SWOT ANALYSIS
To be able to identify a clear and concise plan for the expansion of sales for Apple 's iPhone 7, a thorough analysis of the company should be conducted. By highlighting the strengths and weaknesses of Apple Inc., and researching the opportunities available and threats to the company, strategies can be produced to find a solution.
Internal Strength
An advantage of Apple Inc. is the strength of its brand image. This can be seen in the 19% increase of its brand value from $153.3 billion in 2011 to 182.9 billion in 2012 while maintains $75 billion ahead of its competitors (H n.d.). The strength of its brand image can be attributed to the success of its operational efficiency. The behind the scenes work done in Apple Inc has allowed it to improve the brand economically. One example of its operation efficiency is how Apple has decreased its production cost over the past few years. The cost of creating an iPhone 6s Plus is estimated to be $236 but at the time of the products release the sale price was $749. This equates to a 217.4% markup with a genuine profit of $486 per unit sold.
By reducing the production cost, Apple is able to fund one of its other strengths, its dedication to research. After the trajectory of sales declined from 70 million to 54 million, Apple pledged to
…show more content…
On area of growth for Apple would be to expand their retail stores. A retail store gives the ability for the consumer to interact with the merchandiser on a human level which increases satisfaction with the product. In a SWOT analysis study conducted by Progressive digital media, Apple has 390 stores in service with 250 being in the US mad 140 serving the international retail community. The average revenue per store increased 19% from $43.3 million in 2011 to $51 million in 2012 with the releasing of the iPhone 5 (Apple 2014). This example shows how the ability to access a retail store can increase the
On a year to year basis the industry has grown 72.95 percent and on an quarter to quarter has grown 26.94 percent. This growth allows Apple to innovate and continue to lead the way in the industry (Total markets). As the industry grows Apple Inc grows with it as well. In 2014 Apple announced some very disappointing figures for its iPhone sales that had everyone thinking that it 's glory days when Steve Jobs ran the company is behind them. Then they reported the largest quarterly profit ever for a publicly traded company ever. This changed the mindset of everyone. Mr. Cook of Apple Inc stated “We certainly believe there are legs to it” when he commented about the iPhone sales growth. Some figures that he stated include that fewer than 15 percent of older iPhone owners upgraded to the iPhone 6 or 6 plus. Along with the majority of the people who did switch were from the Android operating system.
This segment can either put Apple on the edge of advantage or decrease the company’s capabilities. Over the years, Apple has proven to be a giant in this field because of its innovative products and services. Apple always takes the led while its competitors follow suit, although this also poses to be challenge for the company, it took Google less than one year to replicate ApplePay, Google called it AndroidPay it has the same capacity to function just exactly like ApplePay. This shows that Apple’s products and services could be copied thereby reducing the uniqueness of the products. Because the short lifecycle of technology, Apple needs to keep upgrading its products and services to stay on the top of the game. “Because the industries in which
According to Forbes.com Apple recorded US$18 billion in profit from this quarter’s sales of US$74.6 billion. A major chunk of this profit came from Apple iphone sales from international markets. It sold 74.5 million iphones and saw a 70% rise in China sales. But how sustainable this growth would be is a question that looms large in front of tech giant like Apple. Though it has tried to innovate its products according to the changing generations but how far can it keep on doing the same. We will further analyze the Smartphone industry by applying porter’s five forces.
Another problem that has been evaluated is the overall price of each Apple product. While each product is built on quality and new technology, finding new and cheaper sources of manufacturing would be beneficial in obtaining new
The principal conclusions of this report show that the iPhone is a successful product that combines interesting features: iPod, internet browser and mobile phone, which satisfy the customer’s needs moreover it is also exceeding their expectations thanks to its fashionable design. However the UK current mobile market is very competitive, so Apple will have to deal with tough competition against established mobile phone manufacturers. The report finally comes up with some recommendations that can help improving Apple’s performance and the marketing environment for the iPhone, these are mainly:
Cutting costs by competitors is the most logical way for competitors to be more competitive in the market. By cutting costs, there are more profits to be made and to gain market share by offering lower cost substitute products. The industry is flooded by competition, but no other competitor of Apple really focuses on creating great technical upport or brand loyalty. (Elliot, 2014)Apple’s primary focus is to develop innovative products and create a unique product that consumers can depend on the being the most highly anticipated technological device while offering great service and support for these new products. Apple uses business model innovation which introduces new products that are compatible with each other such as iTunes and the iPhone or ipod. This has proven to be a very effective business model and competitors are trying to replicate the same model to their advantage. (Jakab, 2015) By being an innovator and first mover on this type of technology, it gave Apple the competitive advantage in the market. In order for competitors to be more effective in the industry, they must attempt to gain customer loyalty and offer a simliar business strategy to that of Apple if they are to be the industry
is yet to reach its maximum potential. Truly a unique entity in its accomplishments and organization, apple through the conviction and leadership of Steve Jobs its founder and then CEO; have pioneered the revolution of mobile technology. When it comes to strength, apple Inc, has a great marketing team with great marketing and advertisement capabilities, strong brand awareness, a strong and extensive distribution channel, and most of all a vertical integration and the most obvious which is customer loyalty. With the acquisition of valuable companies such as Beats, WhatsApp, mobile payment systems with the IPhone 6, wearable gadgets like the IWatch, apple uses these opportunities to satisfy its loyal
The company not only produces the number of highly technological devices, but also has a great brand ideology lying behind. The following chapters would review each of factors determining Apple`s success.
According to Ideavist (2011), due to the increase in competition as rival companies try to capture a piece of the market share leads businesses to employ various tactics to handle such situations. Some of the strategies used by companies and that Apple could find very constructive could include the below marketing strategies to be used for future success.
Apple’s SWOT analysis includes strengths that adhere to its great success; such strength is Apple’s marketing and advertising campaigns. Apple incorporates its products to portray a sleek, new, cool, the latest, and must-have technology image to its consumers. Our customer loyalty allows us to continue growing as a corporation and increases our already well-established brand awareness and reputation. Our strong financial performance is an outcome of our internal strengths highlighted. Apple’s weaknesses include, but are not limited to our patent infringements, defects that occur in our products, our declining market share, as well as our incompatibility with other os devices. Realizing our weaknesses allows us to develop goals that will correct these areas we currently need work on. The opportunities of our external environment; such as the ...
Marketing strategies are based on the 4 P’s or Product, Price, Promotion and Place or Distribution Channel. This section will briefly look into the Product and Pricing strategy of Apple and will illustrate various factors how it has been capable of sustaining competitive advantages in times of extreme competition.
The Apple brand name is a household name, the brand value of Apple, Inc. improved to $13,724 million in 2008 from $11,037 million in 2007 (Datamonitor PLC, 2009). Apple is different from its competitors because it produces high quality products, its products are also unique and attractive and this has helped to increase its market shares. Since Apple is known globally, 54% profits come from foreign markets (Datamonitor PLC, 2009). Apple products are easy to use and carry around, majority of its products are light, small and very easy to carry around and it has a major advantage of product diversity, there is something for every one of all ages.
Apple has made reasonable management of its human and material resources since its innovational approach demands effective strategic allocation of its resources to the development and utilization of its productive resources to support its innovative investment strategies. Effective strategic control brings power to Apple’s decision-makers to allocate its resources to confront the technological, market, and competitive uncertainties which are inherent in the innovation
In its annual report, Apple said it sold nearly 170 million iPhones in fiscal 2014, up 13% compared to 2013. The total value of the sale of the iPhone at more than 100 billion US dollars, accounting for 56 % of total company revenues. Have to say, Apple is dependent on their iPhones.
The Apple Inc. can use this tool when they want to increase their sales either by expanding product or by entering a new market. With the help of this grid, market expansion strategy is determined.