SWOT Analysis of Apple Inc. Essay

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Apple SWOT Analysis

Apple Inc. was founded as Apple Computer Inc. In 1976 by Steve Jobs and Steve Wozniak. They dropped the word 'computer' from the company name 30 years later, hence the current name - Apple Inc. (Apple Inc., 2014). Apple is well-known for the iPod, the iPad, the iPhone and the Macintosh line of computers.

The top management of Apple Inc. consists of the CEO, 6 directors and the Chairman of the Board. The subordinates are the CFO and directors of different departments (Apple Inc., 2014). It applies a collaborative organizational structure where all members are encouraged to work together to come up with ideas aimed at developing the company.

Although it is well-known for its success, Apple Inc. has also had its fair share of criticism. In 2010, Apple was criticized for banning iPhone users from downloading the Google Voice application although it later allowed the same. It was said to practice unethical business when it forced the European Union consumers to buy songs off I-tunes only. Steve Jobs was also in the public limelight when he banned all books published by Wiley and Sons from Apple stores, his reason being he did not approve them publishing his biography without his approval (Apple Inc., 2014).

Apple Inc. has experienced immense growth. The death of Steve Jobs was a major setback but according to recent reports, the new CEO Tim Cook is doing well in running the company.

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As of September 2014, Apple Inc. reported quarterly revenue of $42.1 billion and a quarterly net profit of $8.5 billion (Apple Inc., 2014).

The company's strengths and weaknesses

The strengths of a company are the areas that give it a competitive advantage over its competitors. An entity could be richer in terms of resources, competencies or ideas (Ritcher and Pahl, 2007). Apple Inc. has products that are linked together. For example, when consumers buy personal computers, they will need complementary software. Since a personal computer might not be suitable for travel, a consumer may seek an iPad which is easier to carry around. Another consumer may also prefer an iPad that can be used for both cell phone and music needs. Such convenience guarantees customer loyalty. Apple Inc. is therefore well-known for its loyal base of customers (Jeynes, 2013).

Apple is a leading innovator in mobile device technology. The CEO, Tim Cook, stated that "2014 was one for the record books, including the biggest iPhone launch ever with iPhone 6 and iPhone 6 Plus" (Apple Inc., 2014). It was also able to come up with new user friendly products and use the best tailor made designs.

Apple is well-known for its good financial performance. Luca Maestri, Apple's CFO, stated that in the last quarter of 2014, they "earned a record $13.3 billion in cash flow from operations…bringing.....

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