Apple SWOT Analysis

Document Type:Research Paper

Subject Area:Business

Document 1

The external environment analysis is important in identifying business growth, size, and operations. This is necessary for determining the company’s decline or development. Apple is a leading asset management company, as it generates and runs software and hardware as well as being a global smartphone provider. The analysis of the company is ideal for understanding the factors of competition as well as its application of strengths to remain a leading global company. Competition Competition is a major external environment that influences the operations of Apple Company. This makes the brand the most valuable global brand. The brand value is driven by from the enterprise’s interaction with its diverse stakeholders. The satisfaction of stakeholders in the company is a necessity in creating a strong brand.

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For instance, employee satisfaction and preference to work in a given company improve its brand strengths. For instance, potential employees prefer to work for Apple rather than Microsoft. More recently, the company developed the iPod music player, which improved performance for smartphones. The Apple innovation includes the development of products that share the same operating system, software, and applications. This is a necessary strategy for maintaining customer loyalty and builds a barrier to competition. The integration of a strong supply chain of suppliers, developers, and business partners provides the company with a strong competitive advantage. The company operates its own supply stores that supply products from its chip manufacturers. As a company that deals with technology, the company must continue to be a global leader in the creation of new software and applications to suit the changing technological needs.

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The computer industry faces rapid and steady technological changes. The evolution of computers has contributed to better, faster, and cheaper computers. There is the need for continuous designing of new computers or innovation of existing ones. Apple has made remarkable technological changes since its inception in 1976. The fingerprint technology was not new in the technological industry, but it had not been used much until Apple launched it to be used on its iPhone 5s. The concept of graphical user interface started in the 1970s by the Xerox Palo Alto research. However, its use became common after Apple incorporated the technology in its own computer. The USB technology helped to end the incompatibility with other ports. It was a risky venture for Apple to roll out a computer without a floppy disk slot, but its use helped deal away with older ports like ADB and SCSI.

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Apple engages in extensive research, development, and marketing. Through the competition, the companies have come up with new products that may replace the smartphone. For instance, Microsoft has the HoloLens headset while Google has Project Tango. To match the competition, Apple’s approach is to use the already existing technology of the iPhone and development of AR apps for the phone. Additionally, Apple intends to offer a new set of software that will connect Virtual Reality headsets to create 3D and VR content (Heisler, 2015). In the manufacture and distribution of computers, Dell and HP are the major competitors. With the price of Apple products being high, it is easier for consumers to shift and consume other products. At the same time, corporate clients may see Apple products as incompatible with their software.

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To solve this threat, Apple needs to design products that are compatible with other computer software and hardware. Technological advancement is another threat that Apple needs to deal with. At the same time, Apple can use this strategy to damage the reputation of the rival company. Apple also has an opportunity for mobile advertisements through the iPhone, iPad, and iPod touch by creating an iAd. Apple’s greatest strength is its large market share and trust from consumers. With the ability to create its own software, Apple has a variety of products and apps interlinked and maintain each other. Apple is also the most pioneering company in the world, with a great profit margin than its competitors. The large customer base of apple serves as the resources that the company relies on for its success.

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