A Case Study of Apple Inc. Using the SWOT and PESTEL Analysis
SWOT Analysis The acronym SWOT stands for strengths, weaknesses, opportunities, and threats. The SWOT Analysis is used to evaluate a company’s “current situation and future prospects by simultaneously considering internal and external factors” (Rothaermel, pg. 130). Companies use the SWOT analysis because it allows them to company to utilize its internal strengths to take advantage of its external opportunities, while lessoning external threats and internal weaknesses. The internal factors are the strengths and weaknesses and the external factors are the opportunities and threats. The internal factors relate to competencies, capabilities, and resources. The VRIO framework can be used to determine if an internal factor is a strength or weakness. External factors “are in the firm’s general environment and can be …show more content…
The company’s iBookstore is in competition with Amazon’s Kindle. Publishers are able to decide the price of e-content and can negotiate higher yields for their products with Amazon. Apple set a maximum price for e-content at the price it would cost to print the book, which limits the publisher’s potential to earn significant profits. The list of competitors that pose a threat to Apple is fairly long because the company has products in various markets. By taking advantage of the strengths and opportunities listed above, Apple could reduce the threat of competitors.
PESTEL Analysis The acronym PESTEL stands for political, economic, sociocultural, technological, ecological, and legal. The PESTEL model categorizes the external factors of a company’s general environment into the six segments listed in the acronym. This model allows a company to examine, observe, and evaluate the significant external factors that could impact them. These external factors could create threats, as well as opportunities.
Political
SWOT Analysis The acronym SWOT stands for strengths, weaknesses, opportunities, and threats. The SWOT Analysis is used to evaluate a company’s “current situation and future prospects by simultaneously considering internal and external factors” (Rothaermel, pg. 130). Companies use the SWOT analysis because it allows them to company to utilize its internal strengths to take advantage of its external opportunities, while lessoning external threats and internal weaknesses. The internal factors are the strengths and weaknesses and the external factors are the opportunities and threats. The internal factors relate to competencies, capabilities, and resources. The VRIO framework can be used to determine if an internal factor is a strength or weakness. External factors “are in the firm’s general environment and can be …show more content…
The company’s iBookstore is in competition with Amazon’s Kindle. Publishers are able to decide the price of e-content and can negotiate higher yields for their products with Amazon. Apple set a maximum price for e-content at the price it would cost to print the book, which limits the publisher’s potential to earn significant profits. The list of competitors that pose a threat to Apple is fairly long because the company has products in various markets. By taking advantage of the strengths and opportunities listed above, Apple could reduce the threat of competitors.
PESTEL Analysis The acronym PESTEL stands for political, economic, sociocultural, technological, ecological, and legal. The PESTEL model categorizes the external factors of a company’s general environment into the six segments listed in the acronym. This model allows a company to examine, observe, and evaluate the significant external factors that could impact them. These external factors could create threats, as well as opportunities.
Political