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Strategic Management Report On Apple Inc.

1686 words - 7 pages

1. Introduction
Apple Inc., formerly known as Apple Computer, was established in 1976 in Cupertino, California. It is a technology company that produces consumer electronic goods; therefore, it is important to understand its customers’ needs and to re-evaluate their products. Their main products are iPad, iPhone, iMac and iPod. To ensure that everyone in the world is able to get access to apple products, apple had set up company around the world, such as Asia Pacific, Europe, Middle East and America, and partner up with the local mobile and electronics providers.
2. SWOT Analysis
Strength 1. Customer Loyalty
Apple has a strong customer base and these customers are loyal to their products.
2. Brand Awareness/Reputation
Due to the advertising and marketing efforts of apple, apple products are well-known by people around the world.
3. Multinational Corporation (MNC)
Apple Inc. is a MNC, supplying its products to various countries, ensuring that people all over the world will be able to purchase their products easily.
4. High Quality
Apple is known for investing lots of money into its Research and Development (R&D) to increase the quality of their products.

Weakness 1. Expensive
Apple’s products are known for its high pricing and not everyone is able to afford buying Apple’s products.
2. Brand Exclusiveness
Apple is exclusive in their products, such as owners of iPhones would not be able to import their songs in iTunes to other phones without the use of third party software.

Opportunities 1. Growth of tablet and smartphone market
With the growth of tablet and smartphone market, Apple will have the opportunity to improve their products to capture a larger market.
2. Increase in demand for iCloud services
iCloud can be used as a backup storage and there is rising demands for it since its launch. Apple can develop more services with regards to iCloud to meet the demands.
Threats 1. Strong Competitors
Competitors such as Samsung and Nokia are strong competitors for the iPhone series.
2. High demands for technology improvement
Consumers are on high demands for the latest technology and will choose the company that has it.
3. Substitute products are widely available
There are many other products with similar functions as Apple’s products.

3. External Analysis (General Environment)
The success of the company will be dependent on the decisions made regarding the general environment of the business. The factors that affect the general environment are as follows:
3.1 Political
Due to the global rising demands of Apple products, Apple Inc. had set up production factories in other countries such as China, Korea and Ireland as a means of reducing operating costs. However, political issues such as bad international relations, protests, riots and terrorism are not within the control of Apple Inc. For example, bad political relations between US and its operating countries might produce bad outcomes, such as business delay for Apple Inc.
3.2 Economic

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