This document provides an analysis of Apple as a company. It begins with an overview of Apple and a SWOT analysis. It then analyzes Apple's targeting strategy, finding it effectively targets tech-savvy and affluent consumers but could expand to new segments. Apple's pricing strategy relies on premium pricing and price skimming, which is effective but risks limiting growth. Apple's brand personality combines style, innovation, and friendliness but also an image of superiority that could discourage some. Overall, the analysis finds Apple's strategies successful but recommends expanding targeting and reducing premium pricing to attract more customers.

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Contents
1. Introduction........................................................................................................................3
...........................................4
........................................................................................ 4
2.2 Strengths........................................................................................................... 5
2.3 Weaknesses ..................................................................................................... 5
2.4 Opportunities..................................................................................................... 6
2.5 Threats.............................................................................................................. 6
3. Section B: Targeting Strategy.......................................................................................7
3.1 Evaluations and Recommendations.................................................................. 8
4. Section C: Pricing Strategy............................................................................................9
4.1 Evaluations and Recommendations.................................................................. 9
5. Section D: Brand Personality......................................................................................10
5.1 Evaluations and Recommendations................................................................ 11
6. Conclusion .......................................................................................................................12
7. Appendices ......................................................................................................................13
7.1 Appendix 1: Summary of SWOT analysis ....................................................... 13
......................................... 14
8. References........................................................................................................................15

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1. Introduction
This essay aims to demonstrate an analysis of Apple as a company. The first section
provides a brief overview of the company and its brand, supported by a SWOT
analysis, which analyses the main internal and external factors presently influencing
the situation at Apple. It is followed by an analysis of the targeting strategy of the brand,
which elaborates and discusses which segments have been targeted by the brand and
how they are targeted to generate revenue. The third section analyses the pricing
strategies adopted by the firm, offering an overall overview of the type of pricing
strategies that the company is applying. Moreover, after illustrating current strategies
and pricing strategies, this essay will provide evaluations and recommendations for
future improvements, separately. The final section presents an analysis of brand
personality. This section discusses the personality of the selected brand, including
explaining how the
company could strengthen its brand in the future. Finally, this essay provides
conclusions, the analysis that has been carried out and the recommendations that has
been developed.

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2. Section A: verview and SWOT Analysis
Apple was originally founded as a personal computer manufacturing company. The
business was established by Steve Jobs, Steve Wozniak and Ronald Wozniak In
Cupertino, California, in 1976,
(Eilon, 1990). Following the success of this computer, and the Apple II that followed,
the company grew rapidly and developed strong computing technology, including
providing a graphical user interface and other innovations. However, over the 1980s
and 1990s, Apple struggled to compete with emerging rivals, notably Microsoft and
Intel who developed the PC as a competitor to Apple computers. This was reversed
following the return of Steve Jobs to Apple in the late 1990s, resulting in the launch of
the iMac and the development of innovative new products such as the iPhone and
iPad, which developed new product categories backed by superior levels of design
and technology when compared to many rivals (Lusted, 2012). This in turn has helped
Apple become one of the most valuable brands and the best brands in the world, with
a shift towards broader consumer electronics as well as personal computers, and also
later moves into entertainment, cloud computing and wider technology development
(Chan et al, 2013; Interbrand, 2020). This essay will apply SWOT analysis to
opportunities (O), and threats (T) (Kotler and Armstrong, 2015).

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2.2 Strengths
trength lies in its strong brand, with Apple having a large number
of loyal customers. These customers not only tend to focus heavily on buying Apple
products, but many of them also regularly purchase new Apple products to replace
their current products, thus supporting a regular flow of revenue as people replace
their devices in line with ibid). This process is supported
software and files installed on them. Therefore, it increases the value that individuals
gain from purchasing and using multiple Apple products, and also creates strong
switching barriers which discourage customers from choosing different technology
platforms. Based on these reasons, it has turned Apple into a large global business
with strong economies of scale, creating high profitability (Olson, 2016).
2.3 Weaknesses
Apple does have some notable weaknesses, particularly, it pursues a differentiation
strategy based on launching new, market leading products to support its revenue and
profits. Notwithstanding, it results in a high level of R&D expenditure associated with
this differentiation strategy, requiring Apple to invest a large amount of capital in
maintaining its market position (Leswing, 2019). Moreover, Apple is one of the most
expensive consumer electronics and technology companies, with some of the most
expensive phones and other products. These prices are high when compared to those
of competitors, including other businesses who pursue a differentiation strategy, thus
potentially discouraging price-conscious consumers from considering Apple as an
option when buying products (Aliekperov, 2019).

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2.4 Opportunities
The pportunities for future growth and expansion come in the form
of its ability to apply its capabilities to exploit new markets. This includes new
consumer electronics markets and categories which are rapidly opening up and
growing to become highly valuable. For example, the market for wearable bio-sensors
is growing rapidly as people look to use technology to manage critical medical
conditions (Grand View Research, 2016). There are also increasing levels of demand
for innovative consumer products and electronics in many emerging markets.
Consequently, these markets represent strong opportunities for companies with the
innovation capabilities to serve them (Gehani, 2016).
2.5 Threats
The main threats Apple encounters including competition and legal challenges to its
pose a dual threat. It includes differentiation focused companies which are developing
more advanced products, many of which have capabilities that can match or even
the market (Vizard, 2016). Simultaneously, there are a number of low-cost rivals
launching cheaper products which can appeal to the mass market, and particularly
consumers who will struggle to afford the price of expensive Apple products. The other
It is included
in the market for mobile
utilise customer data in developing its products and marketing interventions (Arndt,
2018). For the brief SWOT analysis, please see Appendix 1.

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3. Section B: Targeting Strategy
products and associated differentiation strategy. It
segmentation and targeting strategies within the consumer electronics market.
Specifically, a differentiation strategy relies on the ability of companies to target the
highest value customers, namely those who either show the highest level of demand
for products, or have the highest level of disposable income available with which to
purchase them (Grant, 2015). Apple targets both of these segments, through a
process of developing high end products and marketing them based on their design
and technological capabilities. For example, the iPhone is regularly updated with a
new version, containing the newest technology and promoted based on its technical
capabilities. It allows Apple to target tech-savvy consumers who want to have the most
up to date and best performing devices, as well as to target the richest consumers
who can afford to buy new products in line with each release cycle (Kotler and
Armstrong, 2016).
Apple has achieved this targeting strategy through a focus on continually developing
new products and expanding its marketing reach into new product and country
markets. It allows the company to attract a higher volume of affluent and tech-savvy
customers, as well as to sell more products to these individuals. For example, the
large amounts and targets the upper end of the graphic design market (Apple, 2020).
Simultaneously, Apple focuses heavily on targeting demanding customers by looking
to predict and meet the needs of its customers, whilst continually reinforcing its ability
to fulfil these needs. It
is collected and analysed to identify usage patterns and preferences, thus

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understanding how consumers use its products and how they can be made more
valuable (Weinmann, 2015). For instance, Apple has integrated its iOS, iTunes and
iCloud systems in order to make it simpler for users to access their files across all
devices in a seamless manner, something they are willing to pay for (ibid). Hence, it
provides value to these customers, making them more loyal, whilst also providing
Apple with revenue.
3.1 Evaluations and Recommendations
difficult to be prescriptive around how the company can improve on this. Indeed, Apple
is widely recognised as being one of the most profitable and effective companies in
the world for marketing, making the vast majority of profits from the consumer
electronics and smart phone segments, despite only having a relatively small
proportion of total sales (Olson, 2016). However, it is clear that Apple has recently
suffered some issues which have harmed its image and ability to target high-end
customers effectively. Especially, the company has suffered lawsuits from iPhone
owners around how it slowed the performance of older phones in order to try and
convince users to upgrade (ibid). Whilst this may be an effective driver of short-term
profits, it may also discourage customer loyalty. As such, it is clear that Apple needs
to enhance its focus on long-term loyal customers who are not presently purchasing
Apple products, rather than just targeting those looking to upgrade or buy new
products, in order to maintain and enhance its reputation.

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4. Section C: Pricing Strategy
The company currently focuses heavily in premium pricing strategies, with a degree
of price skimming behaviour included in this. Premium price ability reveals the
capability of commanding superior prices. It may make customers feel a product
and/or service superiorly and are willing to purchase it (Porter, 1990). The price
skimming is defined that setting high prices preliminarily and lower prices at later
phases (Dean, 1969). Specifically, the company sells its newest and most
technologically advanced products, such as the iPhone 12, iPad Pro and iMac Pro for
very high prices, which could reach thousands of pounds with all available upgrades
(Apple, 2020). Based on these phenomena, it reflects a conscious choice the company
made over the past decade to protect its premium brand by maximising the price it
charges for its products. At the same time, the company also provides some incentives
to current users to upgrade to the latest model of products it offers, particularly iPhone
users, thus showing a degree of price skimming as it looks to encourage users to
continue spending money with Apple and build up this habit (Guglielmo, 2013;
Mohammed, 2015). Generally
organised around this premium pricing strategy for newer products, although this is
balanced out by the practice of offering older products at a lower price, thus supporting
the price skimming strategy by ensuring people at lower levels in the market could
Pattuglia and Amoroso, 2019).
4.1 Evaluations and Recommendations
There are some issues wi
has recently encountered App Store
through which customers can purchase premium applications for use on their Apple

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devices. In terms of this case, it alleges that Apple has abused its market position to
impose premium fees on developers who sell apps through this store (Kendall, 2018).
Besides, Apple has recently been forced to change its pricing strategy for its products
after disappoint sales, requiring the iPhone 11 and new generation Apple Watch to be
discounted in the face of strong competition from other companies (Pressman, 2019).
As a result, Apple is recommended to consider reducing the price premium it charges
to maintain its revenues, particularly in light of the growing level of threats from
competitors with similar levels of technology and also from lower cost rivals looking to
5. Section D: Brand Personality
Brand personality is defined that brand is associated with human characteristics.
Aaker (1997) illustrates that there are five brand personalities: sincerity, excitement,
competence, sophistication, and ruggedness. Apple brand combines important
technological and design aspects, such as style and innovation, with positive
personality aspects such as being cool, friendly, and sophisticated (see Appendix 2).
This process results from a positive choice made by Apple to develop a brand
personality nds such as Microsoft and
Intel (Martin and Sexton, 2003). In addition, Apple has looked to reinforce the friendly
nature of its personality through a focus on portraying itself as being both good and
transparent, minimising harm and creating positive value for customers and society
(Ind and Iglesias, 2016). Its brand personality has thus been carefully husbanded and
developed over time. It can
multicoloured Apple, signifying the graphical user interface developed to differentiate

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and white logo (Noble et al, 2013).
influences the
response of customers and their perceptions of the brand personality, making the
company more appealing to customers (Baxter et al, 2018).
5.1 Evaluations and Recommendations
Meanwhile, there are some issues with the brand personality which Apple may need
to address and consider. The brand remains intrinsically linked to the personality and
image of Steve Jobs, a link which is positive but may make it difficult for the brand to
move on and redevelop itself in future if needed (Taylor, 2009).
image of the brand and its iconic range of devices has resulted in some backlash
against the company and its users. Especially, use of the Apple iPhone is
increasingly associated with higher levels of narcissism amongst users, with the
implied superiority of the Apple brand personality contributing to this, and potentially
turning off some users (Sanjeev et al, 2019). As a result of these factors, it is
recommended that Apple consider looking to make its brand appear less cool and
superior, in order to make it more open and appealing to new customers and those
who have previously been discouraged by the negative implications that the brand
personality has developed over time.

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6. Conclusion
This essay has analysed Apple, as both a company and a brand. The work has
provided an overview of the company, including its history and current market position,
whilst also identifying its key SWOT analysis in the internal and external environment.
Following this, the essay has analysed targeting strategy of the brand. The strategy is
effective at targeting two main segments, namely tech-savvy consumers and affluent
consumers. However, future improvements could expand this including a wider market
segment and loyal customers who are not particularly affluent or technologically savvy.
Moreover, its pricing strategy is heavily based on premium pricing, but with older
products used to offer a form of price skimming. This is an effective method at driving
profits; nevertheless, it is threatening revenue growth. Therefore, it is recommended
to consider reducing the premium to attract more customers. Ultimately, its brand
personality combined stylish design and technological innovation with a friendly, cool,
and sophisticated brand. It is indeed an effective way in appealing to loyal customers,
but has also created an image of superiority which may discourage some users, and
thus Apple is recommended to consider making the brand less cool and more open in
future.

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7. Appendices
7.1 Appendix 1: Summary of SWOT analysis
Strengths
Large groups of loyal customers
Integrated ecosystem
Strong economies of scale
Weaknesses
Strong dependence on research
and development (R&D) for
revenue.
High cost of production.
Opportunities
Growth in innovative electronics
markets.
Strong demand from emerging
markets.
Threats
Low cost rivals.
Imitation and differentiation from
competitors.
Legal challenges to market
position.
Source: Apple (2020)

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Source: QMplus (2020)

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