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Apple Inc. (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Apple Inc.

Apple is engaged in the design, development and marketing of personal computers (PC) and related software, peripherals, network solutions, portable digital music players, and related accessories. The company’s portfolio of offerings comprises Mac computing systems, iPods, iPhones, and servers. The company’s software applications include Mac OS, iLife, iWork, and internet applications like Safari and QuickTime, among others. The company mainly operates in the US. It is head quartered in Cupertino, California and employs 32,000 employees.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Strong brand image
  • Robust financial performance
  • Focus on research and development

Weaknesses

  • Product recalls
  • Patent infringement

External

Opportunities

  • Smartphones
  • New retail stores

Threats

  • Intense competition
  • Uncertain global economic conditions
  • Declining PC sales
  • Dependence on specific suppliers
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