SWOT is a technique that identifies components aiding businesses thrive and assisting in growth. It is an easy but effective method. The SWOT analysis provides data about the internal as well as external factors. SWOT is an acronym for strengths, weaknesses, opportunities, and threats. The first two constituents provide a detailed examination of internal factors, while the last two reveal the external factors.
- Strengths: It includes the internal constructive potential of the business. It highlights those strategies which worked and competitive gains.
- Weaknesses: Weaknesses are the disadvantages in the internal environment that need to be addressed carefully to compete in the market.
- Opportunities: The working environment in the market helps the company to earn finance and resources. These external factors also help in boosting the sales of the product.
- Threats: These external factors are unhealthy elements and conditions that can threaten growth and development.
APPLE’S STRENGTHS
Top Technology Innovatory
Apple Company is never tired of experiments and innovating revolutionary technology since the beginning. Apple flourishes in updating the hardware software and bringing in new products.
Trademark Recognition
Since its initial production, Apple has been identified as a quality provider and weighs heavily in the competitive market. It was ranked as the third most valuable brand in 2020. It is a fact that Apple enjoys a reputation all around the world and is recognized globally.
Marketing Strategy
Apple’s advertising policy of word-of-mouth serves two purposes. It creates hype before the launch of the product. It helps potential buyers to prepare themselves to buy the newly launched product. It generates acknowledgment and awareness among the users.
Retail Stores
Apple’s customer stores provide personalized care delicate consumer experience. Its professional staff ensures high-quality client satisfaction. Apple serves customers with quality in staff and products.
Launch of New Products
Apple competes in the race of digital streaming and newer payment technologies. Apple reinvents its products meticulously and persistently. Apple TV+ iTunes Apple Card and Apple Music are the latest introduces, and the company is launching the new versions.
APPLE’S WEAKNESSES
Mismatch with Other Systems
The unique IOS versions do not support a user-friendly experience when it comes to switching devices or sharing data. Therefore, people take some time to get used to this incompatibility.
High Price
People buy other products when they desire the same functioning but face constraints in budget. The potential to lose customers due to high-priced products is another weakness of the company.
Patent Infringement
The worldwide recognized brand faced harsh voices when it lost trials of patent infringements. Apple harmed its reputation and finance due to patent infringement acts.
The Decline in Market Share
People are now aware of alternatives to iPhones and iPads. Many other products are launched by competitive companies of this sort. Apple’s market share is declining with the increase in clients and other products in the market. Apple’s mere dependency on iPhones and iPads series can be a weakness in the future.
Flawed Products
Many versions of Apple’s products were corrupt and defective. The company suffered a loss in brand image and finances.
APPLE’S OPPORTUNITIES
The Rise in the market of Communication Services
The digitalization of the globe has enabled underdeveloped and developing countries to use communication devices. This led to the expansion of the market opportunities for Apple since 2013.
Dependable Customers
Apple Company is assembling new units to meet the increased demand of its loyal customers. Apple’s brand recognition and high market share are opportunities to exploit. People adore Apple’s electronics and aspire to buy the latest.
Growth of Advertisement Market
Digital advertising has proved to be a dependable resource with the potential to grow. Apple adds services for advertisements on devices like Apple iPhone, iPad, and iPad touch. Apple can explore the digital advertisement market for sustainable growth.
The Era of Cloud-based Services
Apple’s cloud-based services are progressively in demand with the rise in data connectivity networks and technology. Apple has the opportunity to extend its series of iCloud services and applications. The market for cloud-based services is rising as more people are utilizing them for their tasks.
iTV Service
The promotion of iTV will improve the demand side of the product, which can increase the product’s ecosystem.
APPLE’S THREATS
The advance of Android OS
Android’s easy afford strategy has created hegemony over the market. It discourages customers from joining Apple. Apple has to consider competition in OS development.
Competition in Online Music Market
The advent of various online music subscription companies is a threat to Apple Music. Apple should consider competing with Amazon, Walmart, Spotify, and sound cloud in the market.
Rapid Technological Modernization
Technological advancement is the accepted practice in this age. New technologies are being introduced everywhere in the world. Apple can face difficulty in managing the latest trends. Revolutionary products were being introduced by Apple in the past, and Apple is yet to announce its new product policy.
Strong Dollar
The currency value outside the developed countries is lagging against the dollar. Apple has an extensive market outside the sphere of the dollar. Apple’s half revenue is dependent on changeable values of currencies other than the dollar.
COVID-19 pandemic
The surge of the Covid pandemic affected many economies around the world. Apple’s 20% yearly revenue was affected by the COVID-19 outbreak. The company earned $57 billion, where expected revenue was from $63 to $67.
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