Question

For the corporation you identified in Discussion One, describe the components of the Internal Environment. Identify their competencies and their competitive advantage. This is also the S & W of a SWOT analysis.

The internal analysis focuses on identifying and evaluating a firm’s strengths and weaknesses in the functional areas of business, including:

(1) management;

(2) marketing;

(3) finance;

(4) accounting;

(5) production or operations;

(6) research and development, also known as R&D; and

(7) management information systems, also known as MIS.

The discussion post should be a minimum of 300 words, and include at least one academic journal reference.

Answer 1

The company selected is Apple inc. This is because Apple is widely viewed as one of the most successful companies in the world and also the world's first trillion dollar company.

Strengths:

1) Innovation: The company has been known to be a pioneer in the field of electronics and home products. Apple has an envious lineup of great products such as the macbook, iPhone, iPad etc. In the recent past, they have ventured into some other products such as the Apple watch, Apple Tv etc.

2) Patents: Due to its high focus on R&D, Apple has many propritary technology which is patented. These patents help the company develop market leading products. Apple has launched many market first software and hardware components (Eg. 'Notch' design as seen in the iPhone XS and the new 'Animojis')

3) Strong brand value and perception: Apple has constantly maintained their brand position as a premium and technologically advanced company consistently over the years. This is largely due to their strong marketing team who have lead very interesting campaigns to keep the company's touch with their customers relevant and exciting.

4) High profit margins: Apple enjoys a very high profit margin on its products due to their focus on the high end market. They enjoy a high premium on their high latest product range, especially just after their launch. They also follow a very effective price skimming strategy.

Weakness:

1) Shallow product lineup: Apple has only a few products and services when compared to other technology heavyweights such as Amazon, Microsoft or Google. The customers of Apple thus, might feel compelled to shift to other companies for their needs. Apple seriously lags in the home electronics department.

2) Geographic limitation: Apple doesn't sell its products in all countries. In a few countries, Apple's products are released months after their release in the US. This seriously hampers performance in these locations, especially when companies like Samsung have their products sold in almost all countries of the world

3) Patent infringement: Since Apple has a lot of propritary technology, they should take extensive steps to prevent infringements. In recent years, their designs are copied so easily, especially in the eastern parts of the world. Apple loses its exclusitivity in such situations

4) Management: Despite Apple having an envious board and an excellent CEO in Tim Cook, the innovation levels in terms of new products has been very dissappointing, especially when compared to the legendary status of innovation under Steve Jobs.