Apple SWOT analysis - Essay Example

? Apple Inc. Presented Apple Inc. Introduction Apple Inc. is a multinational corporation that creates computer software, consumer electronics, and commercial servers. It was established on April 1, 1976 in Cupertino, California and was incorporated on January 3, 1977 (Jones, 2011). This section analysis Apple’s current mission statement, its strengths compared to its competitors, and its segmentation, targeting and positioning of market strategy. Mission Statement According to Besanko et al (2009), the current Apple’s mission statement explains the company initiated the personal computer revolution in the 1970s, marked by the launching of Apple II, after which Apple modified and reinvented the personal computer in the 80s marked by the launch of Macintosh. Apple statement further elaborates that currently, the company still leads the industry though innovative technologies that have resulted in ward winning computers, operating systems, iLife, and other professional applications. Furthermore, the statement narrates that Apple is setting benchmarks in the global market though launching of IPod portable music, iTunes online store, video players, and has even managed a groundbreaking entrance in the phone market through iPhone. Besanko et al (2009) further elaborates that a mission statement should tell more about what an organization believes in and not what it makes. Telling prospective customers about what a one believes in touches a nerve in the target market, leading to customer loyalty. After development of an inspiring mission statement in the mind, it is essential to consider what makes the brand tick. Precisely, it is essential to come up with something that taps into the emotions of the target customers, something that comes from culture rather than from products. In other words, the mission statement should focus on the targeted market or markets and not the products offered. It should mention the long-term benefits that the buyers are going to enjoy (Besanko et al, 2009). For companies such as Apple, the internet, among other media, can be used to send this message to millions of potential customers after devising such a mission statement. It can be posted in the company’s website or on social sites such as FaceBook and Twitter. Evidently, Apple’s current mission statement focuses more on what this company makes rather than what it believes in. It focuses on the products it produces rather than the way buyers will benefit in the long-term. Though such an approach it the company is committed to developing quality products, it hardly touches the emotions of customers. Thus, it rarely contributes to the development of brand loyalty among prospective customers the company. An alternative mission statement for Apple could detail that Apple Inc. is committed to engaging in sustainable practices in order to protect health of surrounding environment and of customers, workers, surrounding community and other stakeholders. Through the mission, the company has to show commitment in offering innovative technological products and services while protecting the health of all stakeholders and conserving resources for future generations. Moreover, Apple through the mission statement has to portray that it has to detail that it undertakes to continuously strive to improve our products to meet the ultimate needs and desires of our customers. This mission statement is better since it resonates with the long-term needs of the customers and hence, contributes to development of consumer loyalty (Besanko et al, 2009). Strengths To start with, Apple has gained market leadership in its industry through ability to come up with innovative and high quality products such as iPhone, iPod, iPad and Mac. IPod, for instance, holds the largest market share (66%) of digital music globally due to first mover advantages in the industry (Yoffie, 2012). Yoffie further explains that the nearest competitor accounts for only 9.9% of the global market share. Generally, Apple uses its innovativeness to develop products that are easy to use, of high quality, and that provide clear product differentiation. Secondly, Apple is a well recognized brand globally. According to Jones (2011), this company has gained a good reputation for brand development, which attracts potential customers through well executed marketing strategies in the global market. The company takes advantage of this by spreading retail stores widely in the global market. Additionally, Apple has been able to capture a large segment of loyal customers who are devoted to purchasing its products. According to Jones (2011), this company has all along developed good relationships with customers through quick and effective responsiveness to customer feedbacks and concerns. The company strives to maintain a positive brand image and counter-cultural appeal that has been developed in the past. Finally, Apple invests heavily in research and development and hence, constantly develops new internal software and hardware. It uses this weapon to maintain a competitive edge by producing new products that are much better than those produced by most of its competitors (Jones, 2011). Segmentation, Targeting, and positioning Market Strategy Segmentation is the process of identifying groups of buyers who have homogenous interests, and then devising different marketing strategies that suit the specific groups identified. The selected groups may be constrained by demographics, psychographics, budgetary, benefits sought, buyer behavior, among other constraints (Besanko et al, 2009). As Lubeck et al (2012) explains Apple heavily relies on psychographic aspects to segment their target market, and often uses personality and lifestyle information. The existing target groups or markets for Apple products include students, schools teachers, businessmen, Travelers, doctors, dads, moms, kids, teenagers, vacationers, rockers, sanitation workers, generation X-ers, hip- hoppers, Hispanics, baby boomers and African Americans (Lubeck et al, 2012). Remarkably, most of these targeted customer segments have a good internet fit; thus internet marketing has enabled this company to gain much detailed market penetration compared to its competitors. For instance, recent data from market research firm iSuppli has shown that Apple’s sales in digital music products currently stand at 66% compared to related products from competitors. As Yoffie (2012) explains, Apple’s share in the global market is likely to register continued growth into the future. This is because; the company has a well developed ‘ecosystem,’ which is likely to persist and remain strong into the future. Moreover, it has been difficult for competitors to duplicate apple’s innovative products and design approach. Apple’s positioning is designed to target a less price-sensitive buyer. Its activities, culture, and products are designed to meet the needs of customers, and focus on offering premium brands (Lubeck et al, 2012). For instance, it has recently demonstrated its premium brand positioning through the introduction of the MacBook Pro and unibody MacBook, which are larger and more expensive products compared to previous iMac brand products, and the replacement of the $499 Mac mini with a higher priced ($599) mode (Lubeck et al, 2012). Opportunities Opportunities in Apple can result from both internal and external factors. Some of opportunities that might be instrumental in improving operations of Apple may include: the first factor that may lead to opportunities is the consistent growth in the mobile and PC industry, in addition to shortened product cycles. The fact that consumers are ready to upgrade their phones after every two years offers Apple a rare opportunity to increase sales of the upgraded products. The iPhone 5 is an ideal example of the impact of upgraded products to the company. Secondly, Apple has a good opportunity to expand to other global markets in countries such as India and China in Asia. In these new markets, Apple stands a greater chance to gain competitive edge over its main business rivals such as Dell, HP, Nokia, all of which have a stronger presence in the U.S market and have no profound roots in many Asian countries. Moreover, Apple has an added opportunity in iTunes as it could continue generating more sales from applications and music; in fact iPhone, iPod, and iPad applications are more likely to generate more revenue than music downloads as they are more popular than iTunes, creating a competitive edge in the market for Apple. The current rapid developing technological market would more likely be marked by rapid growth in the need for smartphone and tablets. This will imply that cross products in apple will increase gradually, as ore customer prefer Apple’s products. In addition, Apple’s online shopping could grow gradually further improved by the stream of income to the company. These opportunities will be critical in boosting the company’s revenue, and ensuring the company controls a competitive niche in the market. The mobile advertising market is currently lucrative; this is a growing opportunity for apple as more people embrace the technological developments to transact business in the most current technology. To capture more prospective customers, the company has to advertise and promote its products for customers to know what the company offers. This will facilitate them to choose among the several technological gadgets offered by Apple, and at the same time showcase the different impressive features that each gadget presents; such promotion would lead to an increased customer base as more prospective customers try its products. Finally, by Apple having a cordial relationship though a joint venture with other leading companies, Apple will have a rare opportunity to invest on new and better products using the resources of the other company. With all these opportunities, Apple can remain competitive and still keep its stakeholders satisfied. Conclusion The current Apple’s mission statement is unfit given that it focuses more on the products that this company makes rather than the customers or the target markets. It does not explain the benefits that are to be achieved by the buyers. Despite this, Apple has been able to take advantage of various opportunities available in its industry and turned them into strengths, as reiterated in the analysis. This has enabled it to maintain competitive edge compared to competitors. The company still has variety of opportunities which my increase its revenue streams if well harnessed due to the current developing technologies. Finally, Apple relies on psychographic aspect to segment its target market into various groups. Its positioning is aligned with targeting a less price-sensitive buyer References Besanko, D., Dranove, D., Shanley, M. & Schaefer, S., (2009), Economics of Strategy, John New York (NY): Wiley and Sonsd Jones D., (2011), Apple strives for global markets. Retrieved 21 November, 2012 from, http://online.wsj.com/article/SB10001424052748703302604575294530119152528.html Lubeck, B., Niltz J., Danforth, J. & Brannon J., (2012), Apple Inc.: creating and sustaining a competitive advantage. Retrieved 21 November, 2012 from, http://www.doxtop.com/browse/87cd47e4/iphones-competitive-advantage.aspx Yoffie, D. B., (2012), where does apple go from here? Retrieved 21 November, 2012 from, http://hbswk.hbs.edu/item/3877.html Read More