Step 4 - Diagnosis (Apple's SWOT)

Step 4 - Diagnosis (Apple’s SWOT)

1) In the face of the fierce price competition and the presence of computer giants such as Hp-Compaq, Apple’s products are still high-priced despite its efforts in cost reduction, which in turn has led to lower returns on investment compared to competitors

2) Despite Apple’s computers being the only alternative to the PC platform targeted at less mainstream computer users, and growing frustration with Microsoft’s Windows platform due to its vulnerability to malware, and the consequent popularity of Unix based platforms among IT professionals, the restrictions of Apple applications by hardware may be an obstacle for Apple to take advantage of those opportunities

3) Although Apple’s Bricks and Mortar approach through its exclusive stores and showrooms, combined with its recent online sales initiatives and an excellent track record of customer service may be a point of strength, Dell’s direct online sales approach and JIT supply chain poses a great challenge for all the competitors in PC industry, including Apple

4) Although the accelerating growth of PC market along with the rise of laptop popularity and integration of portable electronics into every aspect of modern life creates a great opportunity for apple’s innovative products, the growing concern about environmental effects of used computers may bring about financial and logistic costs to the already high prices of Apple products in the future

5) Apple’s innovative thinking and trendsetting designs have always been the driving force of the company and have helped it to take advantage of the called-for advancements in human-computer interfaces; however, over-dependence of the company’s innovations on the character of Steve Jobs may imply an ambiguous future for this driving force

6) Despite its robust financial performance over the past few years, the historical fact of Apple’s late venture into licensing its then-unique operating system, is always a point of regret for the management of the company; and along with a declining R&D investment ratio over revenues, it may cast a shadow of uncertainty over the future performance

In conclusion, Apple is a late bloomer that still targets mainly the medium-to-high end of the market, and faces great challenges in cost reduction to obtain a greater market share