Reference no: EM13793669

Apple SWOTT Analysis

Apple Inc.leads in the production of electronics that are on the lead globally. The products made by this company comprise of the current technology that the other competitors are unable to beat. Some years back it was named as the leading multinational in terms of technology in the US. However, competition has continued to increase from other companies involved in the production of similar products. Blackberry Company, Samsung, Lenovo, Dell, and HP are the leading competitors in the computer and mobile industry. The increased competition has led to declining in the market share of the company. SWOTT analysis a very useful tool that is needed to expound its analysis on Strengths, weaknesses, opportunities, threats and trends that Apple has been facing in its business environment. The forces that counter the environment that Apple is operating on are generated either internally or externally. The internal factors affecting the operation of the Apple Company are generated from within the company. These internal factors include the management structure and innovation. On the other hand, the external factors that affect the operation of the company arise from competition and regulations that govern the environment. The information obtained from the SWOTT analysis assist in the development of a strategic plan that will enable the company moves forward(Dayal, 2012). 

External Forces and Trends

External forces play a very crucial role in shaping the strategy that a company must undertake. In addition, strategic choices selected have a direct impact on the success of the company. Legal and regulatory issues should be the leading external factors that should be considered in the formulation of the strategic plan. The importance of the legal regulations is that they assist in the protection of the consumer. There has been a problem for other smaller companies that have been accused of stealing trademark from the Apple Company.  Therefore, having legal regulations in place will ensure that the company is capable of conducting lawsuits to such people. Additionally, legal regulation will occur where the privacy of the consumer is compromised. Apple has worked hard to ensure that their company has remained on top of the market by marinating a higher degree of consumers' privacy. Hackers have been trying to invade the privacy of the consumer system from Apple, but it has heightened its security systems.

The global economy has affected the practices being carried on by the Apple Company. There has been an oscillation of business cycle that has continued to affect the market of the Apple Inc. most of the sales made by the company are from the iPhone series. The success of these products has been contributed by their affordability. It has made it difficult for this company to regulate the prices of which they are offering their products by making them more affordable. The global economy has been undergoing recovery and it is expected that within a short time it will have fully improved. When this occurs, Apple will have the opportunity to open branches in all the continents and reducing the prices of their products, in addition, this move will make the Apple Company realize high levels of profitability. Carried research has shown an increase in disposable income in individuals around the globe. As a result, the sales of this company are expected to record a significant over a short duration(Aldrin, 2013).

Competitive analysis in relation to other companies offering similar products in the market is very crucial when it comes to SWOTT analysis. The bigger competitors in the market have been working tirelessly to dominate both the computer and the mobile market. The Google Company and the Lenovo have all indulged in the production of both computers and the mobile making the market be very much competitive. The Apple Company has to ensure that it has seen the strategies that the competitors are using so as to become successful. Additionally, it is also good to understand their competitive advantage so as to devise strategies that will not be barred by anything from dominating the market. The competitors are using innovative ways to overcome the challenges faced in the electronic markets. For Apple to continue their dominance in this market, they have to ensure that they have tried the most innovative ways that will guarantee their success(Ireland, 2013).

Internal Forces and Trends

The impressive organization greatly contributes to the success of any organization. It is always a good strategy for companies like the Apple to recruit highly qualified individuals who will work toward ensuring that the brand has continued to dominate. Having a stronger management that aims at fostering good relations enables the company to improve. Apple Company has had consistent management that has enabled them stay ahead.  Unlike other companies that have encouraged the culture of hiring and firing, Apple has been maintaining its expert for a long duration.

Adaptability to change is also another character that has enabled the Apple Company to stay on top of the market. Most of the failing companies have been unable to adapt to the changes that occur either financially or in the management. However, Apple has perfected in the art of adapting quite easily to any changes that arise along the way. In fact, these changes have enabled them stay in front in term of technology. Innovativeness has also contributed to this change that is being experienced by the Apple Company.  In conclusion, SWOTT analysis facilitates the strategic management with the guidelines that enable them formulate a strategic plan that will enable the company stays productive in the future(Ansoff, 2014).

SWOTT TABLE

Factors	Strengths	Weaknesses	Opportunity	Threats	Trends
Legal and Regulatory	Apple has strong team that deals with the legal matters	The company has been experiencing some cases of stole IP rights	The company is acquiring new technologies that are being improvised	There may be law suits in future pertaining the new products	New regulations that are being structured have impact on the technology
Technological	The team that works with Apple is highly talented.	The competitors are tailing but still they are threat to Apple.	Innovation is at its peak in order to capture the young generation	Smaller companies are coming up with h-tech that is threatening Apple	The mobile Market is continuing to flourish
Economic	The global economy after recovery will improve the market.	The increased disposable income may be used to boost competitors rather than Apple.	Establish branches in all continents	The fluctuation of economy is sometimes unpredictable	The economy is recovering and hence the market might improve.
Competitive Analysis	Apple is still dominating in terms of technology	Emerging companies are proving to be threat	Improving the consumer products will be the best move	Small companies are obtaining more sales than Apple.	The competition is increasing.
Leadership	There is a good management that is in the Apple Company	The leadership roles are becoming complex and the world changes	Hiring management and people who are well versed with the technology	Losing of the highly qualified experts	Good compensation in the Apple company has been enabling many to stay in the company.
Culture	The culture that has been created in the Apple company is for innovation	The employee's culture is sometimes corrupted.	Improve and enhance quality human resources	Failing to keep the employees happy	Marinating high levels of organization culture.