INTERNAL ENVIRONMENT
FACTORS: Primary Activities
Inbound logistics
Operations
Outbound Logistics
Marketing and Sales
STRENGTH
Apple has well-integrated suppliers,
and they deal with the suppliers
directly. Apple has
direct integration with the suppliers
around the globe to have significant
control over the entire
supply chain management of the
company. It has an enormous supply
chain, allowing for high bargaining
power should there be any
difficulties with suppliers meeting
the high-quality standards Apple has
set.
Apple is having outsourcing partners
to procure their hardware
requirement to the Asian country
to reduce the cost and time of the
company. It has also focused on
reducing the use of toxic substances
in the manufacturing and assembly
of its products. Recyclable material is
now more in use at Apple.
From retail stores to online retail and
its sown branded stores, Apple has
managed a very large channel for the
distribution of its products to the
customers. Over time it has focused
on improving its distribution channel
and added to its number of brand
stores. Apart from these things the
focus has also remained on green
packaging and eliminating wastage.
Apple is a famous brand whose
products are known for quality,
design and technological innovation.
Any new product from Apple is like
news that is highlighted not just by
media but several other sources
including small and big websites. It
also makes unique ads that engage
WEAKNESSES
High supplier power creates a less
attractive industry and decreases
profit potential, as buyers rely more
heavily on suppliers. Apple does not
need to prioritize the bargaining
power of suppliers in developing
strategies for
innovation and industry leadership
Outsourcing makes the company
brand image vulnerable to labor
issues at supplier facilities which has
been the case with Apple several
times.
Apple Inc. has a limited distribution
network because of its policy of
exclusivity. For example, the
company carefully selects the
authorized sellers of its products,
such as iPhones and Macs. The
SWOT analysis framework considers
this exclusivity strategy as a factor
that limits market reach, making the
company’s consumer electronics not
readily available in all areas. This
weakness exists despite exclusivity’s
advantages, such as Apple’s strong
control on the distribution of
products.
Apple Inc. has a limited distribution
network because it sells its products
by itself, and few stores are
scattered all around the world.
Unlike other smartphones products
you can easily get by just walking
into a phone store, it's very rare to
get Apple products like that. It also

Service
FACTORS: Support Activities
General Administration
Human Resource Management
its customers. It has acquired
remarkable brand loyalty using
creativity and imagination in its
advertising strategy.
Apple is very consistent in course of
its service. It is famous for
exceptional quality of customer
services during all three stages: pre-
purchase, during the purchase and
post-purchase. The company
maintains Apple experience centers
in major cities around the globe
where anyone can use its products
to become convinced about the
quality. Apple sales assistants are
usually trained and polite young
males and females who are
technically savvy and happy to
demonstrate product features and
capabilities.
General Administration is under Firm
Infrastructure. Apple’s firm
infrastructure includes its general
management and administrative
sectors, financial management,
accounting, legal, and strategic
planning capabilities. Apple’s
infrastructure went through cultural
changes. Apple is spending more on
maintaining their data
centers and office premises so that it
will facilitate the growth and
investment made by the
company
Apple focuses both on hiring and
paying well. This has been the norm
since the times of Apple founder
Steve jobs. The company is making
more changes in the human resource
management so that it
will enable the company to obtain
adds on to the burden of getting
after sale services, as only apple
stores can trust worthily provide
services of their products.
Most people who buy, do so directly
from their website. The major
disadvantage of this is that it limits
market reach.
Apple has been accused of using
tracking apps in its phones, which
revealed the precise location of
users. Apple is under investigation
for unfair business practices after
receiving payments to make
Google’s search engine as the default
search engine for its Safari web
browser. Collusion between the two
giants makes it difficult for rivals to
enter and expand into the search
engine market.
Apple Inc. has a hierarchical
organizational structure. This
structure has complicated chains of
command which can slow down
decision-making, inconsistencies in
management at different levels
which can impede work, and there
can be delays in communicating
vertically through the levels and
horizontally between teams. Apple’s
infrastructure went through cultural
changes as well.
Apple employees are going public
about workplace issues. Employees
are discouraged from sharing their
opinions about work. The company
also has a structure in place to
prevent employees from sharing —
or even finding out about — product
 the best talent and in retaining
them. Apple has well designed
internal training process to train
their employees in various aspects
that will enable the
employees in understanding the
main purpose of training. Regular
training and monitoring of the
performance of the employees is
made to ensure that employees are
performing well and
achieving their targets that are
essential for the growth and
development.
Technology Development Apple spends heavily on research
and development. Its brand is known
for technological innovation and for
the great quality and unique designs
of its products. Apple’s innovative
designs are one of the points of its
distinctive brand image. For
achieving this unique property,
Apple spends around 10 billion
dollars (2016). Mainly, for the
technological advancement in the
products, to provide better services
to the customers and for growing
product range. Apple invests a huge
amount of money in the Research
and development sector.
Procurement Apple has sophisticated and well-
managed procurement system. It is a
key focus area at Apple. It is
organized well so
that there will be no delay in
receiving the product. At the
procurement level, Apple establishes
relationships with suppliers and
optimizes its supply chain. The
company pays more attention to the
quality of the product to ensure a
high-quality end product. It
outsources all their hardware parts.
Due
to this, it is essential for the
company to check the quality of their
hardware, as it must support the
information before it’s public.
Employees sign project-specific NDAs
and are dissuaded from telling their
spouses about their work. Employees
stated that Apple has a very hostile
work environment.
Apple’s products do not support
other software or technologies,,
making them incompatible with
other devices. Customers have to
exclusively purchase Apple apps or
accessories to continue using their
Apple products. Apple needs to do
more for product innovation to stay
successful especially as hardware
products become more
commoditized.
The bargaining power of suppliers is
a relatively weak force in the
marketplace for Apple's products.
The bargaining position of suppliers
is weakened by the high number of
potential suppliers for Apple and the
ample amount of supply. Apple
Supply is not efficiently managing the
inventory and cash cycle. According
to Fraser P. Johnson, Ken Mark,
there is huge scope of improvement
in inventory management.
 entire system of the product.

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