Apple Inc SWOT Analysis

Apple Inc SWOT Analysis

Introduction

Company Background

Apple established its company in on January 3, 1977 (Abdelsamad et al, 2006). It has its headquarters in California and has around 32000 employees. It involves both important functions of designing and manufacturing its products. It product category includes things like cell phones and other media communication devices, portable computers, portable digital music players. It provides services in different areas like software, peripherals, networking solutions. I phone, I pad, applications software, speakers and headphones are some of popular products that it sells through its individual retail or online stores. It also employs directs sales people in selling its product. Mobile and networking companies also use Apple's applications and work as third party sellers for the company. The company is operating its business European countries, America, Japan, Australia, Middle East, African and Asia. It caters to a variety of customers through its wide range of products and services. Its customers include individual consumers and companies that also include third party sellers, universities, and government associations. Apple has come up with various programs and services to answer to the needs of students in 21st century. It contributes to the society and caters to the needs of students, and educational institutes by providing real time educational services through ITunes U. ITunes U are an effective platform that provides students and teachers with the facility of sharing useful information (Reuters).

Discussion

SWOT Analysis

Strengths

It has a strong brand name and positioning. Many people consider Apple is the leading market brand in the industry in which it is operating. It provides high quality of products, services and software applications that have important features to answer to the needs and requirements of its customers. Its strong brand name and awareness in people give Apple an advantage over its competitors, through increased sales and offers. I phones, I pad and IPods are some valuable products that are current market leaders in the industry. Its brand name and image has created strong barriers of entry in the industry for its competitors, and it also has an advantage of setting premium prices of its products. Apple has left many competitors like Sony and IBM.

Its global presence and recognition is yet another very important strong point. It has retail outlets in every continent of the world like Asia, America, Africa and European countries. Its online stores also cater to customers living in different parts of the world. Surprisingly, 50 percent of Apples revenue and sales come from other regions and parts of the world. This shows that it has strong global presence and recognition.

It has a strong position and performance in terms of its financial condition. Company's CAGR in the last five years has increased to 27 percent while it profit margin is 4.2 percent, which well above the industry average of 2.8 percent (MarketLine, 2012). Strong financial position and health of the company is very important for increasing investors' confidence to buy its stocks and invest in the ...