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Every company does a SWOT analysis to determine its position in the

Every company does a SWOT analysis to determine its position in the market (Bruijl, 2018). It is a handy tool as it helps each company understand and make sound business decisions in various situations. SWOT is an abbreviation for strengths, weaknesses, opportunities, and threats. This analysis is essential for strategic planning, competitor evaluation, and business planning. Weaknesses and Strengths are internal things within a firm, which can be controlled and changed by the firm (Park & Mithas 2020).

In contrast, opportunities and threats are usually external factors outside of the firm’s control. These things happen in the larger market, which the company can only take advantage of but cannot change. Since Apple is a significant player in the technology industry, it is therefore required to carry out a SWOT analysis to make sound business decisions. An organization’s strength, such as Apple Inc, gives it an added advantage over competitors. Therefore, the internal analysis looks at an organization’s available core competencies and available resources. It gauges the company’s workforce, current management, marketing objectives, and resources (Park & Mithas,2020). Therefore, Apple Inc has several strengths.


Apple Inc has high-profit margins due to high revenue streams from the sales of its products and services. Most significant is the iTunes platform, which is available for various products by Apple is usually compatible with the Windows platforms. This brings in high revenue (Turakhia et al., 2019). Continuous innovation is another superior strength Apple possesses by producing quality, innovative, and easy to use products. According to Apple Inc, the company spends $1.5 billion each year to develop new products, enabling the company to attract new customers and encourage repeat purchases from existing clients. Customer loyalty. Apple has been able to attract loyal customers due to its stable and reliable products. This is because the company periodically provides updates to all its operatic systems and applications for its devices, keeping the customers satisfied and willing to buy the firm’s new products. Finally, due to the firm’s healthy financial performance, Apple can invest in any undertaking that the management feels will be profitable to the company (Kim 2018).


Identifying an organization’s weakness helps it know its problem areas and make the necessary changes (Bruijl,2018). Apple’s limited distribution network has played a disadvantageous role for the company. Apple has an exclusivity policy where it selects carefully and authorizes its product sellers. This strategy limits the company’s market reach. Premium pricing strategy disadvantages Apple from reaching a broader market. This means that apple targets a high-end market; therefore, customers from lower classes cannot afford their products. Due to the complex hardware and software nature of the products, some people cannot use Apple products effectively and therefore opt for more comfortable models from Apple’s competitors.


The firm has got the opportunity to expand its network of distribution, thereby reaching more clients. The company can decide to change its distribution network to gain more customers (Kim, 2018). Due to Apple’s strong reputation in the market for high-quality products, new products will be well received in the market. Therefore, the company can be assured of a ready demand for new products. There is currently an increased number of viruses and worms that can prove an excellent opportunity for Apple to increase its market share by producing computers since viruses cannot attack Mac OS computers.


Tough competition in the market. Competition is high and intense in the technology sector (Bruijl, 2018). Apple now faces fierce competition from other players in the market. Such firms like Samsung also use rapid innovation. Some of these firms are now producing imitation products of Apple. It is almost impossible to tell the difference between an iPhone 6plus and a Samsung s7. These imitations are serving as low-cost substitutes for customers who cannot afford the real product. Rising labour costs in Apple plants will affect the company’s profit margins and increase selling prices. Therefore, the company’s performance will suffer.

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