Apple provide laptops, phones, speakers, televisions and more. The breakdown of swot for apple goes as followed. The strengths of apple are that it has great advertising capabilities with a strong USA distribution centre. Its weaknesses are that its over dependant on iphone sales and especially the iphone 7 having wireless earphones this can decrease sales because it is less appealing to buyers. In addition, Apple have a weak distribution channel to India and therefore lose out on sales there.
1) Apple’s decreased market share is mainly due to the loss of market share in emerging markets. According to OppTrends.com, the number of people who own iPhones 52.3%in the U.S.; it’s higher than the 49.9% a year ago. Apple is a well-established smartphones manufacturer in developed markets such as the U.S.; however, these markets have been saturated in terms of smartphone ownership. Most of the new growth is generated from emerging markets, where smartphone ownership is not as widespread as it is in developed markets. People who seek to purchase new phone in emerging markets are price-sensitive, whereas Apple’s iPhone models are normally set at higher price due to their better quality and satisfying apps performances.
CCC boasts a 1999 market share of 12.8%. However, this figure has declined slightly from its 1998 share of 13.4%. The dip is due to Dell Computer Corp.'s heavy presence in the small PC market, (Industry Survey, Apr. 2000). Compaq has a wide range of PC products from smaller, less expensive machines to more costly, high-tech systems.
This lack of innovative products from the company in the last couple of years makes us wonder if Apple has reached its zenith. Now several companies like Samsung and Google that are well funded and have a wide technological base, are snapping at the heels of Apple. In this period of gloom for Apple fans, the report from the world famous magazine ‘Forbes’ about the brand value of Apple has come as a pleasant surprise. The Forbes magazine recently released a report that lists the major brands in the world as per their market valuation. The company that tops this dream list is Apple, which with $ 104.3 billion is nearly double its nearest rival Microsoft, which at $56.7 billion occupies the second position.
Current strategy Currently Apple is being short-term strategy , it can makes trade price of Apple stock a little bit higher. As long as Apple keep maintaining its staggering profitability. . Henry Blodget(Blodget, 2013) says Apple is clinging to super-high profit margins and the same risky “premium’ strategy that almost bankrupted it in the PC market of the 1990S, He also mentioned even if Apple does not get completely marginalized, this strategy will likely hurt the company and its shareholders and customers over the long haul. Back to 2007, when iphone released by Apple, Apple had own mobile phone market.
Budget-conscious consumers, who have the greatest elasticity of demand, are not likely to purchase Apple goods at all since Apple often introduces features that render previous versions of goods obsolete. Thus, in general, Apple encounters relative, but not absolute, price inelasticity (Gillespie, 2013).
Since its founding in 1980, Apple Inc. has witnessed tremendous success. In 2015, it became the first U.S publicly traded company to close above $700 billion in market value, making it the most valuable company in the world. Although Apple Inc. was experiencing major success in the technology market, it had inevitable problems to face in the future because the company’s innovation had slowed. The reduction in modernization raised concerns from investors who believed that the demand in Apple’s flagship product would diminish, while rumors about a reduction in the suppliers of Asian components deepened the impact of investor’s skepticism. Thus, Apple’s stock price had dropped nearly 24 percent in 2013.
These resulted in a loss of customer loyalty and market share. 3.2 Recommended Business Strategies 3.2.1 Option 1: Cost Leadership Dell, from its efficient supply chain, is already able to offer products at a low cost. However, its products (e.g. Dell Inspiron 8600) were not able to compete well with the differentiated products of competitors (e.g. Apple’s Macbook).
The effectiveness of customer loyalty shows a negative correlation (Chandrasekaran et al. 161). It determines that it is hard for Motorola to successfully urge the loyal customer of Apple to change their buying behaviors when Apple builds a significantly strong customer loyalty. Unfortunately, according to the illustration of Gallo, Apple can be recognized as the most successful performer in building the strong customer loyalty in the world (4). As the suggestion of Miklos Sarvary, it is better to target a sufficiently different market segment compared with the competitors, in order to ensure the competitiveness of the marketing strategy
The BlackBerry has a single-core chip inside with a 640x480 screen, compared to the Apple, which has two-cores and 640x960 screens. On March 11th 2011, Apple release... ... middle of paper ... ...ada – CBC News, December 15, 2011 RIM looking anemic: Revenues down, more job cuts on the way, PlayBook sales negligible, September 15, 2011 RIM stocks drop 23 per cent after BlackBerry maker reports poor Q2 performance – Global News, September 16, 2011 RIM timeline – theSpec.com, January 23, 2012 Exclusive: Amazon weighed buying RIM, interest cooled – Yahoo! Finance, January 12, 2012 Is Lazaridis/Balsillie exit enough to save RIM? – Yahoo! Finance, January 23, 2012 Rim’s Chances For A Successful 2012: About Zero – BYTE, January 03, 2012 Rim’s Chances For A Successful 2012: About Zero – BYTE, January 03, 2012 RIM stock declines 8.4% following CEO step-down – Fudzilla, January 23, 2012 Ten things RIM's new CEO must do right away – CNET News, January 23, 2012 Microsoft, Nokia Reportedly Considering Rim Buyout – HotHardware, January 12, 2012