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Modified SWOT Analysis of Apple

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Modified SWOT Analysis of Apple

Company Description

Apple, Inc. is a worldwide technology business that creates, produces, and distributes

various electronic gadgets and services. These goods and services are offered worldwide through

direct selling, retail outlets, and third-party vendors. Apple Inc. employs roughly 137,000 full-

time equivalents as of September 2019. They are placed fourth on the Fortune 500 list for 2020

by Forbes, and like the majority of organizations, they conduct internal evaluations to determine

their competencies and competitive viability. The gathered information is then utilized to design

plans that will assist them in survival and expanding their company. Consequently, this essay

will not only evaluate Apple's internal setting by identifying its most significant strengths and

shortcomings, but it will also define the company's resources while studying these elements. In

addition, the structure of Apple is evaluated to identify its competitiveness and potential.

SWOT Analysis

Examining a company's internal environment is a component of its environmental

analysis strategy (Haarhaus & Liening, 2020). SWOT analysis is a commonly used method for

assessing the internal environment. This analysis provides insight into the company's strategic

activities to optimize growth depending on its weaknesses and strengths and its opportunities and

risks. As per Smithson (2022), Apple Inc.’s present performance is contingent on the company's

ability to utilize its strengths to combat its threats and weaknesses and capitalize on

opportunities.

Strengths Weaknesses
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 Superior technology

 Customer loyalty  High selling prices

 globally renowned  Lack of marketing and promotions

 Effective research  Incompatible with other software

 large profit margins

 Technological innovation

Opportunities Threats

 Development of Artificial intelligence  Increasing competition

 Consistent customer growth  Coronavirus Outbreak

 Smart Wearable Tech  Russia-Ukraine War

 Qualified Professionals  Bullied by counterfeits

 Expansion of Distribution network

Evaluation of Internal Factors

Internal environment assessment focuses on Apple's weaknesses and strengths, while

external environment assessment concentrates on opportunities and risks. The firm's strengths are

a strong brand image, large profit margins, technological innovation, high-quality goods, and

client loyalty (Tian et al., 2022). The company's limitations include a restricted distribution

network, high pricing, high-end sales, and patent infringements. Apple has established and

retained its position as one of the world's premier branding firms. Apple's brand success derives

not just from its innovativeness but also from its brand quality and ability to leverage its
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consumers' lifestyles and needs. Technology is developing and growing in line with customer

requirements and aspirations. This makes Apple more driven than ever to design and

manufacture technical items with superior performance. The iPhone is one of Apple's most

successful devices. Additionally, Apple will profit when new devices are introduced since both

existing and new consumers will continue to purchase the brand.

As for their drawbacks, their expensive costs, sales restrictions, lack of promotion, and

incompatibility with the other software are the most significant. Customers from the lower

socioeconomic level, who constitute the bulk of customers in the worldwide market, are unable

to afford Apple products, according to Smithson (2022). Apple's other weaknesses include

lacking marketing and advertising and incompatibility with other applications, putting aside their

cost. Even with its modest advertising budget, Apple has left an indelible impression on the

globe by cultivating a dedicated client base. Their marketing approach mainly focuses on their

famous and flagship retail locations. Compared to other major companies such as Coca-Cola,

and Samsung, they do not feel compelled to allocate a disproportionate amount of money to their

advertising budget.

Evaluation of External Factors

Every organization must consider both its internal and external elements. Apple can thus

sustain constant consumer growth, recruit talented personnel, and develop its distribution

network, among other things. Apple has led the technology industry for years by producing high-

quality, cutting-edge technology that creates a revolutionary consumer experience (Gupta, 2022).

Including sustaining a remarkable 92% client retention rate thanks to the Internet's power. The

Internet allows Apple and many other businesses to acquire new consumers and forge new

connections. They do this by employing competent branding specialists with years of expertise.
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However, Apple's present distribution network is constrained and leaves little space for

expansion. Therefore, Apple might increase its sales income by emphasizing the expansion of its

distribution network.

Regarding threats, the Coronavirus is now Apple's most significant concern because

Apple's production and supply chain primarily rely on China (Free & Hecimovic, 2021). China

accounts for around 17% of Apple's $260 billion in annual sales. Additionally, the conflict

between Russia and Ukraine negatively influences various businesses. Apple's decision to cease

operations in Russia will also result in economic losses. 

Conclusion

External and internal environmental elements are equally crucial and essential to the

success of any business. They also identify the company's potential and threats in addition to its

strengths and shortcomings. In addition to the SWOT analysis, the firm should also evaluate its

physical and intangible assets, as well as its leadership styles and staff strengths, since these

factors might impact the organization's efficiency. Apple should last evaluate its capacity to

compete in the technology market. Consequently, based on the collected data, Apple may

effectively adapt to a structured organization that will have a favorable impact on its operations

and helps the firm retain its competitive position.

References
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Free, C., & Hecimovic, A. (2021). Global supply chains after COVID-19: the end of the road for

neoliberal globalisation?. Accounting, Auditing & Accountability Journal.

Gupta, S. (2022). Apple SWOT 2022 | SWOT Analysis of Apple. Retrieved 4 October 2022,

from https://bstrategyhub.com/swot-analysis-of-apple-apple-swot/

Haarhaus, T., & Liening, A. (2020). Building dynamic capabilities to cope with environmental

uncertainty: The role of strategic foresight. Technological Forecasting and Social

Change, 155, 120033.

Smithson, N. (2022). Apple Inc. SWOT Analysis & Recommendations - Panmore Institute.

Retrieved 4 October 2022, from https://panmore.com/apple-inc-swot-analysis-

recommendations

Tian, W., Wang, M., & Wang, Q. (2022, March). The Core Competentness of Apple Inc. In 2022

7th International Conference on Financial Innovation and Economic Development

(ICFIED 2022) (pp. 718-725). Atlantis Press.