Swot-Apple

University of Phoenix Masters in Business Administration Individual Assignment - SWOT Analysis- Apple Inc. MGT 521 June 10, 2012 Jim Holst Introduction Apple Inc. is a highly innovated business company that entered the business world making computers back in the 1980s. It is a company known for its vibrant line of products and the innovation it brings to those products. They ventured out in the 2000s making non-PC devices commonly came to known as the iPods and by the end of 2011 had a market capitalization of over $240 billion dollars (Apple, Reports First Quarter Results, January 24, 2012). In this paper, the mutual funds manager will conduct a business analysis on Apple and will perform a SWOT analysis to determine if this would be a sound investment for the stakeholders. Strengths Apple Inc. has been ranked number one on Fortune Magazine’s Most Admired list for the fourth year in a row according to CNNMoney (DuBois, 2012).Apple has a strong brand image which provides an advantages over its competitors. Apple’s online music store, iTunes is the largest music retailer and charges just .99 cents per song and can be downloaded on all of their products. Continuous strong financial performance has also strengthens investors’ confidence in return they provide for new capital for future avenues. In the employee department, Apple has an intensive employee training in order to provide exceptional customer service. They focus on understanding what the customer needs are and provide a solution. Lastly, Apple software are coded on a completely different platform when compared with PC, therefore there are less chances of product being pirated. Even the most profitable company has weakness, in the next section the fund manager will try to explore some of the challenges company faces. Weakness Due to Apple’s success in the marketplace, their competitors are hard at work to produce a product that is comparable and will appeal to consumers. Up until the release of the IPhone 4, Apple’s only authorized retailer was AT&T and it was difficult for customers who wanted an iPhone but had another carrier. Also Apple is currently involved in the “Apple iTunes Antitrust Litigation” which states that they have a monopoly on iTunes and music from other sources will not work on the iPod (MacLean, March 22, 2011). Other issues are Apple outsources labor to build its products to from other countries and has recently been in the news after an explosion in a Chinese factory operated by one of its suppliers, Foxconn which killed three people and injured sixteen other. Prior to the explosion on May 20, 2011, at least ten workers committed suicide in 2010 which caused labor groups to give some insight into the situation by complaining about employees being forced to work long hours with minimal compensation (Samuelson, February 19, 2012). After evaluating what seem to be some challenging weaknesses, there are many opportunities for this company that would keep them as the leading business in innovation. Opportunities Apple beats out its competition on consumer satisfaction; however they only have about 400 stores worldwide. There is plenty of opportunity to increase the number of retail stores and increase customer satisfaction. Apple has the opportunity to expand in the foreign markets, the U.S accounts for most of the revenue that the organization makes with China coming in second. China contributed 16 percent of Apple’s fourth quarter revenues (Ogg, October 19, 2011). With that being said, getting aggressive in the foreign market would only boost revenues. Another chance for opportunity would be increasing software and hardware compatibility with other products. Apple has seen increases in revenues and is in the forefront due to their ability to provide a product those appeals to the consumer. Success does not come without threats however. In the next section the fund manager will point out possible threats that Apple could face in the future. Threats Apple has a product line that is very desirable for consumers and each product complements the other. Competitors like Samsung have released the Galaxy tablet and phone whose designs are almost identical to that of the iPad and Iphone’s. As a result, Apple has been in litigation with Samsung over patent infringements. Camm-Jones  (February 19, 2012). Another threat that Apple could face is repercussion for the treatment of workers at Foxconn. If the workers continue to be treated poorly then people could stop investing in and purchasing Apple products. They may feel that all Apple cares about are the profits and not the workers building the product. Apple is such a secretive organization, that the risk of leaks from inside the organization to the public is high. It can have a devastating impact on its stakeholder both internally and externally. Stakeholders Internal and External The company has a variety of stakeholders who help Apple to stay the leader of excellent products and services. Stakeholders are people or a group of people who has a vested interest in a business. Those two categories would be internal or external stakeholders. Internal stakeholders are these affiliated with the company. Apples internal stakeholders are shareholders, owners, managers, and employees. External stakeholders are people outside of the company who influences and are influenced by the organization. Apple’s external stakeholders are customers, government, community, pressure group, and the media. Apple would cease to exist without stakeholders. Apple’s stakeholders are an important entity of the company. The needs and wants of these stakeholders are important to the life of the company. Apple’s shareholders want the company to maintain profitable status and a return on investments. Conclusion Apple is one of the most admired and influential companies. This business analysis has uncovered some interesting information. A SWOT Analysis is an account of the strength, weaknesses, opportunities, threats, and trends of the company. The information from the SWOT analysis accompanies the mutual funds manager in coming to the conclusion to invest in Apple Incorporated. Apple Incorporated’s level of commitment to appeasing the stakeholders is apparent in every product and the branding of the product. Customers see the name Apple, and they automatically trust that it is a quality product. Stakeholders have a vested interest in a company. Apple’s ability to create a product line that meets the needs of their consumer is what makes Apple a successful organization. References :- 1.Apple Reports First Quarter Results. (January 24, 2012). Retrieved from http://www.apple.com/pr/library/2012/01/24Apple-Reports-First-Quarter-Results.html 2. Camm-Jones, B. (February 19, 2012). Apple-Samsung Patent Fight'Huge. Retrieved from http://www.pcworld.com/article/250212/applesamsung_patent_fight_huge.html. 3.DuBois, S. (2011). World's Most Admired Company. Retrieved from http://money.cnn.com/magazines/fortune/mostadmired/2011/snapshots/670.html. 4. Cranfield School of Management. (2007).The Performance Prism. Retrieved from http://210.55.20.100/news/Events/Tertiary%20Services%20Conference/Tertiary%20Conference/PDF's/2009/General%20Papers/NM%20Performance%2520Prism.pdf. 5. Levine, D. (December 2, 2011). Insight: Apple vs Samsung lawsuit full of secret combat. Retrieved from http://www.reuters.com/article/2011/12/02/us-apple-samsung-secrecy.