On a Bloomberg interview, Apple CEO Tim Cook says: ” We are focusing on autonomous systems. Therefore is very difficult for the marketing managers to predict in which stage is the product. Mark Zuckerberg criticized monopoly of iPhone’s app store. Made my research fun and easy! The first class-action lawsuit was filed on December 21st, 2017 and alleged that Apple’s actions not only negatively affect the resale value of their products but also forces its users to upgrade to newer versions prematurely. With the expansion of their team, Apple can continuously build new opportunities. This is done by dividing the page into four squares and entering strengths and weaknesses (internal factors) in the top two squares and opportunities and threats (external factors) in the button square. … In the next two years, the organization would increase its revenues to $265.5 billion. iPhone App Store ” blocks innovation, blocks competition,” and “allows Apple to charge monopoly rents.”. [ii]. The company has been providing robust technology products and exceptional software services. An example of cash cow is the iPod. In September, 2013, Apple became the world’s most valuable brand, overtaking Coca-Cola. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Apple. However, in 2019, the organization's revenues would drop to $260.1 billion. How Does Credit Karma Work and Make Money? This will have an impact on iTunes and on the profit of Apple. Apple’s products can be considered a luxury due to their premium prices. All these products are aiming to the same market share, the customers who have already bought the first iPhone and want to replace it with the new one.[6]. For example, when iPhone 4G came to production, everyone was complaining about the signal when they make a call. Swot Analysis. Gupta understands how to create and implement business strategies. We're here to answer any questions you have about our services. As the competition is getting stronger, Apple either has to introduce new technologies or revise its pricing policy to stay ahead of its competition. Apple is yet to launch products that are created using green technology. 1) Strategic marketing [electronic resource] : an introduction / Tony Proctor, Proctor, Tony, London ; New York : Routledge, 2000. Publication Info. Globally Iconic. It will succeed this by adopting a very aggressive promotional campaign. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. For example, the company’s cultural traits are aligned with the drive for innovation, which is a major factor that determines business competitiveness in the information … Therefore, if Steve Jobs leaves again from the company then it might face the same problems. Therefore, iTunes is a very profitable programme for Apple without any cost for investment. 2. According to market research company Statista, Apple has sustained its leading market position in the US smartphone market for the past several years. 2) Our registered business address is PO Box 475, Chichester, PO18 8WX, United Kingdom, http://marketingteacher.com/lesson-store/lesson-ansoff.html, 3)Boston House | 214 High Street | Boston Spa | West Yorkshire | LS23 6AD | Tel +44 0844 800 0085 | Fax +44 01937 529236,http://tutor2u.net/business/strategy/ansoff_matrix.htm. [3], With the success of iPod and iTunes, Apple entered to the Consumer Electronics market. Apple has been under constant pressure by government agencies to unlock the iPhone via a backdoor, which means unlocking the encryption of the iPhone and giving access to its data. an iPhone, so the sales of the company are going down. However it had a black-white screen and only 5 GB capacity for songs. Study for free with our range of university lectures! big news can result in negative reviews and bad publicity for the company. This means that the market is full of more innovative products in more attractive prices. Apple or its trade-in partners reserve the right to refuse or limit any trade-in transaction for any reason. Copyright © 2003 - 2021 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. This SWOT report is ideal for case studies. The company has been providing robust technology products and exceptional software services. you will perform an in-depth analysis on Apple Company, and prepare a written reaserch report on this company. Some of its products are the following: The SWOT analysis is used inside a company in order to discover its strengths, its weaknesses, its opportunities and its threats. Customers from iTunes can purchase many songs, videos and nowadays even books. It passes trough introduction, grown, maturity, saturation and the final stage of decline cause of some natural limiting factors.[1]. Recently, the company has extended its AI portfolio. If a company has many dog products then the best solution is to either convert them to stars or dispatched them. Analysts believe it is the impetus for Apple’s financial rebirth 40% of Apple’s sales is attributed to the iPod product line (Cantrell 2006). [iii]. These are also unprofitable for the company as they are low market share and the company have to invest a lot of money to grow their market share. With this technique Apple gain a large amount of money and invest them in other areas. Apple has partnered with Kia Motors (parent company – Hyundai) to assemble driverless electric cars in Georgia. Tell us what you think? At this point the market reaches saturation. Saturation: This is the stage that the market is full of companies competing for the same product and the sales are decreasing. Published: 1st Jan 2015 in The illegal dealers sell Apple counterfeit products at the same value as an original Apple product. Total asset turnover is also low in 2017. , smart wearable technology device sales will double by 2022. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. It was entering into the music market and was aiming for existing customers to buy an iPod and for new customers to try one and also try the services of Apple. Use SWOT analysis for business planning, strategic planning, competitor evaluation, marketing, business and product development and research reports. Apple’s liquidity ratios is 1,6 which is good f or company and the cash surplus was $110 billion which has improved from$97 billion from Q4 (Financial Analysis, 2012). Business Analysis of Apple Company. Besides these stores, it sells through trade partners, online channels as well as through other premium retail stores. Apple is one of the most reliable company when it comes to personalized advanced computers and smart technology devices. Apple’s App Store recorded more than $15 billion in sales in 2014, as the company announced. This is a dog product. Another example is that when Apple introduces a new product to the market, it leaves the previous one for some time in the market in order for the customers with low income to buy it. [3], However, competition is increasing and when the markets are full; the grown of the product begins to decline. It isn’t big news that Apple is a demanded brand in corporate offices. [i] The company for 30 years was named as Apple Computer, Inc. but it changed its name to Apple Inc. on January 9, 2007 as it wanted to expand to the consumer electronics market and do not only stay in the computer market. With this product Apple was aiming in capturing the customers who use the Internet all the time and do not want to carry a notebook or a netbook with them. Customers will download music from another free online program without having to pay anything in iTunes. Apple’s hardware and software products and services are very complex and high technology that most of the times contain defects such as ‘bugs’. With this way Apple keep the customers satisfied and willing to buy its new products. Apple Value Chain Analysis: It was Michael E Porter of the Harvard Business School who introduced the concept of value chain. Apple was founded by Steven Paul Jobs, Ronald Gerald Wayne, and Stephen G. Wozniak on April 1, 1976 and is headquartered in Cupertino, CA. The most common feature is the price competition. projects. Introduction of iPod, the first entertainment tool from Apple, PO Box 475, Chichester, PO18 8WX, United Kingdom, http://marketingteacher.com/lesson-store/lesson-ansoff.html. In the fiscal year 2020, iPhone sales of $137 Billion represent half (50%) of apple’s overall revenue of $274 Billion. [3,4]. Therefore Steve Jobs is both a strength and a weakness.[2]. A much older example is the introduction of iPod. Personal SWOT Analysis | SWOT analysis of a person, Walmart SWOT analysis 2019 | SWOT Analysis of Walmart. Apple Inc. (AAPL) financial analysis and rating Comparison analysis based on SEC data. This business analysis case shows that Apple has a corporate culture that enables human resources to support various strategic objectives. The SWOT analysis is a strategic marketing planning tool that is usually used to help each company understand and analyse its strengths and weaknesses, identify the threats of other businesses and the various opportunities in the market share. By 1984, Apple had proved twice over that it was a force to be reckoned with. Generally, this stage is very difficult for each company and has to ‘play’ with the marketing mix (price, promotion, product, distribution) in order to make some profit. Market Development which the company tries to attract new customers with existing products or services, Diversification occurs when the company tries to capture new customers with completely new products/services.[3,4]. The strengths and the weaknesses refer to the company and its products as internal factors, while the threats and the opportunities refer to the external factors of the company in which it has no control. When it reaches the maturity stage and change to cash cow it has only profit to the company without any expenses for investment. An example of this strategy is the iPod. It’s probably one of the most difficult A.I. Apple designs, manufactures and markets a range of computer software, hardware products and personal computers. In addition, Apple has introduced many new services in 2019, such as Apple TV+ (launched in Nov 2019), Apple news+ and Apple Card (credit card services), Apple Arcade (game subscription). For example, Apple has only recently entered the Mobile Communications market, so many of its competitors have greater experience and more resources, so they could provide their products in a lower price with little or even no profit at all.for the company. Apple is a multinational company that is jointly owned by Vanguard Group and BlackRock, both being institutional investors. [3], Apple has a very powerful brand loyalty. The SWOT analysis is an extremely useful tool for understanding and decision-making for a. Apple continues to grow its wearable category i.e., Apple Watch, AirPods, etc. [4]. The best thing each company should do is sold off these products. This team includes all the executive team( Steve Jobs, Andrea Jung, Arthur D. Levinson, Millard S. Drexler) and the employees in technical, marketing and staff positions. We are just scratching the surfaceâ¦. Nowadays, Apple has created an iPod that has a 3.5-inch (diagonal) widescreen Multi-Touch display, Wifi and many other features. Apple introduced the iPod in 2001. This analysis is usually written in a report for business owners, associates, and investors to refer to. 2. Do you have a 2:1 degree or higher? Therefore, Steve Jobs is definitely a strength for Apple. Apple is rapidly expanding into new services such as video content streaming, game streaming, credit card – competing with the dominant players such as Netflix, Disney, Citi, Chase, Paypal, etc. Apple Inc. Case Analysis Presented by: Jahid Khan Rahat 2. Currently, Android has captured 72.23% of the market share, while Apple has only 24.55% of the market share globally. The innovation made Apple such a powerful company. With iPad Apple did not enter to a completely different market because iPad is like an iPhone with a bigger screen. Definition of a Company Analysis. An example of a product lifecycle curve is shown the figure 1. The SWOT analysis is divided in two sectors. It reported flat revenue in Q2 of 2020 and declined to offer annual revenue estimates for FY2020 due to supply chain uncertainties. Must be at least 18 years old. (4, McDonald, Malcolm and Adrian Payne (1996), Marketing Planning for Services, Oxford: Butterworth-Heinemann, pp 77-117). In the year 2017, Apple acquired Regaind, a French AI startup and DeskConnect, an AI tool. For example, about 19% of Apple’s annual revenue ($53 B out of $274 B in FY 20) came from its services, which is the second biggest contributor to its revenue after the iPhone (50% of its revenue). The Swot analysis for company is showed below: STRENGHTS: Apple is producing innovative, quality and easy to use products. Or Apple could persuade existing iPod customers to buy also a Mac computer. 9. The first iPod that Apple introduced was in October 2001. Return on asset and return on equity both low in 2017 but high in 2016 and 2015 of Apple Company. Kia Motors to build Apple’s driverless car. In the Market Development, Apple could use different marketing strategies in order to sell existing products/services to new markets and increase its profit. [2], The limitations of PLC are that this tool is not the same for all products e.g mobile phones have shorter lifecycle than automobiles. The first one consists of existing and new products while the second consist of existing and new markets. Collusion between the two giants makes it difficult for rivals to enter and expand into the search engine market. With this trial, Apple force Bloggers to name the source of their information because the company suspected that the information had leaked from its employees. iPhone in its grown it generates a lot of gross profit to the company but it needs also a lot of money in order to change it to cash cow. The company should focus on extending its AI portfolio to have a strong foothold in the future. Registered Data Controller No: Z1821391. Apple company 1. The most common is that when sales peak and then decline, the managers conclude that the product is in the decline stage. Case Analysis Content: Situation Analysis Financial Analysis Key Success Factors SWOT Analysis Recommendations Implementation and Expected Outcomes Evaluation and Control 3. This was the first entertainment tool from Apple for people to use in order to hear all the time their favourite music. By introducing iPhone, Apple has expanded to the Mobile Communications market. Therefore, with appropriate marketing and management strategies, iPhone proved to be a success. With the advancement in technology, brands like Samsung, Google, and Dell are giving Apple tough competition. Furthermore, the company can benefit from diligent marketing and promotions. Therefore, during this stage, the company should make some radical changes concerning the marketing mix in order not to lose customers. Furthermore, as Steve Jobs specified ‘Intel is the strongest processor roadmap’. Thank you very much for this analysis SG! So if the customers that buy with the stars also the dogs, they will stop buying both of them and the company will lose money. Entering an Apple owned retail store is a fantastic experience. Every year Apple spent around $1.5 billion for the development of new products in order to keep the existing customers satisfied and recruit more new ones. However, there is no guarantee that Apple is able to detect and fix all the defects in its products and services. Introduction The essay provides a financial analysis and comparison of Apple Inc. from the fiscal year 2008 to 2009. In recent years it’s created something … There has been a significant change in market penetration by other brands in the smartphone market. 8. More specifically, Apple: Should try to increase the market share of the existing product. Debt ratio and time interest earned high in 2017 present that in 2017 company is taking more debt and do less production and sales. Apple is under investigation for unfair business practices after receiving payments to make Google’s search engine as the default search engine for its Safari web browser. In addition, Apple has introduced many new services in 2019, such as, Apple’s products can be considered a luxury due to their, Because of their success, Apple does not feel the need to have excessive spending towards advertisement in comparison to other big brands such as, Apple is rapidly expanding into new services, such as video content streaming, game streaming, credit card – competing with the dominant players such as, They might be entering into areas in which they lack competencies; remember the, Even though the latest version of Apple’s phones gives users the right to, Apple is under investigation for unfair business practices after receiving payments to make Google’s search engine as the default search engine for its Safari web browser. This could be achieved by using the appropriate marketing tools( lower prices, sales promotion, advertising) in order to attract new customers to buy its products. This report closely examines Apple’s strengths, weaknesses, opportunities, and threats. [1,3], In 2005 Apple won a legal case about a blog that pre-introduced new Apple products. [1]. PO Box 475, Chichester, PO18 8WX, United Kingdom, http://marketingteacher.com/swot/apple-swot.html. With the advancement in technology, brands like, As the competition is getting stronger, Apple either has to introduce new technologies or. Apple Inc. Report contains the above analysis of Apple business strategy. If the product proves to be a success then more customers will buy it and the company will make more profit. It can achieve that, either by expanding to other geographical areas or by looking for users with that will use the product in a different way. However, when Steve Jobs came back to the company in 1996, he focused on developing new ideas and in 2001 he introduced iPod which is making a lot of profit to the company. Stars: Stars are products that are in high growth market with high market share. Through this Apple SWOT Analysis report, one can learn the exclusive details of Apple. If you need assistance with writing your essay, our professional essay writing service is here to help! Our academic experts are ready and waiting to assist with any writing project you may have. An example of the Ansoff matrix is the following: Apple could use each of these four categories in order to manage its existing products and develop new products/ services. The value chain includes the entire range of activities from the beginning to the end involved in bringing the product to the market and the end user. Apple is highly dependent on China for its manufacturing and supply chain. In a recent webcast, Mark Zuckerberg, Facebook’s CEO, criticized Apple for its monopoly on App Store and hefty charges. Apple launched its first product ‘Apple 1 computer’ in 1976. US government has imposed a higher tariff on imports from China, increasing the overall cost of the products. Therefore, the economic crisis that exists worldwide is a major threat to all companies but mostly to technological companies. Since then, Apple has grown exponentially in terms of products and services. Although Apple as a brand has solidified itself, it still faces threats from competitors. If this carrier cannot compete with others in the U.S. market concerning the quality, coverage and pricing or if he cannot promote iPhone correctly into the market so as for the customers to buy it, then this will have a negative impact on the sales and the profit for the company as it will not sell enough units. 3)Boston House | 214 High Street | Boston Spa | West Yorkshire | LS23 6AD | Tel +44 0844 800 0085 | Fax +44 01937 529236, http://tutor2u.net/business/strategy/ansoff_matrix.htm, 4)Marketing in a nutshell, Mike Meldrum, Malcolm McDonald, 5) Annual Report, United States Security and Exchange Commission, Washigton, D.C.20549. The rate of sales grown eventually levels out. It reported flat revenue in Q2 of 2020 and declined to offer annual revenue estimates for FY2020 due to supply chain uncertainties. After Samsung, Apple is the second richest cell phone maker globally. Low-Income consumers can’t simply afford Apple products. And clearly, one purpose of autonomous systems is self-driving cars. Therefore, these products make little profit for the company, so they are dogs. [1,3]. projects actually to work on.”. To increase its profit margins and have a strong market position, Apple should utilize artificial intelligence. Apple can always rely on the power of the internet for future opportunities to gain new customers and form new alliances. Apple is headquartered in, Today, one of the most successful products of Apple is the ‘iPhone’. iPhone is an example of the star products that Apple has in its portfolio. Many companies nowadays use it in order to help them decide for the development of their product and the market share. Join our newsletter today to get updates on the latest posts! The performance assessment bases on the ratio calculated by the data from balance sheet, cash flow statement and income statement of Apple. The youthful population and rapid economic growth in emerging economies offer immense opportunities for expansion. [3], This failure results in harming its reputation and sometimes losing customers because they are not satisfied. : ). its great, Keep posting for other giant companies. This is not all the times true as many products depend from others and if the company consider a product dog and divest it, then it will create a problem to the other product. (1,3). In this case, the following are the most … An example of question marks is the Mac Computers. This means that stars make a lot of profit for the company but in order for the company to keep these products to this stage, it must spend a high amount of money on them. Furthermore, he should use circles for each product or product portfolio of the company. Apple knew that it should have many competitors and it knew that the product will be either a failure or a success. [1], Therefore, Apple is always vulnerable to leaks from various employees.