Evaluation Essay on Apple: Leading Innovation With Unique Products and Digital Content

Paper Type:  Essay
Pages:  5
Wordcount:  1161 Words
Date:  2023-01-31


Apple Company deals with both tangible (hardware) intangible (software) as well as online digital content distribution (O'Regan, 2015). The company is known for its imaging products. The products are famous globally, making it the most competitive and leading organization in innovation. Apple computer is known for its uniqueness in terms of robustness, data security, fast performance and reliability (O'Regan, 2015). Such features make Apple products competitive in the market. Apple products have increased capabilities compared to other companies. The technology used varies in many ways compared to other companies in terms of functional specifications as well as the features.

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Strength, Weakness, Opportunity, and Threat (SWOT) Analysis on Apple Corporation

Apple Corporation deals with digital content distribution, cloud services, computer technology and other consumer electronics industries. Analysis of the organization shows that the business shows some strengths though it is faced with stiff competition from other organization (O'Regan, 2015). The company's success has increased the company's effort to overcome threats and weaknesses. SWOT framework is one of the strategic plans the company should put in practice to identify the issues hindering the company at the basis of the internal business situations and the external forces (O'Regan, 2015). SWOT analysis of Apple Inc. identifies the business threats, opportunities, weaknesses and strengths (SWOT variables) in respect to the market force and industries (O'Regan, 2015). Apple Company is interested in both computer hardware and software (computing technology), online digital content distribution, cloud computing and consumer electronics. The underlain conditions make it possible for the company to generate diverse strategies which ensure business growth and its competitiveness.

Apple's Strengths

SWOT framework helps in identification of the organization's strengths that facilitates the company's effort to overcome its weaknesses, manage its threats and maximize its opportunities. The various strengths associated with the company are internal factors which are condition-specific depending on the company (O'Regan, 2015). The various Apple company strengths include:

The efficient and speedy innovative process, High-profit margins, and Strong brand image. Apple company is among the most valued and robust brand globally (O'Regan, 2015). According to SWOT analysis, the company has capabilities of producing new products and maximize its profits due to its sharp image. The company gains high-profit margins by employing premium pricing method through the 4P or the marketing mix (O'Regan, 2015). Use of premium selling strategy is the principal strength within the company as it maximizes the company's profit even in the times of low sales volume. Rigorous growth methodologies of Apple Inc and generic competition strategy entail practical, speedy innovations, which help in keeping the business up-to-date through minimal technologies to ensure competitive advantage (O'Regan, 2015).

Apple Inc. Weaknesses

According to SWOT analysis, it emphasizes the company's weaknesses and its inequalities. Obstacles, in this case, refer to the various internal factors hindering the company's development. Based on the SWOT report, the following are the main factors hindering the company's growth;

Sales dependence on high-end market section, expensive products, limited distribution area (O'Regan, 2015). Apple Company believes in the exclusion principle, hence limited distribution network.

A good example is selective product sellers. An exclusive principle in SWOT analysis is considered as a factor hindering the company growth since a limited market is reached. Even though the company considers exclusivity as an advantage due to close product monitoring, the weakness still exists (O'Regan, 2015). Due to premium selling, its products are only accessed by the customers from the high-income bracket while locking low-income bracket. Premium sales cause dependence of sales on a high-end market section. Dependencies at the high-end market are the most significant weakness since only the minority customer group is presented at the high-end market. Such SWOT analysis Apple Inc. pricing and how the products within the company are distributed constitutes to the company weakness (O'Regan, 2015).

Apple Inc. Opportunities

The focus is on taking a brief analysis on the various opportunities related to the Apple business. These refer to the various external factors or which affect the business surrounding (Heracleous, 2016). The following factors affect the Apples Environment:

New product development, high sales in respect to rising demand, distribution network expansion network. The market is extensive though the distribution network is small; this implies that the company has a robust potential distribution network. SWOT emphasizes on the need for the company to change its distribution technique (Heracleous, 2016). Expansion In distribution can help the company reach the most potential customers globally. The company has an excellent opportunity for increased sales returns considering aggressive marketing. New products can be invented with time since the current products are successful and competitive (Japan Inc., 2017). New products development can give high-income market across the globe. A good example is the apple watch, which is at high demand globally.

Threats are Facing Apple Inc. (External factors)

Threats refer to the external factors that an organization may face (Heracleous, 2016). Apple experiences threats from various environments, such as competitors. The faced threats reduce financial income and general business performance (Heracleous, 2016). The most prevalent threats include:

Rise in labour cost in most countries. Imitation, aggressive competition. Fierce competition facing the Apple industry from other aggressive rising companies like Samsung, which has demonstrated increased rapid innovation. According to SWOT, competitive companies cause limiting factors to the Apple Company (Heracleous, 2016). Competition in the market environment forces the company to make an effort in developing another method to maintain it's competitively. The company also faces threats related to imitation from other companies (Heracleous, 2016). Most companies try to imitate Apple products as well as features. Increasing imitation from competing firms lowers the company's reputation since most customers from low-income bracket are convinced to purchase the imitated products.

Reasons for Apple’s Competitiveness Over the Past Five Years

Apple has been a competitive company over the past five years (Heracleous, 2016). Considering its competitors who were ahead for the last few years ago, Apple has overtaken them in the market. Various reasons contribute to the company's competitiveness:

Strong integrated supply chain - the organization has been enriched with business partners, developers and suppliers, which give the company competitiveness (Heracleous, 2016). Apple possesses chip manufacturing companies; it also tightly controls the manufacturing. Premium pricing strategy - setting premium prices to its products minimizes discounting issues. Such a feature makes the prices to remain high and consisted of high prices (Heracleous, 2016). This gives its potential customers to maintain the perception of high quality and maintain high-profit margins (Heracleous, 2016).

The Future of Apple Inc. Corporation

To maintain the company leading position, the company should check on premium pricing. Because there are other fast-growing companies, a rise of more advanced competitive products with low prices is possible (Heracleous, 2016). The companies should maintain control over their products development cycle. There is a need for the company to employ the best strategies to deal with the two issues else; it will be challenging to maintain the position.


Heracleous, L., & Papachroni, A. (2016). Strategic Leadership and Innovation at Apple Inc. doi:10.4135/9781526446565

Marketing and Advertising Strategies. (2017). Japan Inc. on the Brink. doi:10.1057/9781137469441.0015

O'Regan, G. (2015). Apple Inc. Pillars of Computing, 25-30. doi:10.1007/978-3-319-21464-1_5

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Evaluation Essay on Apple: Leading Innovation With Unique Products and Digital Content. (2023, Jan 31). Retrieved from https://proessays.net/essays/evaluation-essay-on-apple-leading-innovation-with-unique-products-and-digital-content

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