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Analysis Summary of Opportunities & Threats


Time horizon

Time horizon

Distribution network expansion

Imitation from competitors

1-5 years

Rising demand for tablets and smartphones

Aggressive competition

1-5 years

Creation of new product line

Rising labour cost

1-4 years

Modern technological advantages

Price Erosion

1-2 years

How are these opportunities related to serving customers’ needs?

  • Distribution network expansion ensures that the customers’ needs are met through ease in the delivery of the product. In this case, customers can efficiently ship Apple products in shorter time duration to their preferred destinations.

  • Rising demand for tablets and smartphones in Australia presents an opportunity for Apple to meet this demand by increasing its production capacity on iPads and iPhones.

  • Creation of new product line ensures that the needs of the customers are met through the new products hence meeting different customers’ taste and preferences.

  • Major technological advancements ensure that the Apple products are created and customised as per the customers need.

Threats (external situations independent of the firm)

  • Imitation is a significant threat that threatens the preference of apple products among customers; therefore, other manufacturers provide a similar taste and preference that suits the customers’ needs cheaply compared to what apple offers. (Smithson, 2015).

  • Aggressive competition eats on Apple’s market share thus apple will have to spend a lot of resources in order to be innovative and relevant in the market

  • Rising labour cost leads to Apple products being expensive thus forcing it to use machinery and computerisation methods to ensures it maintains the quality without affecting the overall price of the product. However, competitors have priced their products cheaper as opposed to apple thus affecting the customer base of apple. This has been necessitated by the reluctance of apple to franchise their production services to low cost labour countries like India and china (Spector, 2015).

  • IPhones are priced higher compared to other high end smartphones from Samsung and Sony and this has proved to be a major threat for apple in Australia

Implications to the firm and probability of occurrence


Implications to the firm

Degree of Significance of the Opportunity (Rating)

Probability of Occurrence (Rating)

Distribution network expansion

  • An increase of apple’s market share

  • Ability to meet customers tastes and preferences adequately

Rising demand for tablets and smartphones

  • A need for increase in production

  • Continuous innovations

  • Increased profits

Creation of new product line

  • Apple remains relevant in the industry

  • Increases customer loyalty through new products

Modern technological advantages

  • The ability to manufacture quality products

  • Ability to cater for customer changes in tastes and preferences.

  • The need for Apple to new technological methods in their products methods

Implications to the firm

Degree of Significance of the Opportunity (Rating)


  • Affects Apple’s profits

  • They ruin the reputation of Apple as a brand

  • Affect customer loyalty

Aggressive competition

  • Reduction of Apple’s profit margin

  • Reduction in Apple’s market share

Rising labour cost

  • Leads to high production costs

Price Erosion

  • Affects Apple’s profits

  • Affects customers’ preference on apple’s product due to high prices


Situation analysis discussion

Some of the situation analysis findings of Apple Company regarding its social cultural environment are that:

  • Majority of apple products target market range from the age gap of between 18 – 54 years. In regards to the legal factor it was noted that Apple should take up labor laws in the distribution and creation process of their products.

  • Apple should be keen to protect its software’s privacy in order to prefect illegal replication.

  • In regards to the economical factor it was noted that despite the fact that most apple products customers limited purchase of the Apple product there has not been a situation where there is absolutely no demand of this products in the market. Apple should therefore focus on ensuring that this demand significantly increases.

The other notable issue regarding Apple from SWOT analysis is that:

  • The imitation threat, In this case Apple products are under threats of cloning this threat is already being experienced due to the significant number of clones Apple products which are being sold relatively cheap in the market.

  • Apple should take up is expanding its distribution network especially to new and untapped markets.

  • Apple should capitalize on its strong brand image, financial strength through a high profit margin and market leadership to offer a variety of products to fend off competition from companies like Samsung.

  • Apple should reconsider and adopt franchising in order to minimize its production costs and consequently its higher prices on products. Quality has never been much of an issue for Apple however, recently there has been a surge in customer complains. This requires apples to adopt strong advertising and public relation strategies to counter its dwindling market.

Strategic Business Unit (SBU) Strategies

The nature of the markets where Apple competes in and the potential new markets are increasingly growing. These markets are quite attractive due to the company’s growing reputation and its products becoming increasingly relevant in the market. The uniqueness of Apple products makes most markets they operate in stable thus, creating a distinction in this market and a preference of Apple products (Kissmetrics, 2016). Apple competitive position in the market which is characterised by its unique and classy products makes it a market leader and this is directly attributed to its innovative strategies.

Apple also has a source of advantage in superior skills and superior resources this is evident through its uniqueness in product that is characterised by ground-breaking innovations on their products, their distribution and pricing strategies are well crafted to help maintain its market share and increase its profits. One significant thing that Apple could do that is different from its competitors is improving the usability of its current apps (Marketing Teacher, 2014). Despite Apple’s innovations it has for some time now not touched its software’s app. Therefore, Apple could make its apps more compatible and easy to use for users who are using their new ios 9 software.

Apple is a customer focused organisation this is evident through the extreme organisation cautiousness in meeting its customer’s needs. On the other hand, Apple also fosters an innovative and entrepreneurial environment thus they have been apple to come up with a series of technological products that are up to date (Smith, 2013).


All Apple products should retain the Apple reference brand name, on the other hand, the packaging and logo design should also be according to the unique Apple’s product. The iphone should also be characterised with a couple of technological features that differentiates the product with those of the competitors.

Price is a challenge to many companies and that Apple’s iPhone should be priced significantly higher than the products market price in order to stake claim of the classiness of the product and attract a premium class of consumers in Australia. Apple’s iPhone should embrace specific pricing strategies; entailing discounts and other pricing incentives to the returning customers in order to enhance customer loyalty.


Promotion is the central pillar that drives a company’s marketing strategies thus Apple should embrace the customer promotion element for its iPhone in Australia. In this case, the product will also embrace strategic advertisement and publicity strategies to promote the products (Dudovskiy, 2016). On the other hand, the product should embrace the consumer sales promotion pull strategy as well as the trade sales promotion push strategy in Australia.

The Apple’s iPhone will be strategically placed near the target markets in Australia for instance high end malls. In this case, the shops selling this product will be strategically located in the heart of the cities or big metropolitan town where they will be displayed targeting the working class population in these areas (Kissmetrics, 2016).

The staffs and team working in creation and selling the iPhone should have the needed character traits and work ethics to promote the sales of these products. This team will also be trained in customer relationships in order to promote the sales of these products personally in Australia (Marketing Teacher, 2014).

Physical evidence

Apple’s iPhone should also have a website which gives them some physical evidence. In line with this, the products should also have apple logos which enable the customers and the entire market at large to relate to the products in regards to the brand’s name.

The iPhone should be strategized for public relation events such as; Mac World Expo in order to appeal to its target market (Dudovskiy, 2016). On the other hand, Apple will have to expand its iPhone distribution in Australia by placing them in reputable retail stores such as Wal-Mart in order to maximise on the market margin.


Dudovskiy, J. (2016). Apple 7Ps of Marketing — Research Methodology. [online] Research Methodology. Accessed on 2nd October 2016 from http://research-methodology.net/apple-7ps-of-marketing/

Kissmetrics, (2016). What 7 Key Strategies Must We Learn From Apple Marketing?. [online] Kissmetrics. Accessed on 2nd October 2016 from https://blog.kissmetrics.com/7-strategies-apple-marketing/

Marketing Teacher, (2014). Apple Marketing Mix — Marketing Teacher. [online] Marketing Teacher. Accessed on 2nd October 2016 from http://www.marketingteacher.com/apple-marketing-mix/

Smith, D. (2013). 3 Areas Where CEO Tim Cook Should Improve Apple. [online] International Business Times. Accessed on 2nd October 2016 from http://www.ibtimes.com/apple-board-directors-concerned-3-core-areas-tim-cook-needs-improve-1379639

Smithson, N. (2015). Apple Inc. SWOT Analysis & Recommendations — Panmore Institute. [online] Panmore Institute. Accessed on 2nd October 2016 from http://panmore.com/apple-inc-swot-analysis-recommendations

Spector, N. (2015). 7 ways Apple can improve the iPhone for business users. [online] TechRadar. Accessed on 2nd October 2016 from https://www.techradar.com/news/phone-and-communications/mobile-phones/7-ways-apple-can-improve-the-iphone-for-business-users-1303403