INTERNAL ENVIRONMENT STRENGTH WEAKNESSES

FACTORS: Primary Activities

Inbound logistics Apple has well-integrated suppliers, High supplier power creates a less
and they deal with the suppliers attractive industry and decreases
directly. Apple has profit potential, as buyers rely more
direct integration with the suppliers heavily on suppliers. Apple does not
around the globe to have significant need to prioritize the bargaining
control over the entire power of suppliers in developing
supply chain management of the strategies for innovation and
company. It has an enormous supply industry leadership.
chain, allowing for high bargaining
power should there be any
difficulties with suppliers meeting
the high-quality standards Apple has
set.
Operations Apple is having outsourcing partners Outsourcing makes the company
to procure their hardware brand image vulnerable to labor
requirement to the Asian country issues at supplier facilities which has
to reduce the cost and time of the been the case with Apple several
company. It has also focused on times.
reducing the use of toxic substances
in the manufacturing and assembly
of its products. Recyclable material is
now more in use at Apple.
Outbound Logistics From retail stores to online retail and
Apple Inc. has a limited distribution
its sown branded stores, Apple has network because of its policy of
managed a very large channel for the exclusivity. For example, the
distribution of its products to the company carefully selects the
customers. Over time it has focused authorized sellers of its products,
on improving its distribution channelsuch as iPhones and Macs. The
and added to its number of brand SWOT analysis framework considers
stores. Apart from these things the this exclusivity strategy as a factor
focus has also remained on green that limits market reach, making the
packaging and eliminating wastage. company’s consumer electronics not
readily available in all areas. This
weakness exists despite exclusivity’s
advantages, such as Apple’s strong
control on the distribution of
products.
Marketing and Sales Apple is a famous brand whose The biggest weakness of Apple
products are known for quality, Company has to be its high price. Its
design and technological innovation. top-priced products become a
Any new product from Apple is like vulnerability for the company
news that is highlighted not just by because consumers can easily select
media but several other sources products of comparable quality but
including small and big websites. It at a lower cost. The market share of
also makes unique ads that engage Apple is also declining, one of the
its customers. It has acquired main reasons for which is their
remarkable brand loyalty using significant dependency on the
 creativity and imagination in its iPhones and iPad series. It means a
advertising strategy. decline in the popularity of these
products may harm Apple’s business.
Service Apple is very consistent in course of Apple has been accused of using
its service. It is famous for tracking apps in its phones, which
exceptional quality of customer revealed the precise location of
services during all three stages: pre- users. Apple is under investigation
purchase, during the purchase and for unfair business practices after
post-purchase. The company receiving payments to make
maintains Apple experience centers Google’s search engine as the default
in major cities around the globe search engine for its Safari web
where anyone can use its products browser. Collusion between the two
to become convinced about the giants makes it difficult for rivals to
quality. Apple sales assistants are enter and expand into the search
usually trained and polite young engine market.
males and females who are
technically savvy and happy to
demonstrate product features and
capabilities.
FACTORS: Support Activities
General Administration General Administration is under Firm Apple Inc. has a hierarchical
Infrastructure. Apple’s firm organizational structure. This
infrastructure includes its general structure has complicated chains of
management and administrative command which can slow down
sectors, financial management, decision-making, inconsistencies in
accounting, legal, and strategic management at different levels
planning capabilities. Apple’s which can impede work, and there
infrastructure went through cultural can be delays in communicating
changes. Apple is spending more on vertically through the levels and
maintaining their data horizontally between teams. Apple’s
centers and office premises so that it infrastructure went through cultural
will facilitate the growth and changes as well.
investment made by the
company
Human Resource Management Apple focuses both on hiring and Apple employees are going public
paying well. This has been the norm about workplace issues. Employees
since the times of Apple founder are discouraged from sharing their
Steve jobs. The company is making opinions about work. The company
more changes in the human resource also has a structure in place to
management so that it will enable prevent employees from sharing —
the company to obtain the best or even finding out about — product
talent and in retaining them. Apple information before it’s public.
has well designed internal training Employees sign project-specific NDAs
process to train their employees in and are dissuaded from telling their
various aspects that will enable the spouses about their work. Employees
employees in understanding the stated that Apple has a very hostile
main purpose of training. Regular work environment.
training and monitoring of the
performance of the employees is
made to ensure that employees are
 performing well and achieving their
targets that are essential for the
growth and development.
Technology Development Apple spends heavily on research Apple’s products do not support
and development. Its brand is known other software or technologies,
for technological innovation and for making them incompatible with
the great quality and unique designs other devices. Customers have to
of its products. Apple’s innovative exclusively purchase Apple apps or
designs are one of the points of its accessories to continue using their
distinctive brand image. For Apple products. Apple needs to do
achieving this unique property, more for product innovation to stay
Apple spends around 10 billion successful especially as hardware
dollars (2016). Mainly, for the products become more
technological advancement in the commoditized. The incompatibility of
products, to provide better services their operating systems with other
to the customers and for growing devices has made it difficult for
product range. Apple invests a huge people to switch to iOS-based
amount of money in the Research devices because these devices are
and development sector. not user friendly, which requires
some time to get used to it.
Procurement Apple has sophisticated and well- The bargaining power of suppliers is
managed procurement system. It is a a relatively weak force in the
key focus area at Apple. It is marketplace for Apple's products.
organized well so that there will be The bargaining position of suppliers
no delay in receiving the product. At is weakened by the high number of
the potential suppliers for Apple and the
procurement level, Apple establishes ample amount of supply. Apple
relationships with suppliers and Supply is not efficiently managing the
optimizes its supply chain. The inventory and cash cycle. According
company pays more attention to the to Fraser P. Johnson, Ken Mark,
quality of the product to ensure a there is huge scope of improvement
high-quality end product. It in inventory management.
outsources all their hardware parts.
Due to this, it is essential for the
company to check the quality of their
hardware, as it must support the
entire system of the product.

GENERAL (EXTERNAL) ENVIRONMENT OPPORTUNITIES THREATS

FACTORS:
Demographic Race and Gender Income Level and Employment

Apple products are suitable to any Apple company provides an

gender. The quality, features, and incredible product; thus it is
performance of apple products understood that it will be a lot
makes it easier for everyone to expensive than the androids. There’s
communicate globally. a tendency that if someone is an
ordinary laborer, he would have not
 extra money to buy an Apple
product.
Sociocultural High Demand of iPad and iPad mini The Rise of More Affordable Tablets
in the market

The ability of other brands to come

At this time of global Covid-19 up with the same technology with
pandemic, Apple’s market share will the same function and compete to
tend to increase due to high demand the market is growing. If the gadget
of iPad and iPad mini as students are functions the same with iPad, people
now in online classes. They believe would most likely buy tablets
considering also its affordability.
that iPad and iPad minis are easier to
use in terms of accomplishments of
tasks.

Political /Legal Over the years, overall free trade As to reduce operating cost, Apple
policies are created especially to the has outsourced in different
developed countries. countries.

This external strategic factor is seen If countries like China, Korea, Czech
as an opportunity for Apple Inc. to Republic, Ireland, etc. face any
grow, operate and distribute more of problem like political volatility, this
its products around the world. would cause a delay in the
operations of Apple Inc. that will
eventually affect its consumers and
its dealers.

Technological Innovative and High Technologies Rapid Technological Change

Products

Apple Inc. and its competitors are

Apple products are always experiencing a more intense rivalry
advantageous because of its for the reason that customers are
innovative and high technologies becoming technology lover. Thus,
products. People most likely invest companies will be eager to introduce
to technologies that would last a more products in a short period of
lifetime that will also function and time.
perform as if it’s a new one.

Economic High Economic Growth rates of Rise of Unemployment Rate

Asian countries
 This would be an opportunity for At this time of global Covid-19
Apple to increase its revenues pandemic, many have lost their jobs.
through sales in these foreign Thus, people would spend their
markets as consumers in these money to what they need rather
countries will be able to purchase than their what they want. Causing a
the company’s products. decrease of sale of Apple products.

Global Expanded Distribution Network Aggressive Competition

This opportunity will help Apple Inc. Along with the rapid growth of the
to reach more customers in the competing firms, its behaviors and
global market that will eventually performance in the market has also
increase its sales volume through been aggressive. Thus, Apple Inc.
aggressive marketing, especially for should continue to build its strong
mobile products. relationship with its consumers to
maintain competitive advantage.