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Week 3 Discussion 2

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Internal environment of Apple Inc. Surname
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Apple Inc. is a multinational corporation that designs and manufacture of personal computers,
software, and related services. It is well known for its iPhone, iPad, Mac, and iTunes brands.
Apple Inc. brand is considered the most valuable brand in the globe with worth over $170
billion. The company’s strength includes;
i. Advertising capacity-The Company continues to spend huge amount of funds in
advertising to ensure it increased its brand awareness and create a stronger demand for
Apple’s product. This has helped the Company achieve the greater brand recognition that
has resulted in higher revenue (Khan, Alam & Alam, 2015).
ii. Extensive and strong distribution channels in the U.S market-The Company has
employed multiple channels to distribute its products to the final consumer. The
Company uses its online stores, retail stores, direct sales agents and a wide distribution of
third-party cellular network carriers in major cities in the world.
iii. Vertical Integration-The Company manages four separate businesses as a singular unit. It
deals with a software business, retail, and hardware and also provides services to its
clientele which helps the Company control almost the whole supply chain for its products
iv. Strong brand reputation and awareness- The Company has a well-established brand that
resonates well with the market that perceives the Company’s product as superior and
innovative in comparison to its competitors(Khan, Alam & Alam, 2015)
v. The sound financial performance with strong cash flows-Apple’s revenue growth has
been immense. It has a robust cash flow and large cash reserves which is a good indicator
of the firm’s ability to efficiently manage its short-term activities.
Some of the weakness that the firm experiences range from;

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Internal environment of Apple Inc. Surname
i. The company over depend on sales from its iPhone product-Revenue generated from the
sales of the iPhone phone is the major revenue for the company. This makes the company
very vulnerable to the dynamic changes in the smartphone industry.
ii. Low expenditure on research and development in comparison to its competitors- The
Company has not released a new product that would disrupt the market as it was the case
in the early periods. This clearly shows the firm’s research and development is
underfunded exposing it to stiffer competitive and revolutionary products from its
competitors like Huawei and Samsung
iii. Incompatibility of its OS X with other OS in the market- The firm’s operating systems is
different from the android and windows operating systems which makes it hard to be
compatible with other hardware that is available and widely used in the market. This
limits its use and thus reduces its sales revenue.
Based on the above strength and weakness, the company should ensure that it continues with its
advertising to ensure it creates awareness of its products to a wider coverage in comparison to its
competitors. The company should develop other innovative products that will be embraced in the
market so that the firm stops overdependence on revenues generated from iPhone products. An
introduction of a revolutionary product that will outsmart the iPhone implies the Company
performance will deteriorate faster since a larger portion of its revenue is from sales of iPhone
products. Apple Inc. should develop software and hardware that are compatible with other
operating systems and hardware that are readily available and in use in the market. This will help
increase its sales to customers who use different hardware and software. Most people around the
globe use Windows operating system and thus hardware from Apple Inc. that is incompatible
with this system will limit its use and therefore affects its sales.

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Internal environment of Apple Inc. Surname Student Name Course name Instructor’s name Date Apple Inc. is a multinational corporation that designs and manufacture of personal computers, software, and related services. It is well known for its iPhone, iPad, Mac, and iTunes brands. Apple Inc. brand is considered the most valuable brand in the globe with worth over $170 billion. The company’s strength includes; i. Advertising capacity-The Company continues to spend huge amount of funds in advertising to ensure it increased its brand awareness and create a stronger demand for Apple’s product. This has helped the Company achieve the greater brand recognition that has resulted in higher revenue (Khan, Alam & Alam, 2015). ii. Extensive and strong distribution channels in the U.S market-The Company has employed multiple channels to distribute its products to the final consumer. The Com ...
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