Quantum Strategy at Apple Inc.Â, Lehman, G., & Haslam, C. (2013, December). SWOT Analysis of Apple 2020: Detailed Overview. Each year Apple releases a new product each year, whether it’s a new generation of an iPad or a smart watch. Still, Apple’s organizational structure does not support rapid changes because everything must go through Tim Cook and the top management. This SWOT analysis emphasizes the need to modify the technology company’s distribution strategy. For GDPR compliance, we do not use personally identifiable information to serve ads in the EU and the EEA. This weakness exists despite exclusivity’s advantages, such as Apple’s strong control on the distribution of products. The organizational design determines how the organizational structure is developed and managed. W… Senior vice presidents who report to Tim Cook handle business functions. It was first released in the year 2015. In pestle/pestel analysis, economic external factors mean both positive and negative influences that can affect the business environment and performance of a Apple Inc. Economic growth, inflation, deflation, unemployment rate, wage policies are good examples of economic factors. Apple Inc. Report contains the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Apple. In. A SWOT analysis of the technology company gives strategic insights on maximizing business growth based on its strengths and opportunities. Bernroider, E. (2002). Exploring SWOT analysis – where are we now? InÂ, Marengo, L., & Pasquali, C. (2012). Tell us what you think? The technology company must ensure that its mission statement hints on the strategies to keep the business competitive. Competitive rivalry or competition: Strong force 2. Apple is the world’s most valuable brand according to the Forbes’ 2016 ranking. !b.a.length)for(a+="&ci="+encodeURIComponent(b.a[0]),d=1;d=a.length+e.length&&(a+=e)}b.i&&(e="&rd="+encodeURIComponent(JSON.stringify(B())),131072>=a.length+e.length&&(a+=e),c=!0);C=a;if(c){d=b.h;b=b.j;var f;if(window.XMLHttpRequest)f=new XMLHttpRequest;else if(window.ActiveXObject)try{f=new ActiveXObject("Msxml2.XMLHTTP")}catch(r){try{f=new ActiveXObject("Microsoft.XMLHTTP")}catch(D){}}f&&(f.open("POST",d+(-1==d.indexOf("?")?"? Through the hierarchy, business functions and product-based groups are effectively controlled through the decisions of the CEO and other top executives. Moreover, the generic competitive strategy and intensive growth strategies of Apple Inc. involve effective rapid innovation, which enables the business to keep abreast with the latest technologies to ensure competitive advantages. Furthermore, the company has the opportunity to explore new product lines to complement existing ones, such as online services. In the context of this SWOT analysis, aggressive competition has a limiting effect on the business, indicating the necessity for strong fundamentals for maintaining competitive advantages in computer software and hardware, and online services. However, things seem to have started changing. Thus, this aspect of the SWOT analysis of Apple indicates that the business has major opportunities for further growth despite aggressive competition. iWatch or Apple Watch is a line of smartwatches developed, designed, and marketed by Apple Inc. For example, the company … ":"&")+"url="+encodeURIComponent(b)),f.setRequestHeader("Content-Type","application/x-www-form-urlencoded"),f.send(a))}}}function B(){var b={},c;c=document.getElementsByTagName("IMG");if(!c.length)return{};var a=c[0];if(! Hierarchy typically prevents lower levels of the structure to flexibly respond to current business needs and market demands. Opportunities are external factors based on the industry environment, such as the on-demand digital content market. Porter’s Five Forces analysis of Apple Inc. Apple’s corporate mission statement and corporate vision statement. Name. The upper and lower tiers of Apple’s corporate structure has product-based divisions, which is an element derived from the divisional type of organizational structure. Based on the external strategic factors in this SWOT analysis, Apple Inc.’s performance is threatened by aggressive competition and the imitation of product design. In this way, the company facilitates information dissemination that is necessary for innovation processes. The following business weaknesses are the most notable in the case of Apple: Apple Inc. has a limited distribution network because of its policy of exclusivity. Also, it is recommended that Apple further enhance the automation of its production processes, and support the automation of its contract manufacturers, as a way of addressing rising labor costs. Developing new product lines supports business growth, especially against other technology firms in the international market. Strong Corporate Control. The SWOT analysis of Apple tells us the way Apple made use of its competitive advantage to turn out to be a leading player in the technology industry. A Porter’s Five Forces analysis of Apple Inc. shows that the business deals with strong competition. This article may not be reproduced, distributed, or mirrored without written permission from Panmore Institute and its author/s. April 16, 2020; Business; Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976. generic competitive strategy and intensive growth strategies of Apple Inc. U.S. Department of Commerce – International Trade Administration – The Software and Information Technology Services Industry in the United States, U.S. Department of Commerce – International Trade Administration – The Media and Entertainment Industry in the United States, U.S. Department of Commerce – International Trade Administration – The Semiconductors Industry in the United States, Information and Communications Technology Industry, Online Digital Content Distribution Industry, High profit margins based on premium pricing, Effective rapid innovation processes based on long history of technological innovation, Limited distribution network for its goods, Dependence of sales in high-end market segments, Expansion of the distribution network for wider consumer electronics market reach, More widespread and aggressive marketing for higher sales volumes based on rising demand, Development of new product lines in consumer electronics and online services, Aggressive competition involving large multinationals like Samsung, Amazon, and Microsoft, Imitation involving firms that compete based on low prices, Rising labor costs in various countries where the company maintains production facilities. For example, the company’s product-based divisions must wait for directives from the CEO or other top executives to proceed in implementing changes that address trends in the market for consumer electronics. Damanpour, F., & Aravind, D. (2012). Moreover, the company can use its strong brand image and rapid innovation processes to successfully develop and launch new technology product lines. It has become the largest technological giants of today (World Economic Forum). Apple’s corporate structure has the downside of low flexibility. The following are the main characteristics of Apple’s corporate structure: Spoke-and-Wheel Hierarchy. We will try to find out major Apple’s strengths, weaknesses, opportunities and threats that affect its performance positively or negatively. The main reason behind the slow growt… High prices attract customers from the middle- and high-income brackets, and prevent customers from low-income brackets from easily purchasing Apple’s consumer electronics. Apple’s brand value has plummeted as the laptop and PC market is experiencing a decline globally. Pickton, D. W., & Wright, S. (1998). Get traffic statistics, SEO keyword opportunities, audience insights, and competitive analytics for Panmore. Being an opportunistic establishment, Apple uses all its forces to withstand the various threat presented in the business environment. High selling prices 3. The hierarchy is a traditional structural feature in business organizations. The SWOT analysis is a means of understanding … Continue reading “Wendy’s SWOT Analysis & Recommendations” The following threats are the most significant to Apple Inc.: Tough competition in the technology industry is partly because of the aggressiveness of firms. Copyright by Panmore Institute - All rights reserved. Through this Apple SWOT Analysis report, one can learn the exclusive details of Apple. Lin, S. P., Huang, J. L., Chang, J., & Kao, F. C. (2012). This aspect of the SWOT analysis framework identifies the strengths that enable Apple to overcome weaknesses, take advantage of opportunities, and withstand threats in its technology business environment. Apple has 137,000 employees. This SWOT analysis of Apple Inc. presents the strategic factors that influence the decisions of CEO Tim Cook and managers in developing the business. Apple Inc.s marketing mix (4P) indicates how the company matches its business activities to the conditions of the global market for information technology, consumer electronics, and online services. The following business weaknesses are the most notable in the case of Apple: 1. The upper tier (innermost tier in the spoke-and-wheel circle) of the corporate structure has function-based grouping, which is an element derived from the functional type of organizational structure. Valentin, E. K. (2001). A review of academic research from the last decade. SWOT Analysis of Apple Inc. //]]>Panmore Institute. SWOT analysis of Apple (5 Key Strengths in 2020) This Apple SWOT analysis reveals how one of the most successful world’s companies used its competitive advantages to become the dominant player in the tech industry. Apple Inc.’s weak functional matrix refers to the collaborative interactions among various components of the business. In a weak functional matrix, top management determines project direction, while project heads have limited authority and control. Local and multinational firms could imitate the design and features of Apple’s products. The company now has more collaboration among different parts of the organization, such as software teams and hardware teams. This particular framework defines the different characteristics of Apple Inc through which it shows how the company uses it strength in order to overcome its various weakness. Helms, M. M., & Nixon, J. The internal and external factors discussed in this SWOT analysis indicate that Apple Inc. possesses major strengths to effectively address organizational weaknesses. However, Tim Cook has already made slight improvements by increasing collaboration among different parts of the firm. Besides the brand equity, the tag of innovation has always been applied to Apple. Based on the internal factors in this aspect of the SWOT analysis, Apple Inc.’s pricing and distribution strategies impose limitations or weaknesses in the business. Summary of Apple Case Study Analysis 1.0 Introduction 1.1 Introduction of Apple: Apple Inc. is the most famous name in the technology sector, it is an innovative electronics manufacturer, which is giving benefits to the consumers and to the suppliers, and the company is using successful strategies in the market so the best results could be achieved.