One of the Company’s key strengths is its strong brand name and the corporate identity it enjoys as a global market leader in the online music industry. In this capacity the brand will always remain synonymous with the online music despite any challenges it might face. This brand equity can be used to attain and sustain competitive advantage both in the short run and the short run.
Apple’s diversification strategy has meant that it offers a number of consumer technology products to its consumers under the same platform. This gives it a competitive edge over other competitors which do not have as broad a spectrum of products and cater only to selected niche markets.
Weakness
The company relies heavily on the leadership and advice of Steve Jobs one of its original founders. Jobs has played a prominent role in the success of the company. It can be accurately said that the company would not have achieved the phenomenal success that it has today without his guidance.
However the health of the company’s leader is floundering and this could have an impact on the company’s shares and standing with investors. Future investors may feel that the company has no future without Jobs at the helm and may seek not to invest if the executive leaves his position on the account of ill health or old age. Jobs needs to appoint a successor with similar qualities and strengths that he possesses. This move will help restore investor confidence in the future of the company after Jobs retires.
Opportunity
Increased use of mobile technology has meant that people use their smart phones to view and download online video. Apple can use this opportunity to launch mobile applications for iTunes which allow users to download video images through their i-phones
Another opportunity is the acquisition of a prime competitor. This would accord the company both economies of trade and result in a stronger more diversified entity. It would also add value to the company’s shares and help enhance the company’s brand identity and good will.
Threats:
One of the threats that Apple faces is the possibility of price competition. The online video industry is extremely price competitive and houses a large number of competitors. Some competitors also offer online video content for free. This implies that the company will have to keep its pricing strategies very competitive and focus on increasing profits not by charging higher subscription fees but by capturing a larger chunk of the market.
On the basis of the above SWOT analysis, I would invest in the company because of future opportunity for growth. The consumer electronic market has proved to be resilient to the economic recession. As one of its major players Apple is at the forefront to exploit the huge potential that this industry has at the moment. As an investor I feel that the company has huge future potential for growth and would definitely put my money in it.
In determining Strategy it is also important to look at the various stake holders who stand to benefit or lose the most as a result of the implementation of the strategy.(Fred, 1995) In the present scenario Apple has four prominent stakeholders. These are the Management of the Company, the employees, the shareholders and the customers of the company.
The stakeholders often hold different opinions regarding strategy implementation. The Management and the shareholders of Apple will be more concerned about increasing profits and establishing competitive advantage. They would favor any marketing strategy which focuses on these two factors.
The customers of the company would be concerned about the impact of the new strategy on the quality and price of products offered on the site . If the strategy is focused on enhancing the consumer experience and delivering superior service at an economic price it would have a beneficial effect on the customer. The impact of such a strategy would be to attract new customers and retain existing ones
Employees both new and existing will probably favor the implementation of a new strategy if it results in improving the profitability of the company. A marketing strategy aimed at building brand equity would probably benefit the employees as they can reap both the financial and reputation benefits of working for a well known organization.
Apple in the present scenario is satisfying the expectations of all of its stake holders. Shareholders and Management are satisfied because of growing profits, increasing market share and sustainable competitive advantage.
Employees benefit from working in a globally reputed and top performing multinational organization which offers them competitive salaries and other benefits. Apple customers are satisfied because the company is committed to delivering a product that enhances the consumer experience and innovates it continuously to meet customer tastes and preferences.
Apple’s diversification strategy has meant that it offers a number of consumer technology products to its consumers under the same platform. This gives it a competitive edge over other competitors which do not have as broad a spectrum of products and cater only to selected niche markets.
Weakness
The company relies heavily on the leadership and advice of Steve Jobs one of its original founders. Jobs has played a prominent role in the success of the company. It can be accurately said that the company would not have achieved the phenomenal success that it has today without his guidance.
However the health of the company’s leader is floundering and this could have an impact on the company’s shares and standing with investors. Future investors may feel that the company has no future without Jobs at the helm and may seek not to invest if the executive leaves his position on the account of ill health or old age. Jobs needs to appoint a successor with similar qualities and strengths that he possesses. This move will help restore investor confidence in the future of the company after Jobs retires.
Opportunity
Increased use of mobile technology has meant that people use their smart phones to view and download online video. Apple can use this opportunity to launch mobile applications for iTunes which allow users to download video images through their i-phones
Another opportunity is the acquisition of a prime competitor. This would accord the company both economies of trade and result in a stronger more diversified entity. It would also add value to the company’s shares and help enhance the company’s brand identity and good will.
Threats:
One of the threats that Apple faces is the possibility of price competition. The online video industry is extremely price competitive and houses a large number of competitors. Some competitors also offer online video content for free. This implies that the company will have to keep its pricing strategies very competitive and focus on increasing profits not by charging higher subscription fees but by capturing a larger chunk of the market.
On the basis of the above SWOT analysis, I would invest in the company because of future opportunity for growth. The consumer electronic market has proved to be resilient to the economic recession. As one of its major players Apple is at the forefront to exploit the huge potential that this industry has at the moment. As an investor I feel that the company has huge future potential for growth and would definitely put my money in it.
In determining Strategy it is also important to look at the various stake holders who stand to benefit or lose the most as a result of the implementation of the strategy.(Fred, 1995) In the present scenario Apple has four prominent stakeholders. These are the Management of the Company, the employees, the shareholders and the customers of the company.
The stakeholders often hold different opinions regarding strategy implementation. The Management and the shareholders of Apple will be more concerned about increasing profits and establishing competitive advantage. They would favor any marketing strategy which focuses on these two factors.
The customers of the company would be concerned about the impact of the new strategy on the quality and price of products offered on the site . If the strategy is focused on enhancing the consumer experience and delivering superior service at an economic price it would have a beneficial effect on the customer. The impact of such a strategy would be to attract new customers and retain existing ones
Employees both new and existing will probably favor the implementation of a new strategy if it results in improving the profitability of the company. A marketing strategy aimed at building brand equity would probably benefit the employees as they can reap both the financial and reputation benefits of working for a well known organization.
Apple in the present scenario is satisfying the expectations of all of its stake holders. Shareholders and Management are satisfied because of growing profits, increasing market share and sustainable competitive advantage.
Employees benefit from working in a globally reputed and top performing multinational organization which offers them competitive salaries and other benefits. Apple customers are satisfied because the company is committed to delivering a product that enhances the consumer experience and innovates it continuously to meet customer tastes and preferences.
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