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Apple Inc. (SWOT Analysis) - May 2013

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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 Inc. (Apple or "the company") is engaged in design, development and marketing of personal computers (PCs), media devices, and portable digital music players. The company also sells a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. The company primarily operates in the US. It is headquartered in Cupertino, California and employed 76,100 people as of September 29, 2012, including 72,800 full-time equivalent employees and 3,300 full-time equivalent temporary employees and contractors.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • A combination of horizontal and vertical integration created formidable competitive advantage
  • Successful product lines driving the growth
  • Robust growth rates

Weaknesses

  • Lack of products at different price points limits the addressable market
  • High dependence on iPhone and iPad product lines

External

Opportunities

  • Growth opportunity in the enterprise market
  • Emerging nations provide strong growth opportunities
  • Apple TV to benefit from the growing smart TV market

Threats

  • Intense price competition in the emerging nations
  • Operating in complex and challenging environment could impact market position
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