Apple Swot Analysis-Strengths-Weaknesses-Opportunities-Threats

Strengths:
* Reputable brand: Apple is by far one of the most profitable technology innovators to date. Apple outsells MP3 players and iMac notebook computers more than any other manufacturer. So far in quarter one of 2010, Apple has already gained revenue of $3.38 billion. Apples products are known to last far longer than other manufacturers products. Apple really knows how to keep their company growing with happy consumers. * Customer loyalty: Apple has gained and retained its customers over its newly innovated structure since 2005-present. Apple not only provides complete solutions, where you can buy everything inclusive through their website, store, iTunes, but also provides varied products.

Apple is currently in the market of media involving music with the most popularly known iPod and iTunes, computer with the iMac, and phone with the iPhone. Customers enjoy Apple so much because they have the same consistency in the architecture and programming of their products, as well as their attractiveness and appealing design to distinguish Apple from other products. * Incentives and Community: By selling Apple products to schools and universities, Apple turns classrooms into showrooms. Apple is very heavily used in universities and schools, creating awareness and gaining customers at a young age that will last a lifetime for most. Gaining these customers at an early stage is crucial for the future of Apple. Also, Apple throws incentives for students such as a free iPod with purchase of an iMac or free iTunes giftcard with purchase of an iPod.

Weaknesses:
* Price: Apple products are far from inexpensive. In fact, their products are the most expensive in its class (i.e. notebook computers, MP3, cell phone). These prices could possibly refrain potential consumers from entering the world of apple. Apple needs these customers to experience their products to further the growth of its company. * Defects: Like most technology, there will be defects. Most occurring problems are with the iPod MP3 players. The number of defects could potentially harm some of Apple’s market, for those who don’t have as much loyalty to the brand may become frustrated and leave to another manufacturer. The defects found in Apple’s products are its only downfall, but it’s not to the point where it is a major break in the company. * Retail location: Most of Apple conducts its transactions via web. People do like the web, but there will be people that also like to see and use to product before hand at a retail store. Apple has 284 retail locations, which is several, but not enough to cover an entire every territory or region. Even though Apple is sold in Best Buys and other power centers, it is the environment within an Apple store that consumers want and look forward to, as well as the service and personnel.

Opportunities:
International expansion: Apple should consider selling their products overseas in other countries where technology is heavily used, such as Europe and Asia (Japan and China). Expansion of product lines: Apple should try to create other products to compete in the market. Examples include, televisions and digital cameras. Since their current products are popular and successful, it can only help Apple to introduce new products. Target market: Apple currently markets its products in the X Y Generation, which is younger aged individuals who tend to use technology more. If Apple created and made a use for other target markets, such as older and/or professional audiences then they would gain more potential consumers for their company.

Threats:
Compatibility: Some software that is used in conjunction with various media products is incompatible with Apple products. Most products are used with Windows. Various (illegal) music sources: Other music sources such as Limewire and other online music downloads can take away from the use of iTunes music library. Fad: Like most products, some tend to die out. In some instances products only last for a couple years or a decade. Apple faces the chance of its products not lasting, there is that slight chance in every company’s lifespan.

References:
“Apple Inc.”. Wikipedia. <http://en.wikipedia.org/wiki/Apple_inc.>.

Foljanty, Lukas. “The Apple Museum”. TAM. 1998-2009 <http://www.theapplemuseum.com/index.php?id=32>.