2. SWOT ANALYSIS
• An analysis of an organization’s strengths and weaknesses alongside the opportunities and threats
present in the external environment.
• Involves the collection and portrayal of information about internal and external factors which
have, or may have, an impact on business.
• It is a framework that allows managers to synthesize insights obtained from an internal analysis of
the company’s strengths and weaknesses with those from an analysis of external opportunities
and threats
3. Strengths: factors that give an edge for the
company over its competitors.
Weaknesses: factors that can be harmful if used
against the firm by its competitors.
Opportunities: favorable situations which can bring
a competitive advantage.
Threats: unfavorable situations which can
negatively affect the business.
4. APPLE INC
• Apple Inc. is an American multinational corporation, which designs, manufactures and sells
personal computers, consumer electronics and software, and provides related services. The
business has experienced a tremendous growth from 2001 when it has introduced its iPod mp3
player. Apple Inc. is considered to be the most successful electronics company in the world.
6. GEOGRAPHIC AREAS SERVED
• Worldwide
• Retail stories in 14 countries and online stories in 39 countries
HEADQUARTERS
• Cupertino
• California
• United States
9. MAIN COMPETITORS
• Samsung Electronics Co., Ltd., Amazon.com, Inc., International Business Machines Corporation,
Cisco Systems, Inc., Google Inc., Microsoft Corporation, Dell Inc., LG Electronics, Lenovo Group
Limited, Hewlett-Packard Company, Sony Corporation and many others.
10. STRENGTHS
1. Customer loyalty combined with expanding closed ecosystem
2. Apple is a leading innovator in mobile device technology
3. Strong financial performance ($10,000,000,000 cash, gross profit margin
43.9% and no debt)
4. Brand reputation
5. Retail stores
6. Strong marketing and advertising teams
11. WEAKNESSES
1. High price
2. Incompatibility with different OS
3. Decreasing market share
4. Patent infringements
5. Further changes in management
6. Defects of new products
7. Long-term gross margin decline
12. OPPORTUNITIES
1. High demand of iPad mini and iPhone 5
2. iTv launch
3. Emergence of the new provider of application processors
4. Growth of tablet and smartphone markets
5. Obtaining patents through acquisitions
6. Damages from patent infringements
7. Strong growth of mobile advertising market
8. Increasing demand for cloud based services
13. THREATS
1. Rapid technological change
2. 2013 tax increases
3. Rising pay levels for Foxconn workers
4. Breached IP rights
5. Price pressure from Samsung over key components
6. Strong dollar
7. Android OS growth
8. Competitors moves in online music market