Apple Inc starts its strategy planning with the SWOT analysis, which consists of 4 factors. They are Strength & Weaknesses as the internal factors, and Opportunities & Threats as the external factors.
The Apple’s Inc has some strengths that include its leading technology whose ideas are followed as the role model for the other brands. Second, Apple has loyal customers which most of the time willing to stand in line all day long just to be one of the first people who get their new iPhone, iPad, or Mac. And one of the reason why people love apple is that their products are all user friendly and it also has simple yet great and classy design.
However, in fact, an organization must have some weaknesses. In this case, Apple Inc has some weaknesses that is first of all, it’s weak spending on development and product research and high cost of its materials. People that cannot afford Apple Inc products tend to substitute their needs of mobile phones, for example, to the much cheaper one made similarly in China. Another weakness is its decreasing market share which influences their potential customer and persuade them to use Apple’s closed ecosystem products.
Besides, luckily Apple Inc gets some opportunities from external elements, which is the benefit from the changing customers need, for example their need for iPhone 5s or even the rapid market growth, such as global expansion. The other opportunity that Apple can take is its own iTV launch, that was predicted to be the one that will support Apple TV sales and the products’ ecosystem.
On the other hand, Apple has to face some external factors. The external threats that Apple has to face is their competitors such as Samsung or Google that offers mostly similar applications, or even more. The other threat for Apple is the rapidly changing customer needs, or the introduction of new substitute products. For example, if one of its competitors offers their customer products that has higher technology and even in cheaper price, they will choose them over apple who has a very high price set for each of their products. Still, Apple can solve this problem in order to win the products competition by being the first brand creating new innovations.
After interpreting its opportunities and threats, the manager should result strategies to overcome its threats and take the benefit of the opportunities.
The Apple’s Inc has some strengths that include its leading technology whose ideas are followed as the role model for the other brands. Second, Apple has loyal customers which most of the time willing to stand in line all day long just to be one of the first people who get their new iPhone, iPad, or Mac. And one of the reason why people love apple is that their products are all user friendly and it also has simple yet great and classy design.
However, in fact, an organization must have some weaknesses. In this case, Apple Inc has some weaknesses that is first of all, it’s weak spending on development and product research and high cost of its materials. People that cannot afford Apple Inc products tend to substitute their needs of mobile phones, for example, to the much cheaper one made similarly in China. Another weakness is its decreasing market share which influences their potential customer and persuade them to use Apple’s closed ecosystem products.
Besides, luckily Apple Inc gets some opportunities from external elements, which is the benefit from the changing customers need, for example their need for iPhone 5s or even the rapid market growth, such as global expansion. The other opportunity that Apple can take is its own iTV launch, that was predicted to be the one that will support Apple TV sales and the products’ ecosystem.
On the other hand, Apple has to face some external factors. The external threats that Apple has to face is their competitors such as Samsung or Google that offers mostly similar applications, or even more. The other threat for Apple is the rapidly changing customer needs, or the introduction of new substitute products. For example, if one of its competitors offers their customer products that has higher technology and even in cheaper price, they will choose them over apple who has a very high price set for each of their products. Still, Apple can solve this problem in order to win the products competition by being the first brand creating new innovations.
After interpreting its opportunities and threats, the manager should result strategies to overcome its threats and take the benefit of the opportunities.