There are different strengths associated with Apple incorporation like the strong brand image, effective rapid innovation processes, and high-profit margins. Effective rapid innovation processes are considered to be the most significant and highest ranked internal strategic strength of Apple incorporation. As far as weaknesses of Apple incorporation are concerned, there are different weaknesses of the company like limited distribution network, higher selling prices and reliance on sales from specifically high-end market segments. The limited distribution network of Apple incorporation is the most significant and prominent weakness of the company (Safian, 2018).
Recommendation to Improve Strength and Tackle Weakness of Apple
To expand the effective rapid innovation process, Apple incorporation focuses on implementation of open culture in its organizational structure. Every employee, from top to bottom, is allowed to contribute to the decision-making process and is allowed to share his or her ideas and innovations. To manage the Limited distribution network weakness of Apple incorporation, it is important for the company to expand its production facilities and to assemble facilities across the globe. Currently, most of the products of Apple incorporation are assembled in China. By opening assembling units in different parts of the world, Apple Incorporation will be able to improve their distribution network positively.
Tangible Assets, Intangible Assets, Core Competencies, and Capabilities of Apple
Core competencies are the factors which are available in organizations in rare form. Core competencies are always valuable assets for the organization. There are different core competencies of Apple Incorporation among which research and development is the most significant core competency of Apple incorporation. Usage of the latest technology is another significant core competency of Apple incorporation which helps to make different attractive designs and attract potential customers towards the products of Apple incorporation (Securities and Exchange Commission, 2018).
There are many different intangible assets possessed by Apple incorporation. Some of these intangible assets are creative capabilities which are associated with the design of Software and Hardware. The engineering and technical development capabilities of Apple incorporation are also significant. Human resources are another significant intangible asset for Apple incorporation as the company has a highly skilled workforce, which is expert in factors like experience, innovation, knowledge, skills, and other related factors. As per as tangible Assets of Apple incorporation are concerned, the net worth of Apple Corporation is among the biggest companies around the globe. The net worth of Apple incorporation is almost $1 trillion, which is a significant and huge amount (Johnston, 2018).
Segments of the General Environment Factors for Apple
Different environmental factors are responsible for influencing the performance of Apple incorporation. One of the most significant environmental factors responsible for influencing the reputation of Apple incorporation and market is the contribution of carbon in the environment by the company. Recently, a new technology called carbon footprint tracking was implemented by the management of Apple incorporation to tackle issues related to the contribution of carbon by apple and cooperation in the environment. With the implementation of this solution, the amount of carbon contributed by Apple incorporation in an environment significantly reduced.
Another significant environmental factor which has influenced Apple incorporation is an implementation and investment in policies related to green energy production. Recently, Apple incorporation implemented policies related to going green platform which has helped the management of the company to make the company environmental leader from being an environmental laggard. These two factors have significantly influenced the interest of Apple incorporation towards protection of the environment which is one of the most significant elements of Corporate Social Responsibility. In modern days, corporate social responsibility is considered to be a significant element in the operations of any company (Jackson, 2017).
Forces of Competition for Apple
There are different factors which are responsible for influencing the competition level for Apple incorporation in recent years. Studies have suggested that the management of Apple incorporation has enhanced their focus towards investment related to research and development. Due to enhanced research and development, it is very difficult for new entrants to compete with apple incorporation. Smartphone development requires a significant amount of research and development spending due to which it is not possible for new entrants to compete with apple incorporation. For the last ten years, Apple incorporation has spent a significant portion of its profits and revenues on research and development to stay competitive in the market.
It is important to understand that the degree of competition in the smartphone industry is very high. Due to globalization and modernization, the degree of competition in all kinds of businesses has significantly increased. It is continuously required to provide new products and value-added services to customers at all times. Another significant factor influencing the competitiveness of Apple incorporation and rivalry of Apple incorporation is the amount of security provided by the engineers and prolific staff at Apple Incorporation related to Software and Hardware for their customers (Securities and Exchange Commission, 2018).
Prediction for Apple
In recent few years have suggested that the level of innovation has been decreasing in Apple incorporation due to which the company is facing large cash problems. Due to large cash problems, investors are now receiving less dividends as compared to previous dividends. It is mostly because no doubt Apple incorporation has a strong name in the market and its products is very strong, but at the same time companies as Google have acquired nest and started their cloud business and also started providing fiber-optic services. Microsoft recently purchased LinkedIn and spent a lot of time to create this service as a cloud-based service. Facebook recently bought Instagram and WhatsApp. It is also important for Apple incorporation to look towards acquisitions to enhance their market share and competition capabilities in the market (Trugman, 2018).
To enhance the security level, it is important that the iCloud encryption service should be made much stronger to secure the personal data of customers. Recently, Apple Incorporation faced legal issues with the FBI regarding the security of personal data of customers (Trugman, 2018).
The Greatest External Threat for Apple
One of the key threats for Apple incorporation is market penetration in smartphones. The importance and usage of Smartphones are increasing rapidly with the passage of time. It is a significant threat for the future of Apple incorporation. It is important for the management of Apple incorporation to provide value-added services and innovative products to their potential customers to enhance their market share and to increase market penetration in the mobile phone industry. Various mobile phone companies like Samsung and Huawei are giving tough competition to Apple in the international market. Another significant competition for Apple incorporation is from the laptop. Different companies like Dell, Lenovo, Sony, and other related laptop manufacturers are significantly creating competition and threat for Apple incorporation. They are negatively influencing the sales of Mac Book (Weinberger, 2017). It is important for Apple incorporation to provide potential customers with value added services at affordable rates to enhance their market share.
The Greatest Opportunity for Apple
There are different opportunities available for the management of Apple incorporation which can be utilized to enhance their market share and performance. One of these opportunities is to launch, Apple car which the management of Apple incorporation is already working on and is expected to launch Apple car in 2020. Like any other products of Apple incorporation, the customers of Apple can expect many great benefits from the Apple car in the future (Painter, 2018).
References
Jackson, L. (2017). Environmental Responsibility Report. Retrieved from https://www.apple.com/environment/pdf/Apple_Environmental_Responsibility_Report_2017.pdf
Johnston, C. (2018, Agust 2). Apple is the first public company worth $1 trillion. Retrieved from https://www.bbc.com/news/business-45050213
Painter, L. (2018, August 2). Apple iCar release date rumours, features & images. Retrieved from https://www.macworld.co.uk/news/apple/apple-car-release-date-3425394/
Safian, R. (2018, February 21). Why Apple Is The World’s Most Innovative Company. Retrieved from https://www.fastcompany.com/40525409/why-apple-is-the-worlds-most-innovative-company
Securities and Exchange Commission. (2018). Apple Inc Form-10K. Retrieved from http://www.annualreports.com/HostedData/AnnualReports/PDF/NASDAQ_AAPL_2017.pdf
Trugman, J. (2018, 05 05). Apple needs to get back in the innovation business. Retrieved 10 24, 2018, from nypost: https://nypost.com/2018/05/05/apple-needs-to-get-back-in-the-innovation-business/
Weinberger, M. (2017, January 12). Apple’s Macs were the biggest losers of the PC industry in 2016. Retrieved from https://www.businessinsider.com/apple-mac-lost-most-pc-market-share-in-2016-chart-2017-1
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