Apple Internal Scanning Essay

1110 words - 5 pages

Strategic internal factors represents the strengths and weaknesses within an organization and these factors with external factors are very critical in evaluating and building effective organizational strategy. In this report, four internal factors that are impacting Apple will be analyzed.
Apple inc. is multinational company and one of the largest manufacturer for smart mobiles , personal computers and portable music players. The main products of Apples are iPhone , iPad, Mac , iPod and Apple TV. Apple also are building operating systems and applications related to their products including iOS OS X and iCloud. Apple also provides the platforms for sellings third-party applications and digital contents. These platforms are iTune Store, App Store , iBookStore and Mac App store. Apple is selling its products globally through its retails stores, online stores, telecommunication companies , wholesale and retailers. Apple is also selling its products and solutions targeting small and mid-sized business(SMB) and education sector.
Internal factors affecting Apple
In these reports, four major internal factors are identified that have impacted Apple performance for the last four years. These factors are listed below:
Financial position
Research and development
Radical innovation and incrementalism
Apple is maintaining its brand as the most valuable brand for three consecutive years in Forbes world's most valuable brands. The brand valued by Forbes at $104.3 billion. According to Forbes , Apple brand “is worth nearly twice as much as any other brand on the planet by our count" (Forbes , 2013). This valuation is based on huge sales for Apple products and revenue earned by Apple. In the period between 28 June 2013 and 28 of September 2013, Apple sold 33.8 million iPhones, 14.1 million iPads, 4.6 million Macs, 30 billion songs on iTunes and 3.5 million iPods. Apple product design is competitive advantage and plays important roles in promoting Apple brand. Kevin Lane Keller ,branding expert and professor at Dartmouth's Tuck School of Business, commented on Apple design. "Design is how a product works, how it looks, how it feels. It's functional and aesthetic. Apple has embraced that in the fullest sense possible in terms of making products simple, but also good looking and attractive," (Kevin Lane Keller,2013). Strong brands can be a driver for developing further successful products and services however brand value can fall rapidly as in case of Nokia and Blackberry.
Financial position
Financial position is one of main keys to assess company performance and evaluate its strength and weakness. Apple was achieving outstanding results for last five years. For the five years ended in 28 September 2013 , the net income was increased by 462% and the net sales by 404%. As a result of Apple's success, Apple became the largest company in stock markets. As per Apple balance sheet , Apple was holding $146.7 billion as cash , cash...

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