Apple Inc Swot Analysis Paper

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The modern world of business is characterized by rapidly growing competition in nearly every industry, and hence the success of every business depends on how well it develops strategies for the production and delivery of cutting edge products or services. Apple Inc., formerly known as Apple Computer Inc. is a company that was started in 1976 by Steven Jobs and Steven Wozniak at the basement of a garage (Hitt, Ireland & Hoskisson, 2012). Although the two men were college drop outs, they managed to introduce a highly revolutionary approach to computing in the electronics and equipment industry. This contributed a lot to the popularity of Apple’s products across the globe, even though the company has since been impacted on by tough economic downturns …show more content…
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

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