Apple Incorporation

Apple Inc. I the world’s leading multinational technology company. It started developing
and selling electronics but now it already manufactures and develop various kinds of gadgets
which is well-known worldwide. Apple brand is very unique which made it more successful and
have billions of revenues reported. Despite of having a lot of competitors in this field Apple Inc.
is still in demand and continue to innovate their products to fulfill the desires of its customers. It
create job, opportunities and satisfaction which boost its international popularity.

1. Have an internal analysis of the company identify it strengths and weaknesses.

Strength
 Brand reputation
 High quality material and design
 Loyalty of the customers
 Financial capability of Apple inc. which
strengthens investor’s confidence and
provides future capital and growth
avenues.
Weaknesses
 Expensive price of the products
 Incompatibility of ios products to other
softwares.
 Defect of new products
 Lawsuit between Nokia and Apple Inc.
which is a great loss for reputation and
asset worth of $2 Billion upfront cash
payment.

2. Perform an External analysis

Use a PEST/PESTLE analysis

Political Economic Social Technological

 Chinese  Low  People’s  Demand in
Manufacturing unemployment interest technology
 Poor trading for countries  Market  Cybercrime
policies manufacturing expansion technology
 Currency  Increasing of  Lose of
fluctuations mobile usage popularity

Porters 5 forces
 In support to this, also Use the Porter’s 5 Forces as part of your analysis

Threats of new entrants: Strong

 There are a lot of innovative

products produced by
competitors to match apple
products.

Threat of Substitute products &

services: Medium
Bargaining power of buyers:
 People still prefer using
Strong
mobile gadgets and use Competitive Rivalry: Strong
PC’s and other gadgets  Number of  High number of
as alternatives. competitors information
 No available clone of  Quality differences  Low switching cost
Mac in the market.  Diversity of
 Huge network competitors.
externalities for PC’s

Bargaining power of suppliers: Medium

 Apple maintains excellent control

over its suppliers which managed
a complex chains of suppliers
globally over US, China,Taiwan,
Japan,Brazil,Mexico and many
other nations.

Now you can draft the Opportunities and Threats.

 Opportunities
 Expansion of distribution of products
especially from countries that still in the
developing stage for technologies.
 Development of new products since
there are many competitors in
Technology Industry.
 Higher sales will be possible if there are
new products in the market.
 Creating compatible products since that
is the edge of android users which
became a problem to Apple Inc.
 Software development
Threats
 Imitation of products since there are a lot
of cheaper phones sold in the market
 Raising labor cost in other countries
 Lose of appeal just like Nokia, Motorola
&blackberry.
 Increase in competition of product
creations
 Iphone sold on malls which are not fake
but those are defected phones sold on
lower prices.
 Growth of android operating system

3. You can now draft the SWOT

STRENGTH WEAKNESS OPPORTUNITY THREATS

 Brand is  Incompatibility  Expansion of  Imitation of
worldwide of the products distribution products
Popular and to other  Development  Raising labor
has reputation. operating of new cost in other
 Loyal system. products countries
customers  High/premium  Higher sales  Lose of appeal
 Effective and prices  Creating just like
fast innovation  Limited compatible nokia,Motorola
 Financial distribution. products &blackberry.
strength  Increase in
 Great quality  Software competition of
development product
creations
 Defected
Iphones sold
on malls
 Growth of
android
operating
system

4. Make a TOWS analysis

5. Make sure that all strategies made in the TOWS are all related to the minimizing risk.
OPPORTUNITIES
 Expansion of
distribution
 Higher sales
 Creating compatible
products
 Software
development
 Development of
products
THREATS
 Growth of Android
operating system.
 Imitation of products
 Increase in
competition of
product creations
 Lose of appeal
 Defected phones
sold on malls
 Raising labor cost
STRENGHT (INTERNAL)
 Brand is worldwide popular
 Loyal customers
 Effective and fast innovation
 Great quality
 Financial strength
S/O
 Boost advertisement to
countries with low in
demand.
 Develop the operating
system and compatibility to
increase sales.
 Improve the quality &
materials of product
 Increase capital for future
innovation and creations.
S/T
 Focus more on improving
the financial performance to
gain more investors which
can increase capital to fund
future product innovation.
 Form partnership with
google to diversify apple
software and system.
WEAKNESS (INTERNAL)
 Incompatibility of products to
other operating system
 High/Premium prices
 Limited distribution
 Lawsuit between Nokia
W/O
 Creating features such as
Bluetooth and making other
apple available to IOS.
 Create a team who are more
focused on possible lawsuits
and competition
W/T
 Constant promotion of
products not just iphone but
also other gadgets.
 Participate also on charities
and other programs to create
positive image to overshadow
lawsuits.
 Improve production of phones
to avoid defects and provide
lawsuits to avoid also leaking
and reselling defected phones.