2) SituationAnalysis – Strengths (15 marks) –Identify and describe a minimum of two strengths. These are
internal to the company and focus on the company’s capabilities, resources and processes in comparison to their
competitors’capabilities, resources and processes. You must support each strength, which you identify by
relevant and appropriately cited evidence, and clearly articulate how each strength will affect the company’s
In this section, for your chosen scenario discuss the strengths of the business based on your findings from your
SWOT analysis and the associated implications for the decision/recommendations. Start with the strength points
that are high probability/high impact, followed by high probability/low impact and so on. Be sure only to address
the points that are relevant to the decision you need to make/recommend.
Enormous Brand value
Interbrand is an organization that consults companies in regards to their public image. It also studies the
influence of various brands on customers. Recently Interbrand composed its 2013 list of top global companies
based on their financial performance and brand value,Apple topped the charts as the number one brand in terms
of brand value . According to the companies report the estimated value of Apple's brand is worth $98.3
billion, which is a 28% increase over its net worth ($76.6 billion) in 2012 . To put things into perspective
Apple’s brand is currently more valuable than the world-renowned title holder (last 13 years) namely Coca-Cola.
Copyright © 2013 Interbrand.All Rights Reserved
This is a huge strength for apple when combined with its reputation of being a highly innovative company which
makes beautifully designed top functioning products .As the company continues to increase its presence in
growing markets like China and India, it is predicted that the companies brand value will boost even further.
Customer loyalty and massive ecosystem.
One of the biggest advantages thatApple has over its competitors is the ability to lock-up its users for a long
period in its ecosystem. Apple has a complete range of products both hardware (iPhone, iPod, MacBook e.t.c)
and software (iOS,OSX e.t.c) which are intertwined and complement each other . By constantly presenting
consumers with additional new products and services, the company is able to retain its customers. This can also
be a large reason as to why the consumers demonstrate incredible brand loyalty towardsApple. Customers in the
past have waited for hours for new product releases byApple, according to the Los Angles times news customers waited hours in line before the store opening to get their hands on the latest iPhone 5S . Customer demand
was evident when the company sold 9 million units on just the opening weekend of its latest product launch .
This massive ecosystem in combination with the strengthening Customer loyalty gives the company a huge
Customer Line up the night before the launch for the new iphone 5S Source : The LAtimes
Successful marketing team
Apple has one of the most effective marketing strategies to date. Its strong marketing is one of the most
functional areas of the company. Infact the company is successful in selling its products at premium prices
through its beautifully designed retail stores, which advertise its products in a very captivating fashion.
Strong financial performance ($11,248,000,000 Cash assets, gross profit margin 36.9% as of Jun 29, 2013)
Apple’s financial performance without a doubt is on the top in comparison to many other of it competitors.
Currently the company (fiscal 2013 third quar