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Apple Inc.: Strategic Analysis Essay

History of Apple Inc.

The modern business environment could be characterized by an increased level of rivalry. The fact is that the tendency towards the sophistication of society along with globalization created the background for the blistering rise of a business. It is now considered one of the ways to become successful and respected by other members of society. At the same time, giant corporations could be considered important actors that impact the global policy and distribution of funds globally.

In this regard, the functioning of any beneficial company presents severe difficulties as many factors should be considered and numerous rivals that also try to conquer markets and become successful. In this regard, the acquisition of a certain competitive advantage and creation of an efficient management model becomes a prior task to CEOs. Its importance could be demonstrated by investigating Apple as an example of a powerful modern company that manages to preserve leading positions due to its competitive advantage.

​Industry and Competitors

Apple Inc. is the US global company that is focused on manufacturing digital devices and software characterized by the innovative character, unique quality, and unusual approaches that precondition the further evolution of the market. It was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 with the idea to create their personal computers (Rawlinson, 2017). The company became extremely successful and in 1977 computers manufactured by Apple contributed to its outstanding financial stability.

However, the high price for its devices had been a limiting factor for a long period. In 1997 Steve Jobs became a companys CEO and rebuilt Apples status (Rawlinson, 2017). Retail stores were opened. This step helped to reorganize the company and create the basis for its further evolution. Finally, the company created the first iPhone which became a crucial event in its evolution (Rawlinson, 2017). Nowadays, it is mainly associated with this product, as well as an iPad, and an iPod.

Technology and how utilized

At the moment, Apple Inc. is one of the leading companies in the high-tech industry. According to the latest investigations, it is one of the most fast-growing and profitable industries that could guarantee multibillion incomes (“Apple Inc,” n.d.). The fact is that technologies and devices are used in all spheres of human activity. Moreover, to increase the efficiency of various processes attempts to replace outdated devices with new ones are performed. That is why companies that produce this sort of goods could expect a stable and high level of income as their products will always be needed.

At the moment, Apple has numerous competitors that also realize the above-mentioned facts and try to conquer the market. These are Samsung that has a traditionally powerful position in the high-tech industry; Dell that produces powerful laptops; Amazon that also becomes a powerful actor in the market of digital technologies, Windows that has always been considered one of the main and most powerful rivals and which has outstanding potential and opportunities for the evolution.

Financials and Position of Business

Despite numerous rivals, Apple Inc. could be considered one of the most successful modern companies. By its annual report, the company managed to acquire quarterly revenue of $46.9 billion and a net income of $9 billion (“Apple reports fourth-quarter results,” 2016). The given sum perfectly demonstrates the overwhelming success of the company and its ability to remain competitive for a long period. Additionally, international sales accounted for 62 percent and showed the tendency towards the further rise (“Apple reports fourth-quarter results,” 2016).

The given statistics demonstrate that the company preserves its global character. Moreover, it continues to conquer new markets and introduce strategies that could help to win the rivalry and acquire new outlets. Finally, Apple has also announced that till the year 2017 its revenue will remain on the same level with the tendency towards the further increase (“Apple reports fourth-quarter results,” 2016).

One of the main factors that guarantee outstanding financial performance is the innovative character of the company and the usage of unique technologies within one device. For instance, a famous iPhone is created using the technologies that could hardly be found in models presented by other companies. Apple Inc. possesses numerous patents and, for this reason, it can create a device that will differ from similar ones presented in the market. Today, iPhones are associated with the high quality of photos, sound, images, etc. It means that the company can preserve a competitive advantage by exploring outstanding technologies like smartphone cameras, software, applications, etc. and creating devices that attract peoples attention.

​SWOT analysis

Continuing the investigation of Apples functioning, a SWOT analysis should be performed. The companys obvious strength is its unique status. Today, Apple production could be considered a part of a fashionable brand. A person who wants to belong to a certain trend has to possess an iPhone as it underlines his/her status. Moreover, the innovative and advanced status of the companys products is another strength of Apple Inc. because it contributes to the increased number of sales. As for weaknesses, there are several problems with design and new models. The fact is that every new iPhone is similar to the previous one with a small number of changes (“Apple Inc,” n.d.).

For this reason, it might seem that there is no potential for further evolution and the lack of innovative ideas. However, the company still has numerous opportunities for further evolution. It could continue its global development and find new outlets. Additionally, new target audiences could be found. Unfortunately, there are also several threats. First, it is the activity of rivals that become more and more powerful and attain their target audiences. Second, it is the financial crisis that deprives potential customers of an opportunity to buy the companys products.

Trends and disruptive technologies to watch in Apple Inc.

There are also several trends which should be watched to assure that a company still preserves its leading status and can compete with its closest rivals. These are new interfaces, software, digital devices, etc. It is crucial to trace alterations in these spheres as they might endanger the current status quo and deprive Apple of its competitive advantage.


Altogether, Apple remains one of the most powerful companies that determine the evolution of the market and the whole industry. It manages to create a significant competitive advantage by creating unique devices that become part of the modern mode of life. For this reason, it is possible to predict the further companys evolution and preservation of its leading positions. Its stable incomes and the tendency towards the increase in the revenues precondition the promising character of the company. Finally, its closest rivals are still not able to acquire the same popularity and conquer the market. For this reason, Apple Inc. will remain an important agent that impacts the high-tech industry greatly and attracts customers attention.


Apple Inc. (n.d.)

. (2016).

Rawlinson, N. (2017). .

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IvyPanda. (2020) 'Apple Inc.: Strategic Analysis'. 6 September.

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