Apple_Company_Swot

SWOT Analysis Apple Company Marking 111B By Judy Harrington Mr. Lennert Apple Inc. manufacturers the Macs, iPods, iPhones, iPads and professional software and has achieved great success since it began in 1977. Apple has spent million on research and development to be the leader in electronics and technology. According to eHow it’s difficult to predict what will happen to this company in the future. Apple is a very successful company and one of the most established and healthy IT brands in the world and has very loyal set of enthusiastic customers that advocate the brand. Such a powerful loyalty means that Apple not only recruits new customers, it retains them, they come back for more products and service from Apple and the company also has the opportunity to extend new products to them, for example the new iPad. By doing a SWOT analysis which measures the strengths, weaknesses, opportunities, and threats to a business it will help us to understand the company’s current position and where it may go in the future. Strengths According to eHow.com, Apple’s strengths are being a design innovator that is ahead of the trends, creating ergonomic (electronics) that fit people’s lives. Specifically, Apple has been able to invest significantly in research and development, having invested million in 2010. Every year Apple find a way to make their products even better with update’s to older products or coming out with something new all together. Weaknesses According to eHow.com, Apple acknowledges that its profitability is dependent on the global economy. Economic downturns can have a significant negative effect on the company, and fluctuations in foreign currencies make profit predictions in foreign markets uncertain. According to echeat .com there is pressure on Apple to increase the price of its music download file from the music industry itself. Many of the companies make more money from iTunes than from their original CD sales. Opportunities According to eHow.com, Apple is expected to introduce a new mobile advertising platform for the iPhone, iPod touch, and iPad. The introduction of this advertising platform represents an opportunity for new revenue sources. Also ultimately revenue could be generated from paid for subscription or through revenue generated from sales of other downloads. New technologies and strategic alliances offer opportunities for Apple. Threats According to eHow.com, Apple is involved in several legal actions, including lawsuits alleging patent infringement and antitrust violations. Many of the suits are from smaller companies, but notable plaintiffs include Nokia. These lawsuits present a threat because of the possibility of unfavorable judgment and the ongoing costs associated with legal defenses. According to echeat.com, In 2005 Apple won a legal case that forced Bloggers to name the sources of information that pre-empted the launch of new Apple products, IT suspect that Apple’s own employees had leaked confidential information about new products Apple are vulnerable to leaks that could cost them profits. The biggest threat to IT companies such as Apple is the very high level of competition in the technology markets. Being successful attracts competition and Apple works very hard on research and development and marketing in order to retain its competitive position in the world. Every year they come out with something new to keep their customers coming back to them. References eHow (2010, October 30) by Mathijs Van de Graaff, eHow Contributor Retrieved April 20, from http://www.ehow.com/print/acts_6801257_swot-analysis-apple-company.html echeat ( 2006, May 2) By Reality Check Retrieved April 20, from http://www.echeat.com/swot-analysis-apple-company.html