Strengths and weaknesses of Apple products

By | September 20, 2017

The strength of Apple is that it has the largest market share of the digital music market as its iPod hold 79% of the market share with its nearest rival holding only 8% of the total market share. It exercises effective domination over suppliers and distributors which transform into massive sales. It has strong marketing affiliations and is further strengthened by products such as iPod. Apple is a well-known name for brand development which attracts customers through carefully designed and superbly carried out marketing strategies. It has strong associations’ in the recording industry which enable it to continuously bring new and exciting products in the market.

The design and inbuilt features, plus easy to use high-quality format, and the difference from other products are quite obvious which makes the product much better. Apple has a loyal customer base and keeps in constant touch with its customers for their valuable feedback and suggestions.  It is financially very strong and stable, maintains solid sales and cash flows, has very little debt and fast moving inventory. The weaknesses of Apple is that its software is not compatible with any other system which means that it can be used only on Apple products, and that is something that users dislike.

Their margins per song are very meager and Apple only has 1% share of the cell phone market, and a little more than 4% of the computer market. Apple TV features are not widely accepted or liked. Apple is facing stiff competition for all its products. The market besides being competitive has new products by different companies which have absolute new technological progressions which increase the flexibility of the PCs. Competitors that produce computers and software that are compatible with other systems enable the companies to sell the products at a much lower price. As Internet connectivity has risen considerably, optional devices have become progressively smaller, simpler and much cheaper than Apple’s desktop and laptop computer.

The biggest threat faced by Apple could be future mergers between its competitors and those that provide content that will bring into the market combined value satisfying equations that will give more value or will not give Apple access to content. The possibilities of new companies emerging in this very field are another area that Apple should make plans to face. It takes very little capital to enter into this particular electronic field, and the speed at which technology is progressing, and the speed that it spreads and is available to many could bring many entrants into the field which would cause problems for Apple.

 

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