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This aspect of the SWOT analysis framework points out the strengths that enable the company to overcome weaknesses, take control of opportunities, and resist threats in their business environment. These strengths are internal factors specific to the conditions within the business organization. In this case, the following are the most significant strengths of Apple Inc.:

1. Strong brand image

2. High profit margins

3. Effective rapid innovation processes

Apple Inc. has the opportunity to expand its’ distribution network. Such opportunity directly relates to the weakness of the company’s limited distribution network. This SWOT analysis emphasizes the need for the company to change its’ distribution strategy. An expanded distribution network can help Apple reach more customers in the global market. In relation, the company has the opportunity to increase their sale volumes through aggressive marketing, especially for mobile products. This opportunity is linked to the rising demand for mobile access, as illustrated in the PESTEL/PESTEL analysis of Apple.com. So, this means, the company has the opportunity to explore new product lines. The current product lines of Apple are highly successful. However, with further innovation, the company can develop and introduce new products similar to what they have achieved with the Apple Watch. Developing new product lines can support business growth in the international market. Thus, this aspect of the SWOT analysis of Apple indicates that the business has major opportunities for further growth despite aggressive competition.

In this aspect of the SWOT analysis, the focus is on the threats that the company experiences from various sources, such as competitors. Threats are external factors that limit or reduce the financial performance of businesses. In Apple’s case, the following threats are the most significant:

1. Aggressive competition

2. Imitation

3. Rising labor cost in various countries

Tough competition in the industry is partly because of the aggressiveness of firms. Apple competes with firms like Samsung, which also uses rapid restructuring. In this scene of this SWOT analysis, aggressive competition has a limiting effect on Apple Inc. Because of the invading competing firms, it is necessary to have strong elements for maintaining competitive advantages. In addition, the company faces the threat of emulation. This threat is significant because of the large number of local and intercontinental firms that imitate the design and features of Apple’s products. Additionally, rising labor costs involving contracts with other businesses, such as those in China, reduce gross production or push selling prices even higher. Based on the external strategic factors in this SWOT analysis, Apple Inc.’s performance could suffer because of aggressive competition and imitation of product design.

All factors discussed in this SWOT analysis indicate that Apple Inc. possess major strengths to effectively address organizational weaknesses. The company can also use these strengths to utilize opportunities, such as the enlargement of its distribution network. Furthermore, the company can use its strong image and rapid innovation processes to successfully develop and launch new product lines. Apple can also face the threats of aggressive competition and imitation, which are major challenges affecting companies in the global market for consumer electronics, computer hardware and software.

Based on the strategic affairs highlighted in this SWOT analysis of Apple Inc., a recommendation is to continue the aggressive and rapid change including developing the company’s products. Such change reduces the adverse effects of reproduction on proceeds. Also, it is recommended that the company further intensifies the automation of its production processes, and support the automation of its contract manufacturers, as a way of addressing the rising labor costs involving Apple product mass productions. Another recommendation is to establish partnerships with more traders to improve the overall market reach of the company’s distribution network.