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Strategic management apple inc
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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
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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
Product Differentiation: Apple has been able to differentiate its products by offering innovative products that is almost perfect. “ Apple has developed some of the world’s most daring technology”. The company has been able to provide unique products that is way ahead the curve compared to its competitors’. Apple has successfully increased the demand of its products through product differentiation, the uniqueness of its products has always drawn the attention of consumers. By focusing on a particular set of consumers who are willing to pay more has enhanced the company’s premium pricing strategy which is also a stands to be a differentiator. Product design is a major factor that has enhanced all Apple’s products to be different, when the company introduced its iPod, iPhone and iPad no other similar product could match up with the features of these
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.
Consumers are willing to pay the price there is no need to lower prices. From what I know it is a profitable company and valued by many in the world. It creates innovative products that appeal to the customer. It is in the electronics industry; they promote low cost and gain consumer loyalty which brings a high profitability. In treating their own employees with dignity and respect is to say the least. Apple’s leadership style was command-and-control and take-no-prisoners attitude toward employees. (Spiegelman, 2012). The culture is changing because employees are being praised in public. Products are being made here in the United States instead of China. When litigations come up it seems they are being worked through verses starting them. They are pursuing arbitration with Motorola. (Spiegelman, 2012). The culture with Apple is slowly starting to change which will impact employees and
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
test whatever it's a bad effect or not. So when it used on humans, we
The following chapters would review each of factors determining Apple`s success. Brand Image Meticulously crafted image of Apple products as a unique and unrepeatable product contributed to the fact that it has become almost a cult object. In 2011, according to the rating of research agency Millward Brown, Apple TM has become the most expensive brand in the world, which has been estimated at 153.3 billion dollars. Brand Communication Strategy
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
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
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 ...
With all the hype surrounding the iPod post its introduction into the electronics market, it should be of no surprise that iPod’s unmatched demand for such distinct music management tool would lead Apple to add iPod’s features to the most sold electronic device to date: the cell phone. Thus, you get a hybrid called the iPhone. This highly anticipated electronic trend setter without fault had numbers of people waiting in line at the Apple store in New York; iPod fans want to be among the first to explore some of the most innovative phone features to date. Among those features you will find a 3.5 inch touch screen (the largest of all smart phones), Wi-Fi connectivity, the most usage time of all smart phones, i.e. talk time, internet use, or video playback, and many more impressive characteristics. The iPhone has, thereby, revolutionized the cell phone industry to become a potential best designed and most admired phone of the decade.
The SWOT analysis is a useful tool for identifying our personal strengths, weaknesses, opportunities, and threats to our plans and goals. According to a “Fuel My Motivation” article (2010), this analysis considers internal influences that can positively or negatively affect our ability to achieve our goals. The internal factors are our strengths and weaknesses. Also considered are opportunities and threats, which are external influences that can have a positive or negative impact on the ability to achieve our goals. I will share how the self-assessment instruments and self-exercises in this course have contributed to assessing and understanding my strengths and weaknesses. I will also discuss techniques I will use to leverage my strengths and understand my weaknesses. In addition, I will consider opportunities that I can take advantage of and the threats that can possibly impede my progress.
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.
When Apple saw that the iPhone market was mature and stable, the organization introduced other innovative products to create a new market (Ritson, 2013). This is the philosophy of the planning school of strategy and it is all about engaging an existing market while forecasting the future market.