To predict the success of iPhone 7 in the market, conducting a SWOT analysis for the company is imperative. Apple has been very successful in in producing computer software and hardware that acts as pacesetter for other technologies in the industry. To evaluate the company’s progress, success, and faults requires SWOT analysis. SWOT analysis is a planning tool used to evaluate the strengths, weaknesses, opportunities and threats to an organization.
This model helps in identifying internal and external areas needing improvement and external areas proving to be successful for an organization (Lawrence, 2009). In SWOT analysis, external factors constitute opportunity and threat statements while internal factors constitute strengths and weaknesses of a company as this paper deliberates for the case of Apple.
Apple has a number of strengths that promises success of iPhone 7 in both local and international market. First, Apple is a leading innovator in mobile device technology (Alexandra, 2012). The company has positioned itself as the pioneer in the mobile industry as well as the personal computer industry. For instance, Apple was the first company to introduce touch screen phone in July 2007 (Nikol, 2014). Therefore, the customers are always waiting for the next great mobile device from apple for them to purchase.
Secondly, Apple has very loyal customers who go for quality regardless of the price. Due to its loyal customers, Apple has rose to a brand of distinction in the mobile industry yielding successful net income for the company. Moreover, the company high levels of brand awareness and reputation. Most customers know apple as a brand of promise. Due to its high levels of innovation, its new models always bring a new type technology achieving ultimate customer experience.
In addition, Apple has a strong financial performance. This implies that, there are enough funds to conduct research on new technologies. Lastly, the company runs a series of retail stores. The company has full control over their design and running(Nikol, 2014). These stores have brought the company near the customer hence all their issues are immediately addressed. Such close relations between the customer and the company havecultivated a culture of trust on the company.
On the other hand, apple has various weaknesses that upon improvement to make the iPhone 7 more competitive. First, the company is bracing a declining market share. With increased options offering high quality at lower prices, price sensitive customers have switched to other manufactures such as Samsung and Microsoft’s windows phone. Moreover, mobile technology is advancing very fast. Therefore, has a difficult task of ensuring quality and consistency within its products (Alexandra, 2012).
For example, the iPod despite its global success had major flaws such as short battery life and screen problems. Though the problems have been solved n current models, it is imperative for apple to avoid technological hitches in their devices. Secondly, Apple OS and products are not compatible with other devices. This limits market dominance of apple. Moreover, the company has had lawsuits due to patent infringements. For instance, Apple was embroiled in an infringement suit with Samsung. Though they won, there was high risk of the company’s image distortion thereby reducing brand loyalty (Alexandra, 2012).
On external factors, apple has a wide range of opportunities. First, there is ever widening market for smart phones. Therefore, with a proper market strategy, there are more potential customers for the iPhone brand. For instance, the company is intending to make iPhone Intel chips to enable Apple products support windows operating system (Lawrence, 2009). This is likely to increase Apple’s market share. Secondly, more people are becoming dependent on digitization. This has created an acute demand for internet services like the iTunes and applications.
Therefore, with proper marketing of apple’s iTunes and apps store, growth opportunities for the company are more. Lastly, geographical expansion is another opportunity for apple. With economic growth in countries especially in Asia, for instance China and India, there are more emerging markets for the iPhone.
On the other hand, apple faces major insidious threats. First, the rapid growth and adoption of android operating system has claimed a large chunk of apple’s former market share. Across Europe, many former apple customers have switched to android powered devices. This is due to a variety of applications supported by the operating system. Secondly, Samsung has emerged as the major competitor for Apple (Lawrence, 2009). The company has its brand of galaxy’s models with almost the same functionality as their iPhone counterparts but at lower price. Therefore, apple needs sporadic innovation to counter Samsung’s might lest they are overtaken.
Moreover, since the death of Steve Jobs, there has been lack of innovation in Apple. Within the past few years, apple has not brought new features in its phone. The lack of new products might make people switch to other manufactures such as Samsung. Lastly, the appreciating dollar has made iPhone more and more expensive in some part of the world. This has led to some of the customers who are price sensitive to switch to more affordable devices. This has resulted in decline of revenue from international markets.
SWOT analysis is an invaluable tool in predicting the success of a new product in the market. For Apple, SWOT analysis will help determine the success of iPhone 7 upon its introduction to the market. It is upon the company to utilize the analysis and identifying the areas to work on and those to perfect on to increase the market share for the iPhone 7.