September 07, 2012
Apple Business Analysis Part One
Apple Incorporated has proven itself time and time again as the leading company in innovation and technology advancement. From the iPhone to the iPad, Apple has not only paved the way for new and exciting mobile communication mediums but also for successful business strategies. The $108.25 billion dollar company (Reuters, 2012) has created a loyal consumer base by providing integrating products that persevere, update, and keep the owner connected to the world around them. The upcoming iPhone 5 already has Apple’s consumers saving up for the estimated $199 minimum cost (Grant, 2012), which gives Apple investors a figure to calculate possible growth potential once the phone is released and therefore making the company more appealing to those investors.
A mutual fund manager has many aspects to consider when choosing a company to invest in. The best way to help break those traits down is to conduct a SWOT analysis on the chosen potential company. A SWOT analysis is a method used to evaluate a business’s Strengths it currently possesses in the business market, Weaknesses it has in the business market, Opportunities it has available to take advantage of in order to grow, and Threats it has surrounding the business that may hinder its growth or value. Below is a SWOT analysis of Apple Incorporated that was conducted by Jason Cantrell on September 7th, 2012.
1. Innovative Software that is very user friendly.
a. Apple’s iOS has set the standard for mobile phone operating systems that competitors such as Google Inc Android strive to topple on a daily basis.
b. iTunes has become the standard for downloading and buying digital music once again having another competitive advantage in not only the computer world but also the music business world.
c. Apple’s main operating system software, OSX, for its computer hardware line has also made competitors like Microsoft Windows revamp its current editions to be as seamless and user-friendly as Apple.
2. Apple has the mobile phone market dominated with the iPhone.
a. The iPhone sleek and ergonomic design makes it a plus for consumers.
b. iPhone’s compatibility features with multiple hardware and software features make it more versatile in the market place.
c. iPhone popularity makes it a must for mobile phone consumers.
3. Apple dominates the mobile entertainment market with the iPad.
a. The ever-updating mobile tablet series, the iPad, gives apple high potential growth in digital entertainment sales from books to movies.
b. The speed and ease of use makes the iPad an easy choice over competitors like Amazon.com’s Kindle Fire.
c. The ability to be used as an all-in-one mobile computer system for a fraction of the cost of Apple laptop computers let the consumers have a cheaper Apple computer option.
d. The iPad sleek and ergonomic design makes it a plus for consumers.
1. Initial costs of Apple products are high compared to competitors.
a. Amazon.com’s Kindle Fire Tablet starts out at $199 ("Kindle fire hd," 2012) where as the iPad 2 starts out at $399 ("Apple store," 2011).
a. Competitor Dell computers have laptops that start out around $499 ("dell.com," 2012) where as Apple laptops start out at $999 ("Apple store," 2011).
2. Apple’s per share stock market cost is $662.74 ("Yahoo! finance," 2012) compared to competitor Microsoft cost of $30.72. ("Microsoft corporation (msft)," 2012)
1. Expand market to entertainment industries.
a. Apple could host a variety of music festivals to further market its products.
b. Found and/or build sports/entertainment arenas such as the Staples Center or Verizon Amphitheatre, which could yield high...