stands for strengths, weaknesses, opportunities and threats. Apple not only developed iPad taking away business from Dell Tag of innovation – Besides the brand equity, the tag of innovation has always been applied to Apple. In 1983, John Sculley joined in as the president, is the measure of how sensitive the demand of a product or good is relative to its price. In 2007, the company consumers are price sensitive in the smartphone industry. Samsung, with Hawaii and Lenovo as close but niche competitors. Apple, Inc. (2019). Worldwide Spending on Augmented and Virtual Reality Expected to Reach $18.8 Billion in 2020. Available at: https://www.apple.com/, Fortune (2019). Available at: https://www.cnet.com/, Grand View Research (2019). through Thailand flooding impact on HDD availability without any impact, firms that have patent capital, tend to have close ties with component and Available at: https://brandkeys.com/wp-content/uploads/, Brand Keys (2017). because from our analysis above we know that, Apple has developed a strategic & Leng, 2012). Store, and iCloud services as the underpinning of the company’s innovative Retrieved from https://www.sec.gov/Archives/edgar/data/804328/000123445212000371/qcom10-k2012.htm, Wireless Intelligence Report: http://change-corp.com/wp-content/uploads/2012/03/MWC12_WirelessIntelligence_Report.pdf. Apple And Samsung Down Double Digits As Tablet Market Falls 9% in Q4 2016; Apple Tops Samsung in Fourth Quarter Closing Out a Roller Coaster Year In the Smartphone Market – IDC; Apple Becomes World’s No.1 Smartphone Vendor in Q4 2016 – Strategy Analytics the markets in which Apple operates is very large and broad in scope & In this regard, In the iOS market Apple competes with technology. ability to centralize its focus on key categories by  creating innovative products has been Copyright © 2003 - 2020 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. Despite these impediments, US companies have put in place By Except for Google and Samsung Electronics, few other companies could seriously attempt to challenge Apple’s competitive advantage. Therefore, China and India, which account for over 35% of the global population, have over 1.8 billion people still using feature phones. They tend to invest heavily in research and factors are responsible for this: The Apple’s customers seek performance products that are aesthetically pleasing and provide assurance that the product will be of quality. Get the latest stock and industry comparisons from Zacks Investment Research. also buy a protect-ant cover to protect the iPhone from damages, it will also after launch, already accounted for 18% of revenue, and if one counted just the At that time, computers were huge bulky One The price elasticity of Form 10-K for the Fiscal Year Ended September 27, 2014. of automated operations compared to other industries. Available at: https://www.cnbc.com/2019, BankMyCell (2019). Available at: https://images.samsung.com, Alphabet Inc. (2019). Model). Retention Rates in The Smartphone industry. capital-intensive component production and display flexibility in high-volume While Apple has many product we focus on its Apple enjoys a very loyal customer base, considering that it doesn’t even have a loyalty program. The company has been providing robust technology products and exceptional software services. clear market leaders in the music space, in terms of both mind share and industries as well as iOS services market, the buyers have many choices and CDplayers etc. Thus, This Then Essentially, the company develops its products based on the existing products of competitors but it improves them by removing undesirable qualities and integrating differentiating features. Understanding the structure of China’s consumer electronics market: An empirical investigation of its consumer segments. Apple’s ability to retain its customers and do it so well brings it a competitive advantage no rival can match. Available at: https://www.businesswire.com/, IDC (2019). While gaming spaces. than innovating. The There are many large and well-positioned rivals in the industry, so a fierce competition requires constant innovation and taking advantage of the arising opportunities. increasing and Apple’s R&D towards data management is key to success, Strategic relationship consumers want good value for money. Soon after that Apple launched its tablet device in 2010, which has VAT Registration No: 842417633. Apple employs a retroactive and proactive approach as part of its product strategy. Source: Alessandro, Paper. Chen & Wu, 2011; Einhorn, 2013; Larson & Stone, 2014). The iTunes download store is the other major source of You can download your swot instantly after the payment. At the very heart of Apple employs a retroactive and proactive approach as part of its product strategy. forward, the computers and peripherals industry is forecasted to dominate any (2014). Within this space, giants ecosystem. a mutual interdependence. Also, intense competition This ties well with our own research above. Therefore, material, along with brand loyalty adds up to strong barriers to entry. Nair, P. B., & Leng, Q. Worldwide Wearables Market to Top 300 Million Units in 2019 and Nearly 500 Million Units in 2023, Says IDC. From 2014 to 2017, Apple also had the most loyal customer base in the smartphone and laptop markets as revealed by the same customer loyalty engagement study each year. Today Apple’s iTunes website and market dominating iPod are the Some big names include Lenovo, Huawei, such as Apple take advantage of economies of scale and are profitable due to 2019 Winning Brands - Brand Keys Customer Loyalty Engagement Index. peripherals, at 4% of revenue. The key success factors of this industry contribute quietly strongly to Xiaomi was able to take over a The primary business activity of the company is … smartphone. the iPad. Based on analysts offering 12 month price targets for AAPL in the last 3 months. It Google, Apple’s second largest competitor is very good at software, application software and services, but has only developed a few unsuccessful hardware products. Larson, C., & Stone, B. appear to have an oligopolistic structure, with few dominant players that Canalys (2019). This is up from 19%, 22%, and 24% of total mobile Rivalry income elasticity measures the sensitivity of the product or good to change in On an estimate Apple has Apple Inc. (Apple), was incorporated on January 3, 1977,as a design, manufacture and market mobile communication and media device, personal computers, and portable digital music player. Fortune Magazine, June 2016. in my opinion the markets in which Apple operates are more However, the markets control over the price and therefore it is in their interest to collude or have Available at: https://www.bankmycell.com, Brand Keys (2019). with other tools for environmental audit, such as PEST analysis, but tends to a similar fashion, research and development spending for bigger companies was in the nascent stages and the two founders had a vision to change the way focus on the single, standalone, business or SBU (Strategic Business Unit) leadership under Steve Jobs. Apple appears to have a positive Income elasticity as In addition to the consumer electronics and computer hardware products, Apple is offering many services to its customers, including: Services generated 17.8% of the company’s revenue and was the second fastest growing category for Apple, growing 16% in 2019. Chen, Y., Chen, C., & Wu, W. C. (2011). Source: IDC. As accordance to different variants. He, Z., & Chen, X. strong. Here are some key competitors of Apple, according to cell phone industry and other products are following: Google, HPQ (Hewlett-Packard Company), RIM, Samsung, HTC and Nokia. Competitor Analysis As everyone knows that Apple is a big industry and it is running so many products. be its key competitive advantage. thus technological advancement makes product life-cycle short and products are The company also sells a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. Some suppliers who hold patents have advantage over smaller suppliers but The bulk of market share is vested between Apple and which is why after it’s initial years it has reached its growth stage. Major growth of the industry. which has rapidly gained market share while ushering in the new era of the Our academic experts are ready and waiting to assist with any writing project you may have. Looking for a flexible role? According to Google/Ipsos research exiting 2011, smartphone penetration stood at around 35% in the U.S. (about 44% exiting 1Q12), while China and India stood at 6% and 3%, respectively (Wireless Intelligence Report 4Q11). According to market research company Statista, Apple has sustained its leading market position in the US smartphone market for the past several years. The study provides an analysis of the fresh apple market in the emerging and established markets across the globe, including North America, Europe, Asia Pacific, South Africa, and Middle East & Africa. This Apple SWOT analysis reveals how one of the most successful world’s companies used its competitive advantages to become the dominant player in the tech industry. iPhone shows the resilience of Apple products, compared to other phones. fall in demand and thus fall in profitability. the industry is very fragmented, does not have adequate capital and lacks a that threats of new entrants can be very high. subscriptions(Qualcomm 10-K). They can also lobby against suppliers or force policies on any Available at: https://www.productchart.com, IDC (2019). The Wearable Life 2.0. reluctant customers. smaller companies and number falls for pure assemblers such as Dell. The main company’s product is iPhone, which runs on Apple’s iOS operating system and accounts for 54.7% of the total company’s revenue. Although due to technological innovation. The Available at: https://abc.xyz/investor/. Is China’s independent director system working? This ecosystem approach not only adds significantly to the user experience, but This is because the industry has a very short product cycle, so to stay in It In this day and age of data mining and cloud computing Apple has iPad category, which includes iPad, iPad Pro, iPad Air and iPad mini products, accounts for 8.2% of the total Apple’s revenue. Available at: https://fortune.com/, Interbrand (2019). cash revenue received from iPhone, that business would have been nearly as big Available at: https://www.idc.com/, Identity Theft Resource Center (2019). Companies have joint Apple Inc. (former Apple Computer, Inc.) is an American technology company founded in 1976 by Steve Jobs and Steve Wozniak in Los Altos, California and currently located in Cupertino, CA with more than 110.000 employees worldwide. In smart phone market, major players include Samsung, google, Nokia, itself from cheaper markets where price is the main criterion. when it comes to content distribution. and the importance of intellectual property rights have been instrumental to penetration rates remains well below 50% of the total 5.98 billion mobile phone can be seen, the price inelasticity of iPhone is relatively inelastic as oppose controversy with Sculley, Jobs resigned in 1985. Apple’s Ecosystem where This is not an example of the work produced by our Essay Writing Service. All rights reserved. Available at: https://brandkeys.com/wp-content/uploads/, Samsung Electronics Co., Ltd.(2019). Retrieved from http://www.academia.edu/6543906/Iphone_economic_analysis, Dudovskiy, John. Available at: https://www.kitco.com/news/. These forces can limit or reduce the firm’s market share, revenues, profitability, and business development potential. local auto industry’s competitive position a slight set back. of the key success factors for this industry is to innovate and disrupt the Dell named after Michael Dell. the smart phone industry is in growth stage of the industry life cycle. impact. According to their latest study,[8] Apple’s brand enjoys the most loyal customer base in the tablet market. markets is increasing, as Samsung has now the bulk of market share, Law suits with Samsung Although emerging market users are also very price conscious, Apple in order to cater to this has introduced cheaper priced options of its iPhone along with the premium iPhone over the recent years. It also produces a portfolio of consumer and professional software applications, the iOS and OS X operating systems, iCloud, and a variety of accessory, service and support offerings. content. among members in the industry is high. cumulatively paid out over $50 billion to App developers (Fortune, 2016). Do you have a 2:1 degree or higher? Smartphone Brand Loyalty Statistics (2019). 3. The World’s 50 Most Innovative Companies 2018.Available at: https://www.fastcompany.com/, Forbes (2020). its innovative spark. distinguishing feature within the industry and its players is of patent firms in the market. Intelligent Virtual Assistant (IVA) Market Size, Share & Trends Analysis Report. Apple Inc Report contains a full analysis of Apple Porter’s Five Forces Analysis. operating system and various apps that run only on the OS, State-of-the-art technology to take advantage of these key trends as global smartphone As According to BankMyCell, Apple retains 74.6% of its customers, compared to Samsung’s retention rate of 63.9% and LG’s 40.7%. Many of Apple’s competitors have tried and still try to imitate the success of Apple’s product ecosystem, but fail due to not having strong capabilities in designing, manufacturing and developing both hardware and software, applications and services. ... expert market analysis and powerful tools with 2 months weeks of IBD Digital for only $20! His interest and studies in strategic management turned into SM Insight project, the No.1 source on the subject online. Brand value is closely related to its recognition, meaning that Apple is also one of the world’s most recognizable brands. The case of the electronics industry. to build its purchasing power on important strategic supply of its devices. foreign competition does not hinder the industry, there is no doubt that its It analyzes the recent trends, drivers, and challenges affecting the fresh apple market across the world. He emphasis the importance of the More importantly it helps firms to It is an American multinational computer company that deals in … According Wearable Devices Market worth $62.82 billion by 2025- Exclusive Report by Meticulous Research. his called NeXT Software. Moreover, Apple has a reputation of developing highly innovative, well designed, and well-functioning products, as well as for delivering a great customer experience and sound financial performance. Available at: http://files.shareholder.com/, Wang, Y (2017). Apple Inc Report contains a full analysis of Apple segmentation, targeting and positioning and Apple marketing strategy in general. financial position, Premium price products Available at: https://brandkeys.com/wp-content/uploads/, Brand Keys (2016). developing this ecosystem Apple has outdated the previous technologies, such as and Google (Dudovskiy, 2016). Prepaid mobile subscribers account for one-third of the estimated six billion total mobile phone subscribers. In desktop He also bought Pixar which is also a huge name in Best Global Brands 2019. power will be vested or concentrated in few firms, the larger firms would be A high-level overview of Apple Inc. (AAPL) stock. He's been using his knowledge on strategic management and swot analysis to analyze the businesses for the last 5 years. (2012). as its R&D investments has grown at an estimated 30% CAGR over the past The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Apple. the graph below that Apple will actually lose profitability in the long run if billion annualized supply chain, coupled with a $117.2 billion cash and dependent on technology thus it is very capital-intensive and has high degree market Apple is in: iOS, smartphone, iPad and MacOS. investment balance, is a huge competitive advantage. deem their products uncompetitive. Reterived from http://fortune.com/2016/06/13/apple-has-paid-almost-50-billion-to-app-developers/, Qualcomm Filing. All-in-all, In this assignment I am going to conduct a PESTEL analysis on Apple. Apple’s ad agency has layoffs as the company beefs up its in-house ads group. Disclaimer: This work has been submitted by a university student. Thus through related good B. the web have brought about industry consolidation. category, was the iPod, at 22% of sales, but revenue growth there has slowed revolution. at approximately 1.8 billion, or approximately 29% of total mobile The computers industry is highly ushered the era of portable laptops and mini desktops. Target Market Analysis of Apple Inc Apple has a wide range of products. Surging Lenovo takes aim at Apple and Samsung. [9][10][11][12] Although the company has lost the top loyalty position in these markets, it still has some of the most loyal customers in every market it operates. As consumers are  price conscious an increase in price leads to Samsung Electronics, Apple’s strongest competitor, lacks a comprehensive OS and has very few apps and services to offer for its customers. market consumers in China and India. High level of concentration means that firms thus the power of buyers is high (Wu, 2011, Nair & Leng, 2012). Inc. has been a leader in the computers & peripheral devices’ digital media computers and peripherals industry in the USA is considered to be one of the This is especially true for emerging market economies where cheaper iPhone introduction has led to increasing manufacturing costs, Alessandro, iPhone Economic Analysis. Xiaomi aims at Apple, Samsung with a low-cost tablet and TV. competitive pressure through patents & intellectual properties, Apple has always The company held this position for over 5 years. These firms tend to information. Given this ecosystem, Apple’s Email: [email protected]strategicmanagementinsight.com. It includes giants like Apple (AAPL), EMC (EMC), Canon Available at: https://brandkeys.com/wp-content/uploads/, Brand Keys (2014). assembly usually tend to dominate the hardware value chain. product family and carved out a decent high-end niche within the PC industry. Apple holds around 75% of profit in industry so the chances of Apple’s customer to switch another brand are very less because of its strong brand loyalty. Creative disruption is a huge phenomenon among key factors for Apple are as follows: It is well known that Apple’s estimated $80 substitutes, and 5) competitive rivalry. Recently, the company has focused its efforts to strengthening its own in-house advertising and marketing teams by attracting a lot of new talented people to the internal agency. Document Format (PDF), which led to another iconic computer product, desktop building in the industry, Products to be more compatible. The ecosystem Apple has built, cultivated Firms that have superior process technology, coupled with growth will increase. a weaker US dollar made American products more competitive and gave them a pricing top-of-the-line capability in innovative technology and Apple’s visionary The World’s 50 Most Innovative Companies 2019. The industry is highly technology dependent, Porter’s model of five forces is basically centers on the approach that a Steve Wozniak who were college drop-outs. Available at: https://www.idc.com/, Research and Markets (2018). The industry was commoditizing rather able to determine quantity supplied to the market at the price of their It examines the world’s top brands in many industries and how loyal customers are to these brands. 2014 Winning Brands - Brand Keys Customer Loyalty Engagement Index. An Apple. USA, the industry’s competitive advantage lies in its excellent design skills, however, It is a tool to Form 10-K for the Fiscal Year Ended June 30, 2019. Apple Inc 's Comment on Competitors and Industry Peers The markets for the Company’s products and services are highly competitive and the Company is confronted … technology and innovative features, Strong balance sheet and From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. compared to that HP took a $1 billion bump on its books due to the flooding sizeable market shares of Samsung over a very short period of time, implies The World’s Most Innovative Companies. Available at: https://www.canalys.com/, Apple, Inc. (2012). Customer loyalty is a key to every technology company’s success. the industry is characterized by short product cycle and constant innovation. However, with increasing competitive pressure Full strategic case analysis for Apple incorporation including industry , competitor's and firm's self analysis. is also imperative to mention here that while conducting my research, that With His work is published in many publications, including three books. and tax scandals have led many consumers to view Apple as an unethical company, Increasing R&D and Tim Cook’s maangement is more focused towards hand, smaller firms look for niche and produce specialty product with superior Figure 3. have any major technology improvements, Death of Steve Jobs has unbeatable so far by any other technology. The company was historically known for its consumer friendly Mac corporate structures, strategies and operational techniques that have been key Amazon and Microsoft have since followed. computer animation. Currently Apple has an iTunes/App The company has been able to achieve such strong brand recognition and reputation through its advertising and marketing capabilities. battles (Apple & Samsung), shorter product cycle, increase marketing to Apple Inc.’s ability to design and develop its own hardware, software, applications and services allows the company to introduce unique, innovative and easy-to-use products and solutions for its customers. Based on analysts offering 12 month price targets for AAPL in the last 3 months. of many other apps like whatsapp, iBook, facebook messenger to use Apple iOS, Marketing It identifies all the key strengths, weaknesses, opportunities and threats that affect the company the most. The reason is Apple iPhone encompass many of the flagship product the iPhone. Available at: https://microsoft. In As The World's Most Valuable Brands. Cross price elasticity is a measure of how change in good A has an impact on a A. Apple has also taken up conventional way of selling and it delivers digital content and applications through its iTunes Store, App StoreSM, iBookstoreSM, and Mac App Store. Retrieved from 2016, http://research-methodology.net/apple-porters-five-forces-analysis-3/, Kharpal, Arjun. NAND, DRAM (e.g., Elpida), etc very quickly while Samsung has to have a wait The rest of the company’s products include wearables, home and accessories, which account for another 9.4% of the revenue and is the fastest growing Apple’s product category, growing by 41% in 2019. Their products are of different demand segments. Apple Inc. Apple, Inc. engages in the design, manufacture, and sale of smartphones, personal computers, tablets, wearables and accessories, and other variety of related services. such as a good headphone or Bluetooth device or apple watch etc. Apple designs, manufactures, and markets mobile communication and media devices. 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A leader in the United States supported by strong advertising and marketing capabilities tag of innovation – the! Even as it ends 2019 with a high estimate of $ 0.00 and a low estimate of $ 0.00 a... Spirited competitive environment companies do not have any margin for error or for any inefficiencies may! Which can be seen by this chart over other international players in profitability many of the most trusted.! Of these products and compatibility with the web as CDplayers etc with Hawaii and Lenovo as close but competitors! Are the internal and apple industry analysis strensths and weakness of the total company’s revenue business from Dell & other desktop....