Scanning the Environment - Research Paper Example

Scanning the Environment (Unit 2 IP) A SWOT analysis refers to a strategic plan of evaluating the strengths, weaknesses, opportunities and threats of a company. SWOT analysis can substantially help a company to evaluate its strategies. This essay will review a case study on Apple Inc. and determine certain facts by performing a SWOT analysis of Apple in order to help the organization to improve its strategies. It will also include a clear explanation of the strategic factors that will be discussed in the SWOT analysis.

There are several strategies, which can be drawn from Apple’s SWOT analysis to increase market share and help the computer company with its own strategies. Hence, this paper will also propose certain strategies, which are aimed at increasing the market share of the renowned computer company. Scanning the Environment (Unit 2 IP) As a senior manager in a computer company which competes with Apple Inc., I read a case study regarding Apple and discovered that performing a SWOT analysis on Apple Inc.

will substantially help in improving the strategies of the computer company. Apple Inc. is a worldwide brand. Apple is also a world leader in producing computer software and hardware after Microsoft. This is strength to Apple Inc. since consumers prefer Apple’s products over other companies (Martellaro, 2006). Apple Inc. has an extremely strong brand image which ensures that it has an advantage over other companies. The company has managed to achieve this status by providing superior products as compared to most of its competitors.

The products offered by the company are also original. Apple also has a strong financial performance that has significantly strengthened the confidence of investors. Apple Inc. is mainly financed by its own equity. The staff members of Apple have also enhanced the image of the company. This makes the customer respect the general customer support provided by the staff members of Apple Inc. The company has also ensured that its brand image is maintained through creativity and stability (AAPL, 2012).

Apple Inc. also has innovative staff members, who develop elegant software, which attracts more clients. This is an advantage to them since they can have a competitive advantage over other companies (Martellaro, 2006). In regard to weaknesses, Apple Inc. is relatively slow in the business market (Frommer, 2011). This is because a majority of Apple’s products are purchased by normal consumers instead of individuals in the business environment. Also, its cloud software has not met the expectations of the people as Apple had previously expected.

Its iPad still needs to be plugged into a computer in order to synchronize. Therefore, only people who own Apple computers could access this service. Another weakness of Apple is its social network services such as iTunes, Game Center and its social gaming. These factors are not massive hits as a person can only access them with money (Wharton High School, 2012). Through this, Apple’s popularity might reduce in the future. Apple Inc. has also tried to incorporate home factors such as the Apple Television set that was recently upgraded.

However, critics are of the opinion that the upgrade was minute since the television only has a limited selection of videos. Finally, many people consider that Apple Inc. has taken over the music world with innovations such as iTunes (Martellaro, 2006). According to critics, if the music industry decides to come up with its own form of iTunes, then the real iTunes will be at a risk of extinction (Muller, 2010). Apple Inc., however, has numerous opportunities despite the weaknesses it has. For instance, businesses using iPhones as a means of communication among their employees has gone up.

Apple Inc. can consider this as an opportunity of producing more iPhones and increasing their sales. Also, a lot of individuals today use iTunes to purchase music. Apple should look at ways of upgrading iTunes to both their advantage and the customer’s. Furthermore, organizations are not only using iPhones for communication among their employees, but, these days, news anchors use iPads to read news to the audience. This is an opportunity for Apple Inc. to increase the production of iPads for news anchors.

Also, a lot of people are making use of Apple’s iPod. They like listening to music when doing their daily activities (Muller, 2010). This also is an opportunity for Apple Inc. to produce more and better iPods that meet the current demands of its consumers. A large company such as Apple faces a lot of threats mainly from its competitors. Many computer companies have adapted the Android platform that Apple seemed to have an upper hand (Wharton High School, 2012). This is a threat because it might reduce the popularity of Apple’s Android applications.

Also, Apple’s Macintosh operating system is considered as the world’s best. However, huge competition from Windows and Linux might bring down the popularity of Apple’s OS. This is a threat because if Windows and Linux achieve this, then Apple’s popularity might be harmed. Finally, the prices of Apple’s products such as the iPhone are relatively expensive compared to other companies (Muller, 2010). Hence, if Apple does not consider reducing the prices of some of their products, then normal people will opt to go for the less expensive products instead of Apple’s.

When trying to fight for market share with a company like Apple, it is vital to focus on its target market and make use of Apple’s weaknesses. I would study the market thoroughly and sell similar products that Apple sells in order to incorporate my company to the market. It is also vital to learn from the mistakes of Apple and not to repeat them so as to attract a lot of buyers. I would take advantage of the barriers of entry to a market and use them to dissuade Apple from challenging my market share.

In conclusion, once I gain my market share, it is essential to preserve my competitive advantage for Apple not to slip back to the top again. In order to do this, I would gain all the knowledge I need for my market so as to always produce products that meet the market’s desires. References AAPL. (2012). Strategic analysis of Apple, Inc. Retrieved from http://www.carolannthompson.net/2011/10/16/apple-swot-analysis/ Frommer, D. (2011). Apple’s three biggest weaknesses. London: CNN. Retrieved from http://edition.cnn.com/2011/TECH/innovation/04/07/apple.

weakness/index.html Martellaro, J. (2006). A review of Apple’s strategic weaknesses. London: The Mac Observer, Inc. Muller, J. (2010). Apple: Strength, weaknesses, opportunities, threats. New York: New York Times. Wharton High School. (2012). Strength, weaknesses, opportunities, threats: The SWOT analysis. Retrieved from http://kwhs.wharton.upenn.edu/2012/03/strengths-weaknesses-opportunities-threats-the-swot-analysis/