Leverage is the link between the strength and the opportunity. Apple has large cash reserves which is strength for the company. The company is planning to launch Apple TV which is likely, going to capture the large potential which has not been discovered of connected devices. With the increase demand of convergent devices, it is probable that it will drive the demand for Apple TV. This opportunity of launching Apple TV has indicated to have a substantial take up in the TV market.
When Apple launch Apple TV it is has been estimated that it is going to drive the top line of the company. The growth of the company’s revenue has always been increased due to a launch of a new product, and if Apple launches Apple TV it is likely going to cause a strong growth at the end. The launch of Apple TV is leverage to the company.
A strength of Apple is a number of successful products. Apple also has the opportunity to enterprise market. It can sell its products to government, education, and enterprise markets which have not yet been discovered. This will help the company to sell its successful products to this space. The use of iPad and iPhones is increasing in the business world and this is of great benefit to Apple. These successful products of the company will enable Apple to tap the enterprise market thus improving the growth of the company. When Apple gets into this market, it will enhance the growth of the company’s revenues. Through the enterprise sale of tablets, it is likely to increase the growth of the company which is a second leverage for Apple.
A problem is that link between a threat and a weakness. Apples weakness is the dependence on just iPhone and iPad. It does not have a big line of products that can help reduce the business risks. The revenues of Apple Company are dependent on iPhone and iPad which is a weakness for the company because it just depends on this two product lines.
Its competitors Samsung have a large product line, and they are a threat to Apple. This is a problem to the company as an increase in business risk occurs when a company has a few product lines while its competitors have many products that they are selling. This increases the risk mostly because of this industry which has extremely fast growing changes in technology.
Lack of price differences for products is one weakness for Apple. The products that the company is selling sell them at just one price. Samsung a competitor to Apple sell its products at different prices which is a threat to the company. This is a problem to the company because customers are usually very sensitive to price. This affects the company because it is not able to address the market like its competitors.
The company’s premium price strategy is a great challenge, and it a negative effect on the average price which the company is able to control. The reason as to why I choose this weakness and threats is because they are come down to price, and it is only price that have a competitive disadvantage to the company. The competitors of the company can use price to effectively gain market share.