Question

What are the greatest challenges Apple is facing? Detail them by internal weaknesses and external threats, How can Apple transform internal weaknesses into strengths, and external threats into opportunities?

Answer 1

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. One of Apple’s biggest strengths is their brand identity. Their products reflect beautiful design aesthetic, wealth, simplicity, and creativity. This concept was widely recognized during Apple’s simplistic but vibrant dance commercials for iPod touch.
Apple is now one of the most recognizable brands in the world. Their name goes a long way, and with such a dedicated fanbase, any product that is attached to the Apple name is often pre-ordered.Additionally, Apple uses their brand to sell a lifestyle. A lifestyle of creativity, lavishness, and sleekness. This how they market their products: Not as a simple gadget, but as a way into their carefully designed world.
It’s no surprise Apple’s profit margins are high with every new iPhone, iPod, and Mac laptop upgrade.Apple has shown the potential benefit of collaborating with different strong and existing brands related to their marketplace. With their new AirPods, they’ve teamed up with Beats headphones, to introduce the new wireless BeatsX alongside their iPhone 7 reveal .Additionally, Nintendo is bringing a new game, Mario Run, to iPhone — combining the Apple name with the well known and iconic game face of Nintendo. They’re another powerful brand, which could bring in huge numbers from the many Nintendo fans around the world.
Apple’s current innovation can be mocked, ridiculed, or cheered. But the business opportunities from collaborating with other large brands across the world will benefit the Apple brand immensely, so long as they continue to develop these business relationships. Apple Inc. (AAPL) is among one of the largest tech companies in the world, as measured by market cap, and continues to dominate in the categories that it invented or popularized, such as the smartphone and the tablet. While it seems that Apple is at the top of its game, several weaknesses have emerged that the company should address if it is going to stay on top in this ever-competitive technological environment.Many of Apple’s loyal customers see the company’s tightly controlled software and services as a major strength of the company, as it allows Apple to control all aspects of the devices it produces. Overall, however, this puts an additional burden on Apple’s development cycle as software, security, and many other details become an in-house responsibility.
Apple Inc. (AAPL) is among one of the largest tech companies in the world, as measured by market cap, and continues to dominate in the categories that it invented or popularized, such as the smartphone and the tablet. While it seems that Apple is at the top of its game, several weaknesses have emerged that the company should address if it is going to stay on top in this ever-competitive technological environment.The Closed Ecosystem
Many of Apple’s loyal customers see the company’s tightly controlled software and services as a major strength of the company, as it allows Apple to control all aspects of the devices it produces. Overall, however, this puts an additional burden on Apple’s development cycle as software, security, and many other details become an in-house responsibility.
On top of this, Apple is in the business of running licensing agreements for its content sales, including iBooks, iTunes, Apple Music, and the App Store. From a management perspective, this muddies the water on what Apple should focus on.The biggest revenue generation comes from hardware, but the closed nature of Apple’s ecosystem forces the company to be in all the other businesses as well. Contrast this to Samsung. By plugging into Android and the rest of Google Inc.'s (GOOG) ecosystem, Samsung can focus on iterating the hardware and innovating on the design of its devices rather than having to police third-party apps or roll out operating system updates.