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 in today's tight economic climate. The company's strong brand recognition and image of quality and innovation provides brand value so the company can charge a premium for its products. The loyal customer base, particularly with regard to the company's computing products, ensures ongoing future sales. The commitment to research and development, which includes not only funding but the willingness of the company to actively pursue innovative products and technologies, helps the com...