SWOT ANALYSIS

WEEK 7-8 MARKETING MANAGEMENT

Key Point
It is important that the four components of the SWOT analysis are considered together and not in
isolation. This is because a factor can be both a threat or an opportunity, depending on the context and
how you are able to respond to it

Sample SWOT Analysis

Apple Company Inc.

1. Most Valuable brand - Apple is ranked # 1 for the 7th consecutive year by Interbrand – with a brand
value of $234 billion.

2. Globally Iconic - Apple is one of the most reliable company when it comes to personalized advanced
computers and smart technology devices. It has millions of loyal customers with steady increment.

3. Top technology - Apple was the first to introduce some of the most innovative products that have
changed the world (iPhones, iPads). Apple is still determined to build and craft better, more proficient
technology devices.

4. Brand of Choice - It isn’t big news that Apple is a demanded brand in corporate offices. Apple has a
specific business page that offers top quality technology solutions for every corporation’s needs.

5. Proficient research - Apple puts dedication into its product designs. Careful study is initiated and
further research is performed to help understand customer needs and requirements.

6. Sustainability made Possible through Liam - Liam is an iPhone recycling robot that breaks down and
dissects an iPhone. It strips them all the way down to a single bolt. Most parts of an iPhone can be
reused.

Weaknesses

1. High priced Products - Apple’s products can be considered a luxury due to their premium prices. The
products are priced for middle and high-income consumers. Low-Income consumers can’t simply afford
Apple products. Due to their premium pricing, only middle or high-class individuals can afford their
products.

2. Limited advertisements and promotions - Apple has solidified their grounds by establishing loyal
customers, even with limited advertising resources. Apple marketing relies heavily on its iconic and
flagship retail stores. Because of their success, Apple does not feel the need to have excessive spending
towards advertisement in comparison to other big brands such as P&G, Coca Cola and Samsung
technology.  

3. Lack of competition - Apple is rapidly expanding into new services such as video content streaming,
game streaming, credit card – competing with the dominant players such as Netflix, Disney, Citi, Chase,
Paypal, etc. They might be entering into areas in which they lack competencies; remember the failure of
Apple maps.

4. Incompatibility with other software - When a customer buys an apple product, they enter the Apple
universe. Apple’s products do not support other software or technologies making them incompatible
with other devices.
Opportunities

1. Consistent Consumer growth - Apple has been dominating the technology sector for years now. They
provide top quality and cutting-edge technology that offers a breakthrough in customer experience.

2. Qualified professionals - Apple’s researchers, developers, and product specialists are a team of highly
qualified professionals that have years of experience in branding consumer products. With the
expansion of their team, Apple can continuously build new opportunities.

3. Expansive distribution network - Apple Inc. has the opportunity to expand its distribution network.
Currently, the distribution network that Apple has is very limited and leaves room for minimal growth.

4. Lack of Green technology - Apple is yet to launch products that are created using green technology.
The company has not yet implemented or participated in creating sustainable technology that is eco-
friendly.

5. Smart wearable technology - Smart wearable technology will soon dominate the world. According to
Forbes, smart wearable technology device sales will double by 2022. It will become a $27 billion+ market
with 233 million unit sales. Apple has the opportunity to continue to grow beyond just Apple watch and
AirPods into other wearable categories.

6. Utilize artificial intelligence - To increase its profit margins and have a strong market position, Apple
should utilize artificial intelligence. Recently, the company has extended its AI portfolio.

Threats 

1. Bullied by counterfeits - Apple has become vulnerable to third world countries illegally utilizing the
brand image to sell counterfeit products. The illegal dealers sell Apple counterfeit products at the same
value as an original Apple product.

2. Increasing Competition - Although Apple as a brand has solidified itself, it still faces threats from
competitors. With the advancement in technology, brands like Samsung, Google, and Dell are giving
Apple tough competition.

3. Market Penetration - There has been a significant change in market penetration by other brands in
the smartphone market. Companies like Samsung, HTC, and Lenovo are using Android software to
create new smartphones. Currently, Android has captured 72.23% of the market share, while Apple has
only 24.55% of the market share globally.

4. Coronavirus - Apple is highly dependent on China for its manufacturing and supply chain. In addition,
about 17 % of its $260 billion in revenue come from China (a big market for Apple). The outbreak has
significantly affected and may continue to disrupt about 32% of Apple’s annual revenue in the fiscal year
2020
Completing the SWOT Analysis

Now that you understand the sections in the SWOT Analysis Template, it’s time to go ahead and
complete it! It is important to have a clear objective for developing your SWOT analysis, and its content
will vary significantly according to the question(s) you want to answer. Use the tips below to help you
construct an effective SWOT analysis.

 Do not overestimate the strengths or underestimate the weaknesses of your project. Be realistic
in your analysis.

 Be prepared with all the relevant facts and figures.

 Get input from other people.

 Focus on the current situation and what you know rather than what you want the project to
become.

 Prioritize facts over opinions.

 Only include information that is relevant to your decision making.

 Use your competitors or similar organizations in your sector as a benchmark to assess your
internal factors against.

 Keep your SWOT analysis short and simple – avoid unnecessary complexities.

 Use no more than ten factors for each section.

Using the SWOT analysis for decision making

The act of completing your SWOT analysis template may bring some revelations in itself, but
you’ll also need to work with the completed tool to get the most value from the whole SWOT analysis
process

Consider your obvious natural priorities

 Are you doing everything you can to make the most of your strengths?

 What ‘quick wins’ can you implement straight away?

 Within your weaknesses, what could you start or stop doing straight away that would make a
positive change?

 Are there any weakness so urgent that you need to remedy them before considering any other
actions?
Consider how your strengths align with the opportunities 

 Are there any surprises that you need to explore in more detail?

 How are you going to prioritize the right opportunities for you, for example, ‘quick wins’ or long-
term gain?

 What are the opportunities that don’t involve your weaknesses?

Consider how your weaknesses align with threats:

 Does this highlight any vulnerabilities you weren’t aware of?

 Can anything be turned into an opportunity, for example, is it time to stop pursuing something
you’re not very good at and focus resources elsewhere?

 Will your colleagues agree with this analysis or are they in denial about the weaknesses and
threats?

Consider any other potential matches

 Are any threats balanced by opportunities?