Apple Computer Strategic Analysis
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Apple, Incorporated is a strong consumer company that is known for innovation and quality in markets as diverse as personal computers and music downloads. It is thus both a hardware company and a content provider, and its branding is well-established. It has succeeded in an industry where it has a relatively small share of the market-the microcomputer industry-and it has redefined how the world listens to music through its iTunes concept. This research explores Apple's strengths, weaknesses, opportunities and threats with the goal of understanding strategies that might be successful for other companies. Apple's internal strengths include its strong cash position, its lack of long-term debt, its strong brand identification with innovation and quality, a highly loyal customer base, and a longstanding commitment to research and development ("Apple 10-K," 2008). A strong cash position is important because it indicates that the company will be able to cover its obligations and invest in short-term development projects without having to borrow funds. It provides flexibility to the organization. The same is true for the company's lack of long-term debt. Apple carries no long-term debt, which means that it has flexibility in how it funds new projects. This includes the ability to use debt financing for large undertakings. This lack of debt also enhances the company's ability to obtain short-term financing, which is especially important
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on outside vendors to provide content, and these vendors can be lured away by competitors. The reliance on single cellular services means that iPhone sales are directly tied to the fortunes of these cellular providers, and as other advanced phones are introduced to the market, this could prove problematic to customers who are not willing to switch to the single provider. The departure of Steve Jobs is perhaps most important for its symbolic significance in that Jobs helped create the personal computer and helped transform the music industry with the iPod and iTunes. He is seen as an industry leader on whom Apple is heavily reliant if not actually dependent (Rusche, 2009).
Opportunities
Major external opportunities for Apple include new hardware opportunities in the microcomputer industry, new hardware opportunities in delivery of mobile content, new software opportunities for applications for both types of devices, new opportunities in online services, and the opportunity to bundle products / services to consumers (Ankeny, 2008).
Apple has been a strong innovator in the microcomputer industry, but has not been able to translate that leadership into market share. It has, however, demonstrated an abi
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Some common words found in the essay are:
Strengths Apple's, Opportunities Major, Weaknesses Internal, Strategy Apple, Threats Threats, Apple Incorporated, Steve Jobs, Online Retrieved, Bibliography Ankeny, Inc Rusche, market share, online services, research development, products services, mobile content, increased competition, retrieved 17 january, mobile devices, long-term debt, rusche 2009, 17 january, loyal customer base, 17 january 2009, increased competition online, reliance single cellular,
Approximate Word count = 1235
Approximate Pages = 5 (250 words per page)
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