Apple Analyses

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Executive summary:
Our main purpose of this SWOT Analysis and Porter’s Five Forces Model analysis is to identify the most significant factors that affect a company and its market both internally and externally. These analyses provide Apple with quick, executive keys by looking at strength and weaknesses alongside opportunities and threats. Introduction:

Apple was launched April 1, 1976 by Steve Jobs, Ronald Wayne and Steve Wozniak and is considered to be one of the most innovative technologies companies in the world. The company is responsible for products and services such as the Macintosh desktop and laptop computers, iTunes, iPod, iPhone, iTouch, iPad, Apple TV, and iCloud. Apple also develops its own software to run on its computers. This accomplished company faces constant challenges from a competitive market to a technology lifecycle that is continuously being shortened and thus must make key decisions on which products to build or discontinue in order maintaining its competitive edge. This analysis will look at several analytical tools that can be used to evaluate Apple’s competitive intelligence. The tools are; SWOT analysis, The Five Forces Model. SWOT analysis:

SWOT analysis is an excellent tool to use to identify strengths, weaknesses, opportunities and threats (www.mindtools.com). There are several questions that you should be able to answer when using this tool. • What advantages does your company have (strength)?

• What areas can you improve upon or avoid (weakness)?
• What interesting trends are you aware of (opportunity)?
• What are your competitors doing (threats)?
Applying this tool to Apple and we would see the following;
Strengths

Apple is a company, which manufactures a variety of products including computers, operational software, mobile phones, portable digital music and related accessories. The brand is well known for high quality products, which help differentiate them from competitors. The company owns one of the top brand names in technology worldwide with 54% of their profits coming from foreign markets (Apple Annual Report, 2006).

The company operates on the purpose of developing new products which offer an easier and more efficient way of using technology. The final products always appear at the most convenient and easy to use in the market.

Apple is a worldwide leader in harnessing a portfolio of product diversification. With its product lines, the company targets a wide ranging audience in almost every technological market. Moreover, with such a large customer base, the company has a large network of corporate and commercial buyers who are loyal to the brand, even though sometimes the price paid is higher than alternatives in the market.

The following table shows net sales by operating segment and net sales and unit sales by product during 2012, 2011, and 2010 (dollars in millions and units in thousands): 2012 Change 2011 Change 2010 Net Sales by Operating Segment:

Americas net sales ............................ $ 57,512 50% $ 38,315 56% $24,498 Europe net sales .............................. 36,323 31% 27,778 49% 18,692 Japan net sales ............................... 10,571 94% 5,437 37% 3,981 Asia-Pacific net sales .......................... 33,274 47% 22,592 174% 8,256 Retail net sales ............................... 18,828 33% 14,127 44% 9,798 Total net sales............................ $156,508 45% $108,249 66% $65,225

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Figure 1: Apple Inc Revenues...
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