The document discusses the SWOT analysis of Apple Inc. It identifies Apple's main strengths as its innovative products and strong brand recognition. Weaknesses include over-reliance on iPhone and iPad for growth and lack of lower price points. Opportunities exist in new markets like education, enterprise, and emerging countries. Threats include intense competition from Android and Microsoft. The analysis suggests strategies for Apple to leverage strengths to address weaknesses, seize opportunities in emerging markets, and respond to threats from competitors to increase market share.

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Elisha Sonson
American Intercontinental University
Strategic Management: Scanning the Environment
MGT680 – Strategic
November 18, 2012

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The SWOT (Strength-Weakness-Opportunities-Threats) medium is a vital
complementary tool that assists managers in developing four different categories of strategies;
the Strength-opportunities (SO) strategies, Weakness-opportunities (WO) strategies, the
Strengths-threats (ST) strategies and the Weakness-threats (WT) strategies. David (2012)
explains that the most challenging part of cultivating a SWOT matrix is being able to match the
chief external and internal elements, which involves good judgment.
The SO strategies utilize the internal strengths of the firm in order to benefit from the
external trends and prospects. The WO strategies focus on refining internal weaknesses by
benefiting from external opportunities. David (2012) added that when external opportunities
exist and firms have internal weaknesses that prevent them from take advantage of those
opportunities. ST strategy utilizes the firms’ strength in order to lessen the influence of external
threats. For example, firms that uses legal division to collect compensation for damages from
other companies who infringe or interfere with copyrights. The WT strategies unlike the ST
strategy are protective strategies aimed at decreasing the firms’ internal weakness and preventing
external threats. SWOT analysis is important as it presents communication and data that is useful
in corresponding to the resources and competences to the competitive background where the
business operates.
Based on the assignment regarding Apple, Inc. there are many factors that identifies
Apples’ strengths.
Strengths
Apple has overtime launched many innovative products, which are well-known and
valued product brands thus emerging as a tough competitor. Apples’ multiple inventive line of
products includes the iPods, a slim line of laptops, it’s very popular series of iPhones and its

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newest innovation the iPad Mini highlights the indicative strength of this company. Apple is
formulated with value and quality in mind and invented with the most modern technology, which
is a strong point of Apple Inc. Apple offers hardware, software and content, which gives the
company complete power over the aspects of its design. The strength of Apple Inc. is its ability
to drive its market share. Its string of innovative products has put the company in a financial
bracket that reaches the billion dollar mark. Fast forward to the 2011 launch of the iPhone 4s,
Apple sales reached a record high of 20.3 million dollars in the last quarter, a financial strength
that has enable Apple to achieve the leading growth rate in the industry (Apple Inc. SWOT
Analysis, 2012).
Weakness
Amid the strengths of Apple Inc. there are weaknesses. Most of the company’s’ growth
rate comes from the iPhone and iPad combined. Apple offers its products in a price point unlike
its competitors like Samsung whose products are offered at various price points. The lack of
introducing products at a lower selling price has Apples’ competitors accessing larger markets to
capture buyers’ interest. In addition, Apple’s segments lean towards only smartphones while its
competitors focus on both smartphones and featured phones. Compared to its competitors these
factors reduce Apple’s addressable market (Apple Inc. SWOT Analysis, 2012).
Opportunities
Apple Inc. has many emerging opportunities on the market. Apple has many
opportunities to exploit in the entertainment, government and educational market. With its
dependable and quality of innovation, Apple has the opportunity to reach the corporate sector as
the campaign for “bring your own device” trend hits the corporate sector. Mobile vendors are
other areas of opportunities for Apple Inc. since the launch of the series of iPhones keep

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unveiling. Global and emerging nation provide strong growth opportunities for Apple. With
emerging nations like China and India, both have smartphone sales that infiltrate 20-30% of the
market compared to developed countries like the United States of America. This is an indication
that there is a large untapped base for innovative products like the smartphone in emerging
nations, which is a business opportunity for Apple (Apple Inc. SWOT Analysis, 2012).
Threats
Apple Inc. faces powerful and extreme competition from companies like Google’s
Android and Microsoft. These though adversaries can hammer the growth of Apple in the near
future. For example, Google’s Android is very popular and its platform has emerged to be the
largest mobile operating system on the market followed by Microsoft Windows, which is
estimated to take over and secure market shares by the year 2015. With such intense competition
from its peers, Apple’s pricing strategy can be at a disadvantage against its competitors (Apple
Inc. SWOT Analysis, 2012). These factors create much threat for Apple Inc.
The reviewed analysis of Apple Inc. would influence a strategy that would allow it to
take advantage of the vulnerabilities in order to increase market share. As part of the strategic
influence, Apple needs to magnify its market growth by focusing on emerging markets in
developing nations. Apple needs to incorporate strategic avenues that would eliminate barriers of
incompatibility especially when it taps into emerging nations. In addition, Apple would have to
create a strategic price point that would capture buyers’ attention away from competitors. Most
importantly, Apple needs to focus on a strategy that recognizes a fit between its company’s
strength and future opportunities. The advantage of these strategies is that it would allow Apple
take advantage of the SWOT analysis in order to infiltrate emerging markets and generate
revenue that would increase market share.

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To end, the SWOT analysis is an important tool to any business because it focuses on the
strengths, weaknesses, opportunities and threats facing the company. Businesses engaged in
development, design and marketing of products all have factors that identify their strengths,
weaknesses, opportunities and threat. The provision of such information is helpful in that it aids
in corresponding the company’s’ resources and abilities to the aggressive environment.

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References
Apple Inc. SWOT Analysis, (2012), Apple Computer, Inc. SWOT Analysis, 1-9.
David, (2012) Strategic Management Concepts and Cases: A Competitive Advantage Approach,
Fourth edition Prentice Hall

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References
Apple Inc. SWOT Analysis, (2012), Apple Computer, Inc. SWOT Analysis, 1-9.
David, (2012) Strategic Management Concepts and Cases: A Competitive Advantage Approach,
Fourth edition Prentice Hall