis being made on the internal strengths. Generally, these are specific factors within the organization with the most notable ones including the following.

1. A strong brand image- the company has been in the market for long winning a great approval from its clients due to the quality products that it offers. The electronic products that the company deals with, though expensive, are of high quality.

2. High profit margins- the company has been making huge amounts of profits for the last few decades. It therefore a stronghold for the success of the company.

3. The company has a rapid innovative processes that make it to adapt to technological changes hence coping with the market adjustments.

4. The wide global coverage enhances the distribution of the electronic products over a wide range of countries.

5. The company has a strong financial base that can eventually be used as capital. This makes the company to be able to open up new branches and meet with expansion costs.

6. The company is known to employ the most qualified staff. This serves a critical role in ensuring that productivity of the company. It is therefore an advantage to the company.

7. The company has strong agency that serves to help in distribution of its productivity.

8. The company’s marketing mix or the 4P that takes care of the pricing strategies enhances high profits. There is a notion that the company sells its products expensively, but the fact is that the products are high class. (Nadkarni 2017)

WEAKNESSES

The weaknesses are the inadequacies of the company. These are normally internal parameters that are hindrances to the growth of the company. The following weaknesses could be easily traced in the Apple Company.

1. There is a limited distribution network. This is due to the policy that the company operates in. for instance, the company makes a conscious selection of its sellers of the products.

2. The company sells its products at high prices. The high prices scares away the middle income earners. This serves as a great weakness to the company.

3. The company also has strong dependence on high-end market segments. This means that the target market for the products of this company is the middle and the high class earners, hence the low class earners find it difficult to purchase these products.

4. The company also has limited staff motivation making them feel not much appreciated. One of the methods used to appreciate employee performance is the issuance of the iPhones.

5. The marketing strategies that the company engages in are tailored to meet the needs of high income earners hence the low income earners are left out. The middle income earners may be privileged but they do not get maximum satisfaction.

OPPORTUNITIES

This analysis identifies the most important and significant opportunities available for the company. (Khan 2015)

1. The expansion of the distribution network could enhance the company. The company’s products will thus be distributed to new clients.

2. Increased volumes of sales based on the increased demand.

3. Coming up with new product lines. This will enhance diversification hence meet the needs of all clients.

4. Coming up with optimum prices that are meeting the needs of low class earners. The inclusion of the low income earners in the market bracket will lead to increased sales.

5. Increase the staff motivation as this will eventually lead to high productivity.

6. There is a rise in demand for the mobile gadgets the company deals. This means that more production will no longer be risk taking.

7. The company could improve on product diversification for more results to be achieved. This is by coming up with new products that addresses the needs of all clients in a good way hence enhancing its growth.

8. The company can come up with more compatible products.

9. The adoption of apple products in the enterprise market is on the increase.

10. The company Pay provides for a big growth opportunity.

THREATS

The analysis focuses on the threats the company experiences especially from its competitors.

1. There is stiff competition from firms like Samsung. This makes the company to face challenges in market leadership.

2. Increasing cos of labor in several countries. The cost is usually incurred by the company using the profits gained hence weakening its capital base.

3. Other firms copy the design of apple products hence posing a great threat.

4. There is an increase in the cost of production. The urge to make high quality products makes the company to spend more in the production process.

5. The demise of jobs is a big loss for the company.

6. The environment in which the company operates in is complex with a lot of challenges.

7. The premium pricing can hinder the growth of emerging markets. The company has the most expensive products in the industry posing a great threat to it.

8. The market in which the products are disposed is highly developed hence competitive. This means that the company will have to employ the most recent technology in order to thrive in the market.

9. There exists low barriers to entry.

10. The company monopoly and the Federal antitrust.

In conclusion it is my hopes that this paper will give you a clear looking into the Apple Company SWOT. All companies have things that they need to work and I hope I have informed you on some of Apple’s area in which they can work on. Within this same paper I hope I have given you areas that they doing well in also. A company is only as strong as its weakest link.

References

Khan, U. A., Alam, M. N., & Alam, S. (2015). A critical analysis of internal and external environment of Apple Inc. International Journal of Economics, Commerce and Management, 3(6), 955-961.

Nadkarni, D. (2017). The Four: The Hidden DNA of Amazon, Apple, Facebook and Google. Anvesha, 10(3), 55-56.

Yee, F. M., & Yazdanifard, R. (2015). The comparison between ngo marketing and conventional marketing practices from SWOT analysis, marketing mix, and performance evaluation perspectives. Economics, 2(9), 1075-1087.