Essay on Apple Brand Analysis

Introduction

Apple Inc. majorly deals with the manufacturing and selling of high-end consumer electronics, software for computers, financial services, and other online services. Apple is an American company, which was founded by Steve Jobs in California. By revenue, Apple is the largest company in the world of IT. Its products are well known for durability even though prices are relatively high. Products for the market as provided by Apple Inc. include personal computers, iPad, iPhone, Apple watches, Smart TVs, and online services. Apple, as a brand, is reputable in the global market despite facing fierce competition from other players in the industry. Exceptional software services and a variety of quality electronic products in the market have led to the brand attaining popularity across all nations. For instance, the iPhone is a creation based on innovation and the use of high technology. The company operates in an industry that is reliant on technology, and advancements in innovative initiatives have been their pillar so far. Its strategic global policies in business have seen the company rise to the very top in the IT industry. The paper focuses on the Apple Company, its overview as a brand, SWOT analysis of the company, and the respective competitor Environment that it operates.

Apple Inc. Overview

The Apple Company was founded in the year 1976 by Steve Jobs back in California, USA. The company’s mission statement is geared towards bringing the best user experience to its clients through its innovative hardware and software services (Peng & Liang, 2016). Apple Inc. There are three major components of the mission statements that the company values in its activities. The best user experience is essential in driving the company’s agenda forward. Equally, innovative hardware and software services are elements of their mission statement that are crucial in promoting the brand globally. The company’s vision statement states that the organization is in the face of the earth to make great products, and that’s not going to change. In essence, it is based on innovation and creativity to improve user experience. Through its mission and vision statements, the company has managed to strategically face the global market with a variety of thrilling products and services. Its core philosophy is based on the provision of high-end products through innovation. Creativity and innovation are enshrined as strategic measures to push a company to the next level in the technological industry. Indeed, Apple Inc. has done well in the market to earn a good reputation as a brand.

Apple SWOT Analysis

A SWOT analysis is essential for any brand in a bid to understand its strengths, weaknesses, opportunities, and possible threats to its operations. The first important aspect of the SWOT analysis includes internal strengths that make the company thrive in the industry (Yee & Yazdanifard, 2015). Apple is an iconic brand in the world that many customers would prefer to be associated with. It is the most reliable and trusted electronic company in the world among customers (Khan, Alam & Alam, 2015). As such, its strong global brand name gives the company an upper-hand to sell their products. The company’s market is increasing yearly, and its ability to deliver durable products has boosted its efforts in the global market. Equally, innovation and simplicity have been a key strength in advancing its agenda in the market. The loyal customer base globally provides the required demand for their products and online services. The company has a strong financial background that enables it to establish easily in new markets (Sammut‐Bonnici & Galea, 2015). For instance, setting up in a new region might prove expensive as it is capital intensive, only companies with a reputable financial prowess can manage such operations.

The company has internal weaknesses that act as a hindrance to successful business operations at Apple Inc. Apple prices their products expensively, limiting consumers with lower disposable incomes out (Khan, Alam & Alam, 2015). Most of Apple products and services are relatively expensive compared to what competitor firms offer. As such, individuals in the society who are faced with various financial constraints find it difficult affording an Apple device (Jing, 2018). The high prices serve as a weakness to increased sales for the company globally. If the company decided to cut the price of each device by 40%, sales could go as high as double or triple. Their quality is well respected, but their price fends off some individuals within the society (Khan, Alam & Alam, 2015). A misconception has arisen within many presuming that Apple products are meant for a specific social class in the community. Incompatibility with other software is also another issue that limits Apple’s advancements in the technological world (Yee & Yazdanifard, 2015). The company manufactures devices whose software can only be compatible with another Apple device. It does not give room for other companies to partner up and use shared software.

Apple Inc. has opportunities that, if well utilized, can spearhead the organization to another level. Consistent customer growth should be a factor that the company takes advantage of in a bid to improve its business activities (Yee & Yazdanifard, 2015). The company has dominated the IT sector for decades, and efforts to increase its customer share are proving fruitful yearly. It can rely on the power of the internet to increase their popularity and customer base in the near future (Khan, Alam & Alam, 2015). An expansive distributive network that the company uses in its operations is strategic, in that, it ensures access to almost all parts of the world. The company should take advantage of the opportunity and expand their global market (Yee & Yazdanifard, 2015). Advancements in technology such as the application of Artificial Intelligence is an opportunity that the company should use to advance its agenda in the market.

The company faces various threats in its day to day business activities. For instance, the emergence of counterfeit Apple devices is hampering their efforts to deliver the best user experience. A counterfeit product can make a customer believe that it is Apple who manufactures low-quality products (Khan, Alam & Alam, 2015). As such, there is a need to find a solution to the problem before it gets uncontrollable to the extent of pushing customers away. Other threats to Apple Inc.’s operations include increased competition from firms who sell cheaply, lawsuits, and market penetration (Khan, Alam & Alam, 2015).

Competitor Analysis

Apple’s products compete in highly competitive product categories such as smartphones, computers, financial services, and watches. In all areas of its businesses, the company is faced with competition that threatens its operations. For instance, Apple’s position in the computer market is not as strong as it is in the smartphone market (Peng & Liang, 2016). One main competitor to Apple Inc. products is Samsung, which has constantly remained relevant in the market. Samsung is a strong brand that threatens the future business of Apple in all product lines, including computers, phones, smart TVs, and watches (Clarke & Boersma, 2018). In personal the manufacture of personal computers, Apple faces competition from companies such as Hewlett-Packard Company, Lenovo Group Ltd, Dell Inc., Asus Tek Computer Inc., and Acer Inc. Equally, emergent firms such as Toshiba Corporation, Samsung Electronics Co., Ltd., Sony Corporation, and Fujitsu Ltd provide competition in the market. In the year 2016, Apple was able to capture a share of 7.1% of personal computer sales made. Dell Inc. took 16% (Fernandez & Hendrikse, 2015), HP Inc. 20,8%, Asus 7.2%, Lenovo 21.2% and others 27.7%. The results indicate that the company is not doing exemplary in the sale of computers due to its high prices.

Another category of products that the Apple brand faces competition is smartwatches. The company’s competitors include Garmin Ltd, Samsung Electronics Co., Ltd, Lenovo Group Ltd, Fitbit Inc, Huawei Technologies Co., Ltd, and LG electronics. The company’s smartwatch sales did tremendously well in the first year but have failed by over 70% in the third quarter of the year 2016. Besides the decline, Apple still leads in the market for smartwatches, with over 40% of the market share. Garmin and Samsung are the two closest competitors in the market, which seems to decline year by year (Kuglin, Crosser & Haynes, 2017). Other companies that manufacture smartwatches include Sony Corporation, Asus Tek Computer Inc., TAG Heuer S.A., and Timex Group USA, Inc. In the line of internet services provision, Apple faces competition from companies such as Google Inc., Microsoft Corporation, Amazon.com, Inc., Spotify AB, and Deezer. Barnes & Noble Inc., Netflix, Hulu, and Tidal are some other companies that serve as competition in the market.

In the line of operating systems, Apple has many competitors, including Google Inc., Microsoft Corporation, and Samsung Electronics Co., Ltd. The company maintains a reasonably different OS from what other providers have in the market. The uniqueness of Apple’s OS is a boost to its global operations as one can easily identify with the brand. Other competitor firms in the market include Blackberry and Canonical Ltd. Android control most operating systems, which proves to be a threat to Apple’s operating system (Clarke & Boersma, 2018). Apple Play services competitors in the market include Android Pay, Samsung Pay, Capital One Wallet, Paypal, CurrentC, and Walmart Pay. Android Pay and Samsung Pay are the most active Apple’s competitors in the market. The ability of the company to protect data and ensure proper customer service has boosted efforts by the organization to do better.

Conclusion

To sum it up, Apple Inc. is a brand that has earned a reputation in the market on a global front. It specializes in the manufacture and selling of consumer electronics such as smartphones, personal computers, smart TVs, and online services. The company has done exceptionally well in ensuring that its brand image remains a top priority by manufacturing high-end products. The report analyses Apple’s strengths, weaknesses, opportunities, and threats that impact the operations of the company. The company’s brand name and reputation are both crucial in helping the company cover more customer base. Equally, its financial prowess serves as a strength in helping it develop in new markets. However, the high prices of the company’s products prove to a limiting factor to more sales. The company should take advantage of the increasing smartphone demand and boost their sales. Competitor firms that have proved challenging in the market include Samsung, HP, Lenovo, Asus, Dell, and Sony Corporation. Apple has a chance of doing even better if all strategic measures are implemented in the right way.

References

Clarke, T., & Boersma, M. (2018). Apple, the $1 trillion company searching for its soul. The Conversation.

Fernandez, R., & Hendrikse, R. (2015). The financialisation of Apple.

Jing, J. (2018). A case study on Apple, Inc which affecting the world of Smati Technology Leader or heading down?.

Khan, U. A., Alam, M. N., & Alam, S. (2015). A critical analysis of internal and external environment of Apple Inc. International Journal of Economics, Commerce and Management, 3(6), 955-961.

Kuglin, C., Crosser, R. L., & Haynes, J. J. (2017). Apple, Inc., the UAE, and Joplin, Missouri: An Ethical Opportunity?. Journal of Critical Incidents, 10.

Peng, Y. S., & Liang, I. C. (2016). A dynamic framework for competitor identification: A neglecting role of dominant design. Journal of Business Research, 69(5), 1898-1903.

Sammut‐Bonnici, T., & Galea, D. (2015). SWOT analysis. Wiley Encyclopedia of Management, 1-8.

Yee, F. M., & Yazdanifard, R. (2015). The comparison between ngo marketing and conventional marketing practices from SWOT analysis, marketing mix, and performance evaluation perspectives. Economics, 2(9), 1075-1087.