Often when you look at the SWOT of a firm like Apple, the most striking aspect of the company has no doubt been its unique ability to bounce back.
Whatever the problem or the threat might have been, every comeback by Apple has been stronger than the previous one.
The Apple SWOT analysis is, therefore, an interesting analysis of how a business can use its strength to tackle the threats from both external and internal environment.
While competition from a wide plethora of competitors is one of its most perceptible threats, what kind of indicators can you get from the company’s SWOT analysis?
What Are Apple’s Biggest Strength?
The Apple SWOT analysis highlights that one of its biggest strength is no doubt the ability to overcome all other weaknesses.
But that apart another factor that helps Apple is no doubt the internal business environment.
As the old saying goes, a strong foundation always makes a strong building; the internal strength often gives the company the ability to get back even after a serious fall.
It is a huge indicator of the kind of power it derives from its organizational structure.
One of the most valuable companies in the entire world, Apple’s best organizational features include:
- A sustainable and credible brand image
- Strong profitability
- Constructive innovation that aids profitability
- A keen sense of customer needs.
When you probe the SWOT analysis highlights, Apple’s biggest driver has been the ability to introduce innovation rather successfully.
One reason that helps in introducing products profitably is also the fact that the brand is extremely strong and lends a huge amount of credibility and as a result easily wins customer trust.
Additionally, by maintaining a rather premium pricing, profitability is one aspect that Apple does not compromise on.
This is a strong factor that allows them to remain flexible in terms of keeping profitability intact.
The strong and the fast paced innovation strategy that emerges from its sustainable internal growth avenues helps it stay ahead of the competition.
This no doubt gives the firm a major advantage as compared to its peers and helps it maintain its leadership position.
The premium pricing also enables it to remain strongly invested in its innovation process without unduly stretching its resources and maintaining steady cash flow unabated.
This allows the company the necessary bandwidth to create a steady performance track record.
Weaknesses as per Apple SWOT Analysis
Therefore as per the Apple SWOT Analysis, what’s that weakness which could potentially disturb this growth track.
Essentially these are inadequacies that could possibly dent its leadership position in the market and also could hinder overall growth.
Well, if you look at the current dynamics of the global mobile movement you would feel
- The relatively high prices
- The rather limited distribution network globally
- High-end targeting
are some of Apple’s major mission and concerns.
While the company’ policy of limited distribution is guided by its will to maintain exclusivity, it also severely cuts down its reach.
You may want to argue what about the online stores that can provide access to buyers; the question remains, what is the percentage of internet penetration globally?
Can it possibly compete with the kind of distribution network that the likes of Samsung have in place?
Apple SWOT analysis also indicates that the company is overly dependent on its high-end products for raking in the bulk of the sales revenue.
The main customer base belongs to the upper and the upper-middle classes.
Meanwhile, the lower middle-class customers who form the bulk of global consumers buying mobiles avoid it or are unable to buy it because of the huge prices involved.
Therefore, you can easily say that the distribution and the selling strategy is a major hindrance to future growth.
Opportunities for Apple
The Apple SWOT analysis, however, highlights some key growth opportunities nevertheless.
Given the external business environment and the broad global demand, it can be easily said that some of the best opportunities at the moment includes
- Rising demand for smartphones and tablets
- Creating new products catering to customers
- Expanding current distribution network for the company.
Not only can these factors propel growth significantly going forward, but they could also help drum up the current sales numbers.
In fact, the 2016 profit numbers indicate some initial sagging signs and the ability to incorporate these growth opportunities can quickly help it stage a major turnaround in quick succession.
In fact, given its innovation strength, it should look at creating fresh products that can also target a larger customer base and perhaps even look at the lower end of the pricing range.
Therefore, it can be easily said that the Apple SWOT analysis highlights rather sustainable opportunities for future growth despite some distribution and pricing weakness.
Threat for Apple
Despite the opportunities, the Apple SWOT analysis does highlight some concern areas.
Aggressive competition from mobile makers and the possibility of churning out Apple fakes is no doubt some of the biggest cause of worries.
It even roadblocks that could seriously hurt growth and profitability.
Rising cost of labor in markets outside the US is also another aspect that could seriously dent the profit numbers.
Therefore, it is very important that the company takes aggressive steps to limit imitation of its design.
It also work out a sustainable innovation strategy that can reduce the threat from competition.
So the recommendations as per the Apple SWOT analysis would be
- The company can in no way slacken on the innovation front.
- It should be more aggressive in charting out strategy to stay ahead of competition.
- It needs to reach more markets as well as a larger number of consumers in each market to eke out long-term profitability.
The company must also look at a suitable strategy to limit the threat of imitation.
It must create a stronger patent portfolio to discourage those trying to make fake options.
But all said and done, the pace of innovation cannot slow down any cost.
It should perhaps start looking at more wide reaching creations.