A detail analysis of internal factors (SWOT Analysis) and external factors (PESTLE Analysis) affecting Apple Inc. along with company overview and recommendations to overcome weaknesses and avoid threats.
2. INTRODUCTION
• Apple is considered as the world’s most notable and
recognisable brand for electronic devices.
• Co-founded by Steve Jobs and Steve Wozniak
• World’s largest information technology company in
terms of revenue
• World’s largest technology company in total assets
• World’s second largest mobile phone manufacturer with
115,000 employees.
3. COMPANY OVERVIEW
Industry Served Consumer electronics, computer hardware, computer software and online services
Headquarter Apple Campus, Cupertino, California, U.S.
Area Served Worldwide
Revenue $231.28 Billion (2015)
Current CEO Timothy Donald ‘Tim’ Cook
Competitors
Samsung Electronics Co. Ltd., Google Inc., Cisco Systems Inc., Hewlett-Packard
Company, Lenovo Group Limited, Sony Corporations
Products
iPhone, iPod, iPad, Mac, Apple TV, software applications system iOS, OS X
operating system, portable digital music players, iCloud and its accessories,
applications like App Store, iTunes Store, iBook Store and Mac App Store and
many more
Website www.apple.com
4. SWOT is an acronym for
Strengths
Weaknesses
Opportunities
Threats
The purpose of SWOT analysis is to enhance the organisation’s
strengths, excludes its weaknesses, pursue opportunities and
avoid potential threats.
SWOT Analysis
SWOT
5. • High Price
• Incompatibility of different
OS
• Dependent on iPhone and
iPad
• Limited direct sales
locations
• Leading innovators among
electronics brands
• High brand recognition
• iTunes Music Store is a
excellent source of revenue,
especially with the iPod and the
accessibility on Windows
platform
• Apple Computer is expert in
developing own software and
hardware
• High quality customer
experience
SW
STRENGTHS WEAKNESSES
6. • Antivirus Solution
• Downloadable music
• Laptop market
• Apple Pay
• Android OS
• Downloadable music
• Windows 10
• Convertible Laptops
OPPORTUNITIES THREATS
OT
7. PESTLE Analysis
PESTLE is mainly an acronym of six factors which are
Political
Economic
Social
Technological
Legal
Environmental
PESTLE analysis is used to analyse and monitor the
macro-environmental (external marketing environmental)
factors that have an impact on the company.
PESTLE
8. POLITICAL ECONOMICAL
• More than half of sales of
their products come from
countries other than
America.
• Apple is heavily dependent
on lower cost manufacturing
in China.
• The cost of finding
alternatives.
• Bad political relations
between U.S. and other
countries may have bad
outcomes for the company.
• Customers spend less on
Apple products as they are
expensive as compared to
their competitors.
• Europe’s economic
difficulties and fall in Pound
led to decrease in sales of
Apple products in Europe
• Increased labour cost in
China affected the prices of
Apple products as most of
the parts are manufactured
in China.
PE
9. • Apple products have marked
their presence on the
international market.
• Possessing Apple products
is considered as a status
symbol in many societies
which has increased the
sales of Apple products.
• The purchasing power of the
common have increased due
to which people are shifting
towards more luxurious
products.
• Technology has a short
lifetime. Apple needs to
upgrade their products more
often to outdo their
competitors.
• Apple need to provide more
safety solutions to tackle
growing menace of cyber
crimes.
• Competitors are offering the
same products and services
at lower cost. So the apple
products are no longer
unique.
SOCIAL TECHNOLOGICAL
ST
10. • Participant in various
lawsuits since it began
operation.
• In 2009, Nokia sued Apple
for infringement of Nokia’s
patent relating to wireless
technology.
• Apple has been in number of
patent cases with
competitors like HTC,
Samsung.
• Entered highly regulated
financial sector by Apple
Pay.
• Expense of disposing of
nonworking or used
electronic devices.
• Pollution and other
environmental concerns from
manufacturing facilities in
China.
• Climate change due to global
warming could disrupt
Apple’s supply chain.
• China’s efforts to reduce
fossil fuel use could increase
electricity rates and
manufacturing costs for
Apple in that country.
LEGAL ENVIRONMENTAL
LE
11. CONCLUSION
• Given the company’s current leadership in the
industry, Apple is in a position to enjoy these
opportunities.
• The uniqueness in its design gives the company a
competitive advantage which reflects in their sales
and revenues.
• So it can be said that Apple will continue to be the
leader in the electronic industry in years to come.
