Strengths and Weaknesses of Apple Company Free Essay Example, 1500 words

Any company s strengths are its capabilities and resources that a company can use to develop a competitive advantage. It can be a good reputation, any cost advantage in any form, brand name, accessibility to the distribution network, product or service exclusive features. Apple is a highly flourishing company. In its second quarter, the sale of its iPod Music player has increased enormously up to $320. This has not only increased the sale of iPod but also of Macintosh computers. So Shuffle iPod gives the company a boost which enables its sales team to sell its other products as well. Sales of iPod Shuffle in the US are very high and represented a massive part of the revenue to the company (Menzies, D. 2004). Apple brand is one of the most well-known and vigorous IT brands in the whole global market. The customers of Apple are very faithful and devoted to the brand. It means a company which owes loyal customers has no need to spend much on the advertisement. It not only attracts new customers but also retain the old clientele who come again and again to purchase a new line of Apple products. We will write a custom essay sample on Strengths and Weaknesses of Apple Company or any topic specifically for you Only $17.96 $11.86/pageorder now The absence of all those above mention strengths in a firm is its weaknesses. It could be a bad reputation among customers, high production costs structure, for example, lack of access to supplying network, lack of access to the best natural resources, etc. In some cases, it is totally opposite to strengths like in a case where a company has a high production capacity. In normal circumstances, it is a strength, but it can be a weakness if a company has done huge investment to raise the capacity and cannot change the product strategy in this situation (Barney, Jay. (2002). As per reports, the screen of iPod shuffle has been found little bit defective. Furthermore, the batteries are also found faulty. The company in return offers its valuable customers replacement of faulty screen and batteries free of cost. Furthermore, Apple Company is facing immense pressure from the music industry to increase its price of music download file. Many of such companie s make huge profits from such downloads instead of sales of their original and authentic CDs.