Apple’s SWOT Analysis: Strengths, Weaknesses, and Future Challenges

Apple SWOT In the 2011 Fortune 500 rankings Apple finished 35th, jumping from the 56th position it established the year before. As of January 2012 Apple surpassed Exxon to become the largest Corporation in the world. Apple’s rapid climb from virtual bankruptcy in 1996 is an incredible story. (Eberhard) Strengths: The products The company's reputation as an innovator Strong, loyal following Control over applications and operating systems Brand Awareness

Weaknesses – Apple's “All In” philosophy has some drawbacks – for example, my Windows phone will not sync on my Macbook. This perceived “if you're not one of us, you are one of them” mindset makes new converts to Apple products wary. Apple doesn't “fail” often but when they do it makes major headlines. Apple Maps served to show how big of a blunder one Apple branded failure can really be. (Goldman). The lack of forethought into the iPad.

No matter how great of a success – and it certainly is – Microsoft's Surface's screen size and inclusion of USB ports and a keyboard is going to make the next generation of the iMac – which could very well be a super charged iPad with all the required ports and a new OS – make Apple look like it is playing catch up instead of leading the innovation themselves. Closed source applications and operating system Brand perceived as “elitist” Diversity of products Cost of product vs. competitors Over saturation (iPhone)

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Opportunities – Apple is readying a Pandora like streaming music service and Apple TV could change the way we view our programing much in the same way the iPod and iTunes revolutionized the music business. Music streaming service Apple TV Shifting more production to US factories The Chinese Market yet to be fully tapped Integration with automakers Threats – Basically everyone who isn’t Apple – Google/Android, Microsoft/Windows 8, Samsung, the list goes on – if you plug it in and talk, listen touch, type, or surf on it and it isn't an Apple, it is a threat to Apple.

Apple's threats come from all directions because Apple not only produces product, it also produces all of the operating systems for it's product and tightly controls what content outside vendors can sell on the App Store. Changes in economy Changes in marketplace Chinese labor controversies Google's Android OS Microsoft's Windows 8 and Surface tablet Windows retail stores http://www. heavy. com/news/2012/12/google-maps-returns-to-iphone/ http://robeberhard. com/? page_id=130 Samsung SWOT Samsung was founded in 1938 as a fish and vegetable grocer. After the Korean War, Samsung's assets were divested and the grocery business was laid to rest.

In 1969 SEC, the Samsung Electronic Corporation was created, beginning the Samsung as we know them today. Samsung now produces televisions, mobile phones, tablet computers, DVD and Blu-Ray players, MP3 players, cameras and semiconductors. Over the years as they acquired new business and branched out into new ventures they have been subject to a variety of lawsuits involving copyright infringement, including those with watchmaker Rolex, mobile phone maker Ericsson and most recently Apple Computer. Apple recently surpassed Samsung to take the number one spot in marketshare in the mobile phone category. Tinari) Samsung's partnership with Google has provided a consistent OS (operating system) for it's mobile devices with Android. Android is an “open source” operating system, which, unlike Apple's, allows for third party users to openly contribute application and programs without company interference or oversight. While this gives users a wider variety of applications, there is no quality control over them, nor is there a way for Samsung to provide the customer service often required of these applications as Samsung has no part in their creation and distribution.

Samsung recently won one of many lawsuits with Apple over the design of their popular Galaxy tablet. The recently released Microsoft Surface tablet and the Kindle Fire are Samsung's largest non-Apple competition in this market, however there are a number of super low cost tablets coming out of China that are also relying on the Android OS. These low cost, low quality tablets are forcing Samsung to advertise more aggressively to assure they are not lumped into this sub group of iPad knock offs. Strengths: Wide range of products Multiple partnerships with other brands, particularly Google and their Android operating system Growing marketshare

High brand value Open source operating system Weaknesses: Lack of control over product once it's partners become involved Slow to release new product Lack of focus on one core product Lower price means lower perceived quality Complaints of not being “user friendly” Opportunities: Open more retail outlets Partnership with new brands means more innovation Reintroduce phones with more user friendly interface Capitalize on Apple's failures Provide more customer service Threats: Continuing legal battle with Apple over copyright infringement Low cost competition in the tablet market

Emulation phones with Android OS weaken Samsung's image Microsoft's Surface tablet Windows Retail stores Changes in marketplace Changes in economy image: www. businessweek. com image: www. talkandroid. com image: www. obamapacman. com http://www. intomobile. com/2013/02/01/apple-grabs-34-mobile-market-share-passing-samsung-become-1/ http://www. businessweek. com/articles/2012-07-03/samsungs-smartphone-pitch-fuels-mobile-ad-boom http://www. talkandroid. com/154223-samsung-ramped-up-advertising-in-2012-outspent-apple-by-68-million/ http://obamapacman. com/2010/11/fail-samsung-galaxy-tab-flash-pop-up-ad-annoys-cnn-users/

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