Apple SWOT Analysis - Essay Example

Throughout its history, the company has enjoyed strong economic growth and constantly increasing cash flow (Baines, Fill, and Page, 230). This has enabled it to expand and command a wider share of the market.

Weaknesses
At one point in the market, research was ineffective with the company failing to anticipate the need for new products such as phablets. What resulted was the late entrance into the market thus affecting sales and revenue. The lack of a wider price differentiation strategy makes the company appear to be a premium category company. This means that many people in the middle and low socioeconomic status disregard its products. Further, the company has over time depended on revenue from only two products, the iPad and iPhone.

Opportunities

Most of Apple’s products have remained popular and relevant to many people. This means that the company can continue investing in the same products with the assurance of revenue. The growing technology industry increases the demand for electronic products constantly. The company is thus assured of progress.

Threats
The lack of a price differentiation strategy is detrimental to the company’s quest to get into a wider market. The company is outperformed by competitors such as Samsung on this and the demand for its products may shift when lower-priced products are in the market. There is an increased need for innovativeness in the industry (Kurtz, 23). As long as the company enjoys revenue from only two of its products, innovation may be delayed and with time, the products will lose relevance. Read More