Strategy planning in Apple Inc. starts with appraisal of external and internal factors called SWOT analysis. SWOT analysis consists of 4 factors, those are opportunities, threats which are categorized as external analysis, while strengths and weaknesses which are categorized as internal analysis.
The Apple’s Inc has got some internal strengths. Firstly, it is a technology leader which leads other brands to follow the ideas of Apple’s technology. Secondly, Apple has brand loyalty and image. The brand loyalty can be seen when Apple launches its new product, people will line up in one day long just to be one of the first to get their hands on the new iPhone, iPad, or Mac. Thirdly, of Apple Inc’s products have unique design and all of Apple’s products are easy to be used , which is one of the reason why people love Apple’s products.
However, Apple Inc also has internal weaknesses that include weak spending on product research and development, limited distribution globally and higher costs of materials. For example, the products that similarly to Apple from China that offers a much lower price, so some people tend to choose those products from other brands that are cheaper. The other weaknesses is decreasing market share. Because of less market share Apple has, it influences its potential customers and persuade them to jump into using Apple’s closed ecosystem products.
Somehow, Apple Inc, luckily gets some opportunities from external factors. The external opportunity that Apple can take is benefit from the rapid market growth and the changing customers need, such as the need for iPhone 5s and global expansion. Another external opportunity that Apple has is iTV launch. That’s predicted that iTV launch will support Apple TV sales and the products’ ecosystem. On the other hand, in fact, Apple Inc. has to face some external threats. First Apple Inc. has to face some competitors such as Google that also offers similar applications. Besides, Apple also has another threat about introduction of new substitute product. Moreover, rapidly changing customer needs can also be classified as a thread. For example, if other brands offer a more high-tech product, customer will try to buy another brand, therefore Apple should be the one who is the first to create a new product, if it wants to be the winner in the products competition. “Foreign trade barriers from other countries such as China and other Asian countries and weakening currency exchange rates are also the potential external threats” says Ferrel.
After defining threats and opportunities, the manager should try to generate strategies to take benefit of opportunities and overcome the Apple’s threats.
Apple tries to develop its company by having strategic planning. Based on SWOT analysis above, it will allow Apple Inc. to develop strategies to accomplish those goals and to compete with its rivals. In order to retain its position, Apple has to increase its presence in the market.
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