Culminating Research Paper-Apple INC- Can apple withstand competition from Samsung
Culminating Research Paper-Apple INC- Can apple withstand competition from Samsung(Name)(Course name)(Instructor’s name)(Date of submission)
SWOT Analysis of Apple INC.
Strengths
Apple, the US based global mobile phones and computer developer has been the leading tech development company in the world for a long time. The company has developed appealing mobile devices attractive to Internet users the world over. Its recent achievements in the mobile sector has been the launch of the iPhone 5 and the all new I pod that boasts of new and improved features. Apple was the first company in the world to launch smart phones under the iPhone brand name. The company introduced phones attractive to business executives and tech savvy students making it the global innovations leader in the smart phone market. The company rivaled mobile giants such as Nokia and Blackberry leaving it in a class of its own. Under the stewardship of Steve Jobs, the company also produced desktop computers of a kind under the Mac platform. The company also ventured in the laptops business and developed enhanced Mac book laptops incomparable to others in the market. Apple also has such a strong brand name renown and respected all over the world. Apple’s logo is itself a respected logo that is recognised the world over. The company’s Apple lights at the back of every laptop and is designed to attract the potential buyer. The logo lights up brightly during the day and even more conspicuously during the night making it very attractive on those who do not own one. Besides being displayed at the back of laptops, the company has also made efforts to make sure the logo is well displayed during TV commercials. As a result of these aggressive but unique marketing campaigns, the company has become a globally respected brand; no wonder many people do not complain much about the cost of buying Apple products compared to those of its rivals.Another strength that apple has is the robust financial performance. The company has got a huge capital base that has enabled it to penetrate foreign markets and dominate overseas markets. The company has also been able to open manufacturing plants in other countries such as China where production and manufacturing is much cheaper than in the US. China is also a global communication and transit hub that opens to wider global markets. Apple being cognizant of the above factors knows that Apple, its main rival has an ambitious expansion program to become the global market leader in the Smartphone market. In fact, Samsung has got much bigger financial pockets than Apple; it has outdone Apple in the sale of Smart phones especially in Europe, Asia and African countries. Samsung has also been a global tech innovator by coming up with unique applications and, capabilities especially in its Galaxy phones and other Galaxy gadgets such as the Galaxy camera. As a result of this, Apple has embarked on an equally ambitious program to increase its sales and penetrate markets dominated Samsung but where demand for the Apple products is also very high. The company pumped more than $7.1 billion in 2012 in capital spending in order to enhance supply chain and minimize supply shortages and missed orders. The company CEO Tim Cook has termed this as the beginning of the company’s journey in dominating the Smartphone market. This will help the company outdo Samsung and retain its former position as the market leader.
Weaknesses
Besides all the above strengths, Apple has also faced and had a number of weaknesses. First is patent infringement. The company has had looming and constant court battles with Samsung for patent infringements. The past two years have witnessed unending lawsuit battles between Apple and Samsung. Apple has time and again sued Samsung for patent violations although Samsung has denied these accusations. All court rulings seem to have been made in favor of Samsung and, many are left to ask, Can Apple withstands competition from Samsung? To answer this question, I will first analyze the competitive capabilities of Apple. First, Apple is known for producing extremely superior products compared to its rivals such as Samsung. Hardly does anyone hear of breakdowns among Apple products which have often been experienced among its rivals such as Samsung products. Apple products are not prone to breakages because they are designed to last for a long time. Besides this, Apple products are also superior in the sense that they use an operating system that is only unique to Apple products as compare to the Samsung products that operate under the Android application platform which is available to all willing mobile developers. Secondly, apple has been a real cutting edge hardware developer. Its designs are unique and elegant unparallel to those of its closest rivals. There are companies such as Sony and Toshiba that have come close at times but still Apple retains the tag for producing the best and most unique hard wares. This is true due to the fact that even with the intense competition in the market, still no company has been able to produce a hardware MP3 player such as the I pod which was produced by Apple. Comparing Apple’s Mac computers with other computer brands in the market, Apple is still the company to look out for in producing outstanding products in the future. The Mac computer is one of its kinds and it boasts of being a super computer combining the monitor with the CPU into one unique unit. The Mac book laptops are also uniquely designed in their operation to make them much easier and comfortable to use for travelers especially in an airplane. Another weakness by Apple has been product recalls. Some Apple products after being distributed in the market have had to be recalled after having some technical errors. This has proved to be damaging to the companies image and is considered a major wekness on the part of the company by a majority of the tech pundits.
Opportunities
The company’s opportunities are the increasing demand for more capable and enhanced mobile devices with better battery life and mobile charging capabilities. The company also has threats such as the emergence of Samsung as the company with the largest market share in the smart phone market. Samsung being Apples main rival has launched major advertisements campaigns to water down Apple’s efforts of being the global innovations leader. Apple also faces threats with the increasing amortization of raw materials used in the manufacture of its products.There are also increased opportunities in the Smart phones market especially in African countries where the demand for western products continues to grow by the day yet Apple has a very small presence there. Apple should also consider opening up new stores so as to tap the untapped markets.
Threats
Apples biggest threat is the intense competition posed by Samsung as an emerging global innovator is the Smartphone market. Samsung now commands the lions share in the smart phones market globally. Its galaxy 4S smart phone has by far outdone Apples iPhone 5. Many smart phone users cite the Galaxy phones as being better than the iPhone 5. Intensive marketing campaigns have also contributed to the increased uptake of Samsung products than Apples product. The company has launched aggressive marketing ads especially in the US to portray the iPhone 5 as a midget product compared to Samsungs Galaxy S phones. The company has also rivaled Apple in the tablet market by developing Samsung Tabs to rival Apples I pads. In the light of all this, many tech pundits have been left asking whether Apple will be able to withstand Samsung’s competition especially given the fact that the company has a tough financial muscle than Apple.RecommendationsApple needs to address the major challenges that it faces today sooner than later or else it will go down like former giants Nokia and Siemens. First, Apple must address the competition threat posed to it by Samsung. The company needs to adapt robust and intense marketing strategies to water down the euphoric atmosphere created by Samsung. Secondly, the company is known to produce products only for the uptown people and city dwellers. This is making the company loose a huge chunk of the market to Samsung. The company should consider producing products for the middle and low class people in the social ladder. Thirdly, Apple should consider utilizing its legal patents to raise more money to enable it raise more capital for expansion purposes. Lastly, there is the common notion that Steve Jobs was the face of Apple. This could prove to be a challenge to the company since Steve Jobs is no longer alive. The company should consider upgrading its image to be seen not just as Steve Jobs but as a respected brand even in the absence of Steve Jobs.
Executive Summary
Apple Inc is the largest mobile phone manufacturing company in the US. Apple was the first company to launch smart phones in the world. The company produces mobile gadgets under the ‘I’ banner such as the iPhone, iMac, iPod, and iPad. The company has had the lion’s share in the Smart phones market for a long time but has recently been overtaken by Samsung. The company’s founder was Steve Jobs and has been its CEO for a long time until his demise. He was succeeded by Tom Cook who is its current CEO.Apple has innovative capabilities and has produced gadgets unparallel to those of its closest rivals. The company’s closest rival is Samsung that produces products almost similar o those of Apple. The company’s major strengths are production o superior products and a strong brand name that is recognized and respected the world over. The company’s weaknesses are failure to meet deadlines, failure to meet demand at times and supply shortages. The company’s products are not readily available in some African countries. The company’s opportunities are the increasing demand for more capable and enhanced mobile devices with better battery life and mobile charging capabilities. The company also has threats such as the emergence of Samsung as the company with the largest market share in the smart phone market. Samsung being Apples main rival has launched major advertisements campaigns to water down Apple’s efforts of being the global innovations leader. Apple also faces threats with the increasing amortization of raw materials used in the manufacture of its products.Finally, the writer gives recommendations on how Apple can improve its global presence at the end of the text.
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