SWOT Analysis of Apple 2020: Detailed Overview

Apple SWOT Analysis 2020

Apple SWOT Analysis 2020: It is believed that Apple Inc.’s success is tied with its ability to utilize its strengths in business to overcome weaknesses and threats, as well as to take advantage of opportunities within the market. An analysis using the SWOT of the firm provides strategic guidance on maximizing business growth on the basis of its strengths and potential. 

This SWOT analysis tool is used as a management strategy decision-making tool that determines the most pressing problems that the company faces and is based on the business’s internal conditions as well as the external context. In this instance it is the SWOT assessment is a part of Apple Inc. scans the company for the most relevant strengths as well as weaknesses, opportunities, or risks (SWOT variables) in relation to different markets and industries. 

Apple is a company that is involved within the computer technology (hardware as well as software) as well as consumer electronics cloud computing services and digital content distribution and distribution sectors. This makes it necessary for Apple to come up with a range of strategies that will ensure its business’s growth and competitiveness.

This SWOT analysis by Apple Inc. presents the strategic elements that affect the choices of Apple Inc.’s CEO Tim Cook and managers in building the business. Through its activities in different regions around the world, Apple is able to deal with various sets of SWOT elements depending on the regional context. 

Additionally, it is the case that Porter’s Five Forces analysis of Apple Inc. establishes that Apple is a strong competitor force that are influenced by the fierceness of other tech companies, like Google, IBM, Amazon.com, Samsung, Microsoft, Sony, Lenovo, Dell, and PayPal. The competitive landscape demands innovative strategies and tactics in order to achieve continual growth and development of the business as well as to meet Apple’s mission and vision statement..

Apple, Inc. – At A Glance

Company: Apple Inc.
 CEO: Tim Cook
 Year founded: 1976
Headquarter: Cupertino, California, USA
Employees (FY2020): 147,000
 Type: Public
 Ticker Symbol: AAPL
Market Cap (Oct, 2020): $1.86 Trillion
Annual Revenue (FY2020): $ 274.51 Billion 
 Profit | Net income (FY2020): $ 57.41 Billion

 Products & Services Provided By Apple:    Computers | Software | Phones | Watches | Tablets | Cloud Technology | Accessories | Music Platform |

Apple Strengths (Internal Strategies)

This part that is part of the SWOT analysis framework is to identify the strengths that allow Apple to overcome its weaknesses and exploit opportunities, and overcome the threats that threaten its business environment. They are elements specifically adapted to the specific circumstances of the business and technological capabilities. In this context Apple Inc., here are the main advantages that Apple Inc. has: Apple Inc.:

  1. One of the most powerful brands
  2. Profit margins that are high based on premium pricing
  3. Innovative rapid innovation processes that work, built on a long tradition of technological advancement

Apple is among the most valuable and strong brands around the globe. Based on this SWOT analysis the company can launch profitable new products, including new mobile device models because of its strong image as a brand. Additionally, Apple’s marketing mix or 4P includes an approach to pricing that is premium and has large profits margins. This is an internal strategic element that is an important advantage as it increases profits even when sales are small, like for MacBook laptops. Additionally it is Apple’s general competitive strategy and the intensive strategy for growth of Apple Inc. involve an efficient and rapid pace of innovation that allows the company to stay up-to-date with the latest technology to guarantee advantages in the marketplace. Based on this part of the SWOT assessment of Apple Inc., the firm’s strengths are hard to match, helping to maintain its leadership position in the international market.

Apple Weaknesses (Internal Strategies)

In this section of SWOT assessment, the focus is on the weaknesses or shortcomings that Apple has. Apple and its development of technological products as well as its marketing abilities. The weaknesses are internal and hinder business growth and are weighed against the comparative performance of other tech-related businesses. The following weaknesses in the business are the most prominent for Apple:

  1. A limited distribution network is available for its products
  2. Selling prices at high levels
  3. Sales influenced by high-end segments of the market

Apple Inc. has a limited distribution network as a result of its exclusivity policy. As an example Apple carefully chooses the authorized resellers of its products, including iPhones as well as Macs. Its SWOT analysis framework takes into account this strategy of exclusivity as a reason for limiting the market’s reach, resulting in the consumer electronics of Apple not easily accessible to all customers. This is despite the advantages of exclusivity, like Apple’s strict control over distribution of its products. Furthermore, as a result of the premium pricing strategy it employs, Apple’s tech company suffers from the disadvantage of relying on premium market segments. The high prices draw buyers from the middle and high-income brackets. They also hinder customers with lower income brackets from buying Apple’s electronic products for consumers. This is an internal strategic issue that is a weak point since premium segments only make up small percentage of the market. In light of the internecine elements in this particular aspect in the SWOT analysis the Apple Inc.’s strategy of distribution and pricing create limitations or weaknesses to the company.

 Apple Opportunities (External Strategic Factors)

This component that is part of SWOT analysis conducted by Apple Inc. pinpoints the most significant opportunities for the company to take advantage of. Opportunities are external elements dependent on the market environment including the digital content market on demand. These elements affect the direction of strategic businesses. In the case of Apple these are the most important opportunities:

  1. The distribution network is expanded to extend the consumer electronics market reach
  2. Marketing that is more extensive and aggressive to increase sales volume due to increasing demand
  3. The development of new product lines in the field of consumer electronics as well as online services

Apple Inc. has the chance to expand their distribution system. This opportunity is a result of the limitations of the distribution of its products, including tablets and smartphones. This SWOT analysis highlights the necessity to alter the business’s approach to distribution. Expanding distribution networks can aid Apple to reach more customers on the world market. Additionally, the company is able to boost the volume of sales it sells by aggressive marketing, specifically for mobile-related products. This possibility is connected to the growing popularity of mobile internet as shown through the PESTEL/PESTLE report by Apple Inc. In addition, the company is able to develop new product lines that can complement existing ones, for instance, online services. If they continue to innovate it is possible to develop and launch new products as it has accomplished through Apple Watch. Apple Watch. Making new product lines helps business growth, particularly in comparison to other technology companies on the global market. This aspect in the SWOT study of Apple shows that the business has a lot of potential for expansion despite the fierce competitors.

Apple Threats (External Strategic Factors)

In this section of SWOT assessment, the emphasis is on the threat that Apple faces from different sources, including competitors such as Samsung. The threat is external and can affect the performance of a company that is focused on technology. The following threats are most important to Apple Inc.:

  1. Massive multinationals such as Samsung, Amazon, and Microsoft
  2. Imitation involves firms that compete by offering cheap prices
  3. In the different countries in which the company operates manufacturing facilities

The fierce competition in the tech industry is largely due to the firm’s aggressiveness. For instance, Apple competes with firms such as Samsung that also employ rapid innovations. In the SWOT analysis, competitiveness is a limitation on business, indicating the need for solid fundamentals to ensure advantage in the field of hardware and software for computers as well as online services. Additionally, Apple faces the threat of being copied by other products, like the iPhone. International and local companies could mimic the style and features that Apple’s devices offer. In addition, the increasing costs of labor associated with contract manufacturing for example, like those from China can reduce profits or cause prices to go higher. Based on the strategic external aspects included in this SWOT review, the Apple Inc.’s performance is being threatened by fierce competition and the imitators of design.

SWOT analysis of Apple Inc. – Recommendations

The external and internal factors covered during this SWOT analysis show the fact that Apple Inc. possesses major strengths that can help it overcome the weaknesses of its organization. The company is also able to use these strengths to capitalize on opportunities, including expanding its distribution network. Furthermore, the company could benefit from its strong brand image and its rapid innovations to develop and introduce new technology products. But, Apple faces the threats of a fierce competition and imitations, which are the main challenges facing all players on the world marketplace for electronics and consumer goods, computers hardware and software, as well as online distribution services for digital content.

According to the strategy aspects that are highlighted in this SWOT analysis for Apple Inc., a suggestion is to maintain the rapid and aggressive innovation in the creation of the company’s products. Technology innovation can reduce the negative consequences of imitation. Additionally, it is suggested that Apple increase the efficiency of its production processes and also support automatizing its contracted producers to aid in dealing with the increasing cost of labor. Another suggestion is to form alliances with distributors in order to increase the market share of Apple’s electronic consumer products.

Apple Competitors: Microsoft | Lenovo | Google | Samsung | Toshiba | Dell | Sony | HP | Acer |Netflix | Disney | Amazon | Chase | CitiBank | Youtube

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