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SWOT ANALYSIS - Essay Example

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In essence, this analysis focuses on the identification of the strengths, weaknesses, opportunities and threats that are related to the current situation of the organization (Baines, Fill, and Page,…
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SWOT ANALYSIS
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Apple SWOT Analysis SWOT analysis entails the scrutiny of an organizations internal environment. In essence, this analysis focuses on the identification of the strengths, weaknesses, opportunities and threats that are related to the current situation of the organization (Baines, Fill, and Page, 212). Apple, as an organization is currently in a situation that with its strengths, it can comfortably utilize the available opportunities in the market to mask its weaknesses and avoid threats.
The Strengths
Apple has a horizontal and vertical integration of business. This makes it able to produce a wide range of products that are vertically integrated. It I this form of integration that makes it competitive. Throughout its history, the company has enjoyed strong economic growth and constantly increasing cash flow (Baines, Fill, and Page, 230). This has enabled it to expand and command a wider share of the market.
Weaknesses
At one point in the market, research was ineffective with the company failing to anticipate the need for new products such as phablets. What resulted was late entrance into the market thus affecting sales and revenue. The lack of a wider price differentiation strategy makes the company appear to be a premium category company. This means that many people in the middle and low socioeconomic status disregard its products. Further, the company has overtime depended on revenue from only two products, iPad and iPhone.
Opportunities
Most of Apple’s products have remained popular and relevant to many people. This means that the company can continue investing on the same products with the assurance of revenue. The growing technology industry increases the demand for electronic products constantly. The company is thus assured of progress.
Threats
Lack of price differentiation strategy is detrimental to the company’s quest to get into a wider market. The company is outperformed by competitors such as Samsung on this and the demand for its products may shift when lower priced products are in the market. There is increased a need for innovativeness in the industry (Kurtz, 23). As long as the company enjoys revenue from only two of its products, innovation may be delayed and with time, the products will lose relevance.
Works Cited
Baines, P., C. Fill, and K Page. “Marketing Strategy.” Marketing. N. p., 2011. Chapter 5, pp.159–199 Chapter 6, pp.207–238.
Kurtz, David L, and Louis E. Boone. Boone & Kurtz Contemporary Marketing. , 2014. Print. Read More
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