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Apple Inc. SWOT & PESTLE Analysis

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A detail analysis of internal factors (SWOT Analysis) and external factors (PESTLE Analysis) affecting Apple Inc. along with company overview and recommendations to overcome weaknesses and avoid threats.

Published in: Business
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Apple Inc. SWOT & PESTLE Analysis

  1. 1. APPLE INC. SWOT AND PESTLE ANALYSIS NINAD G. JAPE
  2. 2. INTRODUCTION • Apple is considered as the world’s most notable and recognisable brand for electronic devices. • Co-founded by Steve Jobs and Steve Wozniak • World’s largest information technology company in terms of revenue • World’s largest technology company in total assets • World’s second largest mobile phone manufacturer with 115,000 employees.
  3. 3. COMPANY OVERVIEW Industry Served Consumer electronics, computer hardware, computer software and online services Headquarter Apple Campus, Cupertino, California, U.S. Area Served Worldwide Revenue $231.28 Billion (2015) Current CEO Timothy Donald ‘Tim’ Cook Competitors Samsung Electronics Co. Ltd., Google Inc., Cisco Systems Inc., Hewlett-Packard Company, Lenovo Group Limited, Sony Corporations Products iPhone, iPod, iPad, Mac, Apple TV, software applications system iOS, OS X operating system, portable digital music players, iCloud and its accessories, applications like App Store, iTunes Store, iBook Store and Mac App Store and many more Website www.apple.com
  4. 4. SWOT is an acronym for Strengths Weaknesses Opportunities Threats The purpose of SWOT analysis is to enhance the organisation’s strengths, excludes its weaknesses, pursue opportunities and avoid potential threats. SWOT Analysis SWOT
  5. 5. • High Price • Incompatibility of different OS • Dependent on iPhone and iPad • Limited direct sales locations • Leading innovators among electronics brands • High brand recognition • iTunes Music Store is a excellent source of revenue, especially with the iPod and the accessibility on Windows platform • Apple Computer is expert in developing own software and hardware • High quality customer experience SW STRENGTHS WEAKNESSES
  6. 6. • Antivirus Solution • Downloadable music • Laptop market • Apple Pay • Android OS • Downloadable music • Windows 10 • Convertible Laptops OPPORTUNITIES THREATS OT
  7. 7. PESTLE Analysis PESTLE is mainly an acronym of six factors which are Political Economic Social Technological Legal Environmental PESTLE analysis is used to analyse and monitor the macro-environmental (external marketing environmental) factors that have an impact on the company. PESTLE
  8. 8. POLITICAL ECONOMICAL • More than half of sales of their products come from countries other than America. • Apple is heavily dependent on lower cost manufacturing in China. • The cost of finding alternatives. • Bad political relations between U.S. and other countries may have bad outcomes for the company. • Customers spend less on Apple products as they are expensive as compared to their competitors. • Europe’s economic difficulties and fall in Pound led to decrease in sales of Apple products in Europe • Increased labour cost in China affected the prices of Apple products as most of the parts are manufactured in China. PE
  9. 9. • Apple products have marked their presence on the international market. • Possessing Apple products is considered as a status symbol in many societies which has increased the sales of Apple products. • The purchasing power of the common have increased due to which people are shifting towards more luxurious products. • Technology has a short lifetime. Apple needs to upgrade their products more often to outdo their competitors. • Apple need to provide more safety solutions to tackle growing menace of cyber crimes. • Competitors are offering the same products and services at lower cost. So the apple products are no longer unique. SOCIAL TECHNOLOGICAL ST
  10. 10. • Participant in various lawsuits since it began operation. • In 2009, Nokia sued Apple for infringement of Nokia’s patent relating to wireless technology. • Apple has been in number of patent cases with competitors like HTC, Samsung. • Entered highly regulated financial sector by Apple Pay. • Expense of disposing of nonworking or used electronic devices. • Pollution and other environmental concerns from manufacturing facilities in China. • Climate change due to global warming could disrupt Apple’s supply chain. • China’s efforts to reduce fossil fuel use could increase electricity rates and manufacturing costs for Apple in that country. LEGAL ENVIRONMENTAL LE
  11. 11. CONCLUSION • Given the company’s current leadership in the industry, Apple is in a position to enjoy these opportunities. • The uniqueness in its design gives the company a competitive advantage which reflects in their sales and revenues. • So it can be said that Apple will continue to be the leader in the electronic industry in years to come.
  12. 12. THANK YOU…

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