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SWOT Analysis of Apple: Strategic Factors

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After reviewing the SWOT analysis of Apple, propose strategies to take
advantage of their vulnerabilities to help increase your company's market share.

You are a senior manager of a computer company that competes with Apple Computers, Inc. You read a case study about Apple (which can be found in the Appendix of your textbook) and determined that doing a SWOT analysis of Apple may help you with your own strategies.

Perform a SWOT analysis by identifying the company's strengths, weaknesses, opportunities, and threats. For each strategic factor that you include, make sure that you also include an explanation of why you selected and positioned that factor in that category. For example, if you include a factor as a Strength, make sure you explain why you think it is a strength.

After reviewing the SWOT analysis of Apple, propose strategies to take advantage of their vulnerabilities to help increase your company's market share


Solution Preview

Apple Computers has made a mark in the market by manufacturing pioneering products which continually redefine computer design. Many companies have in the past tried to replicate Apple's design, but have failed to succeed. Through this project report we would analyze the case of Apple Computers, Inc. and identify company's strengths, weaknesses, opportunities, and threats. After reviewing the SWOT of Apple Computers, strategies would be proposed to take advantage of vulnerabilities of Apple. These strategies would help increase the company's market share. The strategies would be implemented so as to provide maximum benefit to the company and would be evaluated. The evaluation would propose the need to continue with the strategy or to redefine them.
1. Strategic Alliances: Apple has been successful in expanding and improving strategic alliances with lateral manufacturers and medium communication giants like Verizon, Comcast, Disney, and TBS. Strategic alliances have been a source of competitive advantage as the organization can focus on producing innovative products like iPod, iTunes, and iPad.
2. Creativity: Creativity is Apple's well known strength in the entire industry. Apple has continued to be creative, an example of which is the creativity it brought to the OS and hardware design of the iPhone and iPad. The app store is another example of creativity by Apple.
3. Strong Brand Perception: Strong brand perception among customers helps Apple to cash on the increased levels of sales for its new and existing products. With iPod Apple dominated the music market and till date Apple enjoys the positive brand perception with customers. Apple continues to use the same perception to market and sell its other products.
4. Synergistic Portfolio: The portfolio of the company consists of designing, manufacturing and marketing personal computers and related software, services, peripherals, and networking solutions. This is a highly synergistic portfolio which reduces Apple's dependency on any single product line and hence diversifies business risk.
5. Strong Research & Development: Apple has been able to launch new products through dedicated R&D eforts
1. Short product lifecycle: Apple's major weakness has been shorter product lifecycle. Thus the company is not able to enjoy benefits of extended sales of one product before it launches a new product.
2. Low Returns: Apple has recorded weak returns on assets and investments in recent years which are lower than the industry average. Low return on assets and equity can erode investor confidence and the company's growth plans.
3. Dependency for key components: Apple is at risk for supply of key ...

Solution Summary

The solution reviews a SWOT analysis of Apple.