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About Apple Company

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  • Pages: 4
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  • Category: Apple

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Demographic: Very loyal customer base which has expanded beyond the Mac-heads of the 1990s with the iPod and the iPhone. The iPad has had a very successful launch. This seems to be leading to more sales of computers.

Socio – Culture: Has a well-deserved reputation for high-quality products that work smoothly. New products are generally well-received and have a built-in purchasing base.
Move into other computer or media product spaces that are not served well. Can continue to design the standard-setter for those spaces. Technological: A new version of Apple TV could take advantage of today’s more highly developed Web.

Political: Big ideas are easy to copy. Microsoft (Nasdaq: MSFT ) copied the graphical user interface, and even Linux has a version. The touchscreen interface is being used in other phones (e.g. Android). Apps are being developed for other smart phones and devices.

Eco: High-priced products. Apple priced itself out of the personal computer market, and that remains a problem. Other smartphones that look and behave similarly to the iPhone are less expensive. Tech: Google (Nasdaq: GOOG ) is moving into Apple’s smart phone space by giving away the operating system, and it has announced that it will also be moving into the TV space. Both companies are well – funded, so any battle between the two could be long and ugly.

* http://kwhs.wharton.upenn.edu/2012/03/strengths-weaknesses-opportunities-threats-the-swot-analysis/ That market gap is an opportunity for Apple, too. For example, businesses have been using iPhones more frequently for their employees as the device has grown and expanded its features. Threats include the growing use of the Android platform for smart phones from companies like HTC and Motorola, and the growing tablet computer market — although the iPad reigns supreme for now. For years, a SWOT analysis was the primary way to analyze how a company was doing financially, says Paul Escobar, an investment consultant and founder of Somerset Financial Partners in Boston. More recently, however, the federal government has changed the rules of how much data a company trading on the stock market must release to the public, giving rise to more sophisticated analytical tools.

*http://www.ehow.com/facts_6801257_swot-analysis-apple-company.html Threats Apple is involved in several legal actions, including lawsuits alleging patent infringement and antitrust violations. Many of the suits are from smaller companies, but notable plaintiffs include Nokia. These lawsuits present a threat because of the possibility of unfavorable judgments and the ongoing costs associated with legal defenses.


Opportunity1. Huge untapped market
2.More innovation, features and models
Threats1.Mobile manufacturers using Android OS 2.Lack of choice for consumers 
 3.Threat from cheaper substitutes

*http://davidhectorthibodeau.blogspot.com/2011/03/brief-apple-swot-and-strategy.html . Opportunities:
Factor i. Partnerships
1. Currently the only telecommunications carrier that Apple partners with in the US is ATT, while many competitor phones can be used with multiple carriers. Customers unwilling to switch to ATT from their current carrier are likely to forego owning an iPhone. Partnering with additional carriers could increase sales of the iPhone’s which would in turn encourage consumers to try additional Apple products. Factor ii. International sales

1. Currently the US accounts for more than half of Apple’s sales, (Hoover). Increased expansion possibilities into foreign markets remains an opportunity that Apple has yet to take full advantage of. Factor iii. Emerging products – AppleTV, iPad, Ping

1. Apple’s iPad is driving demand for tablet computers; projections for tables for 2010 are 19.5 million units and by 2014 sales are expected to reach 208 million units. (McGuire & Baker, 2010). Apple has eliminated the hard drive on its AppleTV making it a fully streaming media box capable of interconnecting with the iPad, iPhone, and the iPod, (McGuire & Baker, 2010). Ping is software for iTunes that enables social networking by allowing users to share their music with one another, with links to the iTunes store so that users can purchase the music. Factor iv. Apple Stores

1. Customers are generally happy with the service experience in Apple’s brick and mortar stores. Apple’s customer satisfaction score in this environment is an 84, while their closest competitor Dell, scored only a 74, (Srivastava & Thomas, 2010). Additional national and international locations could increase customer satisfaction with Apple products as generally customers that visit the Apple stores have a significantly better experience than those who deal with Apple online. Factor v. Acquisitions

1. Apple’s corporate culture seems unlikely to consider a merger, however it has recently acquired other companies, and as they are relatively new to the consumer electronics industry and media, to further their success they might consider acquiring a company that has long term success in this environment. Although they have revolutionized this industry, they could still potentially benefit from the intellectual capital gained by such an acquisition. d. Threats:

Factor i. Competitors
1. Despite market share gains in recent years Apple sales are still far behind competitors in the PC market like Dell and HP, (Hoovers). Additionally other smart phones which work with multiple carriers pose a significant threat as the only carrier approved by Apple for the iPhone is ATT, which Consumer Reports rates as the lowest scoring carrier for customer satisfaction, (Smart Phone, 2010).

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