For example, Samsung’s tablet can be a substitute to the iPad and so as mp3 players to the iPod. This implies that the threat of substitutes is relatively high because general buyers can switch to substitute products. Nevertheless, the economies of scale and market dominance by Apple’s products due to brand equity and recognition provide the company with an added advantage (Gobble et al., 2012).
Apple Inc. SWOT analysis
Apple is affected by its environment, just like any other manufacturer within any other industry. In essence, it has its own strengths, weaknesses, opportunities, and threats that impact on its operations.
Strengths
1. Healthy financial performance as demonstrated by Apple’s profitability and revenue base.
2. Strong brand equity and brand recognition.
3. Intensive investment in research and development, which enables Apple to be more innovative.
4. Extensive distribution channels across the globe.
Weaknesses
1. Lawsuits related to patent infringements, which affect the company’s overall reputation and financial status as described by Lammertse (2014).
2. Product recalls for the company’s iPhones due to defects.
3. Apple has relatively higher operating expenses compared to its