Business policy

Posted: November 26th, 2013

Business policy

SWOT analysis of Apple Company
The SWOT analysis is a tabulation that shows the major factors that are affecting the Apple Company either internally or externally. Through this way, the management role will be identified through analyzing the strengths and weaknesses at the side of threats and prospects.

Strengths

The sale of iPod players has increased the revenue of the company tremendously. This has been realized through evaluation of profit that has been approximated to be $315 quarterly. The company also has developed a high technology software and hardware that has improved the information technology sector. In addition, the introduction of online downloadable music has enabled the customers to have wider access to many music categories. In the computer sector, the introduction of the notebook has given a new perspective to the company. The company has also established a research sector.

Weaknesses

The Apple Company has had trouble in the operation of its activities due to poor relation with other companies and even with its own employees. Companies like Intel and Microsoft that are helpful have been discovered to have a bad link with Apple. The period, in which apple products stay in the market is very short hence, the company is entailed to introduce new brands every time. This has led to a slow response of apple in the market as renovation and innovation lacks. The company has ruined its reputation through existence of poor cohesion between Steve jobs and the employees.

Opportunities

The company has come up with an inventive idea of manufacturing antivirus software’s due to the increased worms and virus interactions. The poor relationship between the Apple companies is a great barrier of venture hence once bridged, can result to greater market dominance. The other opportunity comes where the introduction of new downloadable music is greatly in demand in the market. The company should also focus on developing products that satisfy the needs of the customer. Therefore, the company has to do a lot of research to gather information on consumer choice and preferences.

Threats

Apple faces a lot of competition from companies like HP, Dell, Toshiba and Sony in the market. Therefore, the uniqueness of the Apple software’s has been a threat to other companies due to the incompatibility property. The diversification of other websites offering free music download has become a very big threat to the iTunes by Apple. In addition, Apple is perceived to produce expensive products than other companies. Looking at the new invention by Microsoft, the market has grown in favor of Microsoft hence lowering Apple sales.

How Well is Apple

Apple with a financial ratio of 9.69 against its competitors has the ability to increase its sales quarterly every year by $315. This figure gives us the stable nature of the company in the market. By also having numerous employees, the company still declares its ability to dominate in the market. Irrespective of Microsoft that is the closest rivalry acquiring market share, the Apple has a great influence worldwide due to its uniqueness. Apple indulgence in price wars has also contributed to its flexibility in the market. As compared to Apple, Dell Company with a ratio of 4.22 has been ranged to be the worst potential in performing due to its lag in formulating their sales strategy. The profit of the company seems to be dropping down hence unable to withstand the competition in the market.

Key successive factors of competitors

The role of Apple management in execution of strategies

The Apple Company has been able to execute and implement its strategies through corporate research. By researching, the company has been able to establish the weaknesses and strengths of the company. The branding and extensive advertising has been used as key role to execute those strategies. The company has employed a culture of periodically inventing new products so that it may keep the market standards.

Strategies

Table showing strategic resolution

Globally, the company has to diversify the knowledge about the existence of its products. This is done through the intensive advertising that involves both online and the media services. The company also has to revise the price of its commodities through lowering them. Cheapening their products will make them popular and hence increasing their revenue. In the corporate world, the Apple has been able to penetrate by popularizing the iPhone. The unique features have earned Apple credit in the market of which it is an improvement towards acquiring the market share. The strong architecture by Apple through branding its trademark has continually maintained the company’s dignity. These strategies are essential in facilitating the company’s sales sequentially to enable the company fit in the technological world as quoted by Thompson (2007). The Company should deal with the pricing, branding and research in order to have a desired outcome. In business, the company has strategies to continue to stabilize the low debt status in order to finance her business branches worldwide. The Company also has extended its operations worldwide by establishing its branches in many countries to enhance also its popularity. Operationally the company is dedicated to revolutionalize the leadership to allow flow of new ideas and innovation.

The strategies are good in a competitive world because the company will be operating with a higher phase than other companies will. The reshuffle of leadership in the company will lead to innovation of new brands that will occupy the market hence increasing the revenue.

Three controllable issues that industry management needs to address

The technological flexibility of the products in the industry should be considered for company to be successful in the future. The other point is about the product promotion through which the company will advertise its products in the market. Lastly, the branding of the products should be unique in order to enhance a healthy competition in the market.

Recommendations

In order for the smooth running of the company, Mr. Jobs has to establish close relationship with his employees to restore the company’s reputation. In addition, he should be a step ahead to finance for research in order for him to be able to meet the consumer specification. This research will tackle items such as pricing, quality of goods and technological views. In terms of pricing, he should lower the prices in line for many customers to discover the taste of using Apple products.

Measure of successful performance

Successful performance in the company can be measured through evaluation of weather goals and objectives that have been realized. Achieving encompasses following the planned method or right channel. Therefore, a company’s success is established after accomplishing its mandated goal.

Industry with an opportunity for long-term success

With reference to Apple, its long dominance in the market has enhanced opportunity for success. This is because they offer unique brands that customers can identify with. Therefore, according to Gitman (2008), the ability to satisfy the consumer’s desire sustains an industry in the market for long.

Apple is considered to have long-term opportunity of success because it has uniqueness in the product branding. This is achieved through having a well-designed digital ecosystem. The company has also made user-friendly gadgets that are able to meet the consumer specification.

References

Gitman, L. J., & McDaniel, C. D. (2008). The future of business: The essentials. Mason, OH: Thomson South-Western.

Thompson, A. A., Strickland, I. I. I. A. J., & Gamble, J. (2007). Crafting and executing strategy. New York, N.Y.: McGraw-Hill/Irwin.