Marketing Management II Project

Marketing Management II
Project Report
Strength and Weakness Analysis of AAPLE
Submitted by: Submitted to:
Shivangi Gupta Dr. Kumar Shalender
MBA-1-B (HR)
1820981509
APPLE
INTRODUCTION
Apple Inc.’s success is linked to the ability to use business strengths to overcome weaknesses and
threats, and to exploit opportunities in the industry environment. A SWOT analysis of the company
gives insights on the strategic actions of the business, especially in maximizing its growth based on its
strengths and opportunities.
The SWOT analysis framework is a strategic management decision-making tool that determines the
most pressing issues facing the company, based on the internal business conditions and the external
environment. In this case, the SWOT analysis of Apple Inc. scans the business for relevant strengths,
weaknesses, opportunities, and threats (SWOT variables), with reference to various industries and
markets.
The company is involved in the computing technology (hardware and software), consumer
electronics, cloud computing services, and online digital content distribution services industries. This
condition necessitates that Apple develop a diverse set of strategies to ensure its competitiveness and
business growth.
This SWOT analysis of Apple Inc. presents the strategic factors that influence the decisions of CEO
Tim Cook and managers in developing the business. With its operations in various markets around the
world, the company deals with different sets of SWOT factors based on regional situations. Also, the
Porter’s Five Forces analysis of Apple Inc. establishes that the company faces the strong force of
competition linked to the aggressiveness of other technology firms, such as Google, IBM,
Amazon.com, Samsung, Sony, Lenovo, Dell, and PayPal.
This competitive landscape requires innovative strategies and tactics to achieve continuous business
growth and development, and to fulfil Apple’s corporate mission statement and corporate vision
statement.
FINDINGS OF THE SURVEY
STRENGTHS
1. Strong brand image
2. High profit margins
3. Effective rapid innovation processes
WEAKNESSES
1. Limited distribution network
2. High selling prices
3. Dependence of sales on high-end market segments

Ways to Strengthen STRENGTHS
1. Strong brand image
Apple is one of the most valuable and strongest brands in the world. The company is capable of
introducing profitable new products by virtue of its strong brand image.
In order to strengthen this, Apple Inc. can
 Introduce even many more innovative products which other companies, due to lack of
such strong brand image would never dare to make and therefore enter new fields.
 They must use their “status symbol” image as their biggest strength. They can also
acquire small brands and play their cards with them.
2. High profit margins

 Apple’s marketing mix or 4P involves the premium pricing strategy, which comes with
high profit margins. This internal strategic factor is a major strength because it maximizes
profits, even when sales volumes are limited.
 But in order to increase profits they can promote new EMI schemes and opt an intense
marketing session for that, which will lead to increase in demand of the product.
 According to the demand and supply rule of economics, increase in demand would lead to
increase in price which would ultimately lead to increased profits.
3. Effective rapid innovation processes

 The generic competitive strategy and intensive growth strategies of Apple Inc. involve
effective rapid innovation, which enables the business to keep abreast with the latest
technologies to ensure competitive advantages.
 On the other hand, Apple is also known for the status symbol that it provides to the
people who use it. They can bring even more innovation in their products so that people
can promote Apple through word of mouth.
Ways to Overcome WEAKNESSES
1. Limited distribution network

 Apple Inc. has a limited distribution network because of the company’s policy of
exclusivity. For example, the company carefully selects the authorized sellers of its
products.
 The SWOT analysis framework considers this exclusivity strategy as a factor that limits
market reach.
 This weakness exists despite exclusivity’s advantages, such as Apple’s strong control on
the distribution of products.
 But Apple Inc. can overcome this if they start promoting their brand in the remote regions
of the world which are advanced but lesser known to the world.
2. High selling prices

 Because of its premium pricing strategy, the company has the weakness of the
dependence of sales on high-end market segments.
 High prices attract customers from the middle- and high-income brackets, while
preventing customers from low-income brackets to easily purchase the company’s
products. This internal strategic factor is a considerable weakness because high-end
market segments represent only a minority of the global market.
 But on the other hand, Apple’s exclusivity is its premium policy. So, what they can do to
overcome this weakness is diversifying their distribution network, so that they can earn
more and more profits, despite of the fact that there is lesser number of customers of
Apple because of its high prices.
3. Dependence of sales on high-end market segments

 Based on the internal factors in this aspect of the SWOT analysis, Apple Inc.’s pricing
and distribution strategies impose limitations or weaknesses in the business.
 Apple has a huge control over its branding and promotions. But there must be many
portions of the world which can be considered as high end but they are not very known to
the world and the people who live there do not have an access to Apple’s products and
they, despite of the appropriate affordability criteria, cannot enjoy the lavish products of
one of the most innovative and interesting and valuable companies of the world.

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Marketing Management II

Strength and Weakness Analysis of AAPLE

Submitted by: Submitted to:

Shivangi Gupta Dr. Kumar Shalender

2. High profit margins

3. Effective rapid innovation processes

2. High selling prices

3. Dependence of sales on high-end market segments

2. High profit margins

3. Effective rapid innovation processes

1. Limited distribution network

2. High selling prices

3. Dependence of sales on high-end market segments

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